Updraft/MyCRS

Wullibur

Looking for advice.

3 years ago I took out a loan with Updraft for £8000.  I ended up being unable to pay about 6 months later, and agreed to pay them £20 a month in order to get myself sorted out. My debt got sold to MyCRS anyway and I started a payment plan with them for £10 a month.

This went on for about a year until a few months ago, it got passed back to Updraft, who I have only just managed to log back into the account today.

When I checked the balance due, it was showing over £77K!

I have messaged them to query this, I was under the impression that if debts were defaulted, interest was stopped.

Any ideas?
  

Grumpelstiltskin

Was it actually defaulted when you stopped payment?

How is it reported on your credit report?

If it is marked arrangement to pay then it has never defaulted.

RAS

Check the relevant credit record and confirm if the debt was defaulted or you have AP markers, in the first instance.

This smells like an affordability claim may be a good idea?

sourcrates

The outstanding balance shown is obviously an error, you don`t owe 77k so relax.

Debts can be sold without the need for them to default, it clearly states on the above screen shot
"payment arrangement in arrears" 

Does it show as in default on your credit report?

Wullibur

Just checked my report, it's been marked as A. I will ignore them for now until it defaults, my credit score is as low as it can go anyway.

I'll have a look at doing an affordability claim though, I had never heard of that.

Thanks 👍 

Grumpelstiltskin

If you had stopped paying it 3 years ago it would have defaulted and you would have been almost half way through the 6 years it takes to disappear, pity you carried on paying.

RAS

The best initial source on making affordability claims is Debt Camel. Do not expect to win the first round, you may need to appeal and then go to the Ombudsman.

The aim is to get the interest removed, and they may have to remove the reports to your credit record.

ManyWays

An affordability complaint is a good idea but I also think there is something very wrong with that balance; I dont see how 18% compounded for 3 years can possibly amount to that much

sourcrates

ManyWays said:

An affordability complaint is a good idea but I also think there is something very wrong with that balance; I dont see how 18% compounded for 3 years can possibly amount to that much

Not even in the heady days of the 1000% interest payday loan scams would anyone's 8 grand initial loan balance touch 77k.

I would obviously question it, and if they say, sorry, its a computer error then I would say fair enough.

However if they insist that the balance is correct, after my uncontrolled laughter had died down, and I`d picked myself up off the floor, I would smile and wish them luck in enforcing such a claim.