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


Sir Broke
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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 by Sir Broke
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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

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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

didnt do what i wanted though

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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 by Sir Broke
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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.

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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.

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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.

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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'.

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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?

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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

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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?

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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?

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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

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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

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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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,

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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.

Please note i have no legal training any advice i give comes from my own experience and from what i have learned on this site

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

________________________________________________________________

ForumAll times a

 

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

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

 

Page 1 of 1

[ 13 posts ]

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AuthorMessage

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

 

 

Top

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.

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

 

From what I've read on here with regard to HBOS this is their normal

practice. I've yet to hear of anyone who hasn't had to start paying

interest and late fees after 12 months interest free DMP repayments.

What they seem to do is start charging again after the 12 month

period and claw back as much money as they can for a period of time

and then as they told you, they pass it onto a DCA.

I have the misfortune to have them as one of my creditors and they

are awful people to deal with. They are a disgrace to the credit

card industry in my opinion and it's a shame that they aren't

regulated for their terrible attitude and sky high interest rates.

If only that was only possible!

Obviously, if you have the money to offer an early settlement amount

it might be your best option. I wish I could get them off my back I

can tell you.

 

 

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

deal with it?Posted: Thu May 01, 2008 7:58 am

 

Hi, I'm New

Joined: Tue Apr 29, 2008 10:36 am

Posts: 6 Hello Yozzzzzzz

Note what you say about your own DMP.

I am about to take one out with CCCS - I have a Halifax card to pay

off and what you are saying has worried me.

Would they be so difficult if you had your DMP through a registered

agency rather than privately? What do others think?

 

 

Top

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

with it?Posted: Thu May 01, 2008 11:40 am

 

Forum Regular

Joined: Wed Feb 13, 2008 12:37 pm

Posts: 98 janedingdong wrote:

Hello Yozzzzzzz

Note what you say about your own DMP.

I am about to take one out with CCCS - I have a Halifax card to pay

off and what you are saying has worried me.

Would they be so difficult if you had your DMP through a registered

agency rather than privately? What do others think?

 

Halifax and Bank of Scotland (or HBOS) from what feedback I've from

them, would prefer either CCCS or PayPlan because they don't take

fees from the payment you make, therefore Halifax receive all the

money you pay.

Unfortunately, they will after 12 months of not charging interest

revert to charging again, as the OP has found.

 

 

Top

yozzzzz Post subject: HBOS Credit Card - any views?Posted: Thu May

01, 2008 3:36 pm

 

Hi, I'm New

Joined: Wed Apr 30, 2008 3:50 pm

Posts: 2 ....thanks for your views and advice

I am still not sure though what is the best course of action to

take.

Am I better off to keep paying my £76 per month until they pass it

on to a DCA. (That will cost me about £100 per month for prob the

next 6 months as they said that after another year they will pass it

on). Or will I stop paying, wait till they pass it on and then try

and negotiate with the DCA?

If I do stop paying, how much is it likely to cost me in fees etc. -

more than the £600 + £456 (6 payments at £76) I am going to get

charged over the next 6 months anyway?

Regards Yozzzzz

 

 

Top

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

with it?Posted: Thu May 01, 2008 4:44 pm

 

Site Admin

 

Joined: Fri May 26, 2006 8:24 pm

Posts: 2667

Location: A Park near you... Other members have reported success

with the tactic of writing to the creditor pointing out that

whilever they're continuing to add interest and charges, the debt is

increasing and negating the benefit of continuing to make any

payments towards it - as well as being patently unfair on the other

creditors. You then say that if they continue to add to the debt,

you will cease any further payments.

This in a way forces their hand a bit: in your case they would find

it a bit problematic trying to take Court action against you in

Ireland, and may instead result in the debt being passed to a DCA -

hopefully sooner rather than later.

_________________

There IS light at the end of the tunnel. Sometimes it'll shine

brighter than others, but just don't lose sight of it altogether.

OK?

 

 

Top

glynisd Post subject: Re: HBOS Credit Card - any views?Posted: Fri

May 02, 2008 7:46 am

 

200 Club

 

Joined: Fri Apr 21, 2006 12:58 pm

Posts: 224 yozzzzz wrote:

....thanks for your views and advice

I am still not sure though what is the best course of action to

take.

Am I better off to keep paying my £76 per month until they pass it

on to a DCA. (That will cost me about £100 per month for prob the

next 6 months as they said that after another year they will pass it

on). Or will I stop paying, wait till they pass it on and then try

and negotiate with the DCA?

If I do stop paying, how much is it likely to cost me in fees etc. -

more than the £600 + £456 (6 payments at £76) I am going to get

charged over the next 6 months anyway?

Regards Yozzzzz

 

One tactic would be to stop paying them altogether for the time

being - this often prompts them to sell the debt on to a DCA - then

offer the DCA the £76 per month.

Intelligent Finance were doing the same with me and I wrote and

pointed out to them that, no matter how much they added in interest

and late fees, I could only pay what I had to pay. Why add costs on

that they were never going to get back? Finally I witheld payments,

they threw tantrums for a few months (which I duly ignored) and sold

the debt on. I offered the DCA slightly less than I'd offered IF and

they accepted with no hassle - and no more added interest and late

charges.

At this rate your debt will just get bigger every month - I really

can't understand some of these creditors!

G

 

 

Top

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

with it?Posted: Fri May 02, 2008 8:51 am

 

Forum Recruit

Joined: Tue Aug 28, 2007 11:40 am

Posts: 41 The bigger the debt, the more money they can write off

from their taxes and the more they can sell it for to a Debt

Recovery Agency ...

 

 

Top

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

with it?Posted: Fri May 02, 2008 9:38 am

 

Forum Regular

Joined: Wed Feb 13, 2008 12:37 pm

Posts: 98 Yogi Bear wrote:

Other members have reported success with the tactic of writing to

the creditor pointing out that whilever they're continuing to add

interest and charges, the debt is increasing and negating the

benefit of continuing to make any payments towards it - as well as

being patently unfair on the other creditors. You then say that if

they continue to add to the debt, you will cease any further

payments.

This in a way forces their hand a bit: in your case they would find

it a bit problematic trying to take Court action against you in

Ireland, and may instead result in the debt being passed to a DCA -

hopefully sooner rather than later.

 

If you are in a DMP with CCCS or PayPlan can you still withhold

payment, if a company keeps adding on interest etc?

I'm not in that position at the moment, well I am in that my DMP is

still in its early days so I have interest charges being added on at

the moment, but I've no doubt that this will be this happening with

HBOS eventually after the first 12 months have passed.

 

 

Top

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

with it?Posted: Fri May 02, 2008 10:56 am

 

Site Admin

 

Joined: Fri May 26, 2006 8:24 pm

Posts: 2667

Location: A Park near you... royston wrote:

If you are in a DMP with CCCS or PayPlan can you still withhold

payment, if a company keeps adding on interest etc?

Only with their co-operation, because you pay them a single payment

and they then distribute it pro-rata to the creditors. So you'd have

to deduct the appropriate amount from what you paid, and tell them

which creditor(s) not to pay. At least, I think that's how it would

have to work.

_________________

There IS light at the end of the tunnel. Sometimes it'll shine

brighter than others, but just don't lose sight of it altogether.

OK?

 

 

Top

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

with it?Posted: Fri May 02, 2008 11:12 am

 

200 Club

 

Joined: Fri Apr 21, 2006 12:58 pm

Posts: 224 Yogi Bear wrote:

Only with their co-operation, because you pay them a single payment

and they then distribute it pro-rata to the creditors. So you'd have

to deduct the appropriate amount from what you paid, and tell them

which creditor(s) not to pay. At least, I think that's how it would

have to work.

 

That's how I did it. Payplan weren't altogether happy about it but I

insisted. At the end of the day, I pointed out, it is still *my*

money and any flak from the creditor is ultimately aimed at *me*.

G

 

 

Top

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

with it?Posted: Fri May 02, 2008 11:28 am

 

Forum Regular

Joined: Wed Feb 13, 2008 12:37 pm

Posts: 98 glynisd wrote:

Yogi Bear wrote:

Only with their co-operation, because you pay them a single payment

and they then distribute it pro-rata to the creditors. So you'd have

to deduct the appropriate amount from what you paid, and tell them

which creditor(s) not to pay. At least, I think that's how it would

have to work.

 

That's how I did it. Payplan weren't altogether happy about it but I

insisted. At the end of the day, I pointed out, it is still *my*

money and any flak from the creditor is ultimately aimed at *me*.

G

 

Did it have the desired effect on the Company involved?

 

 

Top

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

with it?Posted: Fri May 02, 2008 12:16 pm

 

200 Club

 

Joined: Fri Apr 21, 2006 12:58 pm

Posts: 224 royston wrote:

Did it have the desired effect on the Company involved?

 

Yes, eventually.

Basically I pay my surplus to Payplan each month through bank

transfer so I control the amount I send to them. Usually it's a case

of transferring the surplus as defined in my plan but sometimes, if

there's an unexpected cashflow problem (for example last November we

had to have some emergency repairs done on our house and that had to

come first) I adjust the amount I pay and email Payplan to explain

why.

Payplan advise me and divvy up my surplus each month so it makes

life easier for me generally, but it's still my debt and my salary

and me that will have to face any consequences so I politely but

firmly make sure that my dmp works in my favour - my creditors get

paid but at the same time I've no intention of suffering major

hardship.

G

Edited by Sir Broke
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I am at a crucial time of deciding what to do, im just trying to get as much info and advice from as many sources as possible. PM was usd just so wasnt accused of advertising since i was invited to the site by anonomous person etc although i do like their approach. Hope you were not offended and apologies if you were. Anyway check out the thread that i copied from another forum what do you thinK?

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