Default credit card - affordability complaint

matte134

Hello

So I've been on a journey of trying to reclaim back some charges and interest through affordability complaints and reduce my debt. 

I have one defaulted credit card (Vanquis) for a total of £622. It defaulted in Dec 21. I have an affordability complaint sitting with the Financial Ombudsman for this at the moment but haven't heard anything for the past month. 

I've just been notified that this has been sold on to another debt collection agency. It was sitting with Lowells and they have sold it to BPO. They have offered me a huge discount to pay it off, about £200. My question is should I go ahead and pay this off with the discount, wait for the complaint to be assessed by the Financial Ombudsman or request a CCA, as its likely they are offering the discount because they don't have one? 

fatbelly

You should not rush to make payment. Wait for the FOS to complete their work.

You can do a cca request at any time. Again, there is no rush.

BPO will have acquired this for a ridiculously small sum. So at the end of the day if there is any sum still owing and it is an enforceable debt, then would be the time to offer a small sum in settlement

Jabby1

can i ask what a cca request is ?

fatbelly

A request under s77-79 Consumer Credit Act for a copy of the original Agreement.

If  a firm cannot comply then the debt remains unenforceable until it does

ManyWays

If they are offering you a discount of £200, that is small.  Even reducing it to £200 isnt big for an old defaulted debt that has been sold twice so no rush to take this. 

HenryMSingh85

A couple of things to consider:
1) Check the status of the FOS complaint first. If the FOS uphold the complaint the original lender might have to refund interest and charges which could significantly reduce or even clear the balance 
2) Given that the debt has now been sold twice there's a chance that the new debt collection agency may not have the original CCA agreement. If they cant provide a valid a valid, signed copy of the agreement under the Consumer Credit Act (1974) the debt may not be legally enforceable. You can send a CC request to BPO for a copy of the agreement. They must provide it within 12 working days.
3) Weigh the discount offer. Such a big discount might suggest that BPO is not confident in their ability to enforce it. You can always just choose to settle it before further action but make sure to to get the settlement offer in writing and confirm that the debt will be marked as settled on your credit file (or partial settled)
4) keep in mind any default will remain on your credit report for six years whether the debt is unpaid or paid.