First Direct - merging accounts after CCCS agreement

[stek2007]

I've been having some disagreements with First Direct, and the lovely Robert Kernaghan (their Customer Care manager), following their acceptance of a repayment schedule from CCCS...

 

Basically I held a current account with overdraft, a VISA card, a personal loan and a second current account also with a unauthorised overdraft (caused by them paying a standing order to themselves for the personal loan despite me cancelling it). Upon accepting the CCCS repayment they told me they were going to merge the debts into a single account. Despite originally asking for my permission to do so - which I did not respond to - they went ahead anyway.

 

They then sent me a new CCA wanting 5% above the bank of england base rate as an interest rate. I have, so far, refused to sign this. I have written to them on numerous occasions now asking that they suspend charging interest - they have refused all attempts.

 

Basically, the final response from Robert Kernaghan suggested that as I have made a repayment agreement and not missed payments they have no reason to pass the debt to a debt collection company who would be the only people able to negotiate the interest rates. They 'Do not offer' interest free lending.

 

Any suggestions? Can the interest they've charged so far be legal given I've not signed the CCA agreeing to that rate?

 

Ironically since going onto a debt management plan I've been stunned to find that Capital One (I always regarded as ba**ards for the rates and charges) and Barclaycard are the only people not charging any interest.

 

Any suggestions much appreciated,

 

Steve

[ScarletPimpernel]

My OH has been on a DMP with CCCS for some time, and FD had merged accounts and frozen interest and charges. However FD subsequently contacted her and persuaded her to pay them direct, when they began adding charges and interest again (this was before I came on the scene!). Had the DMP been followed, the original debt would have been paid off by now, but despite paying several hundred pounds more that the original amount the outstanding balance is still over £1k.

 

Acting as an authorised representative, I arranged for CCCS to reinstate the DMP, although FD refused to reduce the balance or stop interest and charges.

 

We now have evidence (an entry on their system (revealed by a S.A.R - (Subject Access Request)) which shows that they deliberately sought to circumvent the DMP by contacting the debtor to pay them directly (from the wording, it looks as if it's a standard practice). There is other evidence that they routinely lied - stating in writing that they had copied correspondence to CCCS when they had not, for example.

 

So, formal complaint sent - but just like their parent HSBC, they currently claim that letters for which they signed were never received.

 

 

So, if you are in a DMP, they should not be contacting you directly - write and ask them to confirm that they've sent copies of everything to CCCS, and on what dates. They will reply with some waffle to the effect that they have a duty to contact you since you are their customer - but stand firm, and reply that CCCS are your appointed representatives, with whom (under the OFT guidelines) FD should be dealing, and they should send everything to them in the first instance.

 

If you haven't already done so, hit them with a SAR - but watch for their delaying tactics and attempts to get you to agree to have just statements - it may be very revealing.

 

Make sure everything is in writing - FD lie like a Labour politician on the Today programme!

[powelll]

If any creditor refuses to deal with an appointed 3rd party ( such as a DMP company ) they are also in clear breach of the OFTs debt collection guidance so you could also complain via that route ( OFT don't take up individual complaints but they do keep it on file and if they get enough complaints they will investigate )

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/DebtCollectionComplaintForm.DOC