Complicated "Interest Opt-Out" question

izools

star-fire wrote: »

I understand your mother has been good paying back the money,i just thought arrangement to pay and default were basically the same either way the customer could not keep up the repayments.

No mate they're compeltely different.

A default means the customer has not paid anything toward the debt and point blank ignored requests from the creditor to sort out payment for months and months on end, the customer has made no effort to make any payments whatsoever, nor explained their situation seeking an agreement, and as a result the creditor has terminated the account.

An arrangement to pay means that the customer has been pro-active in disucssing financial hardship with the creditor, continued to pay what they can, and agreed on a temporary solution that the creditor is happy to accept whilst the customer is suffering financial hardship. It shows that the creditor is happy and content with the agreement and the debt is being paid, albeit outside the terms originally agreed upon when the account was opened.

Fergie76

izools wrote: »

As regard to being a bad customer what in fact happened was that Barclaycard kept increasing mother's limit - she kept asking them to reduce her limit, they refused. She kept asking them to close the account - they refused and continued re-issuing new cards.

But having a credit limit is not a target to reach. She did not have to use the credit card, if she could not afford to pay it back at the agreed rate on which it was issued.

izools

Fergie76 wrote: »

But having a credit limit is not a target to reach. She did not have to use the credit card, if she could not afford to pay it back at the agreed rate on which it was issued.

That doesn't need pointing out does it Fergie? That's a given.

Why do you think she kept asking Barclaycard to a) reduce the limit, b) cancel the cards, and c) close the account?

They refused to do all three. This was a long time ago, mind, perhaps before they were obliged to comply with such requests.

Like I said, I myself was a great contributor to the balance on the card and it's because of me beling a little sod as a young child that she kept asking them to cut the limit and close the account! I don't think mother can hold all the blame for my exploring the wonders of online shopping in the late 90's at her expense.

And yes, that means it's my responsibility to now help her with the debt given that I am drawing a salary. And I do in other ways - if she's short of cash for a service on her car, I'll give her a bit. If she's in need of a new PC (like earlier this year) I'll buy her one. Etc.

Anyway, thanks for your input... Pretty meaningless but thanks anyway...