Debt repayments

[JOHNOR]

long story cut sort.....

 

i am in £500 worth of debt, not my fault (although i don't want to go into it, family member etc...) westcot, the debt agency wants the money. i can't afford to give it all at once and would need to pay it off. the way things are for me at present, i would have to pay it off something like £10 per month, would they agree to this?

 

i don't have my own home, i live with my partner (who doesn't know about the debt) i am earning very little at present. The debt is regarding car insurance.

 

thanks in advance

[PGH7447]

offer them a £1 a month

[KER]

Hi Johnor, glad you came over

 

You'll hopefully get some good advice from people on this site. It's an excellent resource

[JOHNOR]

thanks so much for the replies so far.

 

i was just wondering will they not accept £10 per month? if i had my way, they would only get £1 per month

 

do i have to provide incomings/outgoings etc...

[berrylover]

Do they have proof that you owe the money? Have you sent them a cca? If you are going to offer them anything offer £1. And NO you do not have to send them incomings/outgoings.

[JOHNOR]

what do you mean proof that i owe them money :?

 

well, it's to do with car insuarance, basically the policy was cancelled and now there is monies owed. a letter was sent telling me this and then the next thing westcott sent me the "debt letter"

 

if i offer them £1, i presumed they wouldn't accept? could they take me to court?

[JOHNOR]

shameless bump

[sequenci]

JOHNOR you need to fill in a financial statement and make an offer based upon what you can realisticly afford. If £1 a month is reasonable then so be it.

 

You may want to download this:-

 

http://www.nationaldebtline.co.uk/england_wales/pdf/self_help_pack/credit_debts.pdf

[JOHNOR]

ok, called them today, politley explained to the lady that i would like to make a suitable offer of repayment based on my circumstances, she cuts in with "we'll only accept a minimum of £20 per month"

 

i genuinley cannot afford to pay them that, i told her "no, i won't be giving you £20 a month, i cannot afford it, simple as that" she said she would send me an incomings/outgoings sheet and i was to put absolutley EVERYTHING on it, then they would see if they could accept anything lower but she is not promising anything.

 

at the end of the day, it's tough sh*t, i physically cannot pay anymore than £10 and to be honest i don't want to even pay that, £1 is what i'd like to pay, i'm struggling to live as it is. what can they do now?

[Robot_roo]

ok, called them today.........

 

Ok the first advice I was given is "never ever phone them!!" Put everything in writting and keep copies. How d you know this is really your debt if you do not send off a cca? It only costs you £1 and will give you a little breathing space!!

 

If they are phoning you, refuse to give out any security details as you do not know who they are!! They could be anyone!!

They will then be unable to continue the call under the data protection rules.

tell them you will only deal with this matter by letter from now on.

 

Hope this helps, it was advice that was given to me on here and it helped me to get on the right track:)

[mr.ton]

Ignore what they say to you John...you are the boss of them, not the other way round - so if you say £1 per month then thats what they will accept in a like it or lump it sort of way

Better than that...you are under no obligation to pay them anything at all as they have no authority/power over you and can just be told to get lost

[davey_weir]

Ok the first advice I was given is "never ever phone them!!" Put everything in writting and keep copies. How d you know this is really your debt if you do not send off a cca? It only costs you £1 and will give you a little breathing space!!

 

If they are phoning you, refuse to give out any security details as you do not know who they are!! They could be anyone!!

They will then be unable to continue the call under the data protection rules.

tell them you will only deal with this matter by letter from now on.

 

Hope this helps, it was advice that was given to me on here and it helped me to get on the right track:)

 

Qualty advice, I learned the hard way. The second time they called me I denied all knowledge of knowing who they were, they said you rang us and I said prove it, they couldnt and again asked for my address and postcode. I said you could be purple aki, I wouldnt give purple aki my address, and she went right and hung up.

 

Stick to your guns mate, also try the CAB. They write to your debtors on your behalf, get interest frozen and make reasonable offers. Also, you dont have to be entirely truthful on your incom/outgoings sheet, make it work to your advantage, you only have to prove your incomings if it goes to court, not your outgoings.

[Robot_roo]

I find the "broken record technique" really good for those unwanted phone calls, I no matter what they say i just repeat the same line like" im not prepared to disclose my security details over the phone to you, send me a letter and i will deal with it!!" No matter what they say I just keep repeating this and they soon give up, after they realise they are wasting their time. It actually helped me to get more confident about answering my phone, I would never answer numbers I did not know as was living in fear, now its a pleasure to talk to them!!

[JOHNOR]

so, what's the next step for me then, when they send me that incomings/outgoings sheet? what's this cca everyone is talking about?

[PGH7447]

so, what's the next step for me then, when they send me that incomings/outgoings sheet? what's this cca everyone is talking about?

 

a CCA is a request for the credit agreement you would have had to sign if the debt was for a credit card or loan for example, you did not in your original post explain what the debt was, so a CCA may not be appropriate

[JOHNOR]

the debt is regarding car insurance ie: the policy was cancelled before the 12 months was up, so i need to pay for the time the vehicle was insured.

[PGH7447]

In that case I beleive that a CCA is not the right step. but could be wrong

 

Is the debt for the whole year or part of, seems a bit steep £500 for car insurance, or have they added some charges?

[davey77]

Im not convinced a CCA request is right for Car Insurance either. You would be asking for a copy of a Credit Agreement and I'm not certain if that would be correct for Insurance Docs.

 

The National Debtline or CAB will validate this area for you.

 

As for repayments. Pay what you can afford. You are in charge!

Their 'minimum requirement for payment' is meaningless (they are obliged to, and will, accept anything you offer) and you are also not required to fill out their incoming/outgoing statement. In fact, i would advise against it as they are just trying to glean as much information about you and your finances as possible.

Make your own I/O sheet and put down what you think is appropriate for them to know. Nothing else is needed. It's their problem if they don't accept it.

 

Never talk to them on the phone. They will say what ever they please. You need everything in writing only and use a site like this one to create a digital signature. Never use your own signature.

Online Personal Signature Maker - MyLiveSignature - Free Personal Signature Generator

[sequenci]

Im not convinced a CCA request is right for Car Insurance either. You would be asking for a copy of a Credit Agreement and I'm not certain if that would be correct for Insurance Docs.

 

my car insurance IS CCA regulated.

 

The reason being is that I pay mine in monthly instalments, I think the insurance firm charges me a little bit of interest for doing so too. I would imagine that other insurance firms may follow a similar process.

 

As for repayments. Pay what you can afford. You are in charge!

Their 'minimum requirement for payment' is meaningless (they are obliged to, and will, accept anything you offer) and you are also not required to fill out their incoming/outgoing statement.

 

Why do you think that?

 

A creditor is only likely to consider an offer if it is a reasonable one supported by a comprehensive budget sheet.

 

In fact, i would advise against it as they are just trying to glean as much information about you and your finances as possible.

 

You should inform the creditors of any other debts, this way they are fully aware of the situation and that the offer of payment is reasonable compared to other creditors - usually this means that the offers are based upon a pro-rata calculation.

[JOHNOR]

i don't have any other debts, just this one.

 

i am earning about £200 per month, out of this i have to pay internet fee, car insurance, petrol, and all other bits and bobs. if i show them this on the incomings/outgoings sheet they send me, surely they will have to accept my offer?

 

what about if my circumstances change in the future and i am earning more, do i have to make them aware of this?

[sequenci]

i don't have any other debts, just this one.

i am earning about £200 per month, out of this i have to pay internet fee, car insurance, petrol, and all other bits and bobs. if i show them this on the incomings/outgoings sheet they send me, surely they will have to accept my offer?

they should certainly consider it.

 

Here is a good budget sheet:

 

National Debtline England & Wales | Personal Budget Sheet

 

what about if my circumstances change in the future and i am earning more, do i have to make them aware of this?

 

You should do, yes.

[davey77]

OK, wasn't sure about the Car Insurance aspect re CCA that's why i suggested getting some professional advice.

 

It's just been my experience that they want money and when they say their minimum requirement is £10-£50-£100 then that is just their way of trying to get as much out of you as possible. If all that you can afford is a £1 then it's unlikely they will return it saying 'that wasn't enough'. More likely they will cash it and say they want more. Should it get to Court it will show your good and honest intentions.

 

Creditors, in my experience, don't really consider offers based on your circumstances. They don't care that you don't have any money or very little of it, weather you can pay next months rent or not. They are not interested.

 

I've sent carers allowance proof and even a Bank statement showing i was over drawn and the rent cheque bouncing (before i knew better) and still the payment demands are for the 'full amount' by next Thursday and the phone calls stating 'we can accept no less than £80 a month.'

 

Although yes, showing your level of debt and inability to pay in a budget sheet doesn't hurt and it will go on the record, as such, the end result is not a more understanding and sympathetic creditor. I have been aware of far too much detail being asked for in their own pre-printed budget sheets: Car value, household goods, widescreen TV etc. Things that are none of their business.

 

Just wanted to make sure the Original Poster was aware of some of these tactics and outcomes.

[sequenci]

OK, wasn't sure about the Car Insurance aspect re CCA that's why i suggested getting some professional advice.

 

I would imagine that not all car insurance policies are regulated, the only way to find out for sure would be to try and find the paperwork.

 

It's just been my experience that they want money and when they say their minimum requirement is £10-£50-£100 then that is just their way of trying to get as much out of you as possible. If all that you can afford is a £1 then it's unlikely they will return it saying 'that wasn't enough'. More likely they will cash it and say they want more. Should it get to Court it will show your good and honest intentions.

 

Sometimes it takes a bit of 'sticking to ones guns', a creditor usually will agree a low payment in the end, I have had hundreds of clients who have managed to have token payments of £1 agreed. It does take a bit of work sometimes, this fact-sheet is really useful:

 

National Debtline England & Wales | Debt Advice | Factsheet 14 What If A Creditor Refuses My Offer Of Payment

 

Creditors, in my experience, don't really consider offers based on your circumstances. They don't care that you don't have any money or very little of it, weather you can pay next months rent or not. They are not interested.

 

Well they should be, if they are not then request a copy of their complaints procedure and investigate a complaint to the likes of the FOS. Remind the creditor of their obligations under The OFT Debt Collection Guidance etc.

 

I have been aware of far too much detail being asked for in their own pre-printed budget sheets: Car value, household goods, widescreen TV etc. Things that are none of their business.

 

Totally agree with you, don't ever give that info out

[JOHNOR]

so on their sheet that they will send me, if they ask for car value etc.. shall i ignore that? and i absolutley have to make them aware if i start earning more money, to be honest i'd rather not, seeing how this bloody debt isn't even really mine.

[davey77]

I did get payment of £5 a month accepted in the end, although not offically. After 18 month i just started sending that amount each month until they wrote telling me what address to send payments to. In the meantime i ignored their letters asking me to call regarding my offer of payments. They have left me alone since.

 

The OFT Debt Collection Guidance.. hmm yes nice on paper and when you don't owe anything. Just words that nobody adheres to when you do owe money.

The numerous FOS complaints have all been dumped by the FOS. They almost refused to allocate as 'it wouldn't be successful so what's the point'. My complaints were mostly about CCA/application forms non-conforming to the regulations. Apparently i was 'barking up the wrong tree' taking that complaint to them and when asked if the many Debt Collection Guidance and Banking Code infringements could be looked at as well the answer was "well, if you owe the money you have to expect them to chase you for it".

 

Not to put others off tho. My complaint was about the supply of legal documentation and according to the FOS i was 'very brave to make the complaint' and that 'they follow the law but do not enforce it.' Others have had better luck!

 

Sorry, hyjacking the thread. Back to Johnor!

Edited September 12, 2008 by davey77