Can I send CCA request without it being with DCA?

Sheesha

Hi all, Hope ur all well?

My mum has a Barclaycard which she opened many many years ago. Because she's never defauled on a monthly payment its never gone to a Debt Collecting Agency - its still held with Barclaycard - even tho she hasnt used the card in years.

The balance is around 950. she pays the minimum a month, half of which is interest.

I was thinking of doing a CCA request for her - but is this wise?

I hate the thought of her struggling trying to meet minimum payments when they may not even have her orginal credit agreement.

The exact same situation my mother-in-law is in - same Barclaycard she's had for years she's been paying, with alot of interest etc etc.

What du advise peeps?

Tixy

You can send a CCA request to barclaycard yes.

If she is keeping up with payments then the only possible negative implication could be that they may consider closing the account to new spending, if she hasn't used the card in years then presumably that is not an issue.

If they are unable to provide a CCA, or if it doesn't contain the prescribed terms it should then would she intend to default on the debt? If so she is presumably aware they can still enter a default on her credit file and that failure to provide it only prevents them taking legal action to recover the debt.

Sheesha

Thanks for reply Tixy.

I dont think my mum or MIL intend to not pay, they do want to avoid a default on credit file. I'm just wondering what options are IF Barclaycard dont have CCA?

e.g. Can we freeze the interest perhaps? Neither of them have used the card for years, they want both cards closed off asap really.

Tixy

If they have never missed payments before then I very much doubt that bc would agree to freeze interest without recording this in some way on their credit files (perhaps as an arrangement to pay).

Are neither in a positon to increase the repayments to a little over the minimum a month? this would have a big impact on how long it will take to clear the debt. Have both tried and been declined for another card with a promo on balance transfer cards (such as 0% or low rate)?

Tixy

What APR is mother paying on the £950 debt?

As its a bc is her monthly payment about £21 a month?

As you've said the interest is half the monthly payment I would guess the APR is around 12.9%.

Have a look at the minimum payment calculator - if the above is correct and she pays just the minimum payment it will take her over 14years to clear the debt. However if she paid £30 a month then she could clear it in 3year and 3 months.
http://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card?

Sheesha

I've got both of their last payment slips so will have a read (once I'm back in my office later) and send the APR's. thanks Tixy

Sheesha

---On my Mum's payment slip, the payment made was £21.00. it says the interest on your standard balance is £13.49. Interest 1.527%

Previous balance £927.89. New balance £920.28 so only £7.51 coming off the debt.

re APR - It says annual rate for purchases 19.9%, annual rate for cash 27.9%

---My mother-in-law payment slip, it says:
04/06/14 payment made £63.26
12/06/14 payment made £200.
it then says interest on your standard balance £100.26, Interest 2.075%

Previous balance 4806.81
New balance 4643.81

£163 coming off debt, £100.26 is interest.
re APR - It says annual rate for purchases 27.9%, annual rate for cash 27.9%

Tixy

So MIL is paying more than minimum payments, which is good. But her debt is high and the APR is high.
It may well be worth her seeing if she is able to move this debt to somewhere cheaper such as a 0% balance transfer credit card, or possibly a bank loan (assuming the APR is less than the card).

For mother if she is only making minimum payments she may well find it harder to get accepted for a new cheaper or 0% credit card - but it may be worth a try. Perhaps talk to her about checking out the MSE eligibility checker, which will give her an indication of whether she may be able to get another card - http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?_ga=1.28719476.91994898.1404996998#eligibility

If she cannot then I would talk to her and see if she can make some other changes to her outgoings so she can increase the repayments on this debt. Is this her only debt?
If she cannot increase repayments and if she continues to pay just the minimum it will take her over 18years to repay the debt. In which case it may be worth cher onsidering defaulting on the debt, even though it will affect her credit file.

[Deleted User]

As it's not a huge balance, I'd suggest a few months of frugal living, in order to hit the debt hard, and clear the balance completely.

Even if all the balance is at the 27.9% Cash APR, if you mother could manage £200pm, it would be cleared in just 5 months.

Sheesha

thank you both i'll approach my mum first, she does have another vanquis debt (which isnt defaulted) so i'm going to sit down with her & go through all her incomings/outgoings & think of where she can save etc. I know she'll be better off next month as a tax credit error will be finished.

with mum-in-law i'll speak to my hubby & see what options are available.

its a shame interest is so god damn high but there we go.

thanks again for your comments

sourcrates

A CCA request is only beneficial to you if the debt has been long since defaulted, and subsequently sold on to a DCA, and you are attempting to come to a full and final settlement with them.
In order for BC to freeze interest you could write and explain your mum is on low income etc, but unless she is in financial difficulties and really cant afford the payments, they may not be very helpful, but its always worth a try.