Debt Problems Please Help!

[JD2002]

Hi, I was wondering if anyone could give me any advice as I am really struggling with my debts.

I was working full time up until Feb 2009 when I was made redundant. I was able to pay all my payments for my debts until then. I have about 6 crdeit card and 2 loans with various different companies. I have not been able to pay anything to anyone since about February. I am getting constant calls and letter threatening legal action and am really stressed about this. I am only claiming job seekers allowance and this is barely enough for my essential spending. My creditors are at different stages and some have started passing debts to different collection companies.

 

In total I owe about £45,000 to all creditors which incle all charges. I have approached family members to see if they can help me. My father has said he will look to pay everyone off, but not at that amount. So we would be looking at short setting all the accounts.

 

Does anyone have any sugesstions as to how much I can realistically offer everyone and what amounts they are likely to accept? Does anyone have any template letters so I can send to them with my income and expenditure details and an offer of short settlement? Also how will this affect my credit file, would they show as defaulted or settled? Would I be able to ask them that if they accept my offers, they have to agree not to put any detrimental entries on my credit file? i.e. all accounts settled in full, no adverse or missed payments, account upto date?

 

If anyone has any suggestions, please could you help.

I am really worried about this and any help would be gratefully accepted.

 

Many thanks in advance.

[sam614]

http://www.consumerforums.com/resources/templates-library/52-harassment/135--harassment-by-telephone-response-letter

 

would cca all of them first

enclose a copy of the above

everything in writting from now on.

 

amazing how they offer reduced amounts when they fail to obtain a cca.

 

 

SAM:pLOWELL DETESTER

[clemma]

Do as Sam has suggested. If they fail to produce a CCA then the ball is well and truly in your court. You then, realistically, have 3 options. You can stop making payments altogether, offer reduced monthly payments or a full and final settlement (start much lower than you need to, and work your way up until they agree - that way they'll think they have won ).

 

Mobile phones and overdrafts/bank accounts do not fall under the CCA. Only things like credit cards, loans etc.

[JD2002]

Hi, thanks for your replies.

I have CCA all of them previously, and had different responses from them all. Some not replied, some sent signed copies of my agreement, some still stalling, and one sent unsighed agreement.

 

The situation I am in, is that I would like to just pay them all off, as I can not really offer much at all on a monthly payment agreement. Hence thats why I have asked my father to help. What percentage would you say to offer to start with?

Also I am not paying anyone anything at the moment.

 

Thanks for any help in advance.

[clemma]

If they are with DCA's then start low - they bought the debts for a pittance after all. Start however low you want then work your way up until the maximum you want to pay.

 

Send them letter J from here http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Do everything in writing!

 

You can send the same for any that are with original creditors, but they are less likely to take a huge reduction.

[JD2002]

would you say 20% is a good starting offer? Or will that be completely silly offer?

[sam614]

the not replied.

and them that stall beyond 12+2

send failure to respond

and cross them off your list untill/if they comply.

 

DCA LINK template 20

 

how many proven /accepted are you left with?

 

SAM

[clemma]

I was going to suggest 20% to you actually - but realised it's your choice. I don't see why not though, they can only say no.

[JD2002]

Sam,

I started my CCa request in Nov last year, so the ones that not replied have well expired. Proven ones are both loans, one credit card and the other credit card was online application so i assume that is proven.

Leaves me with 4 cards still not complied.

But i have been in contact regarding these for so long and my situation with them is getting worse. So i was hoping to just pay them all off and not have to worry about them anymore.

[JD2002]

If they do accept my short settlements, how will they then update my credit file?

[clemma]

When you say proven - are the actual agreements with your signature and all the prescribed terms (see HERE to check if they include the terms).

 

The 4 that have not replied at all - put them into dispute - better late than never:

 

Dear Sir/Madam

 

I DO NOT ACKNOWLEDGE ANY DEBT

 

ACCOUNT IN DISPUTE

 

You have failed to respond to my legal request to supply me a true copy of the original Consumer Credit Agreement for the above account.

 

On **DATE** I made a formal request for a true signed agreement for the alleged account under consumer credit Act 1974 s77/8. A copy of which is enclosed for your perusal and ease of reference.

 

You have failed to comply with my request, and as such the account is now in default as of **DATE**.(12+2 days after you sent the CCA request)

 

The document that you are obliged to send me is a true copy of the executed agreement that contained all of the prescribed terms, all other required terms and statutory notices and was signed by both your company and myself as defined in section 61(1) of CCA 74 and subsequent Statutory Instruments. If the executed agreement contained any reference to any other document, you are also obliged to send me a copy of that document.In addition a full statement of this account should have been sent to me detailing all debits and credits to the account.

 

Furthermore;

 

You are aware that the Consumer Credit Act allows 12 working days for a request for a true copy of a credit agreement to be carried out before your client enters into a default situation. This limit has expired

 

As you are no doubt aware section 78(6) states:

 

If the creditor fails to comply with Subsection (1)(a) He is not entitled , while the default continues, to enforce the agreement.Therefore this account has become unenforceable at law.

 

As you have Failed to comply with a lawful request for a true, signed copy of the said agreement and other relevant documents mentioned in it, Failed to send a full statement of the account and Failed to provide any of the documentation requested. Consequentially any legal action you pursue will be averred as both UNLAWFUL and VEXATIOUS. Furthermore I shall counterclaim that any such action constitutes unlawful harassment.

 

Please note you may also consider this letter as a statutory notice under section 10 of the Data Protection Act to cease processing any data in relation to this account with immediate effect. This means you must remove all information regarding this account from your own internal records and from my records with any credit reference agencies.

 

Should you refuse to comply, you must within 21 days provide me with a detailed breakdown of your reasoning behind continuing to process my data. It is not sufficient to simply state that you have a ‘legal right’; You must outline your reasoning in this matter and state upon which legislation this reasoning depends. Should you not respond within 14 days I expect that this means you agree to remove all such data.

 

Furthermore you should be aware that a creditor is not permitted to take ANY action against an account whilst it remains in dispute.

The lack of a credit agreement is a very clear dispute and as such the following applies.

 

* You may not demand any payment on the account, nor am I obliged to offer any payment to you.

* You may not add further interest or any charges to the account.

* You may not pass the account to a third party.

* You may not register any information in respect of the account with any credit reference agency.

* You may not issue a default notice related to the account.

 

I reserve the right to report your actions to any such regulatory authorities as I see fit. You have 14 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint. I therefore request a copy of your official complaints procedure which you are obliged to supply.

I would appreciate your due diligence in this matter.

I look forward to hearing from you in writing.

 

 

Yours faithfully,

 

Whilst it is in dispute, you do not need to make any payments - however, you can offer a full and final due to the dispute. If they don't accept, then don't pay them anything!

[clemma]

If they do accept my short settlements, how will they then update my credit file?

 

They should update it to say "settled" if they accept full and final. Make sure you get it in writing BEFORE you make any payments to them. This is important, otherwise they can come back at another date and claim the rest. Also, having a letter from them will help if they just mark your file "partial settlement".

[JD2002]

Clemma,

I have already sent them account in dispute letter and had reponses from them. One says the debt is owed and not in dispute, one is asking for a copy of my signature and one is sending me a big document of terms and conditions on, with my details at the top of the page, with no signature!

[JD2002]

They should update it to say "settled" if they accept full and final. Make sure you get it in writing BEFORE you make any payments to them. This is important, otherwise they can come back at another date and claim the rest. Also, having a letter from them will help if they just mark your file "partial settlement".

 

 

What about payment history, does that stay on file as currently some are showing as red and 4 months payments late.

[clemma]

The payment history will stay on your file regardless - there is nothing you can do as it was, up until the dispute, an accurate record of how you maintained your account.

 

Anything detrimental added since putting the accounts in dispute can be argued - but it will be a long process, and only you can make the decision as to whether you want to go through all that.

 

Your credit file will be repaired within 6 years - and although it seems a long time, if, like me, your no longer bothered about obtaining credit, then I would just wait it out.

[clemma]

Clemma,

I have already sent them account in dispute letter and had reponses from them. One says the debt is owed and not in dispute, one is asking for a copy of my signature and one is sending me a big document of terms and conditions on, with my details at the top of the page, with no signature!

 

Without seeing them, it is difficult for me to advise. However, the one asking for a copy of your signature - they can get stuffed. Was this in response to your CCA request? If so, I have a letter you can send them, basically telling them where to go.

 

The one with just T&C's - this is possibly unenforceable due to a lack of signature. Again, I can't advise. Is there anyway of you posting them up (minus your details) - that way you will get more accurate advice.

 

The company saying it's not in dispute - that's a typical response.

 

If you don't mind - can you tell us who these DCA's are (or the creditors are) - it will also help when giving advice. I can understand if you are wary, but it's highly unlikely anyone will know who you are based on this information.