Help! Trying to make an offer of settlement

[garth100]

Hi everyone,

First time poster here. I hope someone can help. We've had a bit of a struggle recently and both myself and my wife recently found ourselves unemployed due to coincidence really. Obviously, with 3 kids to support something had to give and unfortunately for MBNA it was there credit card repayment. We are a long way down the line now, and the credit card is in my wifes name, but I've dealt with all the letters etc up to now. We've been making a nominal monthly payment every month to the collection agency, '1stCredit', they sent a letter the other week demanding a breakdown of our finances or they'll do this and that etc.to which my wife panicked and replied as I've recently regained employment working away from home, however she is still unemployed. As the card is in her name only, I would presume that my salary is not taken into account, however my wife assumed that the incomings were based on joint income and stated my salary as part of her income, she also stated that we have satellite TV as an outgoing, and that we spend £100.00 a week on food for all five of us. 1stCredit rang back saying that although we were still experiencing a deficit between income and outgoings, they insisted that we shouldn't have satellite TV and that we were spending too much on food so therefore we could afford to pay them more, they were not going to enter into any more communication and they were applying for a CCJ. A week later we received the CC summons for £13.5k plus another £1.7k in charges and interest etc. I rang up the solicitors and explained that my wife had completed the finances form wrongly, that she was unemployed and would they accept £4k as a full and final settlement. To which they have refused. I'm a bit confused now because in my understanding, a CC Judge will agree to a further nominal monthly payment as my wife is unemployed and we have no equity in our house, which they are trying to get a charging order on. It will take them over 330 years to recover the money by means of a CCJ yet they refused a £4k settlement. We havent responded to the CCJ application yet. How can I make them see sense?

Sorry if this is a bit confusing.

[mariejader]

Have you checked that you don't have any insurance on the card to cover such events? sorry if stating the obvious.

 

 

The other thing I would suggest if you have not done so already is go and make an appointment at the CAB

[garth100]

Hi, thanks for the reply. But like I said, this is a long way down the line. There was no insurance and it was the CAB who instructed us to keep making the nominal monthly payment.

What it boils down to now is the collection agency issuing a request for a CCJ for £15k, we are currently in the 14day reply period, at which point I have offered a £4k settlement on behalf of my wife. The collection company are refusing this, but all I can see them receiving, although its a little preumptious, is £2 a week for ...well...forever. Surely its in their best interests to settle now, but I can't persuade them to accept.

I was wondering if anyone had been in this position and wondered what to do next to stave off the impending judgment, which really is no help to either party.

[MacBoy]

garth100

 

Wouldn't it be better to let this go to Court and discuss any arrangement there? It is my understanding that Judgment will not be entered on your credit file as long as any Court-agreed credit arrangement is kept to.

 

In the meantime, perhaps you could request an original copy of your CCA agreement, just to make sure everything's in order?

 

I would no longer deal with the agency at this stage. It is arguable that you will be treated more neutrally at Court (or dare I even say empathetically?) than by the agency. They only have an interest in recovering the money - nothing else. The courts tend to take a wider view.

 

If you haven't already been diarising any harrassment by them already - I suggest you start to do so now. Oh and consider taking that £4k off the table too. You have far more pressing things that could be used for....haven't you?

 

Best of luck with this. I'm sure you'll get some help and quality advice from others here, too.

 

Mac

[garth100]

Thanks for the info MacBoy. So you think it would be better to let it roll? I've just heard back from 1st Credits solicitors (who were very approachable and much easier to talk to than 1stCredit) and they have rejected the offer anyway. But even their solicitor agrees that it would be in the companies interests to take the offer because if a Judge accepts the £2.00 a week repayment that we suggest, it will take them 158 years to collect. But its company policy apparently not to accept full and final settlement offers.

We just wanted to steer clear of a Judgement and eventually try and repair our credit history but a CCJ will roll on for years won't it? You say that if a judge agrees to the repayment scheme then a CCJ isn't made? I don't understand this bit, surely a judge agreeing to the repayments is a judgement in itself?

[anabel]

im just dealing with MBNA... like mac says send for you CCA....depends how long your wife has had the account is debatable if they have one. Dont think they have mine and that was an old abbey card.

 

Keep us updated and good luck

[MacBoy]

garth100

 

You're welcome

 

A CCJ will stay on public record (and therefore your credit record) for six years. However, my understanding is (and I am open to correction here if there are any legal eagles reading), that any arrangement to pay that may be agreed between the parties in Court, forms part of the Judgment; and it is only if that arrangement fails that the Judgment is then entered on the Registry of Judgments, Orders and Fines (I'm assuming for the purpose of this that you're not in Scotland).

 

From here it can be picked up by the Credit Reference Agencies.

 

This is why I asked you if you'd had a letter from 1st Credit giving you 14 days to respond, or an actual summons. Any offer for an arrangement to pay can be made using the paperwork that comes with the summons - but get help with completing this from solicitor or CAB, etc. An agreement such as this, reached prior to the hearing would result in the hearing being 'disposed of' and therefore no Judgment would be entered.