Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
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Hi
I cancelled my direct debits on my credit cards last week as can no longer afford to pay them at the full rate and composingletters of reduced pro rata offers to all, and 3 days after cancellation i had a letter from Egg saying it is a condition of my egg card aggreement to have a direct debit in place and what I MUST DO NOW they have given me no details of how to pay them any other way,
on the other hand Capital One have sent me a letter deatailing three ways in which i can make a payment to them which will be usefull in the future.
Do Egg Really want to help? from the posts on here and the agressive letter i have recieved me thinks not. any advice on how to proceed with egg would be a great help as so far i have read that they are unwilling to do lower pro rarta payments and freeze hold interest.
I have had similar dealings with Egg. I sent them an income/expenditure sheet and offered them lower payments and cancelled my direct debits. They have ducked and dived, issued me with a default notice, and in general have ignored my correspondence and continued to charge interest. Staggeringly, they also increased my credit limit. Recently, they rang me so they could 'discuss' my options, i made appointments for them to ring me back so as we could go through my income/expenditure sheet! Lady rang me back on the date of the appointment to say that some of their systems were down and would re-contact me on another date. Waited for their call on that date and surprise surprise no phone call from them! Haven't heard from them since. All i can advise is not to re-instate your direct debit, because that allows them to take an amount they decide. You're better off setting up a standing order to them or paying them by cheque. Stick to your guns with them. Keep up the payments every month and dont pay them a penny extra than you can afford, however much pressure they put you under.
Hi Thanks for your reply Russh, did you set up a standing order or send them a cheque? if so how long have they been kept at bay so far?
as i have a house i am worried they will just go straight for a ccj and put a charging order against my house?
I've been paying them for 3 months now via cheque. I wouldnt worry too much about them going straight for a CCJ. First they would have default you, then pass you on to a DCA most likely. As long as you maintain your offer of payments without fail it will hold you in very good stead if they did decide to go to court. And if it did get to court its most likely the court will rule that you pay what you have offered anyway! Also, dont forget that if it does go to court then all interest and charges are frozen. And Egg are well aware of that! Bear in mind that 'banks have a duty to mediate outside the court system. If you have made a reasonable offer, a judge will not take too kindly to them litigating.'
Follow these three rules:
1. Enclose 1st Payment with your proposal
2. Keep up the payments
3. Don't budge once you have made the proposal - no matter what they say.
And if it did get to court its most likely the court will rule that you pay what you have offered anyway!
Your advice generally was spot on Russ but the above bit concerned me as I am a debt adviser and have spoken to hundreds of clients who do fill out an admission form with an offer of payment & still get either a 'forthwith' CCJ or an instalment order which they can't afford.
You need to be aware that when you send back an admission form with a budget sheet & offer of payment it goes to the creditor who then have to let the court know whether they accept the offer or not. If they reject it then it's up to the court to decide what's 'reasonable'. This will often be done by a member of the court staff rather than a judge.
What you need to remember is that more and more creditors are going for forthwith CCJs as they want the option to use further enforcement if you default. This is now very common where property is involved. Many judges / courts feel it's unreasonable for a creditor to get, say £1 per month for infinity while you are sitting on an asset.
This isn't my point of view I'm just playing devils advocate - you may get a CCJ in your favour but it isn't as easy as you indicate... although if you get a CCJ you can't pay you can apply for redetermination free of charge within 14 days to ask for it to be looked at again.
Before a final charging order csn be made there will always be a hearing as well. So the creditor is aware you have defaulted on a CCJ, they apply for a CO. The interim charge is granted with no hearing as this registers as a caution on the Land Registry stopping you from selling the property first. At the hearing for the final CO you do get a chance to make your points to the judge ( eg you have tried to avoid court, you have little or no equity, or you have lots of equity so is disproportionate etc etc ). You can also ask for conditions to be attached if a fional CO is inevitable eg that they will not apply for an order for sale ( these are vv rarely granted anyway ).
Have you had any charges applied to the account? If so it may be worth while reclaiming them to reduce the balance. Also, if you take this route, it is reasonable to say the account is in dispute whilst waiting for the statements etc. Until the charges are deducted, you will not know what the actual outstanding balance is. You could say you'll pay a token amount as a goodwill gesture which can be the amount you can afford.
I would reiterate what RussH said with regards to payment. In the past when i've been dealing with creditors who refuse to negotiate payments i put everything in writing: budget plan, payment proposal, a review date ie in 3 or 6 months time AND a payment. I then stick to my guns and carry on with what I'VE set out. You can't pay any more than you've got. BUT it is important your payment is realistic and that you maintain it.
powelll, hopeful1
many many thanks for your responces,
Hi Powelll,
Am i right to assume that if i get a CCJ issued against me there will be no automatic Charging order on my property and, a charging order will only be in place if i default on the ccj payments? am i also right in thinking that? and what are vv rareley granted full charging orders or conditions that they will not apply for an order for sale?
Regards Bandyandstrange
Hi Hopeful1,
I have had no charges levied against my accounts as of yet and have not defaulted any payments until this month as i am running out of money to pay them, i am trying to nip this in the bud tell the creditors asap about my situation rather than let things sprial out of control im sure that will stand me in good stead for future events and not let it affect my mortgage/ council tax etc, im not going to offer unrealistic payments i am going to offer £40/ £75 per month per creditor depending on the size of the debt min £5000 max £13000, it is what i can afford and not almost £1200 a month that i have been paying thus far which is no longer affordable due to a signifficant drop in income. do you think this is reasonable so far?
You're obviously being very practical. As you said make sure you keep up with the priority debts such as mortgage and council tax. The key is to only offer what you can realistically afford now and in the near future.
If you are concerned about your situation or creditors start to give you grief, take advantage of some of the free agencies. Citizens advice bureau (CAB) and Consumer credit counselling service (CCCS). I haven't used them myself, but many on this site have and talk very highly of the support they have offered.
Am i right to assume that if i get a CCJ issued against me there will be no automatic Charging order on my property and, a charging order will only be in place if i default on the ccj payments?
Correct
and what are vv rareley granted full charging orders or conditions that they will not apply for an order for sale?
Sorry, rubbish English by me in my rush! Orders for Sale are vv rare.
Also link below useful:
I have just recieved a letter from Egg stating that they will accept my offer of reduced payments but not suspend interest or charges and they have said they will issue me a default notice as i am no longer complying with the termsand conditions of my account can they do this as i have not missed any payments just reduced payments to which thaey have accepted they have also cashed the cheque that i sent with the reduced offer of payment?
what are the rules of default issuance?
EGG CREDIT CARD & cancelled direct debit
saying it is a condition of my egg card aggreement to have a direct debit
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Re: EGG CREDIT CARD & cancelled direct debit
