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Can they do this?
jendoig1405
Posts: 1 Newbie
Hi I had a successful claim from capital one through a claim company. I was awarded £1036.36. The credit card account is closed they agreed at the time to a short settlement. Now the are taking £423.44 for the "overlimit amount" the claims company want £310.91 for their fee, which leaves me with £224. A are cap one allowed to take money to pay off an already settled account and be can the claims company bill me for a percentage of the full amount? Doesn't seem fair.
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Comments
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Yes to both.0
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A settlement does not mean your debt disappears, just that they will not actively chase it anymore. If you then try to take money from them, they're understandably going to want you to clear your account first.0
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jendoig1405 wrote: »Hi I had a successful claim from capital one through a claim company. I was awarded £1036.36. The credit card account is closed they agreed at the time to a short settlement. Now the are taking £423.44 for the "overlimit amount" the claims company want £310.91 for their fee, which leaves me with £224. A are cap one allowed to take money to pay off an already settled account and be can the claims company bill me for a percentage of the full amount? Doesn't seem fair.
It seems very fair.
You failed to repay the debt. So, asking to refund something you didnt pay is pushing it. The FCA allow redress to go against arrears, defaults and amounts previously written off as part of an agreed settlement for that very reason.
Just because a lender agrees to accept a reduced value to settle a debt does not mean the debt goes away. It remains there. THey just wont chase you up for it in the courts.
People with arrears, defaults and debts that are written off should never use a claims company as they will bill against the full amount of the redress even if you do not see that amount cash in hand. Its a bit late for you now but the CMC is allowed to do that.
Your opinion that it is unfair is a bit crazy in anyone's book.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You're £224 up and your debt has been paid.
Could have been worse, you could have ended up in debt to the claims company.0
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