Shouldn't creditors be competing with each other to get their money back?

Sir Broke · May 12, 2008

Hi There,Im new, A thought occured to me when i was making my monthly minimum payments to each of my 8 credit cards. How did i get into this position, wasnt it the banks that were competing hand over fist to turn me into a 'rate tart' . Now that i am struggling to pay back each one, they have given me no option but to become a 'repayment tart'. Im seriously considering writing to each company and requesting what they are going to do for me in order to get this month's minimum payment. The one that offers me the best terms ie reduced interest , refund of charges or even debt written off will get a larger share of what i can afford to pay back. Given the current climate, and the rediculous rates that some ccard companies are charging outside of the offers like 24%, i think they would sit up and listed if we all adopted this strategey. Is anyone else feeling the same?

Edited May 12, 2008 by Sir Broke

creditcardmug · May 12, 2008

Hi There,Im new, A thought occured to me when i was making my monthly minimum payments to each of my 8 credit cards. How did i get into this position, wasnt it the banks that were competing hand over fist to turn me into a 'rate tart' . Now that i am struggling to pay back each one, they have given me no option but to become a 'repayment tart'. Im seriously considering writing to each company and requesting what they are going to do for me in order to get this month's minimum payment. The one that offers me the best terms ie reduced interest , refund of charges or even debt written off will get a larger share of what i can afford to pay back. Given the current climate, and the rediculous rates that some ccard companies are charging outside of the offers like 24%, i think they would sit up and listed if we all adopted this strategey. Is anyone else feeling the same?

Ha ha nice idea, but it doesnt work im afraid

When you default on your payments, and send them an income/expenditure summary, offer pro-rata payments, and ask them to stop charges/interest, half of them accept it, other half dont, then they all keep calling you trying to get you to pay more than you can afford.

In yhe end you get fed up, because none of them listen to reason, and you just insist everything must be in writing only, thats what happens in the real world.

Welcome to the forum by the way

Regards CCM

creditcardmug · May 12, 2008

ps sorry i pasted your post into mine im just trying out the quote thing on the site

didnt do what i wanted though

Sir Broke · May 12, 2008

So ill pay the ones that accept it, and ignore the calls from the ones that dont, maybe they will get fed up of getting no money and start living in the real world!

creditcardmug · May 12, 2008

Yeah you could try that, it will just have the effect of speeding up the process, ie they pass it on to a DCA sooner IMHO

Sir Broke · May 12, 2008

Im sure they will start sending letters threatning all sorts of legal action, but wait a minute , if each one knows there are 7 other creditors, the question is would any of them step out of line and and bear the cost of legal action and give the other 7 a free ride? mmm

. From what im reading in the papers is that banks are stapped for cash at the moment, and it sounds like cash NOW for them might be more valuable than the possiblity of cash later minus the cost and hassle of legal action.

Edited May 12, 2008 by Sir Broke

creditcardmug · May 12, 2008

They all seem to have a procedure of there own as regards all this,

In my case i wrote to all 10 on the same day making my pro-rata offer and enclosing a list of all creditors incl. balances etc, so they were all aware from the start of the position.

I have carried on paying them all in this way, but i cca'd all the ones who wouldn't stop interest/charges, and so far i haven't had a single agreement back that would stand up in a court hearing.

Sir Broke · May 12, 2008

Sorry im new what is IMHO?

creditcardmug · May 12, 2008

In my honest opinion

Sir Broke · May 12, 2008

So why dont you only pay the ones that have frozen interest? and let the others sing for it . I think we have to look at them as being in the business to maximise profit(i.e minimising cost), selling debts to or appointing DCas costs them money, money that they could be giving back to us.

creditcardmug · May 12, 2008

Yes i know what youre saying but, if/when a claim is issued against you if you can show that you have done everything you can re your responsibilities while they have not then the court will see this in your favour, indeed the court expects both parties to have acted fairly and reasonably before any court action.

Hope you see where im coming from on this, trust me i'm no fan of cc companies, but if i do everything right and they do every thing wrong (and they invariably do) i will win in the end, i keep a file for each one and save all they send me its all ammo for my defence.

Sir Broke · May 12, 2008

I think what you are doing is sound as long as you can afford the payments what with the cost of living goin up daily, It would be interesting to see how a court would react, surely i would have been acting fairly by giving each cc company equal chance at getting some of their money back. The strategy that the banks are using is to pile on as much interest as possible so that they can claim more in any court action or bankruptcy, there needs to be some challenge to them doing this. Thats why they keep hounding people and forcing them into filing their own bankruptcy which is insane and also costs money. I dont think anyone should declare themselves bankrupt ,not for the stigma ect but for the simple reason that it costs money and that cost should be borne by the creditor not the debtor. I think banks have tried to create so much fear around debt and most of it is an illusion. Didnt some one once say that 'you have nothing to fear but fear itself'.

Sir Broke · May 12, 2008

Yes i know what youre saying but, if/when a claim is issued against you if you can show that you have done everything you can re your responsibilities while they have not then the court will see this in your favour, indeed the court expects both parties to have acted fairly and reasonably before any court action.
Hope you see where im coming from on this, trust me i'm no fan of cc companies, but if i do everything right and they do every thing wrong (and they invariably do) i will win in the end, i keep a file for each one and save all they send me its all ammo for my defence.

what is the favourable outcome and what is the worst outcome of going to court?

creditcardmug · May 12, 2008

Here is a favourable outcome, this is the 1st one to issue a claim against me.

With the help and support of the wonderful and lurnid friends on this site, without whom this wouldn't have been possible i WON. so now i only have 9 to deal with.

This means that the debt is now unenforcible at law, so now i can pay or not if i choose, i am now in control.

An unfavourable outcome is if you lost, meaning you would have to make the payments you could afford, which you were doing in the 1st place, however if you default they can take enforcement action ie bailiffs/charging order etc. hope the link works if not get back

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/126560-nationwide-kpr-cca-request.html

Sir Broke · May 12, 2008

Congratulations, does that mean you dont have to make any payments to that creditor? ie your monthly payments have decreased? why would you decide yo pay them? will this result improve your credit record in any way?Perhaps now you can adopt my suggested strategy of offering them something in return for debt written off?

creditcardmug · May 12, 2008

I dont know what im going to do yet mate its only just happened, but my point is that if i can get control of the situation, instead of having sleepless nights/feeling physically sick etc with worry then im fine, this hasn't been easy or quick i put in a lot of hours of research while still trying to hold down my job, but i think you can see that its worth it.

Now how are you going to play it mate?

Sir Broke · May 12, 2008

im not sure yet? Just want to know if that whole debt with Nationwide has now been written off for you ?or can they somehow open up the claim again or sell it or pass it onto another DCA

creditcardmug · May 12, 2008

Good question, one iv'e asked on here but not got a reply to that yet, however reading through lots of other posts it seems that.

1. They would have to apply to the court to restart a claim, and would not get it unless further different evidence was available.

2. It would cost them quite a bit of money

3. I also understand i have the option of claiming costs from them now for all my time and effort in defending their vexacious claim

But thats what you have to do keep reading as many threads as you can to try to Get up to speed with all this, not all people on here are available all the time ( weve all got a life as well)

It's just a matter of getting wise to how the system works, what creditors/dcas are up to, how judges view this/that other

Sir Broke · May 12, 2008

Now that youve gone through all of that, you might want to post a copy of that notice of discontinuation to the other 9 cc companies and see what they will offer you now. be interesting to see if they change thier tune,

creditcardmug · May 13, 2008

Thanks for you're PM, explaining the reasons for raising this issue, i wish you had made your motives for posting clear from the outset however, i thought you were in genuine need of help and support, at a crucial time.

Sir Broke · May 13, 2008

Hi there I copied the following thread from another forum which may be of interest to this debate

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ForumAll times a

....Credit Card debt - best way to deal with it?

Moderators: Noe, TalbotWoods, Less, Paul76, Yogi Bear

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yozzzzz Post subject: ....Credit Card debt - best way to deal with

it?Posted: Wed Apr 30, 2008 4:07 pm

Hi, I'm New

Joined: Wed Apr 30, 2008 3:50 pm

Posts: 2 Afternoon - Thanks in advance for any help or advice

offered.

Few years ago I ran up two credit card debts, 1 with Virgin for

£4500 and 1 with Halifax for £8500.

I then moved to Ireland, my situation changed and I was unable to

keep up minimum payments.

I wrote to the both and offered my own DMP that they both agreed to

and also said they wouldnt charge me any interest. £76 per month to

Halifax and £45 to Virgin.

After 1 year of always paying on time, they both got in touch.

Virgin agreed to let me carry on payments of the same amount (its

like an interest free loan!) but Halifax said that I can keep paying

the £76 per month but they will have to start charging me interest

and a £12 late fee. So now this debt increases by £100 per month

although I am continuing to pay the £76 that was agreed. My question

is, what is my best course of action to be able to resolve this?

Speaking to Halifax has yielded no results except to say that after

another year they will probably pass it on to a DCA. So do I

a) keep paying until they pass it on

b) stop paying so that they pass it on and I can negotiate with a

DCA

c) would I be able to offer them a early settlement amount?

d) any other suggestions?

Thanks Yozzzzz

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royston Post subject: Re: ....Credit Card debt - best way to deal

with it?Posted: Wed Apr 30, 2008 5:00 pm

Forum Regular

Joined: Wed Feb 13, 2008 12:37 pm

Posts: 98 yozzzzz wrote:

Afternoon - Thanks in advance for any help or advice offered.