Written off by bank

born_again

https://forums.moneysavingexpert.com/discussion/6303464/those-with-experience-of-write-offs-with-lloyds-group-mbna-halifax-rbs?utm_source=community-search&utm_medium=organic-search&utm_term=halifax+write+off

PamelaFlitton

Thanks for the replies. 

I have now seen the letter.  

There is nothing which says it’s been passed to a debt collection agency. 

It talks about persistent debt balance. 

Ayr_Rage

PamelaFlitton said:

Thanks for the replies. 

I have now seen the letter.  

There is nothing which says it’s been passed to a debt collection agency. 

It talks about persistent debt balance. 

They have written off the debt and closed the account, which is a commercial decision by them and very nice for your partner.

There is nothing more to pay, do as they say, cancel any recurring payments and DDs regarding the account, cut up the card and remove details from any digital wallets.

It will eventually show with a zero balance and then CLOSED with the CRAs with no detrimental effect to their credit rating.

Now have a coffee or maybe a stiff drink and breathe a big sigh of relief.

PamelaFlitton

Thank you for your calm approach- I could learn a lot from that! 

For me, I kept thinking of the phrase ‘if it seems too good be true, it probably is’. 

Thanks again, PF. 

Nasqueron

Wish banks, of all people, wouldn't refer to the gimmick "credit score" when they could just put "history" or "file"

cymruchris

From the figures there, it seems like the account was in persistent debt for quite some time, and as above, they/ve made a commercial decision to clear the account and close it down. Definitely positive news in terms of the here and now - and if your partner has any other cards with other providers - you might encourage them to use the money that was paying off the Lloyds card monthly to reduce the balances elsewhere so that they can try and work towards clearing the debts (if there are any) and stop paying interest left, right and centre. Hopefully they won't keep their head in the sand forever. 

eskbanker

PamelaFlitton said:

It talks about persistent debt balance. 

Seems unlikely to be a coincidence but it appears to be four years since the account was placed in persistent debt status, which requires the lender to communicate with the borrower in a prescribed and structured way over the following few years, encouraging increased repayments and recognising that failure to do so can result in account suspension, although write-off of such a substantial balance seems unusual.

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

The fact that he's repaid nearly £12K over those four years again makes it seem a strange decision to write off what's left, in that the balance has presumably been reducing over that time, even though interest charges will have been significant?