AMEX and defaults in self managed DMP

MattMattMattUK

PalmSprings2024 said:

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. 

They will almost certainly push you for more, that is their job after all, but you can also counter offer when they come back.

You say you have affordability complaints, have you looked at the guidelines from the FOS and from somewhere like StepChange? Affordability complaints can be successful if valid, a lot are rejected as not valid, but also some are unsuccessful because those complaining do not get their information together properly and present it in a way which explains why the complaint was valid, you need to make sure you have all bank statements for the relevant period, you can obtain a copy of the application to allow you to tie that up with the statements etc. so make sure you have everything sorted before starting the process. 

https://www.stepchange.org/debt-info/your-rights/irresponsible-lending-and-affordability-checks.aspx
https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/unaffordable-lending

sourcrates

AIC are only acting on behalf of Amex, they will accept whatever you propose, but may want to see your budget.

If you have affordability complaints get them sent now, do not wait.

ManyWays

I have seen people with astonishingly high Amex credit limits - is this why you are mainly asking about Amex, not all your debts? If this happened to you, it may be a good case for an affordability complaint, see https://debtcamel.co.uk/refunds-catalogue-credit-card/. 

PalmSprings2024

@ManyWays yes my limit started at £8,000 then was increased to £12,000 and then £16,000 (which I accepted) but I was carrying high balances at each of these increases so will submit an affordability complaint I think

MattMattMattUK

PalmSprings2024 said:

@ManyWays yes my limit started at £8,000 then was increased to £12,000 and then £16,000 (which I accepted) but I was carrying high balances at each of these increases so will submit an affordability complaint I think

Were you carrying the balances with Amex or with other card providers? What had you declared your income as at the point of application, if you do not mind me asking?

PalmSprings2024

@MattMattMattUK I was carrying a high balance with AMEX at the time of each increase and also had another credit card with a significant balance. Will see how I get on with affordability!

MattMattMattUK

PalmSprings2024 said:

@MattMattMattUK I was carrying a high balance with AMEX at the time of each increase and also had another credit card with a significant balance. Will see how I get on with affordability!

Worth giving it a go, it does depend in income, e.g. I could afford to clear a £10k credit card debt in less than a year without much trouble, so it would not be deemed unaffordable, but equally for others it could be depending on their income. 

PalmSprings2024

Just an update on this - AIC have accepted my payment offer of £30 per month. So far has been a lot less stressful than I thought so am I correct in thinking as long as I keep making these payments court action is unlikely? AMEX have already issued a default 

sourcrates

PalmSprings2024 said:

Just an update on this - AIC have accepted my payment offer of £30 per month. So far has been a lot less stressful than I thought so am I correct in thinking as long as I keep making these payments court action is unlikely? AMEX have already issued a default 

Legal action is mainly taken against those who have debts secured on property, and fail to maintain payment arrangements, those who ignore their debts for a very long time, or happen to have a particularly litigious creditor, for example certain peer to peer lenders or some credit unions.

Once an arrangement is in place, it may be reviewed annually, or occasionally the debt may be sold, and have to be re-negotiated, but on the whole, nothing further will happen, so put all this legal nonsense out of your mind, it should all just coast along as per normal.

PalmSprings2024

Thank you @sourcrates I think the earlier comments on this thread about AMEX being very litigious made me nervous. Thanks for all the advice