Overwhelmed by debt - Progressing down Default and DMP route - Advice and help needed

Rob5342

I'm not surprised they rejected it, I don't think I had any that were accepted by the lender, but I had a good number that I won after escalating to the FOS. The FOS are relatively easy to deal with, it's just a quick form to set out your complaint and then they ask both parties for what they need.

Always_Fishing

Some good news early on in my affordability complaints.

Finio Loans/Oakbrook has responded and accepted my complaints on 2 loans I've had with them, which is great news as I only intended to complain about the one I currently have open, not an old one which was settled early. On the old settled loan, they've offered to refund all interest paid which is the best part of £500 on what was initially a £2000 loan. On the existing loan, they've offered to wipe of all interest on the £2000 loan which would have been just over a £1000 over the full term leaving a balance of just over £1700, I only took this loan in July.

I have the option to have the refund from the settled loan transferred to my bank account or put towards the balance of the existing loan, I believe the correct avenue here should be to have it transferred to my bank account as any payment would delay the ongoing process of defaulting however would appreciate a second opinion on that? Regarding the interest wiped and the balance left remaining on the second, should I also just accept this in writing and tick it off as a short term win, or is there more to be won or lost here meaning I should tread more carefully or take a different approach?

Thanks in advance

sourcrates

I`d take the money, and save it.

Once defaulted use it to settle as much of your debt as possible utilising full and final offers.

If a debt purchaser picks up the debts cheap, you might be able to settle both, two birds, one stone.

Always_Fishing

sourcrates said:

I`d take the money, and save it.

Once defaulted use it to settle as much of your debt as possible utilising full and final offers.

If a debt purchaser picks up the debts cheap, you might be able to settle both, two birds, one stone.

Perfect, thank you

ManyWays

any payment would delay the ongoing process of defaulting 
The lender should not mark this loan as defaulted as you have won an affordability complaint and they should remove all negative marks, either now or when the debt is settled. In my experience they arent a nice lender to deal with and I would prefer to get the balance reduced by 500.

Always_Fishing

ManyWays said:

any payment would delay the ongoing process of defaulting 
The lender should not mark this loan as defaulted as you have won an affordability complaint and they should remove all negative marks, either now or when the debt is settled. In my experience they arent a nice lender to deal with and I would prefer to get the balance reduced by 500.

I see, they did say in their letter they would remove all negative marks but as there aren't any currently I didn't really give it much thought or consider this would apply moving forwards also. 

By that token then, now interest has been removed and if it will not default, is this at the stage where I should start to consider offering small token payments for the time being in the hope it gets sold on and I can settle later for a lower fee? 

Short term I think if still rather have the cash in my possession, it's not going anywhere so can always be used to knock of the balance at a later date if needs be. 

Always_Fishing

Hi,

after an affordability complaint vanquis has refunded me £3600+ to my balance leaving me with a balance of £170 now and have said they'll close it once the balance is paid. Is now the time to just get this paid and ticked off , I have the cash in my emergency fund to do it, or would the best advice be to leave it be for now until things play out with the other debts and my emergency fund builds? 

Psychologically it would be great to tick a box off this early, I don't want to rush in however if it's not the correct thing to do. 

Grumpelstiltskin

Personally I would pay it off. One less to worry about. There is no right or wrong way so whatever you are happy with.

sourcrates

Always_Fishing said:

Hi,

after an affordability complaint vanquis has refunded me £3600+ to my balance leaving me with a balance of £170 now and have said they'll close it once the balance is paid. Is now the time to just get this paid and ticked off , I have the cash in my emergency fund to do it, or would the best advice be to leave it be for now until things play out with the other debts and my emergency fund builds? 

Psychologically it would be great to tick a box off this early, I don't want to rush in however if it's not the correct thing to do. 

Agree, do it, get rid of it.

Always_Fishing

Done, 1 down