In a lot of trouble. Help & advice needed. Please.

[blackrain]

Got letter from Egg today saying they have cancelled my Egg card after missing two payments in a row. The only two payments I have missed in seven years. Yep that's right 2 missed payments out of approx 84.

Anyway the balance has been passed on to a DCA. I have never had to deal with one before and I have no idea what I am facing. Will I be able to negotiate with them? If I can't pay and have to go to court what are my options? That sort of advice if anyone knows.

They passed it on because I ignored a default notice which I never received. The address they are writing to isn't correct and god knows how the postman even got the letter here. Postcode is right though so.....

If I do go to court and prove to them what I can afford and it isn't enough will I be made bankrupt or will I just pay what I can? Sorry for all the questions but I am really stuck here and on my own. My wife has suffered over the last couple of years with depression and I am rightly or wrongly (probably wrongly) shielding her from this as I don't want her getting ill again.

[Joa]

blackrain; I am not trying to pass you on from pillar to post but I think you need to seek advice from specialists. Please do not panic, your situation is not that bad; some debt collectors are swines though and you need a proper help.
This forum is excellent but you should also try this:
CCCS -
and
National Debtline England & Wales | Debt Advice

These are sources of free, high standard help. Please be very wary of organisations that are trying to charge you a fee for sorting you out.
And finally, you need to be prepared that there will be some work for you to do; no one is going to take it out of your hands and deal with it completely. There will be a budgeting sheet to fill, some letters to write etc. But the links I gave you- they will help every step.
And no, your situation, as described, does not warrant even a discussion about bankruptcy.

The other issue, besides debt advice, is that of Egg; any unlawful charges there? Maybe you can put in a claim too, with an addedd condition that they remove the default. I am sure you are you are familiar with the forum; so get a cuppa, comfy chair and get reading. Good luck.

[alanfromderby]

I would advise having a good read through the Debt and Bailiffs Forum. You will be able to negotiate, and if they were to take court action, the court would agree a repayment amount that you should be able to afford.

To be honest, a DCA does not want to have to take court action, because courts often set very low repayments - I was paying back a £2000 debt at £5 per month at one point!

The main thing is don't panic, they will try and frighten and intimidate you in to paying more than you can afford. You do not have to agree to any repayment plan that is too expensive for your circumstances. They won't like it, and they will try to put pressure on you - but in the end they will have to accept what you can afford.

[blackrain]

Thank you. Both of you. I've been extremely daft not to have tried to sort it out with them earlier. Going to ring them tomorrow morning to see if it is completely too late to sort out a repayment plan (I have a loan with them too) so I presume it is in their interests to try and get the money back from me easily. I don't believe the debt has been sold only handed over so I reckon they can get it back if they want.

No unlawful penalties to speak of (apart from last two months) as I have always kept this account up to speed. Kind of what annoys me the most is I have been a customer for 7 years and dealt with them under their terms except the last two payments. Hey ho. Will try to keep eveyone informed if anything of note arises.

[COOPMAN]

I missed two payments in a row and they sent my account to a DCA (Direct Legal and Collections). They wanted me to make an upfront payment of £500. I owe approx £5000. Told them i could'nt afford that and they just got stroppy on the phone. I found out Egg were still taking direct debits from my bank so i hav'nt paid DLC anything yet.

[blackrain]

Has anyone had a Debt Collector turn up on their doorstep? Would they normally deal by phone and letter first? I'm right in thinking bailiffs are only used once a CCJ and warrant has happened?

I'm tempted with the other debts I have to go for IVA. Have contacted National Debt Line by email and will follow it up with a phone call today. Contacted Egg and they said my loan with them was going the same way as the card.

[COOPMAN]

DCA's will deal with you by letter and phone first. An IVA should only be used as a last resort. Make a sensible offer of what you can afford to repay, they will try and fob you off and threaten you with legal action. And it's unlikely they will go to court as the judge will not order you to repay anything other than what you can afford. Steer clear of consolidation loans etc and more importantly steer clear of IVA's. Best to get some advice from the citizens advice bureau before you make a rash decision.

[blackrain]

Egg are saying that they will be seeking the whole of my loan and not just the arrears as well. Not sure how they think I will be coming up with that sort of money if I can't pay the arrears.

Will get advice today from NDL and CCCS for sure. Do DCAs still add on interest like Egg would have done or is the sum they are seeking going to stay the same (apart from any unlawful charges they add).

[COOPMAN]

DCA's do not add interest on to any sums owed. Either Egg pass the debt over to the DCA for collection or the DCA purchase the debt off Egg.

[blackrain]

Thanks Coopman. That was the last question. Will seek out some more advice from CAB & the other debt charities.

As they are not sticking interest on it (almost) seems better to have it with the DCA. Was paying £170 every month with Egg and it only ever moved by about a fiver each month.