CapitalOne - several limit rises later - things start to go wrong

Its_going_horribly_wrong

Got a capitalone card as 'organisation of last resort' and was initially given £1000 limit, signed the CCA paperwork and job was done.

Over the course of several years they gradually increased my limit to £4200, but I never signed any new credit agreement at each limit rise - I did get a letter telling me I was getting a higher limit and some wording along the lines of 'Use of higher limit signifies your acceptance'.

Now several months ago things started to take a financial swing for the worse with new start business still not paying a wage and several other worrisome expenses, and with one thing and another there was no money left to pay them with. So I fobbed them off for a bit then just stopped answering their 5 times a day calls.

So now they are after me for payments , largely now via some company called Frederic Ericsson or something...

Whilst dodging one of there many and frequent (usually silent) phone calls a mate who was round for coffee said something that intrigued me.

He said he had read somewhere that if you didn't sign a CCA for the sum outstanding then they couldn't pursue you for it. The amount you signed the CCA for (in my case i believe £1000) is all they can get you on.

Does anyone have any knowledge of this?

Yes I know I spent the money before some wise-acre pops that one in, but things are rock-bottom, money-wise, and when ur shoulder high in crap and ur water-wings are flat you gotta grab anything floating by...

opinions4u

Your mate is talking nonsense.

Sorry.

CLAPTON

has your mate done this personally with no repercussions?

certainly would be handy : my total credit limits add up to many many 10s of thousands which I certainly didn't sign for.
wonderful if I could spend all that and walk away without stain on my credit record.

planteria

i think, bottom line: you need to pay back the money you have borrowed.

InsideInsurance

There is no requirement for a new credit agreement to be signed for an increased credit limit.

Arguably there is no longer a requirement for the credit agreement to be signed at all since the 2006 amendment that removed Section 127 (3) that required a creditor to be able to produce a signed copy of the CCA form. This wasnt applied retrospectively so it would depend when the last version of the document was give to you to be signed

[Deleted User]

Trade your mate in for a smarter one. Stupidity can be contagious if exposed to it for long enough.

The_Boss

Never had to sign for an increase but could decline the increase if I wanted.

Your mate is just telling you something he wants you to hear.

It's a shame you ignored Cap One rather than talk to them and reach some sort of agreement - your credit file will be trashed now or soon for the next 6 years.

jay87

You signed a variable credit agreement. the limits and aprs are variable and you have chosen to spend that money

worried48

They've never given me an increase - my other cards have but not Cap One. Guess some of us haven't got what it takes!

sharpy2010

Its_going_horribly_wrong wrote: »

Yes I know I spent the money before some wise-acre pops that one in, but things are rock-bottom, money-wise, and when ur shoulder high in crap and ur water-wings are flat you gotta grab anything floating by...

Great, so you are in a bad place (we've all been there), so you have to attempt to stitch someone else up to get out of it? Out of order I'm afraid.

sharpy2010

An a side note, someone must be REALLY bored to make up stuff like that, just to see peoples answers to it...