Advice Needed Re: Vanquis (Poll)

amyloofoo

Hi everybody, I'm just after a little advice really. Since trying to sort out my finances I've been in correspondence with all my creditors and have been trying to work out repayment plans / get hold of debt and interest charges where these have become problems. Today I received the following from Vanquis, and I'm not really sure which option to go for.

Further to your recent request for a refund of default charges and in order to resolve this matter we would like to offer £134.81.

This sum represents the total amount of charges applied to your account since opened plus interest that has accrued.

Please note that this sum is offered in full and final settlement of this matter.
The following options are available to you if you wish to proceed with your refund request.

OPTION 1

We will vary your account to ensure that in future you do not incur the following fees:

- Late payment charge
- Over limit charge
- Return payment charge
- Returned credit card cheque charge
- Tracing charge

As part of this variation to your account, your annual cash interest rate will be 59.0% and your annual purchase rate will be 54.9% Your account will also be subject to a £25 annual fee. Full details will be provided by way of a notice of variation that will be issues once our offer has been accepted an the refund processed.

OPTION 2

Pay off the balance at your current rate of interest. You will not be able to use your card in future and it will be closed when the balance is repaid in full. You should cancel any standing orders or continual authorities that you may have set up on the account.

To confirm your acceptance of this refund in full and final settlement of your claim in respect of default charges levied on the above account, please sign the enclosed acceptance form and indicate your choice of the two options. Please note that we cannot proceed with your request if you have not indicated your choice. Once we have received your signed acceptance back, the refund will be processed within 4 - 6 weeks.

I'm a bit confused really and not really sure which option to go for, I'd be grateful for any insights from people who know more about finances / credit than myself.

amyloofoo

I know it's a long post, but I would be grateful for any advice or insights that people have. I've not come across this before and really don't know what to do for the best.

ikkle87

In my personal opinion I would go for option 2. If you were setting up a dmp with a company like CCCS then you would have to agree to not take any more credit, with option 1 you still have the opportunity to buy more and run up more credit, with option 2 the temptation is gone, the card is gone.