Very Interesting Conversation with Swift Sterling Rep

[FearfulFuture]

So, I contacted Swift Sterling by telephone (don't stress!!) to enquire about their repayment processes should you default on a loan. Luckily the man did not ask my name or security details but then I wasn't discussing my account in detail with them at this point. He advised me that if I could not make payment on my next pay day this is their position:

 

1. They are entitled to take the outstanding balance on my pay day. This will be done by debit card transaction. If the funds are available, these will be taken. If the funds are available and I do not wish for them to take them, he advised me to cancel my card or move the funds so that they can not be taken when they attempt to. He advised me I will not be charged by my bank as it is a debit card transaction and not a DD.

2. He stated that until I default, there's nothing that can be done. After I default the following will occur:

a) My account will be passed to an in house account manager (with a £59 fee added to it). If after 31 days the full balance has not been repaid it will then be passed onto a DCA.

 

I enquired as to setting up a repayment plan with them, and he stated that "As they are a PPDL company, they do not have the correct licence to enable them to accept replayment plans, and this would go against responsible lending" (personally, I thought that it would be more irresponsible of them not to accept a repayment option from someone facing financial hardship but anywho) So I asked whether all PDL's have a "basic licence" which means that they can't accept repayment plans. He stated yes. I then went on to say that I have heard of numerous PDLCs that accept repayment plans as an option to repay their loans. He stated that "maybe they have a different licence". I asked him what type of licence you would need, (cos I'd probably be a better lender than most PDLCs!) he stated he "didn't know and all we're told in training is that we don't have the correct licence to be able to accept repayment plans".

 

He then went on to say that if I am having financial difficulties "PayPlan" can be contacted and they will offer free advice and I can enter into a plan with them and they will liaise with swift sterling who will then accept the plan. I went back to the "but you don't accept payment plans so how does that work?!" - he didnt know funnily enough.

 

So, whats all this about the difference about holding licences then? Anyone in the know? Because I feel a bit lost!!

 

FFx

[renegadeimp]

Theyre wrong. If you inform them that you cant make payment, then they are obligated to come to an arrangement on when you will be paying. They have no right at all to continue to process the payment on the originally specified date, especially if you have instructed otherwise.

 

As for him saying to cancel your card, again, he is NOT allowed to do that. He can easily go into the system and stop the payment process, especially if it is stated in good time.

 

And as for him stating that nothing can be done until you default, again, he's wrong. If you inform them of your financial situation in good time, then they must come to another payment arrangement ( they may charge you a late fee which is allowed, as long as it is not excessive). They cant charge you £59 simply to yell across the room to another member of staff to deal with your account.

 

They are allowed to pass it to a DCA, however, DCA's are VERY easy to deal with and have pretty much no legal rights whatsoever.

 

As for their licensing garbage, they are wrong AGAIN. OFT regulations state that if a person contacts the lender, regardless of whether the loan is regulated or not, then they must come to an agreement on a repayment plan that does not create unnecessary hardship for the person, or force them to forego High priority bills such as electric, gas, food etc.

He knows this as well because he started mumbling about PDL's having "different licenses", when its obvious they all have the same one. I think he got confused by regulated and unregulated loans.

 

He's also wrong about you having to liase with a third party company and you quite rightly called his bluff on that.

 

It really looks like thei are either oblivious to the law, or you spoke to a representative who has no clue at all what he is doing.

 

How these fraudsters continue to operate beggars belief.

[FearfulFuture]

Well, they're slimey little newts. As he started fobbing me off I informed him that I get "confused easily and I just want to get a pen and paper so I can go over the information as there was a lot to take in". He slowed down and went over it again. I didn't want to double bluff him and become confrontational on everything, I was interested to know what their "position" is and what people are dealing with here! I do actually believe that genuinely all he has been told in training is that they "don't have the correct licence", there are many companies in the selling industry who train their staff in this way. That's why PPI refunds are being given after all. I'm going to have to rethink my approach with these lot as they seem to be sneaky mo'fos.