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Irresponsible lending on default account
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Finallyfacingup2
Posts: 10 Forumite
in Credit cards
Please can anyone advise if they have successfully had a claim for irresponsible lending from a credit card that is now in default and has been passed to another company. Would the refund be paid off this first or would this all come to myself because the debt / default has been passed to another company. The reason i ask is that my amount in default is quite large but they have offered to settle at 20% and therefore I would rather do that than my refund be used to pay the full 100%. I just wondered if anyone knew about this as I can’t find any info anywhere
Ppi refund of £1900 - awaiting tax back (First Direct)
Catalogue settled irresponsible lending claim £2400 (Very)
Loan company settled irresponsible lending claim £1200 (Hitachi)
1st credit card settled on irresponsible lending claim £300 (FOS recommendation-Yorkshire Bank TSB)
2nd credit card settled on irresponsible lending claim £665 (FOS decision- Fluid)
3rd credit card settled on irresponsible lending claim £2650 (FOS decision-Barclays). Tried to settle for £500 less and although FO decision agreed that they were to pay all interest charges and fees they only paid interest. Challenged and FO demanded fees and charges as well.
4th credit card settled on irresponsible lending claim £1351 (FOS decision-Capital One)
5th credit card settled on irresponsible lending claim £10,250 (FOS decision - Halifax bank of Scotland). They tried every trick in the book not to pay out. This took 18 months and lots of paperwork.
Awaiting 5 more credit cards (Tesco/mbna/first direct/Barclays egg/Santander) and 4 loan irresponsible lending claims (Black Horse/amigo/1st Direct/psa finance).
Catalogue settled irresponsible lending claim £2400 (Very)
Loan company settled irresponsible lending claim £1200 (Hitachi)
1st credit card settled on irresponsible lending claim £300 (FOS recommendation-Yorkshire Bank TSB)
2nd credit card settled on irresponsible lending claim £665 (FOS decision- Fluid)
3rd credit card settled on irresponsible lending claim £2650 (FOS decision-Barclays). Tried to settle for £500 less and although FO decision agreed that they were to pay all interest charges and fees they only paid interest. Challenged and FO demanded fees and charges as well.
4th credit card settled on irresponsible lending claim £1351 (FOS decision-Capital One)
5th credit card settled on irresponsible lending claim £10,250 (FOS decision - Halifax bank of Scotland). They tried every trick in the book not to pay out. This took 18 months and lots of paperwork.
Awaiting 5 more credit cards (Tesco/mbna/first direct/Barclays egg/Santander) and 4 loan irresponsible lending claims (Black Horse/amigo/1st Direct/psa finance).
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Comments
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I don’t know the answer to this but some helpful posts about this over on the debtcamel website. Have a browse over there, Sara is extremely helpful1
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Finallyfacingup2 said:Please can anyone advise if they have successfully had a claim for irresponsible lending from a credit card that is now in default and has been passed to another company. Would the refund be paid off this first or would this all come to myself because the debt / default has been passed to another company. The reason i ask is that my amount in default is quite large but they have offered to settle at 20% and therefore I would rather do that than my refund be used to pay the full 100%. I just wondered if anyone knew about this as I can’t find any info anywhereCredit cards don't lend, you spend on the card. Running up debt isn't irresponsible lending, it's irresponsible spending.Regardless, if a company has sold on your debt but has clawback rights, they are well within their rights to offset any refund against the unpaid debt irrespective of whether the debt buyer has offered to settle.7
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I would very much doubt that you would have a successful claim. As even if you pointed out that they kept increasing your limit. You do have the right to say no.Finallyfacingup2 said:Please can anyone advise if they have successfully had a claim for irresponsible lending from a credit card that is now in default and has been passed to another company. Would the refund be paid off this first or would this all come to myself because the debt / default has been passed to another company. The reason i ask is that my amount in default is quite large but they have offered to settle at 20% and therefore I would rather do that than my refund be used to pay the full 100%. I just wondered if anyone knew about this as I can’t find any info anywhere
Remember that if you are basing it on affordability. You should be informing them of changes of your situation (income etc).
Take the 20% offer if you can afford it. It will mess up your credit history & mean you will find it hard to get credit, but than again that is already trashed as the debt has been passed to a 3rd party.
https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending
But that does not mention credit cards. Is more focused on loans.Life in the slow lane1
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