Why do companies think my financial circumstances have changed when they haven't?

The_Boss

matttye wrote: »

Another assumption because they only get to see the balance, not what it's spent on.

There's no demand for additional payment but they have indicated he has 'an improvement in his financial situation' which is, again, an assumption.

But it's an assumption they have every right to make when the repayments are only £1 and they are entitled to call for this review so need to justify it. I think we are going to have to agree to disagree.

It will be interesting if the OP gets a reply and they say because their credit 'score' on Call Credit/Noddle has improved (which I suspect they will) because I agree that this would not be an affordability reflection.

damo24

Hi everyone,

Thanks for all of the replies. Just to clarify the situation, whenever possible I have used my credit card instead of cash or debit card however I only use it to buy things I need such as food etc and put the money in a separate account until the bill is due.

This method was something suggested on here a while ago as I was told that it helps to rebuild my credit rating and more importantly it ensures that I do not go into debt. To help with this process I also buy things for friends and family using the card (with them paying me the cash in advance). The idea being that I can often use quite a bit of my credit limit each month (without getting too close) and then repay in full showing that I can be responsible with my money.

If I do get a reply from the debt collection agency I will post their response on here.

Thanks again

bengal-stripe

damo24 wrote: »

......I also buy things for friends and family using the card (with them paying me the cash in advance). The idea being that I can often use quite a bit of my credit limit each month (without getting too close) and then repay in full showing that I can be responsible with my money.

That's it!

If you have not inconsiderable sums going every month onto your card, which then get repaid in full, the assumption is clearly that it is the money you have coming in.

If I were you, I would be very careful having other people's monies going through your card or your bank account.

damo24

bengal-stripe wrote: »

That's it!

If you have not inconsiderable sums going every month onto your card, which then get repaid in full, the assumption is clearly that it is the money you have coming in.

If I were you, I would be very careful having other people's monies going through your card or your bank account.

Thanks, don't worry, EVERYTHING is recorded and receipts etc filed so that there can never be any allegations made. I've had two DWP investigations in the past including one for having a clear out and selling everything on eBay to raise money. Even though I had nothing at all to hide they were terrifying so everything is done in a perfectly transparent form.

matttye

bengal-stripe wrote: »

That's it!

If you have not inconsiderable sums going every month onto your card, which then get repaid in full, the assumption is clearly that it is the money you have coming in.

If I were you, I would be very careful having other people's monies going through your card or your bank account.

I don't think it's that because they wouldn't know what money he has coming in. Lenders can only see debit balances on current accounts in your credit report, not balances in credit.

bengal-stripe

matttye wrote: »

Lenders can only see debit balances on current accounts in your credit report, not balances in credit.

But (potential or current) lenders can see the monthly balance on the CC and then the subsequent payment.

We don't know, if the OP gets the odd fiver here and there to pass through the CC, or s/he has hundreds or thousands of pound per months which get shifted through the card. (Kind of money laundering in reverse.) If the CC runs up £ 1000 per month, which get paid some two or three weeks later, one would presume the OP is financially quite sound.

No wonder, the OP has had two investigations from the DWP (and might well be on continuous investigation) as the DWP can access the credit records of benefit claimants.

http://www.bbc.co.uk/news/business-10923819

Thrugelmir

As often is the case in the world of finance. Pull on the string and it keeps on coming, and coming and coming.......

damo24

bengal-stripe wrote: »

No wonder, the OP has had two investigations from the DWP (and might well be on continuous investigation) as the DWP can access the credit records of benefit claimants.

It was not quite so straight forward. The first investigation was about 6 months after I began to claim benefits. Prior to that I had an extremely well paid job so they wanted to know what had happened to the money I had earned. When they viewed my bank statements and realised that I had lived off my savings for more than a year before claiming and had nothing left. That was the end of that.

The second investigation was very much a "big brother is watching". Over the space of about 4 months I had a mass clear out of all of my things and a few unwanted things belonging to my family too. All in all, this raised about £400 on eBay (before fees). I was investigated to see if I was running an eBay shop (despite the newest item sold being more than 3 years old).

After being cleared of any wrong-doing, the investigator told me that someone had reported me for selling on eBay. I know that this was not true as there were only two people who knew I was selling items: my mother who gave me some things to sell and my best friend who helped me to package and post the items so I doubt it was either of them.