Avant credit adding crazy interest to defaulted debt

SuperFrank88

Hi everyone,

I am after some advice please. Long story short, I defaulted on all of my debts last year and have since been paying every one of them back each month based on the offer generated by the NEDCAB tool as I wanted to go self managed. Everyone accepted my offer except for Avant, which is my biggest debt. Originally they refused to default and I had to wait over a year. I complained to them and got the default backdated to March 2020 in line with the rest of my default dates. 

I wrote to them with my offer of repayment of £80pm based on my income & expenditure created by the CAB dmp tool and they replied saying they would accept it for 6 months and then they would revert back to taking my contractual payments of £334pm. I contested this with them saying how did they expect me to ever be able to clear my debt if they can see from my i&e that I could not pay the £334. They replied saying if I did not pay it then they would be allowed to continue to add interest, which I knew they could. 

I complained to the financial ombudsman on 21 April saying that I want to be able to clear my balance, but by Avant continuing to add interest every month, this will be impossible as my repayments will just get swallowed up by interest charges. 12 weeks later I had a reply from FOS to say it could take another 4 months to get assigned a case handler.

My question is, should I just set up a 6 month plan with Avant while I am waiting for the ombudsman to get in touch so that they stop the interest? In the last 2 months Avant have added £600+ to my balance and it is going to continue to grow. What is the point in them adding so much interest to a defaulted debt when they can see from my i&e that I will never be able to pay it back? 

Any advice would be gratefully received. Thank you. 

fatbelly

There's a good chance that FOS will rule in your favour as Avant are not following CONC guidance.

I think for now I would continue to force your calculated monthly payment on them

SuperFrank88

fatbelly said:

There's a good chance that FOS will rule in your favour as Avant are not following CONC guidance.

I think for now I would continue to force your calculated monthly payment on them

Hi @fatbelly

Thank you for your reply. Do you think I should tell them that I am waiting for a reply from FOS? 

fatbelly

The FOS will contact them anyway but it sounds like there's a delay. I don't see any harm in letting Avant know there's a complaint in the pipeline.

Ask them if they want to reconsider their decision in the light of CONC 7.3.5

https://www.handbook.fca.org.uk/handbook/CONC/7/3.html

SuperFrank88

fatbelly said:

The FOS will contact them anyway but it sounds like there's a delay. I don't see any harm in letting Avant know there's a complaint in the pipeline.

Ask them if they want to reconsider their decision in the light of CONC 7.3.5

https://www.handbook.fca.org.uk/handbook/CONC/7/3.html

Thanks, I emailed them and they replied 

"Please be advised while your account is showing in a late status with arrears, you will continue to accrue interest daily." 

I don't see how it can be late with arrears even though the account has defaulted?

I replied with;

"OK we seem to be going around in circles. 

Are you telling me that if I set up the payment plan to commence on 23rd of August 2021, then once the six monthly payments are taken, you will allow me to set up a new 6 month payment plan from February 2022 and every six months after that, where interest will continue to be frozen, based on my income & expenditure at that time, which I do not see changing. Can you confirm this?

Do you understand what I mean when I say that if you continue to add £600+ interest and I am only able to afford to pay £75 per month, then the maths do not add up and I will never be able to clear my balance. Is this the way Avant credit operates? Is it the case that you do not want me to pay back my balance? "

Let's see what response I get!

Thank you for your help.