AMEX and defaults in self managed DMP

sourcrates

PalmSprings2024 said:

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

There would be no benefit to them to take legal action against you, so its very unlikely that it will happen.

No sense worrying about such things, just deal with it if things change.

PalmSprings2024

Just a quick question on the affordability complaints side of things. AMEX have accepted my payment plan but have since replied to my affordability complaint saying they uphold that my credit limit shouldn’t have been increased to £12,000 then £16,000. They have advised that they will look to refund interest and late payment fees and will be in touch within 7 days with a sum which will be refunded. Can I also ask them to remove the default on my credit file? 

I am thinking that I should also ask them to review whether accepting the original application for the card (8,000 limit when I was earning £26,000) was affordable and whether they did sufficient checks. Do you think this is sensible or should I just accept the credit limit increases being unaffordable and leave it at that? 

Thanks again for all the guidance 

sourcrates

Once defaulted that cannot normally be reversed, but the old adage "don`t ask, don`t get" would likely apply here.

The only way to change how this is reported would be to remove the entire entry from your credit file, so yes I would certainly ask.

ManyWays

You could ask them what the refund would be, that may clarify how good an offer this is and help you decide whether to send it to the Ombudsman. 

PalmSprings2024

Hi everyone - AMEX have agreed to refund £10,000 of interest since 2021 as they agreed the subsequent credit limit increases were unaffordable which reduces the balance due to £6,000. They haven’t upheld the initial grant of the £8000 credit limit as unaffordable though so I will be sending this off to the FoS. Is this a good idea do you think? I have a payment plan in place for the outstanding £6,000.

Thanks again for all the guidance on here - I never would have known about affordability complaints if it wasn’t for this Forum!

ManyWays

The regulator rule CONC 5.2A.27 says that a card lender must assume the borrower draws down the full limit very quickly and check they can afford to repay that over a reasonable period. But they have offered you a very large refund and whether you can go to the Ombudsman to get any more, needs someone with more experience of these complaints. 

PalmSprings2024

Many thanks. It is a significant refund but the initial grant of the £8,000 was a significant amount of my income at the time and I had several other commitments. I have accepted the refund re the subsequent increases but I think I will go ahead with an FOS complaint for the initial credit limit which they have upheld and said was affordable. 

Has anyone been successful with any other banks on affordability complaints?

Many thanks 

On_a_mission_

Starfish75789 said:

@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.

Hello! Just found this thread and wondered if the default landed on your credit report? I’ve just had a final demand/ termination letter and threat of default being registered in 28 days. Also had a letter from NCO, with options for setting up payment etc. but I’m wondering whether I should wait until the default actually lands on my file before doing anything? Any insights? Thank you 

PalmSprings2024

Hello - yes I waited for the default notice under section 87(1) to arrive in the post, filed it away then made contact with ACI. The default did show on my ClearScore report too. I have however since won an affordability complaint and the balance has significantly reduced and the default has been removed from my credit file. Happy to answer any questions about dealing with AMEX and definitely look into affordability complaints as I had just over £10,000 taken off my outstanding balance. 

PanAction25

I’m on my 2nd missed payment with Amex with the view to defaulting.   However, I have just received the message below from Amex via email.  Is it advisable to contact them now or still wait for account to be defaulted?  

“If you don't pay or contact us 

We would really like to work with you to find a solution to resolve this matter. If you don't act now, we may cancel your Account and take legal action to collect the amount you owe.

 

• Your Account may be passed to a Solicitors’ firm to recover the balance. Should this happen, in appropriate circumstances, a County Court Claim may be issued against you leading to court costs and Solicitors’ fees being applied to the amount you owe.
• We may apply for an attachment of earnings, a legal document that is sent to your employer which requires them to take money from your wages to pay your outstanding debt.”