Boarderline Bankrupt

[swiftx]

Hi All

 

I'm hopeing for some advice. I have been through some problems recently and previously I made use of balance transfer offers on credit cards.

 

I am now in a mess and am struggling to meet my payment now all the 0% periods are at an end and the credit card companies continually increase the APR's on my cards.

 

I have not yet defaulted but can probably ony get through this month before I do.

 

I have serveral credit cards owning far more than I could earn in a couple of years.

 

I have been looking for a solution and hoped you guys could help me.

 

I contacted one of these companies who cliam they can writre off debt because of the CCA 1974. However I didnt proceed as they wanted money upfront and they have only been a registered comany for a few months. Has anyone used one of these companies? I would be interested to hear your experiences good and bad.

 

One of my credit cards in particular has increase the APR by 10% in one go which is now crippling me. Can they do this?

 

Is there anything I can do before I start to default and what would the consequences be?

 

If anyone has any advise no matter how small I would really appriciate it.

 

Thanks

Swiftx

[cerberusalert]

First send them all a CCA request to see if they are entitled to collect this debt & if it's enforcable. If they fail to provide it within 12+2 days or the CCA is unenforcable you can legally withold any payment until they do. Send it recorded delivery enclosing a £1 postal order. When you get a reply start a new thread for each one,, scan it & remove any identifying details and post it back here where we can have a look at it. We'll advise you from there;

 

Dear Sir/Madam

 

Re:- Account No: XXXXXXXX/Your Reference Number: XXXXXXX

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

You should also note that I will only discuss this matter in writing and should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you or any of your associates.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance. (Optional addition)

 

I look forward to hearing from you.

 

Yours faithfully **Edit to suit**

Print name do not sign

[swiftx]

Wow you were quick. thank you .

 

Can I ask? Once I sent this letter to my creditors will this cause hostile action? For example I have a credit card and bank accound with one bank, will they then suspect that I am in trouble and remove my overdraft?

 

Swiftx

[cerberusalert]

Although it's your legal right to request a CCA at any time, banks are wise to the reason why. It is always wise to open a 'parachute' a/c in such circumstances because banks are permitted to offset between a/cs, which means if you owe on one they can pay it from the other which in effect adds interest & charges to both. Also they are liable to reduce if not withdraw any overdraft facility if they have a suspicion that you may be in financial difficulties.

 

If you desperately need the use of your overdraft you could always deal with this particular bank last & concentrate on the others.

[swiftx]

Great

 

I thought as much.

 

Is it worth requesting the CCA's of cards that I opened after the 1st April 2007 as alot of my cards fall after this date.

 

Thanks again.

[cerberusalert]

It's always worth a punt just to see whether they can provide them or not although there is only a slim chance that they're not enforceable.

[swiftx]

Ok so if they can not provide them at all I have them in a sticky situation right?

[cerberusalert]

If they cannot provide them they won't be able to enforce payment, likewise with any that don't conform to CCA 1974. The debt will still exist but they wouldn't be able to pursue through the court.

[swiftx]

Meaning I can negotiate repayment with them? What about my credit file?

 

Sorry to keep firing questions just need to understand what I am getting into (or out off hehe)

 

Thanks again!

[cerberusalert]

If they cannot provide them or they're unenforceable you can withold any payment & yes you could negotiate a full & final offer. Some will accept some won't, but if they did you would have to include the proviso that any adverse information was removed from your credit file. However the original creditors usually sell the a/cs on to a DCA & then claim tax rebates as a 'bad debt write off'.

[swiftx]

Right ok! Thanks again for the info. I your experience what would ahppen if I just wrote to the company explaining that I am struggling to make the payments as I dont just wish to run away from them but I cant see them helping me out of the situation.

[cerberusalert]

It's hard to say, some companies will accept lower repayments for a limited period & others won't, In almost all cases they will continue to add interest & charges.