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CCCS, credit agreements and full and final?


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I am currently on a DMP with CCCS.

 

I have sent a request for copies of credit agreements to all my creditors. 3 have not replied within the time limit and 2 have replied stating that they don't have copies of the credit agreement.

 

I have just phoned CCCS and told them that none of the creditors have been able to produce an agreement and they have told me that since a new law was passed in 2006 not having a credit agreement does not make a debt unenforcable and creditors are still able to chase the debt! Can anyone please clarify on this?

 

Also my brother has said that he may soon be in position to be able to help with £1000 towards the debts. I was planning on offering this money as a full and final settlement between all my creditors. I have told CCCS about this and they have said I have no chance of clearing the total amount of the debts (£13433) with it. They have said the least I should offer is 30% and I would be better off spliting the total pro rata between the smaller debts. The smaller debts total £3068 and if I do this I will still be left with the largest debt of £10364.

 

Is it worth me offering them any less than the 30% and using their failure to supply me with a copy of the credit agreement as a bartering tool? If so does anyone have template letter for this which I could use please?

 

Thanks,

Tracy.

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I forgot to say my debts were acquired prior to 2006. I did point this out to CCCS but was told it makes no difference and that the changes in law mean that creditors are able to enforce debts without a signed credit agreement even if the debt existed prior to the law being passed.

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Hi Tracy.

 

I am a little confused by the advice CCCS have given you.

 

A debt does not cease to exist because a CCA has not been provided, but a debt certainly cannot be enforced without one.

 

Creditors or DCAs may certainly still try to chase you but there is very little they can do without the agreement.

 

I think the CCA are right to suggest a low full and final offer, but you may be able to go below 30%. Bear in mind that a DCA can buy debts for as little as 10%.

 

It sounds like a good idea to clear as many of the smaller debts as possible.

 

Do you have any charges on any of the accounts?

I'm midway through the tunnel, but getting closer to the light.

 

 

 

Please be aware that i am not an expert in anything!

I may offer an opinion, but the final decision is yours.

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This is a link to the template letters. Have a look at letter J:

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

 

This is a useful snippet of information:

http://www.consumeractiongroup.co.uk/forum/legalities/138705-when-final-final.html#post1487655

 

Be sure to keep all of your negotiations in writing so that you have evidence of what has been agreed. It's amazing how short people's memories can be when it comes to money ;)

I'm midway through the tunnel, but getting closer to the light.

 

 

 

Please be aware that i am not an expert in anything!

I may offer an opinion, but the final decision is yours.

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A debt does not cease to exist because a CCA has not been provided, but a debt certainly cannot be enforced without one.

 

This is certainly the case for any agreements taken out prior to April '07.

 

In all honesty (and this is coming from someone who works in the charitable debt-advice field in his day job) I wouldn't talk anything 'legal' with CCCS as they have very little training in that area. All they really know about are DMPs and IVAs (for obvious reasons).

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This is certainly the case for any agreements taken out prior to April '07.

quote]

 

Hi Sequenci :)

 

Can you clarify this for me? How far can action be taken and on what basis if there isn't an enforceable agreement?

 

I'm off out now but will look out for your answer later.

I'm midway through the tunnel, but getting closer to the light.

 

 

 

Please be aware that i am not an expert in anything!

I may offer an opinion, but the final decision is yours.

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This is certainly the case for any agreements taken out prior to April '07.

quote]

Can you clarify this for me? How far can action be taken and on what basis if there isn't an enforceable agreement?

 

 

For pre-april '07 agreements:

 

- Some agreements are totally unenforceable, you would be able to defend any court action that is brought against it. This would be the case where the agreement is lacking a 'prescribed term' such as the amount of credit (for a loan agreement) or the credit limit (for a credit card etc).

 

- Some agreements are enforceable with the leave of the court, this means the court would have to agree to allow the creditor the right to use further enforcement

 

The post-april '07 agreements the Consumer Credit Act 2006 has got rid of an agreement being totally unenforceable although if a creditor cannot provide any credit agreement at all I'm sure a court wouldn't allow enforcement of it.

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