Persistent Debt M&S

PencilHB

I have a persistent debt letter from M&S and I have phoned them up to discuss an increased repayment plan which I can afford. However they won’t agree to it unless I go through all my monthly income and outgoings with them which I feel uncomfortable with. Does anyone know if I can refuse to do this and if so what the consequences might be? Any help much appreciated.

Shakin_Steve

As long as you make your contractual minimum payment each month there's nothing they can do.

kaMelo

Shakin_Steve said:

As long as you make your contractual minimum payment each month there's nothing they can do.

Whilst paying the minimum payment may be enough to prevent defaults or arrears, it may not be enough to prevent the lender taking other measure including account closure.
Being identified as in persistent debt starts a clock ticking, depending on where you are on that timeline determines what a lender is obligated to do. Have a read here.

https://www.moneysavingexpert.com/credit-cards/persistent-debt-help/

eskbanker

PencilHB said:

I have a persistent debt letter from M&S and I have phoned them up to discuss an increased repayment plan which I can afford. However they won’t agree to it unless I go through all my monthly income and outgoings with them which I feel uncomfortable with. Does anyone know if I can refuse to do this and if so what the consequences might be? Any help much appreciated.

It all depends on whether or not your increased repayments are enough to get you out of persistent debt status, as determined by whether you'd be paying more off the balance than you're paying in interest and charges.

If you do so and move out of persistent debt status, then to all intents and purposes that prevents the lender from taking any action, and means that you don't need to discuss anything with them.

On the other hand, if you remain in persistent debt by not repaying enough, then they're obliged to continue the discussion, as explained in the article linked above.

jonesMUFCforever

The problem you might have if you don't play ball with them is that they might freeze your card for new purchases.
Are your finances in a mess? Are you afraid that by coming clean they will close your card?

Shakin_Steve

All of all of this is true, but the OP wanted to know whether he had to share his income and outgoings with the company, and he doesn't. He can engage with regards to upping his payments but, if they insist he shares his details and he is determined not to, then he can legally make the minimum payment and tell them to stuff off. 

Maybe not the best course of action.

nic_c

Maybe the OP thinks they'll try and take as much off them as they can.
If M&S are increasing minimum payments because of persistent debt, they need to ensure they are not asking for payments that the OP cannot afford, that's the reason for wanting income & expenditure. True the OP can refuse, and they can end up having the card frozen to new purchases, and additional action taken.

[Deleted User]

The credit card companies can't win. Ask for details so they can determine what is affordable, they are the bad guys. They don't ask and someone like the OP would probably go down the mis-selling route because they didn't ask about affordability. 

Malkytheheed

jonesMUFCforever said:

Are your finances in a mess? 

I think the asnwer to that is pretty obvious. How else do you get a persistent debt letter? 

born_again

PencilHB said:

I have a persistent debt letter from M&S and I have phoned them up to discuss an increased repayment plan which I can afford. However they won’t agree to it unless I go through all my monthly income and outgoings with them which I feel uncomfortable with. Does anyone know if I can refuse to do this and if so what the consequences might be? Any help much appreciated.

Well they could block the card/account so you can't use it.
Is there a good reason you do not want to go through your details?
As they are there to help you. If it comes out that you are in trouble and can not really afford more than the minimum. Then they could freeze the account & interest. While you won't be able to use it, it will be paid off sooner.

Or if you relly do not want to talk to them, then pop to the debt board and do a soa or speak to stepchange if things are bad.

MinuteNoodles

They have a legal duty to help people in persistent debt, as you are in financial crisis  they're required to ensure that they come up with a payment plan which is realistically affordable and more importantly, one which would not be deemed to be punitive by a court if it came to that. Lots of people think they can afford more than they actually can when setting up a repayment plan and as a result those plans fail. Going through your income and outgoings reduces the chance of that.