Payments on Revoked CC

S

Sapphron

Guest
It's going to seem like a stupid question but if your credit card has been revoked as written off as a bad debt can you still make payments in the regular way to the bank or is it with a seperate agency at that point.
 
If the company passed the case to a collection company then you are best to contact them directly. In my experience they are far easier to work with than trying to deal with the collections people in the mainstream banks who don't seem to have the training or understanding in dealing with the problems that they face. The collections company will probably let you pay as little as 20 euro a week, the banks seem to be unable to negotiate, from anecdotal evidence from other people who've been in the same situation as myself, a lot of the main banks are pretty poor at negotiating collections.

To be honest you're actually better off dealing with the collections crowd but you have to make sure you don't miss any payments or they will probably start to get difficult.
 
I contacted the bank and the person who I talked to sorted it so I only have to pay €20 a week until I'm in a position to pay it off in full. So hopefully that will work out.
 
How will interest be calculated?

It may be cheaper to refinance the debt in question through:

(a) a 0% balance transfer (may not be available if you have impaired credit);or
(b) taking out a personal loan at a lower interest rate.

The offer of €20 a week may appear reasonable, but the overall interest payable could be horrific.
 
I don't think debt collection agencies charge interest like that do they?

If the outstanding debt was 3,000, then the bank will settle for a percentage of that amount in return (maybe 2,500 if the debt collector can collect the full 3,000) ignoring interest in the mean time. The bank's goal is to recover as much of their money as possible, not to keep adding to it. I.e. they have already given up on the full amount you owe them so it is pointless them looking for more.

The debt collector tries to get as much of the 3,000 back as possible in a reasonable enough time frame to make a decent return. In effect, the debt collection agencies interest is paid by what they keep from the collected amount, i.e. the bank pays what is effectively the interest not the person in debt.

This is just my take on it from dealing with them while I was in business and had cashflow problems.

If there are any debt collectors who can put me straight, feel free to do so...
 
Yes, I understand where you are coming from, but it is important to verify how interest (if any) is calculated in each individual case.

Even if there is no interest, the OP may be better off refinancing at this stage to avoid dealing with the debt collectors.
 
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