Hi

In April this year I left my job due to bullying in the workplace and relocated to be nearer my family.

As I didn't have a job to go to I wrote to all my credit card companies and explained that I would be unemployed for a period of time and wouldn't be able to make my minimum repayments. Different companies have dealt with me in different ways from continued harassment to being fairly understanding!

I have always been employed and in have never missed a payment of any sort.

I have now found work but unfortunately I no longer work in a city and the wages are no where near what I was earning before.

As things stand I am no longer able to afford the repayments

- I have kept in touch with the companies regularly,

I have written to them once a month to keep them posted of my circumstances.

Now I know I cant afford to pay, I don't know what to do next?

A couple of the companies (the ones who seem to have ignored my letters) have issued default notices,

I don't really know what the implications of this are?

Could someone please give me some advice as I really don't know what to do next.

Perhaps start a list here of each creditor ......amount outstanding and date of last payment and date the credit was cards were taken out.

A default notice is the legal process the Creditor must comply with before they can mark your credit files and also instigate litigation..its normally at this point that the debts are assigned to DCAs rather than the original creditor issuing a court claim.

Regards

Andy

Threads merged..please do not start new threads on the same issue.

Andy

OK, welcome to CAG,

Can you list the creditors, and the rough amounts.

When you last paid them anything, and when these accounts were taken out.

You will be best doing your own I&E form, to see where your money is going, and what kind of disposable income you have, if any?

Hi Andy

I re posted this as I missed your reply, sorry.

Here are the list of cards and balances:

Barclaycard - £12,217 last paid March 2017 taken out in the 1990's

Asda (creation) - £9,542 last paid April 2017 taken out pre 2010 (guess)

Halifax - £3,957 last paid March 2017 taken out 2014

MBNA - £6.995 last paid April 2017 taken out 2014

Santander - £2,992 last paid April 2017 taken out 2013

Santander fixed term loan £1,790 left last paid April 2017 taken out 2013

Virgin - £607 last paid April 2017 taken out pre 2010

Putting it all down seems horrendous but I have always made the payments, never missed any and have no intention of not paying.

I have found myself in a situation where I can no longer make the required payments.

I'm hoping that in a month or two when things settle down (my partner has only just got a job) I will be able to make some payments towards the debts.

I have like I said written to the CC companies every month to keep them aware of my circumstances. I just don't know what to do next.

I guess a default notice is pretty bad and I'm going to end up in court?

Not necessarily ..the issuance of the default notice is a legal requirement that all creditors must take once a breach in any agreement occurs....and this is also registered against your credit reference agencies...which will show for 6 years.

So assume all the above are with the original creditors and not been assigned to DCAs ?

Is DCA debt collecting agencies, if so then no they are all still with the credit card companies at the moment.

Is DCA debt collecting agencies, if so then no they are all still with the credit card companies at the moment.

Okay thats fine.....which are harassing you and refuse to freeze the accounts ? Are the accounts frozen with no interest or penalties being applied?

Asda (creation) phone and text daily interest is still being added. I haven't spoken to them just letters sent.

Halifax phone and leave automated voicemail interest is still being added its like I've never written to them? They have not acknowledged one letter.

Virgin again never acknowledged receipt of any letters and still applying interest.

The others have all suspended interest charges

Have marked them in red in your post# 5.

Take a look in our Library there are various letters for each stage of the procedure...perhaps send the 3 a further letter ...registered post.

http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?405-Debt-Collection

Ok Andy I will do, what do I do about the rest of them?

I hope in a month or two I should be in a position to offer payments but it is not going to be anything like what they want

- maybe £20 each is all I will be able to afford?

Well they all will reapply interest and penalties at some stage and issue Default Notices...so no matter what your credit files will be trashed.The agreements have been breached and there is no way of rectifying that now.

Soooooo long term they will write the debts off and sell them to a DCA who will then hound you or possibly issue a court claim (subject to which DCA gets it)

At that stage you should be sending off a section 77/78 request to request copies of the original agreements and Terms and conditions...if any fail to comply with your legal request..they are prevented from enforcing the agreements in court.

You are a while from this stage yet..... with the exception of Barclaycard the oldest I would send one now to them.

Template and instructions are in the Debt Collection Library

Thank you again and I am sorry to keep asking things,

so are you saying I shouldn't offer to pay the CC companies anything?

Are you suggesting I send one to BC now because they are unlikely to have it as it's so old?

Is it not a bit cheeky of me considering I do owe them money?

Well the longer you keep paying them dribs and drabs the debts will never become statute barred and you could be paying them into your pension.Its all a personal choice and what you wish and which direction you wish to take.

Whatever you decide they will be trashing your credit files irrespective.

Have you the facility to block calls to your phone? Is it your LL or Moby?

If they are sending text messages to your moby, then 'Forward' them to 7726 (SPAM on your handset keypad)

Emails you can send straight to your Junk folder, if they are ringing your LL then you can either, go through your providers 'Malicious' calls procedure, or send them the 'telephone harassment' letter (obtain ''Proof of Posting'' free from PO counter). Then if they continue report them.

If you have informed them that you are in financial difficulty, and their 'help' is to carry on adding interest and charges, then they get £1 a month end of.

When they start to act like adults then you can discuss repayments.

Like Andy says, fire off a CCA request to Sharklaycard, and see what they drag up, if anything, my hunch is they won't have anything, so then that will be one less you need worry about.

Hi Thanks everyone for your help, I will take your advice. I can block the calls on my moby and the LL I just ignore. I had a really srange text this morning from someone calling themselves WMD asking me to ring with regards to 'some business I have with them"? I googled it and they seem to be a DCA so I guess it all starts here? What powers do DCA have I am really quite concerned and very scared, I have always been a normal law abiding person.

You still are a normal law abiding person...its just that you are now questioning the process and seeking help with your financial predicament.

What powers do DCA have I am really quite concerned and very scared, I have always been a normal law abiding person.

DCA's have NO legal powers, they are NOT bailiffs, they are nothing more than self employed commission paid powerless clowns.

You DO NOT need to talk to them, least of all deal with them in any capacity.

Lets get a bit of perspective, a DCA has less power than next door's cat. The cat could come in and poop on your flower bed, the DCA cannot.

Hi All thank you for your replies, I'm very new to all this and your help is appreciated. Can DCA apply to take you to court for the money?

as a comment on what you were told in the post above your last one- have you ever been sued by a cat?

In short, anyone can sue anyone for any reason

- they just dont win becasue they must have a cause for action and the right to make a claim.

The dca has neither of these so they cant win.

What they will do is make a lot of noise threatenting that they are CONSIDERING this and that.

I am considering running a 3 minute mile but I am realistic about my chances of success.

Thay get paid to write scary letters and if possible, scary texts and phone calls, that is all

Hi Allip. I'm in much the same position as you and have started my own thread on this forum.

Like you, I haven't 'defaulted' on my debt just yet but will be doing so very shortly. I'll follow your thread with interest. It's hard not to be worried but, at the of the day, there is very little the DCA's can do if we don't have the money to pay. Very best of luck to you.

there is very little the DCA's can do if we don't have the money to pay.

CORRECTION! There is NOTHING the DCA's can do, full stop!

love this thread, in a similar situation, following with interest....oh the irony!!