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credit card balance final payment offer

evie-mays-mum
Posts: 107 Forumite
in Credit cards
Hi there
im looking for some help for a friend of mine
after returning home from travelling she had a credit card balance of £8500 with her own bank the halifax.
As she had taken a year out from her job she returned to employment staraight away and paid her monthly min payment of £150.
She is basically paying the interest and only £90 has come from the actual balance so she applied to the halifax for a loan to pay of her credit card so there would actually be an end in sight.
Despite banking with them from being a child,having never defaulted or had charges on her account and having a healthy wage going in each month for the last 9 years she has been refused-maybe as they are making too much on her cc interest
(please see below for possible reason)
she has now decided to take her business to a&l not just because of the loan refusal but also because of probs with them blocking her card whilst travelling despite them being advised,freezing her account as they had been advised via death certificate that she had died!!(obviously there error but distressing all the same) and has been told that she can ask the halifax for a final figure offer to pay off the credit card in full.also that there may be a template letter that she can use.
Can anyone point me in the direction of this letter and also help with what sort of a figure she should be offering them
understandably when she was refused the loan she couldnt understand why given the fact that she had always run her account well,never fallen behind or defaulted on any credit she has had in the past.
After looking into she found that in 2001 she had a car on finance that was written off,as she had gap insurance they paid off the finance.....or so she thought!!it seems that there was a shortfall of £300 that nobody had bothered to advise her of and they have been leaving default stamps all over her credit file.
She tried to contact gap to pay the money herself who advised her that they had been taken over a number of times since then and they have no record of any accont with her and therefore can not take the money and clear the amount and update her credit file...despite the fact that they are the ones wrecking her credit!!!!
Strangly she got a morgage 5 years ago no problem
if anybody could offer advise on any of these matters thanks in advance
sorry for the capitals,i had got halfway through my speel before realising caps lock was on
im looking for some help for a friend of mine
after returning home from travelling she had a credit card balance of £8500 with her own bank the halifax.
As she had taken a year out from her job she returned to employment staraight away and paid her monthly min payment of £150.
She is basically paying the interest and only £90 has come from the actual balance so she applied to the halifax for a loan to pay of her credit card so there would actually be an end in sight.
Despite banking with them from being a child,having never defaulted or had charges on her account and having a healthy wage going in each month for the last 9 years she has been refused-maybe as they are making too much on her cc interest
(please see below for possible reason)
she has now decided to take her business to a&l not just because of the loan refusal but also because of probs with them blocking her card whilst travelling despite them being advised,freezing her account as they had been advised via death certificate that she had died!!(obviously there error but distressing all the same) and has been told that she can ask the halifax for a final figure offer to pay off the credit card in full.also that there may be a template letter that she can use.
Can anyone point me in the direction of this letter and also help with what sort of a figure she should be offering them
understandably when she was refused the loan she couldnt understand why given the fact that she had always run her account well,never fallen behind or defaulted on any credit she has had in the past.
After looking into she found that in 2001 she had a car on finance that was written off,as she had gap insurance they paid off the finance.....or so she thought!!it seems that there was a shortfall of £300 that nobody had bothered to advise her of and they have been leaving default stamps all over her credit file.
She tried to contact gap to pay the money herself who advised her that they had been taken over a number of times since then and they have no record of any accont with her and therefore can not take the money and clear the amount and update her credit file...despite the fact that they are the ones wrecking her credit!!!!
Strangly she got a morgage 5 years ago no problem
if anybody could offer advise on any of these matters thanks in advance
sorry for the capitals,i had got halfway through my speel before realising caps lock was on
0
Comments
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Hi
If she has always made her cc payments on time and has never defaulted on that account they are very unlikey to accept anything less than full balance.
If she had had a default in 2001 it would no longer appear on her credit file - on any individual account you can only be defaulted once and that is given a fixed default date. 6years after that the default disappears. Plus if she got a mortgage 5years ago then it seems likely the default didn't exist then.
She needs to look into exactly who put the default on her file and on what date. If this was substantially after when the car was handed back then she needs to consider whether the default has been registeed in accordance with OFT guidelines. It is possible she may be able to get it removed (particularly if its a rogue DCA that has put the default notice on her file quite recently).
Have A&L given a definite yes to a loan to clear her card? only they may be even more likely to refuse than halifax. With halifax then can force her to use the loan to clear the card and then cancel the card, so they would know her borrowing woudn't increase.
When A&L assess her affordability they will assume that she might keep the halifax card open and could potentially end an £8k loan and an £8k credit card. So usually she would be even less likely to get a loan with a new bank than your own.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0
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