natwest credit card and the debt collection angency

Fallenangel152

Ah well, i thought it was wishful thinking that the little guy would win.

Got back this weekend and found my CCA and signed agreement on the mat from Mint, so it looks like nothing can stop AIC demanding the money in full.

If i can't borrow the money from my mum and dad i'm screwed.

rog2

Fallenangel152 wrote: »

Got back this weekend and found my CCA and signed agreement on the mat from Mint, so it looks like nothing can stop AIC demanding the money in full.

Okay, FA - the 'debt' is now enforceable, but AIC can not 'demand the money in full' if you can not afford to pay it all.
They should listen to offers of payment from you and should not force you to pay at a rate which is more than you can afford. Niether should they suggest that you 'borrow' the money to pay off this debt.
Have a look at the OFT Debt Collection Guidelines to see how they should behave:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

If they deviate from these guidelines then you would be perfectly entitled to report them to Trading Standards, who have the power to revoke their trading licence.

Now, also, would be a good time to talk with one of the Debt Counselling Charities, such as National Debtline - 0808 808 4000, CCCS - 0800 138 1111, or a debt adviser at your local CAB. They will talk you through your income/expenditure (soa) and suggest an amount that you will be able to pay. They will, also, suggest a letter that you can write to AIC to make any such offer.

Talkto them before you talk to AIC, as AIC will do everything possible to ensure thatr you commit yourself to a payment plan that is in their interests, rather than yours, and wil come down on you like a ton of bricks if you can't keep up the payments.

In fact I would go as far as saying - Do NOT contact AIC by phone and keep all correspondence in writing. If they phone you just refuse to talk to them.

Fallenangel152

Thanks rog! I'm going to call National Debtline again tonight and see what they say. I could sort out a regular payment plan but we have so little money right now. We're saving for a wedding and our mortgage is £200 more than it has been since we dropped off the fixed rate. I cannot afford any more bad credit (and certainly not get another CCJ) as my life is on hold now (i don't even have a bank account due to bad credit).

I think the best option is to talk to my parents. If i can borrow the full amount and pay it off then it's off my back. I'd rather owe family than AIC.


Is it worth me talking to AIC about a settlement price, or should i just pay the whole thing?

rog2

Fallenangel152 wrote: »

I think the best option is to talk to my parents. If i can borrow the full amount and pay it off then it's off my back. I'd rather owe family than AIC.

Is it worth me talking to AIC about a settlement price, or should i just pay the whole thing?

I do have to agree that it is better to be beholden to the 'Bank of Mum and Dad' than to the likes of AIC.

Certainly, FA, it will be worth your while making a 'Full and Final Settlement Offer' as AIC probably bought the 'debt' for peanuts and will, most likely, be happy to take a 'quick profit' on the deal.

Couple of words of warning, though.

Do not pay them one brass penny unless they agree that it is in 'Full and Final Settlement'. Do not accept any other wording such as settlement, or partial settlement, as your average dca, such as AIC, is more slippery than a can of worms, and will, not only, gladly take what you offer, but could come back, in the future, for the balance as the payment was not 'Full and Final'.

Have a look at the following NDL link on 'Full and Final Settlement Offers:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Remember, too, that AIC is unlikely to accept your first 'offer' so make your first offer a bit lower than you can afford, so that there is room for negociation. But do not let them spin it out too long - you should explain that the money, with which you are able to make any 'F&F' offer is only available for a certain period and, if they do not accept your offer within (say) 15 days, the money will no longer be available to you and the offer will be withdrawn.

Fallenangel152

Thank you so much rog. The end is now in sight for me! I just need to make the fateful call tonight!

Half of me worries about settlements. I feel guilty not paying it in full and in my mind it stills hangs over my head - there's always the chance that they'll come back.

But in AIC's case, i'm more than willing to make sure they don't get it all. The amount is £1350. What is a reasonable settlement fee they'll consider? Would i be silly to ask for £800? £1000?

rog2

Fallenangel152 wrote: »

But in AIC's case, i'm more than willing to make sure they don't get it all. The amount is £1350. What is a reasonable settlement fee they'll consider? Would i be silly to ask for £800? £1000?

FA - it would be more than reasonable for you to offer a lower amount (obviously depending on what 'cash' may be available to you) than even the £800 that you suggest. Bear in mind that AIC are most unlikely to accept your first offer, so you will need a fall back situation.
If it were me, I would be inclined to make my first offer at around 40 - 50% of the total debt - say around £625.00. They are unlikely to bite your hand off at this, but it is easier to increase your offer rather than decrease it.
But have a chat with your parents and NDL.

kopite1971

Hi FA, i've been reading all this thread with interest, the advice you have been given is good and i myself have been on a similar trek with MBNA, Monument and CitiFinancial over the last few months albeit not always involving DCA's. Now you have your CCA, my advice is this is where the fun and games start. I have a CCA for each of the above credit cards which appeared to me to be fait accompli to the card company. However i have discovered that in each case the CCA has errors on them which mean that the CCA is unenforceable and each of the above cards are now in the hands of solicitors whom are seeking to a) have the debt cancelled, b) have my credit file cleaned and c) have the payments i have made to the cards refunded back to me.

I know most people on here and on the Consumer Action Group site like to do everything themselves, but i found dealing with and understanding the legal aspects far too time consuming plus too difficult to understand so i used a web site where you pay for the work to be done for you £495 for the first card, £295 for each other card. Win or lose thats all you pay and you get to keep any money they win on your behalf. Does it work, well it seems to be at the moment but the cases haven't been concluded yet.

I am not saying this will be your solution, but you may find it is. Whatever i would only offer the DCA what you can actually afford, without using the bank of mum n dad.

the website i am using is called www.creditclearservices.co.uk of which i have no financial or business interest apart from finding a solution for my own issues and sharing that info with other people whom may benefit.

Best of luck whatever action you choose to take

cc99

Hi Fallenangel,

Sorry to hear your news, plese take on board what ROG says and please DOUBLE CHECK the CCA and make sure that it is all legal and above board.
Try not to worry, offer them a very reduced amount and it may be in your interest to visit CAB and get them to put together a financial statement for you which will be very much in your favour to bring down the repayments.
Another place to try is Consumer Credit Counselling Services
http://www.cccs.co.uk/
they are a non profit helpline for people like you.

Take it a step at a time and you will get there in the end.;)

gazroe

Hi Fallenangel,
did you apply 4 your egg card online, and if so when did you do it. reading on diffrent pages my impression is that internet applications are not covered under the CCA until 2006 but others here will advise you better
chin up
G

kurjam

yes do check its legal, as aic sent me one for my natwest card, and it was infact for an application for a credit card not relating to natwest, it was my capital one card from a couple of years ago....

it is now over 1 year and i never heard anything from them :j