CCA request and interest

bella5426

Hi

I am currently on a DMP and looking at sending some CCA requests to my creditors, if any of them come back saying the debt is unenforceable and I stop paying are they likely to start charging interest again?

My worry is if the agreements turn up in the future I don’t want to have a load more interest/charges to pay, if it makes a difference all the debts are with collection agencies.

Thanks

ManyWays

How long ago did the DMP start and have defaults been added?

bella5426

Some had defaults, I have been on the DMP for about 6 years

sourcrates

A default is like a line in the sand where credit agreements are concerned.

Once a consumer credit debt defaults, the balance on that account is frozen, and no further interest or charges can normally be added, unless the original agreement allows for it, which most do not.

If a particular debt hasn`t defaulted, but interest has been stopped by the lender, sending CCA requests will not alter that situation.

Asking for information under sec 77/79 CCA is widely regarded as lodging a dispute, and whilst the "dispute" is investigated, ie. the CCA request is actioned, your account will be put on hold, so nothing will happen period, until you either get what you asked for, or they tell you they can`t produce it.

Its one of your rights under the consumer credit act to use sec 77, so you cannot be penalised for doing so.

bella5426

Thank everyone

SPM87

I would advise you to not be in such a rush about sending CCAs and perhaps elaborate on how much you are paying per month on a payment plan (please god it best not start with any over 100 a month)

bella5426

https://forums.moneysavingexpert.com/discussion/comment/81930706#Comment_81930706

Hi

I do have some that I am paying over £100 a month on, does that make a difference?

SPM87

https://forums.moneysavingexpert.com/discussion/comment/81932308#Comment_81932308

In my view, it makes a difference to your bank balance each month. We are meant to be living through a cost of living crisis and these people dont care how you are living. You pay them as little as possible. "some that are over a £100 a month" holy moly, it genuinely saddens me I see this.

Once debt is defaulted, its real value shrinks to 10% of the total original value or less. What they also don't tell you is with each year after that it shrinks even more.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81933648#Comment_81933648

If the OP wants to know the full facts, the money you lent never existed in the first place.

It was all created on a computer, and then lent to you, in a simple exchange of digits.

Google "fractional reserve banking" its how every bank in the world operates virtually, they create money they don`t have, then lend it to you, your repayments fund more lending and so on and so on.

By the time your debt has defaulted and been sold on, its actual value has plummeted to around 10/12% of its original face value, then the debt buyer makes it look as though their doing you a favour by setting up an affordable payment plan to repay the full balance.

Its really a massive con, say you have a debt of 4k, and you are paying that at £100 a month, that 4k debt is now only worth about £480, which is about what they would have paid for it, so the rest is all profit for the debt buyer, this is why some offer big settlement discounts, and also why they operate on an numbers basis, when it comes to collection activity, the more people they can persuade to pay by either being nicy nicy or through threats and intimidation, as per the old school way, the more money they can make.

SPM87

https://forums.moneysavingexpert.com/discussion/comment/81934092#Comment_81934092

yup, those bankers of the past certainly were smart I give them that, it is not real but very real at the same time.

I only pay anything because I dont want the literal hassle of court admin if they push too far and although a CCJ is not something I care about I cannot be bothered with having one either if I have waited years for defaults to lose their bite.

bella5426

Thanks everyone, to be honest my depts went into 6 figures which is why my payments were so high.