DMP and out standing debt

Blueblonde3

Hi all thanks for previous help, I needed a bit more 118118 have now sold my debt. The original debt was £1800 but they are saying I owe £3567 which would include the interest over 5 years? Can they request that or do I need to contact the new owner and advise original debt was £1800. 

Regards

Blueblonde3 

Grumpelstiltskin

When did it default?

Blueblonde3

Yes finally defaulted 

Grumpelstiltskin

So why did it take 5 years to default?

Were you paying a small amount and was it being marked 'Arrangement to Pay ' ?

Blueblonde3

Sorry did I say it wrong it’s only just defaulted after 5 months of not paying. Shows on credit file the orginal debt was for £1800 which I borrowed by they say my outstanding is £3500. I’m guessing this is what I’d pay with interest over 5 years of the loan how can they request all this even though account has been closed? 

ManyWays

Have you looked at making an affordability complaint against 118? That gets all interest removed if you win 

Blueblonde3

No I’ve never heard of this? Can you still do this even if debt is sold on? What happens if you decline my request? Thanks 

fatbelly

Blueblonde3 said:

No I’ve never heard of this? Can you still do this even if debt is sold on? What happens if you decline my request? Thanks 

Yes. The process is here

https://debtcamel.co.uk/refunds-large-high-cost-loans/

RAS

They can't "front-load" debts but you will have been given some sort of explanation showing what you had to repay a lot more than you borrowed. That's their basic business model.

An affordability claim probably will be rejected at first attempt, as that seems to be the norm.

We can't see what your finances were when you took this out but it's important that you don't give up at the first hurdle. People here reporting success often had to escalate to the Financial Ombudsman Service.

Blueblonde3

Thank you all 
if I can just show you this…….
why are asking for full intrest amount? 

I borrowed £1800

Grumpelstiltskin

They are asking because it hadn't defaulted, but just because they are asking doesn't mean you have to pay it.

If you had stopped paying it immediately it would have defaulted sooner and no interest added after the default.

What you need to do now is put in an affordability complaint as advised above.