Setting up DMP

sourcrates

chullbulla said:

Thank you @sourcrates, so should I just wait until a default appears on my file from each of creditors? what shows first the default on file or letter confirming default and at what point I should offer my repayment, I believe the interest which I am incurring now until default should not be a  issue if my debt is sold and I do a settlement in future at lower amount, which means I never paid interest which I am incurring now.

At some point the creditor will send you what is known as a default notice, under sec 87, CCA, its an official looking letter which will demand repayment of your arrears, usually within 14 days, otherwise the full balance becomes due.

Official looking and sounding, this letter will also detail what actions the creditor "could" take to re-claim its money.
It will say something like this -

Your creditor can also take further action after the account has defaulted, including:

• Passing the debt to a collection agency
• Taking court action
• Applying to a court to take back a vehicle or other goods, if the debt was hire purchase

If the debt is regulated by the Consumer Credit Act, your creditor can't take any of these actions unless the account has defaulted.

however, its a default we are after, so you should just ignore this letter, its basically just for information purposes, it must be sent in order to comply with the consumer credit act.

In almost 100% of cases, defaulted debts are always sent to a collection agency first.

To confirm an account has defaulted, always check your credit file, under the accounts status tab, it should say "DEFAULT" also the date of default will be recorded as well, only then is it safe to go ahead with debt management.

And yes, further down the line, most companies will make some kind of settlement offers available to you.

chullbulla

Thank you, I received notice of default from Tesco and Capital on Tap so I will wait until my credit file shows default.

chullbulla

I read few posts about how stubborn PRA Group is and I believe most of MBNA debts are sold to them, my biggest debt is unfortunately is with them and I am seeing my balance growing from last 3 months due to interest and charges, it is clear that if my debt sold to PRA then chances of settlement at much lower figures are second to none.
I have seen few posts about CCA request and also about irresponsible lending, at what point I should go for these and if it is any point doing this when debt sold given the fact that I have credit cards since 2019 onwards so fairly recent.

Floss

My MBNA account has just been sold to Cabot.

chullbulla

Floss said:

My MBNA account has just been sold to Cabot.

Were you already in a payment plan or were waiting for default?
Not sure how flexible Cabot is compare to PRA

sourcrates

chullbulla said:

I read few posts about how stubborn PRA Group is and I believe most of MBNA debts are sold to them, my biggest debt is unfortunately is with them and I am seeing my balance growing from last 3 months due to interest and charges, it is clear that if my debt sold to PRA then chances of settlement at much lower figures are second to none.
I have seen few posts about CCA request and also about irresponsible lending, at what point I should go for these and if it is any point doing this when debt sold given the fact that I have credit cards since 2019 onwards so fairly recent.

Why are they adding interest and charges ?

Has your agreement defaulted ?

Non of that sounds right to me, they should not be charging you anything unless they have bought the account as a "live" non default account, can you explain ?

chullbulla

Sorry @sourcrates for any confusion my question caused.

Basically, my account is still with MBNA and has not defaulted yet, so interest/ charges are still incurring.

My point was since the majority of accounts from MBNA go to the PRA group, which doesn't accept the partial settlement down the line as I read here from other people's experience and my plan was to clear my debt with partial settlement down the line.

The only option I can see to resolve this in the future once sold to PRA is the CCA request or irresponsible lending claim.

So the question was at what stage I should go for these and if it is any point doing this when debt is sold given the fact that all my credit cards are from 2019 onwards so fairly recent to request CCA even after say couple of years?

sourcrates

chullbulla said:

Sorry @sourcrates for any confusion my question caused.

Basically, my account is still with MBNA and has not defaulted yet, so interest/ charges are still incurring.

My point was since the majority of accounts from MBNA go to the PRA group, which doesn't accept the partial settlement down the line as I read here from other people's experience and my plan was to clear my debt with partial settlement down the line.

The only option I can see to resolve this in the future once sold to PRA is the CCA request or irresponsible lending claim.

So the question was at what stage I should go for these and if it is any point doing this when debt is sold given the fact that all my credit cards are from 2019 onwards so fairly recent to request CCA even after say couple of years?

You would likely be amazed at how inept some creditors actually are, when it comes to retaining information.

You don`t need to do CCA requests as such, once your debt has been sold, and whoever buys it has bothered to write to you a few times, respond with the provit letter, it has virtually the same effect as a CCA request, as your asking them to prove your liability for the debt, something they have to do when asked, you can also ask for a copy of the default notice, and a copy of the notice of assignment (if not already provided) as well.

So the answer to that letter will reveal the lay of the land to you.

chullbulla

Thank you, but is it not advisable to ask for CCA after a couple of years in DMP rather than ask for it straightaway before any payment arrangement plan? also if I ask for CCA and they successfully provide it, I hope they don't take any revenge  

What about the irresponsible lending claim? 

sourcrates

chullbulla said:

Thank you, but is it not advisable to ask for CCA after a couple of years in DMP rather than ask for it straightaway before any payment arrangement plan? also if I ask for CCA and they successfully provide it, I hope they don't take any revenge  

What about the irresponsible lending claim? 

Your not asking for CCA, your asking for legal proof that they can ask you to pay this debt.

There is a difference.

Any old tom, !!!!!!, or harry might be contacting you, make them work for their ounce of flesh, someone writes to you asking you to pay a debt, you don`t just pay them, you ask them to provide evidence they have the legal right to ask you to pay it, that would be in the form of a compliant copy of a credit agreement in your name and matching details, without that they can go whistle, don`t make their job so easy, make use of your statutory rights, as they were hard won.

I`m not sure what you mean by revenge, you have the right to see a copy of your executed agreement (see above) business's must comply with regulations, and statutory requirements, this is not the playground, revenge does not come into the equation here.

As for this -

What about the irresponsible lending claim? 

That is entirely your decision, I have no knowledge of your personal circumstances, if you wish to pursue such a complaint, then again, you are perfectly free to do so, make certain you get your points across clearly, and stick to the facts though.

They have 8 weeks usually to issue you with a final response.
Take note, any mis-selling complaints must be made to the original creditor, not a debt purchasing company who may buy your debt at a later date.