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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?
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?
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