Hi all,

Just looking for some advice on what I should do going forward. For the record I am a resident in Scotland.

I have accrued around 47k of unsecured debt among six creditors in the UK.

1 Ratesetter £23.8k P2P loan

2 Barclaycard CC £4.9K

3 Tesco Bank CC £5.9k

4 Virgin Money CC £6.2k

5 Hitachi deferred payment £4.5K

6 V12 Secure Trust Bank £1.8K

I am now at a point that I am about to start missing payments and will end up defaulting. I have spoken to step change who have recommended a DPP under the Debt Arrangement Scheme as I have a flat with equity that I wish to protect.

While this is the formal way of things I thought I could perhaps try the informal route first and doing a self managed DMP with it being more flexible and being able to pay off creditors with lump sums if I can get some overtime built up.

I filled out my income/expenditure sheet and included this in a letter to each of my creditors explaining I can no longer service my debts and included a revised payment amount (pro rata of £585 surplus). The letters were sent 1st class recorded signed for. All direct debits have been cancelled today also.

I assume it is now just a waiting game for their responses? I reckon they will more than likely reject especially Ratesetter - this is the debt I am most worried about as it's a high amount and essentially other peoples money.

Am I doing the right thing here? Should I just be going straight for the DPP to save any court cases?

Any help or advice on the matter is greatly appreciated.

none are secured on your property?

when did you take them out

Hi none are secured against my property.

I don't recall the exact dates however;

Ratesetter feb/March 2016

Tesco CC sometime around 2012

Hitachi deferred payment September/Oct 2015

Virgin CC summer 2016

Barclays summer 2016

V12 April 2016

In Scotland there is a network of legal/debt advice centres with experts on Scottish law. You might want to see what you can find out locally, to see what you can do. They will want to see your finance agreements. Then at least you will know more and be informed about decisions you may take.

Stepchange as the major debt charity are recognised by finance companies, so you are more likely to be taken seriously. If you try to do it yourself, then they might not be as helpful.

These are all recent debts, so not much scope for ways to deal with them. If there is a temporary financial problem, then best to agree to some repayment arrangement based on affordability, where they freeze interest/stop adding charges. Then see how it goes and make decisions when you need to. At some point, if you cannot repay, then presumably they can try to obtain a charge against your property.

ouch all recent then.

where that £25k all gone in 6mts?

nationaldebtline & their website is good on Scottish stuff and they are impartial.

I honestly wish I knew.

For the most part the loan paid some things off while,

I needed new windows put in,

had massive problems with my car at the time,

so paid off the existing finance and got shot of it,

had some large vet bills as well and had relied on credit a few times to get me through the months.

Silly,

but what is done is done and I have unfortunately learned the hard way.

I am committed now to getting myself out of the mess I'm in so will attempt the self managed side of it.

Thank you for your replies.

Are there ANY other creditors which should be included?

Generally speaking, every organisation you owe money to should be included when you are trying to make pro rata payments from your "disposable income".

For example, you shouldnt be paying 1creditor in full if others are being asked to accept reduced payments.

Is this a temporary situation or is this how things are for the foreseeable future?

Hi All,

I like many others got myself into a bad situation and had the oh bum moment around two years ago.

I sought help and almost entered into a DAS (Debt Arrangement Scheme which is a formal Scottish debt solution) but decided against it and went for a self managed DMP first.

Safe to say I'm glad I did so far.

Going forward I'd like to be rid of this burden as soon as possible so I can begin to move on with my life so looking for any advice going forward.

I had multiple creditors, one was my mortgage, one was my car, the rest were unsecured credit agreements, cc's and a loan.

I stayed up to date with one credit card, my mortgage and my car.

The rest I stopped paying and allowed them to go into default etc. and set up payment plans

In December I plan to clear my up to date credit card balance which will leave me with the car and mortgage still active and the following in default;

Tesco CC - default still with Tesco.

Barclay Card CC - default, sold to PRA group.

Virgin CC - default, sold to Cabot. They have previously offered to settle for 60% twice.

Hitachi Loan - Late Payment, sold to Lowell (Hitachi never defaulted prior to selling)

Ratesetter Loan - Default, Scott and Mears acting on behalf of OC. This is the youngest default at June 2017 they took their time to default.

These are all "recent" debts taken out after 2012.

Best to carry on with the DMP and saving up for a hopeful full and final or should be I sending any particular letters to the DCA's?

Thanks in advance!

Have you CCA'd them?

PRA cabot dont chase legit debts. Lowell are very shady and theres usually something wrong with the debts.

CCA everything and also SAR the OC's so you can see exactly what youre dealing with. Never blindly pay.

Also NEVER under any circumstances consider a full and final to a DCA. Especially when you havent checked the debts validity.

Thanks renegadeimp, in regards to CCA I thought I read somewhere this was not worthwhile for recent debts?

To clarify should I send SAR to every OC or just the two that haven't been sold on?

always CCA. Doesnt matter if its recent or not.

And yes, sar the OC's, including the ones that havent been sold on. You want to know everything about your debts before you start arranging payment plans

For the ones that have been sold on, do you CCA the original creditors as well as the DCA's?

Should I be cancelling the payment plans that have been in place for the last year and a half prior to sending these?

CCA everyone. Keep payment plans in place until they default on your CCA request. They get 12+2 working days to comply. The day it expires, if they havent fully complied, you stop payments until they do. ESPECIALLY if those payment plans are with DCA's who will NEVER have any paperwork or info for the debt unless you specifically request it.

Excellent thanks, I'll go ahead and do that this week.

Be aware that the paperwork they send may very well be compliant, but its a very good idea to get as much info on the debts as possible so you can decide on your next move.

ive merged an old thread and this op is in Scotland so remains in the Scotland forum .

go get your credit file.

lets see what damage is done

like defaulted dates please.

dx

Hi dx100uk,

1 Ratesetter (Scott Mears acting on behalf) default date: March 2017.

2 Barclaycard CC (Sold to PRA Group) default date: Feb 2017.

3 Tesco CC (Not sold or passed on, in-house collections) default date: Jan 2017.

4 Virgin Money (Sold to Cabot) default date: June 2017.

5 Hitachi (Sold to Lowell) No default date, late payment markers only, around Jan-March 2017

ratesetter was a form of PDL was it not...irresponsible lending complaint time?

as for the other yep a CCA request

Ratesetter was a Peer to Peer loan so don't think I have grounds for irresponsible lending.

Great, I'll draft up some letters tonight to get posted Monday/Tuesday. Is the below template still the go to? Send recorded with a crossed postal order enclosed?

[removed - dx]

what does the top red line say?

Sorry, that particular line doesn't show up on the mobile browser very well - found it on the laptop.

Amended the template to suit and printed off the CCA letters ready to post tomorrow. In terms of the Ratesetter loan, do I send the CCA to the debt collector acting on behalf of Ratesetter or to Ratesetter directly?

you send it to the DCA's stated client.

CCA letters and Postal Orders sent yesterday, will update if/once I get a reply.

PRA Group replied stating they have put my account on hold for the time being and have requested the information from the original creditor. They also returned the postal order because "as a gesture of goodwill, they don't charge the statutory £1 feel."

Thats because they rarely ever are able to obtain the paperwork. Also it shows that they , and other DCA's chase people without even having the paperwork needed to do so.