Affordability complaint accepted - next steps?

Always_Fishing

Hi,

I wanted to start a new thread specifically on this topic so it didn't get lost in my original thread to help me get the best advice, I hope that's ok. 

I've been lucky enough so far that 2 out of 3 responses to my complaints have been accepted partially accepted, I still have more complaints outstanding however I hope to get a little assurance on what to do next. 

The first complaint that has been accepted for a loan has offered a refund of interest of £400+ which will be issued to my bank, leaving a balance of £1700 and will remove all historic markers from my credit record. 

The second that has been accepted is for a credit card with Vanquis, they've not accepted the initial complaint when I was given the card due to it being over 6 years ago and likely reasonable at the time, they have upheld the complaint for the credit limit increases however and have offered a refund of around £3600. They have written they will deduct this from the balance leaving the balance at £170 however I have requested they instead issue the refund to my bank account, although I haven't had a response on this yet. They were very specific they would remove all negative markers from my credit file between 2019-2025. 

Moving forward, should it be that I carry on the original path still, put this money aside, wait for these accounts to default and then offer affordable small payments and/or wait for settlement offers? Or is there a risk they will not apply a default to my file now following my complaint and I should start comms for payment arrangements now?

thank you 

Brie

I'm assuming the Vanquis is a live card which you could presumably use.  So if they refund the interest that should come off the balance.  I really doubt they will pay it to your bank account instead or reducing your liability to them.  But if you don't ask, you don't get so what the heck.

I think all creditors are aware that if someone is submitting affordability complaints that the debt is going in one direction only so I wouldn't suggest you change your plan of action at this time.  Wait to hear back from Vanquis and the third creditor and take it from there.  

Always_Fishing

Brie said:

I'm assuming the Vanquis is a live card which you could presumably use.  So if they refund the interest that should come off the balance.  I really doubt they will pay it to your bank account instead or reducing your liability to them.  But if you don't ask, you don't get so what the heck.

I think all creditors are aware that if someone is submitting affordability complaints that the debt is going in one direction only so I wouldn't suggest you change your plan of action at this time.  Wait to hear back from Vanquis and the third creditor and take it from there.  

Thank you for the advice. 

I actually have about 11 affordability complaints but have had 3 responses so far, 2 accepted 1 rejected for fingers crossed there are more. 

I thought I might as well ask based on the first creditor giving me the option, potentially with settlement offers down the line I may be able to stretch the refund further but if not at least it's one debt almost cleared quite quickly. 

Always_Fishing

I'm bumping this just in a hope of a little more advice please. I've had 4 complaints accepted so far, three loans, one being an old one that was settled so that's done and dusted, and one credit card. 

Regarding the loans, I'm still a little unsure of what to do with these now. They still have balances on them albeit reduced a lot after the complaints, but haven't defaulted as yet. I understand the idea behind defaulting is to stop interest and charges, but I've reached that stage with these now due to the complaints.

Should I now be offering token payments whilst I build an emergency fund or still do nothing until they have official default markers? 

I'm not in a rush here, I'm in it for the long game and strangely enjoying the process of it all, evening looking forward to the postman coming to see what I'm shredding, what I'm filing and what's next, but I'm also wondering do these complaints being accepted before defaults offer an opportunity to avoid a default or credit marker whilst making affordable payments, or are the markers coming regardless of the successful complaint. 

RhiBi

I can’t offer any help or advice, but I just wanted to say it’s amazing how much you’ve achieved since you started your journey!

RAS

Just to clarify, the creditors have reduced the debt owed AND stopped charges and interest?

How are they reporting on your credit record? 

Always_Fishing

RAS said:

Just to clarify, the creditors have reduced the debt owed AND stopped charges and interest?

How are they reporting on your credit record? 

Good question, I'd assumed that interest and charges had stopped after refunding the after accepting the complaint as part of the process, otherwise it would leave them open to further complaints on the same affordability grounds, I have emailed them all to seek clarification on this though as I'd taken it for granted. 

None of the loans have yet updated on my credit file, one of them this morning that has made an offer through the FOS has asked me whether I want to reduce the term or the monthly payments once the balance is reduced and that they will not add any negative markers if I keep up with whichever avenue I agree with moving forwards. I haven't yet replied to this as they said if they do not hear back by Monday they will go ahead and reduce the term. Please correct me if I'm wrong my I'm taking it that no communication is still the way forwards here until it defaults by the looks of things in this case, rather than agreeing to one or the other.

the credit card has updated, all markers removed and this one is a little easier and the balance is now £0. They have mischievously reduced my credit limit to £1000 though rather than close it as they said they would, I have contacted them though and asked them to close this. 

ManyWays

one of them this morning that has made an offer through the FOS has asked me whether I want to reduce the term or the monthly payments once the balance is reduced and that they will not add any negative markers if I keep up with whichever avenue I agree with moving forwards.
Which is this lender (asking as it helps us here to see what lenders are doing in this situation.) How much can you afford a month? If all your debts had defaulted, how much would you be offering to this one then?

Always_Fishing

ManyWays said:

one of them this morning that has made an offer through the FOS has asked me whether I want to reduce the term or the monthly payments once the balance is reduced and that they will not add any negative markers if I keep up with whichever avenue I agree with moving forwards.
Which is this lender (asking as it helps us here to see what lenders are doing in this situation.) How much can you afford a month? If all your debts had defaulted, how much would you be offering to this one then?

Hi,

It was Bamboo Loans. The offer made through the FOS was to refund all interest and charges, I've then had an email from Bamboo confirming this followed by a second asking which option I'd like to take up after the balance has been adjusted.  

I still need work out how much I'd be offering them all individually, I haven't thought this far ahead yet. Currently I'm putting £400-500 per month in an emergency fund and managing ok at that. If it was to stay today, I'd prefer to just make token £1 payments for a few months ideally if possible to further build emergency fund as I'm only in my second month of doing this so far. 

ManyWays

I think you should work out now how much you would offer each of the debts including this loan once the emergency fund is built.
Then you can offer this now, it's earlier than the others but your credit record should be clean and the balance reduced, so that's good.
How much has the balance dropped too?

Always_Fishing

ManyWays said:

I think you should work out now how much you would offer each of the debts including this loan once the emergency fund is built.
Then you can offer this now, it's earlier than the others but your credit record should be clean and the balance reduced, so that's good.
How much has the balance dropped too?

The balance has been reduced from £3267.15 down to £1906.65. They've emailed back to confirm no further interest or charges will be applied now. 

I'll sit down and work out affordable payment plans for all and make an offer, thank you.