Affordability Complaints

moldavite14

No longer going down the route of step change, a das or trust deed. Going to manage my debt myself. So first things first, I’m considering making affordability complaints.

When is best time to do this? Debts not defaulted yet. If debt is sold and affordability complaint upheld does the debt go back to the original lender? What evidence do I need? I don’t have credit file info from the time of taking out the credit - just know what debt I had at the time. Is this a problem?

3 missed payments so far and rest will happen through the month.

Also is my plan of action correct?

1. Miss payments and allow debts to default (build up and emergency fund whilst waiting)

2. Make an offer of payment once default letter is through? Or wait until debt is sold? My SOA leaves me with £14 - offer £1? Or adjust SOA to offer £3 per creditor? I have 14 accounts - 7 lenders

3. Request copy of CCA. What happens if one can’t be produced? Stop paying? Will this reset the default date? Continue paying if there is one?

4. Continue making payments until settlement offer received. What is the biggest % people have received?

5. Pay settlement.

6. Never take out credit again!

If the debt has defaulted on credit file and 4 years later I settle it does it stay on file for a further 6 years or drop off 6 years after default date?

Also thanks to everyone on this forum for your amazing advice. I’m a longtime lurker and you make debt feel less scary.

Brie

It's up to the lender to investigate if the loan/card was affordable, not you. I mean you can tell them what debt you had at the time but they do all the rest.

as for your plan - I'd suggest you switch steps 2 & 3. So don't start paying until they come back with a CCA as that will tell you if you have a debt or not. No CCA, no debt. So why pay them if you don't owe them anything?

ManyWays

Affordability complaints - When is best time to do this? Debts not defaulted yet. If debt is sold and affordability complaint upheld does the debt go back to the original lender? What evidence do I need? I don’t have credit file info from the time of taking out the credit - just know what debt I had at the time. Is this a problem?

I think the usual advice is to complain as soon as possible as it gets harder to produce evidence the longer you wait. Defaulted or not, it doesn't matter. Some lenders sort out the balance with the debt collector, others buy it back. For credit taken out or limit increases in the last 6 years, your current credit record shows the details so download a copy of that now. your bank statements are the best evidence that loans, cards etc were unaffordable, so get the bank statements now, as far back as you can.

Also complain about any recently settled debts in the last few years. Winning one there will get a refund in csh.

My SOA leaves me with £14 - offer £1?

That is very little; is it a fudged SOA to maximise the amount you can save, or a real one? How large are your debts? Is anything going to improve or get worse in the next few years? Are you buying or renting?

Request copy of CCA.

I would not bother to ask for the CCA unless the debt has been SOLD to a debt collector, not just being with a debt collector who is collecting for the original lender. (Exception - if you are ever send a Letter Before Claim, then use the Reply Form to ask for the CCA.)

Continue making payments until settlement offer received

You can make payments offers yourself when you have saved up enough. I would wait at least a year before doing this.

moldavite14

Yes SOA is fudged. I’ve around £400 left a month after bills however keen to save an emergency fund and put money away for settlement. Should I maybe up it to £5 per month per debt?

What is a letter before claim?

Debts are £38k - unsecured loans and credit cards.

Rent from local council - not behind with any payments.

How do I know a debt has been sold and not just passed to an in house collection department?

Is it worth complaining about 0% cards? I’ve not paid interest on them (yet) so I’m thinking probably not.