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Credit card - Unqualified financial advise given, admission letter, want to invove ombudsman
blueball
Posts: 22 Forumite
Hi,
I have had a credit card with a company we will just call (the credit card company). In 2016 I ran into financial difficulty and phoned up asking for a lower APR whilst I pay back, the team member gave financial advise stating that I should convert the debt into an arrangement to pay. I asked him to double check if it will impact my credit score and he said "no, it's negligible".
Tried to get a mortgage and was advised by L & C and all credit references that an arrangement to pay is the worse thing you can have on your file, it's worse than a default.
Rang back the credit card company who advised me to convert the AP into a default. I did this.
Checked my credit score again, it's even lower than on the AP.
I complained and the company sent me a dead lock letter with £500 compensation stating that if I'd like to take things further I should contact the ombudsman.
The financial "advise" that I have received has ruined my chances of getting a mortgage and I'd now like to take things further with the Ombudsman...
Does anybody have any template letters for unqualified financial advise having an adverse effect?
Many thanks.
I have had a credit card with a company we will just call (the credit card company). In 2016 I ran into financial difficulty and phoned up asking for a lower APR whilst I pay back, the team member gave financial advise stating that I should convert the debt into an arrangement to pay. I asked him to double check if it will impact my credit score and he said "no, it's negligible".
Tried to get a mortgage and was advised by L & C and all credit references that an arrangement to pay is the worse thing you can have on your file, it's worse than a default.
Rang back the credit card company who advised me to convert the AP into a default. I did this.
Checked my credit score again, it's even lower than on the AP.
I complained and the company sent me a dead lock letter with £500 compensation stating that if I'd like to take things further I should contact the ombudsman.
The financial "advise" that I have received has ruined my chances of getting a mortgage and I'd now like to take things further with the Ombudsman...
Does anybody have any template letters for unqualified financial advise having an adverse effect?
Many thanks.
0
Comments
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The pretend credit scores will drop with any change, so ignore all that. It's of no importance.
The key issue is whether you were able to maintain contractual payments or not.
If not, then whether an AP or default is better depends on how long you expect to be in this situation.
If you were perfectly able to maintain payments and they told you to default, then that is a different matter, but I think that is unlikely.0 -
On your other thread you said that can pay for the property in cash. No mortgage being required. That's a considerable turn round of fortune in short period of time. Or is there more to this tale that you are holding back?0
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Hi,
I have had a credit card with a company we will just call (the credit card company). In 2016 I ran into financial difficulty and phoned up asking for a lower APR whilst I pay back, the team member gave financial advise stating that I should convert the debt into an arrangement to pay. I asked him to double check if it will impact my credit score and he said "no, it's negligible".
Tried to get a mortgage and was advised by L & C and all credit references that an arrangement to pay is the worse thing you can have on your file, it's worse than a default.
Rang back the credit card company who advised me to convert the AP into a default. I did this.
Checked my credit score again, it's even lower than on the AP.
I complained and the company sent me a dead lock letter with £500 compensation stating that if I'd like to take things further I should contact the ombudsman.
The financial "advise" that I have received has ruined my chances of getting a mortgage and I'd now like to take things further with the Ombudsman...
Does anybody have any template letters for unqualified financial advise having an adverse effect?
Many thanks.
You checked your credit report which lenders also see, the score is of no importance.0 -
You dont take financial advice from a credit card company, you take it from a financial advisor.
Credit card call handlers do not know squat about anything, only what there script tells them.
And since when has the debtor had any choice between an AP or a default ?
Always the creditors choice not yours.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Maybe I've worded this wrong. I want to "go after" the credit card company because they "advised" me onto the AP and then again onto the default.
I've since found out that telephone operators are not allowed to give financial advise.
I am unable to get a mortgage because of the impact these events have had on my credit file but that's irrelevant, I'm hoping someone can tell me with the procedure for dealing with the FOS.
I contacted a solicitor but they want £1,450 to draft up a letter to the FOS. Seems like a lot of money for a letter.0 -
Deleted_User wrote: »If you were perfectly able to maintain payments and they told you to default, then that is a different matter, but I think that is unlikely.
I was perfectly able to make the payments and they told me to convert the arrangement to pay into a default stating that it would be "better in the long run". The call has been recorded and I have an admission in the dead lock letter.0 -
I!!!8217;m not sure what you!!!8217;re after here. I!!!8217;m assuming some sort of compo claim.
Why can you not write your own letter or approach this yourself and ask them to fix it?
How do you know your chances of a mortgage are ruined? Whether the account was defaulted or on an AP you would still likely need to see a broker rather than a high street lender0 -
Thanks for the reply Gary,
Yes, I'm after compensation as I feel the £500 they already gave me is not enough.
The solicitor wants £1450 to write a letter to the ombudsman, I'm worried if I just do it myself I'll mess up and the FOS will take the side of the lender.
What I want is help with writing letters to the FOS on grounds of unqualified advice having an adverse effect on my financial plans, i.e. the inability to now get a mortgage.
I'd be happy to pay (not £1450) but a generous amount to someone who wants to help with my case if I win.0 -
If you were 'perfectly able' to make the payments then why were you in financial difficulty.
Either way, default or AP, shows you could not make the contractual payments and that is alla lender is interested in.0 -
£500 is more then generous for compensation - most places would only offer a tenth of that.
You don't have an inability to get a mortgage - you can go to a broker.0
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