AMEX and defaults in self managed DMP

PalmSprings2024

Thanks everyone @Starfish75789 will follow your progress on this!

PalmSprings2024

Morning everyone and thanks for the helpful advice. I have today received quite a strong letter from AMEX saying that if I don’t engage with their Financial Difficulties team to arrange a payment plan then they will have to “explore other legal options”. I obviously want to avoid a CCJ and negotiate a payment plan but was wanting to wait for a default first. Any advice here? Don’t want to miss the boat re getting a payment plan sorted but again was waiting for a default on the account. Many thanks 

sourcrates

They can`t take legal action until the account defaults, until that point you are both still bound by the agreement you signed, once the debt is officially in default, that ends the financial relationship between you, and the agreement is terminated.

They can then pursue legal means to collect the debt, should they wish too.

PalmSprings2024

Thank you @sourcrates. I expect a default is coming as I have missed my third payment. I will
prepare an income and expenditure in the meantime.

Starfish75789

@PalmSprings2024 Just a quick update on my Amex. So default is still not showing on my credit report. However NCO written to me this morning (first letter ive received of them)and offered 50% discount on settlement. 55% over 6 months and 60% over 12 months. They have also said if can't afford then pay what you can. They haven't purchased they are "acting on behalf of their client". But was just to say it looks at the moment they are playing nice and nothing to worry about.

PalmSprings2024

@Starfish757 thanks for the update! AMEX is the one I’m most worried about but do think I have a good chance of affordability complaints given several credit limit increases but hoping to just settle the debt. I have been sent a default notice so hopefully hear from AMEX/NCO soon. Did you ever send them an income and expenditure or discuss a payment plan? X

Starfish75789

No I never sent them anything and they haven’t asked for anything either. I haven’t spoken to them at all. I received my default letter in September/October if I remember correctly. So it’s taken a few months to hear from them.

PalmSprings2024

Hi there just an update on mine - AIC have been in touch on behalf of AMEX to ask me to pay what I can afford and do an income and expenditure on their portal. I have offered what I can afford so will see if they accept! Seems to be relatively straightforward so far. Do you know if they have to accept my payment proposal? Also would this be a good time to do the affordability complaints?

MattMattMattUK

PalmSprings2024 said:

Hi there just an update on mine - AIC have been in touch on behalf of AMEX to ask me to pay what I can afford and do an income and expenditure on their portal. I have offered what I can afford so will see if they accept! Seems to be relatively straightforward so far. Do you know if they have to accept my payment proposal? 

They do not have to accept, their alternative is to take the legal route, which they may do, it depends if your payments are reasonable when compared to the size of the debt, with Amex it generally needs to be realistic that the debt will be paid off in a few years at most, not just token payments.

PalmSprings2024 said:

Also would this be a good time to do the affordability complaints?

The time to submit an affordability complaint is when you have a valid complaint, so if you have one then submit it. 

PalmSprings2024

Thanks for this @MattMattMattUK. They have asked me for a bit more info to check my payments are “affordable to me”. I have offered a token payment which they haven’t flat out refused so I am hoping for a positive response. I uploaded my I&E when asked for this further information so waiting to hear.