DMP: 2 x CCA requests? Credit Agreement and Affordability - Is it worthwhile?

sourcrates

The term "unenforceable" only refers to the lenders right to take legal action to recover the debt, if they cannot comply with sec 77, CCA.

It does not effect anything else in relation to the debt, it does still exist, it can still be reported to your credit file, and they can still ask you to pay it, and send statutory notices.

The only thing they can`t do, is take you to court for non payment.

The entry will disappear completely from your credit report 6 years after default, regardless of what you do, or what Stepchange may tell you.

Stepchange`s approach is governed by the agreement they have with creditors to get those in dire financial strife back up and running on a DMP for example, as quickly as possible, they are financially linked to the lenders hence the reluctance to do anything that may upset the applecart.

I agree with fatbelly, that a self managed approach may be best for you, its not hard to set up on your own plan.

ManyWays

Stepchange will stop paying them, you just need to be firm. You can go self managed if you want, but there is no need.

The fact the CCA agreement cannot be found doesnt affect the credit reporting of this is. If it is defaulted it will still drop off 6 years after the default date. The only problem comes if there is a payment arrangement, as stopping paying will then add a default. But this is till better than carrying on with a payment arrangement for many years 

Ktaylor86

fatbelly said:

Go self-managed

Stepchange are funded by a rake-back of the payments you make, with the agreement of the creditors.

Clearly if they start refusing to pay people it endangers their funding model

Thanks, definitely going to have to consider this if it comes to it 

Rob5342

Just manage it yourself, it's very easy. Stepchange can be helpful if you do things their way, if you don't they make things much more difficult than they ever need to be 

Ktaylor86

sourcrates said:

The term "unenforceable" only refers to the lenders right to take legal action to recover the debt, if they cannot comply with sec 77, CCA.

It does not effect anything else in relation to the debt, it does still exist, it can still be reported to your credit file, and they can still ask you to pay it, and send statutory notices.

The only thing they can`t do, is take you to court for non payment.

The entry will disappear completely from your credit report 6 years after default, regardless of what you do, or what Stepchange may tell you.

Stepchange`s approach is governed by the agreement they have with creditors to get those in dire financial strife back up and running on a DMP for example, as quickly as possible, they are financially linked to the lenders hence the reluctance to do anything that may upset the applecart.

I agree with fatbelly, that a self managed approach may be best for you, it’s not hard to set up on your own plan.

As it already defaulted in July 2023 then, sounds like this confirms my understanding, it will drop off in July 2029 from my file regardless of its fully paid off at this point? 

I will definitely think about going self-managed but will give it a short while and see first as I’m waiting to hear back from other CCA requests too. 

RAS

Good, you've got the default and a defined date when the debt will stop being reported on your credit record.

No harm in waiting for the other replies but I'd suggest you set a deadline after which you insist on non-payment or you will self manage, even if a few replies are out standing ( as most of them should be nil results anyway).

Ktaylor86

UPDATE: Today I’ve received 4 x of these from Link. 

In particular 3 of these are the Zopa loans I’ve also put an affordability complaint in about. These total £15K (of the £25K I owe). Which are also defaulted as of 2023. 

The fourth is from studio originally and not defaulted currently so I should keep paying this to avoid a default at this stage. 

Should I take any action at the moment? Stepchange were reluctant to remove any debts, so if I opt to do this it means going self-managed. 

I read it as they cannot provide it within the 12 days but doesn’t mean it won’t turn up? 

Additionally I’m thinking to wait until after March 2026 before stopping any payments, because my mortgage fixed rate ends then and I don’t want to do anything that might jeopardise this? 

This means of the 6 requests submitted I’ve only not heard from one, this is a Nationwide credit card that is still with Nationwide not been sold on, so not hopefull with this one. 

Appreciate any thoughts on next steps..  if any! 

Thank you 

sourcrates

Don`t celebrate just yet, this is a standard response form a debt purchaser, the 12 days thing is just part of the guidelines, and is not legally binding.

They have to pass on your request to the original lender, so expect to wait 3/6 months for them to search their archives for your information, they may be able to produce something, they may not, but either way you will be written too.

You can withhold payments whilst you wait, but its not a given they will be found unenforceable.

Your re-mortgage will not be affected, these are unsecured debts, a mortgage is secured borrowing, re-mortgaging with the same lender does not require a new credit check.