DMP Mutual Support Thread - Part 12

leanne12345 · 14 August 2017 at 12:09PM

sourcrates wrote: »

Hi,

"Legally assigned" means they have been sold yes.

You must of been defaulted, a default notice should be issued first, followed by a default on your credit file if you dont comply, a debt cannot be sold unless its defaulted.

Its likely the debt purchasers who have bought your accounts will add the entry in there name pretty quickly.

Original creditor has now washed there hands of the debts, so wait until the new owners introduce themselves.

Thanks very much Sourcrates.

They definitely haven't been defaulted by the original creditor, I haven't actually received any correspondence regarding all 3 accounts, apart from my normal monthly statements, since entering into the DMP. They are not showing as defaults on my credit reports either so I will wait and see what happens with the new 'owners' now I guess.

sourcrates · 14 August 2017 at 12:15PM

leanne12345 wrote: »

Thanks very much Sourcrates.

They definitely haven't been defaulted by the original creditor, I haven't actually received any correspondence regarding all 3 accounts, apart from my normal monthly statements, since entering into the DMP. They are not showing as defaults on my credit reports either so I will wait and see what happens with the new 'owners' now I guess.

Your not the first person to say this.

Legally they must default you, ie, the relationship must end, before they can sell on your account.

A few people have told me this has not been the case with them, i`m just trying to chase this up at present and see how it might affect people, if at all.

Its all covered by sec 87 CCA 1974 :

http://www.legislation.gov.uk/ukpga/1974/39/section/87

Puzzcat · 14 August 2017 at 12:18PM

sourcrates wrote: »

Your not the first person to say this.

Legally they must default you, ie, the relationship must end, before they can sell on your account.

A few people have told me this has not been the case with them, i`m just trying to chase this up at present and see how it might affect people, if at all.

Hi Sourcrates,

My non defaulted debt from creation was sold to Lowells and I complained to the FOS and ICO and they both said I had no case and the creditor/dca had done nothing wrong.

Puzz

Suseka97 · 14 August 2017 at 12:31PM

Just_Afloat wrote: »

Morning, first time post so I hope I'm doing it right...
I'm on a dmp with stepchange, 2 years in and 3 to go but have one debt with a Halifax credit card that will soon start charging interest again, as I will meet the minimum payments. My question is, would stepchange allow me to remove this from the DMP (around7K for this credit card) so I can throw extra money at it when available, to reduce the interest I will have to pay over the next couple of years, would it make any difference if its my wife who makes the extra payments as she is not part of my DMP. I also have other debts in the DMP owned or once owned by Halifax which have defaulted, an overdraft and a loan, but I also have a credit card, Sainsburys (4.5K) which is basically a Halifax card, this card hasn't defaulted either, but is some way off meeting minimum payments.
My choices might end up having to go self managed, gulp, or stick with stepchange and accept that Halifax will charge me around 3k in interest before the DMP completes, any advice welcome, thanks.

I think you'll find that SC are unlikely to agree with you removing them from your DMP - they have a policy to treat all creditors 'fairly' which means they would not counter you making extra payments to any one of them (regardless of who pays). I was in a similar positon with Barclaycard (we had two CCs with them) and at first they stopped interest, then charged it again once we hit the minimum payment threshold. Oddly, although their argument for charging interest (which by the way was upheld by the FOS

) was that we were then like any other paying customer - about 6 months later they sold the debt on. Go figure!

If I were you I'd be pushing Sainsbury for the default - because if/when they eventually sell the debt on -it will have added at least 2 years to when it falls off your credit file. As and when you hit the threshold - if they do add interest back on, just keep on at them -or, as you've suggested, go self-managed and drop them back under the minimum. Others have successfully gone self-managed for that very reason dropping creditors down to as little as token payments both to push for the default and to stop charges.

sourcrates · 14 August 2017 at 12:52PM

Puzzcat wrote: »

Hi Sourcrates,

My non defaulted debt from creation was sold to Lowells and I complained to the FOS and ICO and they both said I had no case and the creditor/dca had done nothing wrong.

Puzz

I remember you telling us that Puzz.

Seems to be a big difference between what is laid down in the consumer credit act, and how creditors (and regulators) interpret the same information.

henrryyyy · 14 August 2017 at 2:06PM

I too received a letter today saying my account has been assigned to asset link capital. I also received no default notice.
I wrote to all my creditors offering token payments a couple of weeks ago, in an attempt to get the accounts defaulted/sold. Now this creditor has done that, should I start making proper payments to asset link capital?

Leanneglos1 · 14 August 2017 at 2:25PM

Hello everybody, I did ask the question a couple of days back but appeared myself and another person in a similar situation weren't too sure.

I have a loan with progressive money for approx £11500, payments stopped a month ago.

This is now only just showing on my credit report and it looks as though they have bull added the interest to the loan at the beginning so although only borrowed approx £12,000 the balance shows as £11500.

My question is...what happens when this is sold on to a DCA, wil they sell on for the higher balance meaning I'd have to pay £27K....I hope not, I feel like I could cry over the prospect of that...

Is anyone able to shed any light or confirm whether it happened to you and if so what happened?

sourcrates · 14 August 2017 at 2:37PM

Leanneglos1 wrote: »

Hello everybody, I did ask the question a couple of days back but appeared myself and another person in a similar situation weren't too sure.

I have a loan with progressive money for approx £11500, payments stopped a month ago.

This is now only just showing on my credit report and it looks as though they have bull added the interest to the loan at the beginning so although only borrowed approx £12,000 the balance shows as £11500.

My question is...what happens when this is sold on to a DCA, wil they sell on for the higher balance meaning I'd have to pay £27K....I hope not, I feel like I could cry over the prospect of that...

Is anyone able to shed any light or confirm whether it happened to you and if so what happened?

Hi,

A couple of us did answer you previously.

What does it say in your agreement with regard to this ?

It should be a fixed rate loan, it will detail your monthly payments, the total amount payable, and the interest rate applicable.

How can a balance of 11.5k suddenly amount to 27k ?

Just_Afloat · 14 August 2017 at 3:03PM

Thanks Suseka97, my biggest worry is if I go self managed and pay token payments to my creditors, a charge or CCJ will arrive because I own 50%share of home with my partner, we bought this house 11 years ago with the right to buy scheme, which paid our 25% deposit and whenever we sell they already have a first charge, (I think that is the correct term), so will get back 25% of any sale, which I have no problem with. Currently I pay around 1100 pounds to my creditors through stepchange each month so would have to tell a pretty big whopper to drop my payments to tokens?
LBM Aug 2015, 73K
Current 41K, 3 years to debt free.

leanne12345 · 14 August 2017 at 3:35PM

sourcrates wrote: »

Your not the first person to say this.

Legally they must default you, ie, the relationship must end, before they can sell on your account.

A few people have told me this has not been the case with them, i`m just trying to chase this up at present and see how it might affect people, if at all.

Its all covered by sec 87 CCA 1974 :

http://www.legislation.gov.uk/ukpga/1974/39/section/87

That's interesting. So what in your opinion would be the best way to deal with it now, considering Puzzcat's experience. Should I just hope that they default me now as they should? And if they don't stop paying until they do?
Is it the dca who now decides whether to default me or not?

DMP Mutual Support Thread - Part 12

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