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Capital One Refused Debt Write Off

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  • Capital One Refused Debt Write Off

    I had asked Capital One if they would be willing to write off an outstanding balance of £362.

    I had shown them proof of benefit entitlement, proof of expenditure, and proof of my ongoing medical problems.

    They refused saying I didn't meet their criteria!!

    I am proposing to send Capital One a letter, I detail the letter below at great length.

    Can someone advise me if I am correct to challenge acruing such a debt in this way:-

    ************************************************** ***********

    Dear Capital One

    Further to my letter dated the 10th August 2017, I have some concerns I wish for yourselves to answer.,

    I have been speaking at length to the Financial Conduct Authority on the 21st August 2017, and they provided me with information which I would like for yourselves to justify.

    In the Consumer Credit Sourcebook, there are various guidelines which lenders have to adhere to when giving customers credit.

    There are several guidelines which I feel Capital One has failed on.

    CONC regulation of 2.2.2. states that “(1) targeting customers with regulated credit agreements which are unsuitable for them, by virtue of their indebtedness, poor credit history, age, health, disability or any other reason”

    You would have seen, from my credit reports, that I have other outstanding debts, and that I had been under an IVA previously due to problems with debt.

    I have currently an outstanding balance of £9K due to the Halifax, £280 to Shop Direct (Littlewoods), and £931 outstanding to EvershedsLLP/Drydensfairfax.

    My credit rating was very poor, below the national average.

    Why have I clearly been given these credit cards when I have other outstanding debts, poor credit score, and inability to pay?

    A second failing is CONC regulation of 5.3 states that “(1) In making the creditworthiness assessment or the assessment required by ■ CONC 5.2.2R (1), a firm should take into account more than assessing the customer's ability to repay the credit”

    Furthermore, CONC regulation of 6.2.1 Assessment of credit worthiness also states that “(3) A creditworthiness assessment must be based on sufficient information obtained from: (a) the customer, where appropriate, and (b) a credit reference agency, where necessary”.

    Due to the above 2 failings, can you please explain why did you not ask me for proof of income when you accepted me for the credit cards, you just relied on the credit reference agencies, who might not have know what my income is?

    You would also then have discovered I was unsuitable for the credits due to having only a limited income of £110 per week Employment and Support Allowance, and also the fact that I already had outstanding debts elsewhere that I am unable to pay!?

    Finally, under Sustainability of borrowing, CONC regulation of 2.10.20 states that “Where a firm understands, or reasonably suspects, a customer has or may have a mental capacity limitation the firm should take particular care that the customer is not provided with credit which the firm knows, or reasonably believes, to be unsuitable to the customer's needs, even where the credit would be affordable”

    You failed to ask me, before being accepting me for the credit, any questions about my health. You would have known that I was being treated for an ongoing mental health condition at the care of my gp, and that because of problems with debt in the past, I am unable to deal with my finances.

    Furthermore, you had given me a second credit card when I already had an outstanding balance on another, again providing me with unsuitable credit.

    How is this being a responsible lender giving me a second credit card when I already had an outstanding balance on another?

    I therefore feel that as a responsible lender, you have clearly failed to protect me from further unnecessary debt.

    I have to say, that due to the series of failings made by Capital One under the Financial Conduct Authority’s Consumer Credit Sourcebook, I feel that these debts should now be written off.

    As a vulnerable customer with ongoing mental health problems, I am appalled at the way in which I have been given unsuitable credit, making me feel stressed and anxious, and worried about the future.

    If you are not agreeing to write off the balances due to the above failings, I shall report these failings to the Financial Ombudsman Service in due course when I receive a final response from you.

    ************************************************** ***

    Am I right to challenge the debt on these grounds?
    Tags: None

  • #2
    Re: Capital One Refused Debt Write Off

    If Capital One still refuse to write the debt off considering I have raised concern about them providing me with unsuitable credit, not just once but twice, what advise can anyone give?

    Is it just best to let the account default?

    Comment


    • #3
      Re: Capital One Refused Debt Write Off

      Originally posted by Spellkaster View Post
      If Capital One still refuse to write the debt off considering I have raised concern about them providing me with unsuitable credit, not just once but twice, what advise can anyone give?

      Is it just best to let the account default?
      I suspect that Capital One will respond along the lines, you do not need to use the new CC, they did not force you to use it!

      Comment


      • #4
        Re: Capital One Refused Debt Write Off

        Hi
        I am guessing the credit card came with a £200 limit ? I suspect they will say that providing such a limit was proportionate to the enquiries they made. Can you remember just how you phrased your application form and did you overstate your income , for example including HB in the benefits you received?

        As for your MH, well I do not expect many people would be happy if all credit applications needed a medical report and rightly or wrongly I am not sure any official body would support you on that. I certainly would be rather annoyed, if when applying for credit, some little officious pen pusher asked me a whole load of invasive personal questions.

        You may not remember but back in the 80's , many life assurance and pension companies refused to insure people if they had been , were , or even maybe gay or bisexual . I know some reps advised people to lie which i am sure many did.

        Comment


        • #5
          Re: Capital One Refused Debt Write Off

          Originally posted by warwick65 View Post
          Hi
          I am guessing the credit card came with a £200 limit ? I suspect they will say that providing such a limit was proportionate to the enquiries they made. Can you remember just how you phrased your application form and did you overstate your income , for example including HB in the benefits you received?

          As for your MH, well I do not expect many people would be happy if all credit applications needed a medical report and rightly or wrongly I am not sure any official body would support you on that. I certainly would be rather annoyed, if when applying for credit, some little officious pen pusher asked me a whole load of invasive personal questions.

          You may not remember but back in the 80's , many life assurance and pension companies refused to insure people if they had been , were , or even maybe gay or bisexual . I know some reps advised people to lie which i am sure many did.
          Thanks warwick.

          They did not ask me for proof of income when they gave me credit, and yes the credit limit was £200.

          Under FCA guidelines, they have broken at least 4 rules when giving me the credit as I feel it ws unsuitable for me.

          However, they have refused to write the debt off which I am amazed at as its only for £362.

          Comment


          • #6
            Re: Capital One Refused Debt Write Off

            Hi
            Sorry to disagree but reading the rules I can't see anywhere where it asks the provider to make you prove your income or health. How did you describe your income?

            If you feel they are wrong go to the FOS. You might get a result. If you felt it unsuitable for you, why apply? And yes I know all the answers, been there done that.

            Cap 1 provide low credit at high Apr.

            Comment


            • #7
              Re: Capital One Refused Debt Write Off

              Originally posted by warwick65 View Post
              Hi
              Sorry to disagree but reading the rules I can't see anywhere where it asks the provider to make you prove your income or health. How did you describe your income?

              If you feel they are wrong go to the FOS. You might get a result. If you felt it unsuitable for you, why apply? And yes I know all the answers, been there done that.

              Cap 1 provide low credit at high Apr.
              I provided them with an income and expenditure sheet, and I gave them a copy of my benefit letter showing how my £110 per week esa was calculated.

              Comment


              • #8
                Re: Capital One Refused Debt Write Off

                I think it would be reasonable to expect them to freeze interest for a few more months and let you pay reduced payments. Hopefully without a default.

                Just my thoughts though.

                You pro idea an I&E after you built up the debt?

                Comment


                • #9
                  Re: Capital One Refused Debt Write Off

                  Originally posted by warwick65 View Post
                  Hi
                  Sorry to disagree but reading the rules I can't see anywhere where it asks the provider to make you prove your income or health. How did you describe your income?

                  If you feel they are wrong go to the FOS. You might get a result. If you felt it unsuitable for you, why apply? And yes I know all the answers, been there done that.

                  Cap 1 provide low credit at high Apr.
                  Agree with Warwick here, they ask for your income on application for credit

                  Comment


                  • #10
                    Re: Capital One Refused Debt Write Off

                    Originally posted by MIKE770 View Post
                    Agree with Warwick here, they ask for your income on application for credit
                    They didn't with me!!

                    Comment


                    • #11
                      Re: Capital One Refused Debt Write Off



                      Work & finances


                      Employment status


                      Occupation


                      Yearly income
                      £
                      e.g 21500
                      .00 per year
                      Your total yearly income before taxes (include your job, benefits, investments, pension)


                      Monthly income
                      (calculated from your yearly income)
                      £


                      Taken from Capital One Application forms even for bad credit applications.
































































































































































































                      Comment


                      • #12
                        Re: Capital One Refused Debt Write Off

                        So does anyone actually know the criteria for a write off to be successful!?

                        Comment


                        • #13
                          Re: Capital One Refused Debt Write Off

                          I am not sure there are any specific criteria for a write off although different lenders will have different guidelines

                          I think if there was a tick box exercise then people would find their way around it

                          Every situation has individual merits. Without wishing to sound like some neo liberal fascist, being on ESA with the extra disability premium puts you in a much stronger financial position than someone who may be ill and unable to work but deemed by the state to only qualify for JSA.

                          If you can stand the default on your credit file I would be writing asking them to freeze all interest and charges and offering a repayment plan.

                          Of course failing that you could just let it default and take the risk of a CCJ

                          Comment

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