Unaffordable credit

lynds98

Back in 2016 I was offered credit by JD Williams, it starred out with a small limit which I kept and paid on time.  As time went on credit was increased without any affordability checks, I assumed I was safe to use this credit as the payments stayed low. Credit was increased again with no checks and my cooker blew up along with the drum of the washer finally giving up, I took the extra credit thinking it would be affordable....it was but they didn't tell me the repayments were not covering the interest or balance. I then got hit with a demand to pay big monthly repayments which were way above what I could pay and was told if I didn't keep up these really high payments then the interest and charges would take me back to square one. I asked for help as part of their credit agreement and they offered nothing and stuck to their guns.  Unable to pay I left it,  its now at debt collectors which is fine but up until recently I was unaware of companies who are being pulled up for offering unaffordable credit with no checks.   So how can I go back and sort out this unaffordable credit that should never of been offered and lied to me about now that its in the hands of debt collectors? 

Jenni_D

This query may be better somewhere like the Credit File & Ratings board.

[Deleted User]

You can't.  The reality is that limits are limits, not targets.  It was your decision to spend it all. 

You also had the chance to reject each limit increase as it was offered. Their checks suggested you could handle a higher limit.

Brie

Is JD Williams one of the credit services offered by HSBC?  There should be something on the paperwork.  you might want to talk directly to someone there.

Brie

it's not mentioned in this article so it may not apply but the sort code for making payments is with HSBC

https://www.moneysavingexpert.com/news/2021/07/hsbc-first-direct-m-s-john-lewis-bank-customers-payments-thousan/

pinkshoes

JD Williams are very clear about their payment terms. It is up to you to read them. Form their website which is would you will have read and agreed you have read before signing up to credit:

If you successfully apply for a credit account with us, you can spread the cost of the items you purchase. We'll send you a statement every 28 days, showing:

• What's been sent to you

• What you've returned

• What you've paid

• The balance remaining

• The minimum payment required

We offer a variety of payment options - please click here for more details.
Remember:

• If you choose to make the minimum payment, or you pay less than the full outstanding balance, an interest charge will be applied to your account. This charge is calculated based on your statement's opening balance, any prior period interest due and any interest due on administration charges.

• If you fail to make at least the minimum payment by the due date shown on your statement, you’ll incur an administration charge of £12.

• If you only make the minimum payment each month, it will take you longer and cost you more to clear your balance.

The exact terms that will apply to your account, including your APR (Annual Percentage Rate), will be detailed in your credit agreement. Subject to a successful online application, you can print and/or download the document to keep for future reference. If you apply via telephone, you’ll receive the document by post.

There are also various credit payment calculators free online that will also help you work out how much you owe and how much you will pay back in total. 

Just because you are offered credit, you do not have to take it, and it is up to YOU to make sure the repayments are affordable. 

So I suggest having a look at how much you owe, and working out a way that you can pay it back e.g. selling something, working extra hours, taking some sort of consolidation loan

[Deleted User]

 So how can I go back and sort out this unaffordable credit that should never of been offered and lied to me about now that its in the hands of debt collectors? 

How do you know this?

Sorry I'm just intrigued or missing something.

It would be like me going up to the credit card company saying alright, you had 7 years history to go off - I don't feel you should charge me 2 months interest and charges for defaulting - I know credit cards are a different entity - they are not capped like short term lending so the same angles don't apply. Even going into default, I'm advised the balance could be sold onto a debt collection agency and for the help of defaulting two month's charges and interest.

Even time spent in a company doing rentals with a consumer credit license, there was far more ill positioned people who really could do with support but again a different type of lending and dare I say, different type of collection I remember a Collections call making it's way through as one of the last calls at that place, I was unprepared having a different role, let's say a month down the line the credit card company did a far better way of dealing with such a situation and were exemplary at the job I once wanted to hold - don't get your hopes up, unless you have it in black and white you were mislead as it is isn't clear cut - you brought pretty essential goods there with the credit.  What would your options have been otherwise?

pbartlett

if you need help, contact step change. They will help you.

born_again

Deleted_User said:

You can't.  The reality is that limits are limits, not targets.  It was your decision to spend it all. 

You also had the chance to reject each limit increase as it was offered. Their checks suggested you could handle a higher limit.

If only the regulators agreed with that. 🤷‍♂️
Just look at how the payday loan co'd got shafted....

As per above have a word with one of the debt charities.

p3ncilsharpener

born_again said:

Deleted_User said:

You can't.  The reality is that limits are limits, not targets.  It was your decision to spend it all. 

You also had the chance to reject each limit increase as it was offered. Their checks suggested you could handle a higher limit.

If only the regulators agreed with that. 🤷‍♂️
Just look at how the payday loan co'd got shafted....

As per above have a word with one of the debt charities.

But we've yet to see them go after credit card companies who almost never do hard credit checks before offering limit increases, nor demand payslips and bank statements.

Laz123

Kudos to those ones that helped and a big thumbs down to those that just chose to use schadenfreude. That's not how these forums are supposed to work.