Credit card defaulted without notice?

DaisyBell

Hi, hope someone can advise me on this one.
I have a credit card with Sainsburys, my partner is the main card holder, I also have a card. Last year we ran into difficulties and Sainsburys agreed a repayment rate of £24 a month, no interest. They then reviewed this earlier this year, as our circumstances have not changed, they agreed a further arrangement, sent a letter to confirm, dated 23rd March, stating that we could continue to pay £24 a month for the next 6 months. This was a big relief, however, yesterday we received a letter from Westcot Credit Services informing us that Sainsburys had sold our debt to them, and we now had to pay up. My question is, can Sainsburys just sell the debt, without first informing us, and despite having just agreed a further arrangement for the next 6 months?

jonesMUFCforever

Yes they can - sorry if that is not what you want to hear.

Voyager2002

DaisyBell wrote: »

Hi, hope someone can advise me on this one.
I have a credit card with Sainsburys, my partner is the main card holder, I also have a card. Last year we ran into difficulties and Sainsburys agreed a repayment rate of £24 a month, no interest. They then reviewed this earlier this year, as our circumstances have not changed, they agreed a further arrangement, sent a letter to confirm, dated 23rd March, stating that we could continue to pay £24 a month for the next 6 months. This was a big relief, however, yesterday we received a letter from Westcot Credit Services informing us that Sainsburys had sold our debt to them, and we now had to pay up. My question is, can Sainsburys just sell the debt, without first informing us, and despite having just agreed a further arrangement for the next 6 months?

This sounds like administrative confusion: leaving aside the question whether the lender is legally permitted to do this, I doubt if they intended to do so. You need to contact them in a friendly and polite manner asking for the current position, and see how they respond.

jimsmillions

I am no expert but have had many defaulted credit cards in the past though.

Westcot Credit Services cant make you pay anymore than you can afford. Submit them a breakdown of your income and expenditure and your proposed payment. They may play heavy to start with to try to get the total amount out of you but just insist that this is all you can pay and send them payments even if you dont have an agreement. This proves that you are trying to pay the debt off. If they have bought the debt then they have bought it at a discounted price. This also means they will be open to negotiation at some stage to clear the total amount. I found this generally to be around 25% off of the total value of the debt. I paid one of my debts off this way.

Most of all dont panic. All of my cards went to debt collectors years ago and I have been successfully dealing with them for around 6 years. I now have only one outstanding debt left which will be paid off in July this year. I checked my credit rating about 3 weeks back and I am now at the top of the scale, nearly died of shock :eek:

rtho782

By coming to this deal you had broken your original arrangement with them, and they are entitled to default you.

Frozen interest alone means that in the last year they have lost over 5% of the money to inflation.

Sorry

BugsyBrowne

You applied for a sainsburys credit card, they then credit scored you and you then got accepted which means you had a good/excellent credit rating and you were a low risk, you then Become a high risk customer after running into difficulties and therefore not the customer they accepted when you applied and now they want shot of you and selling the debt was quite easy for them.