What is the best order of events

[JohnnySocrates]

Hi,

I've been reading this forum with a great deal of interest and it has been very useful. I would like to therefore ask for opinions on what people believe is the best running order of options.

If will assume that the starting point is in arrears with lenders and unable to pay. I have also assumed that every step the lender rejects hte option. What do you think of this as a list of options and the order?

1. Write and ask for the debt to be written off - Sample letter http://www.nationaldebtline.co.uk/scotland/temp/4480_66421.pdf

2. Write and ask for a copy of the original signed CCA

3. Write and remind them of their obligations asking again for the original signed CCA

4. Write and inform them and any DCA the account is in dispute

5. Write and inform them and any DCA of your intention to report them to the trading standards and OFT.

 

6. Write and offer to make a full and final ex-gratia payment, including a cleansing of the credit report.

7. Write to the OFT and trading standards reporting the lender and DCA based on information collected i.e. lack of response and collection tactics.

8. Issue legal warning for court proceedings to reclaim charges and interest paid to the lender and any DCA.

9. Issue legal proceedings against lender and any DCA.

10. Go to court to prove no legal agreement exists and therefore charges and interest should be repaid.

11. Apply for BR (if you lose the court case)

Is this about the size of it?

One concern I have looking at what I have read is how you close the debt off hence steps 8-10. If the lack of CCA prevents the lender from pursuing you that a good thing but if the debt stay around on your credit file why not go for BR?

[IdaInFife]

First off all, they won't wipe a debt off so you can skip that.

 

You cannot have a deffinate order of events using cag, it depends on what postiton you are in and what you want to achieve.

 

If you are in debt and want to get rid of it i would:

 

send a cca to whoever is asking for payment (if a credit agreement ) and if reclaimable charges send of a sar to the orignal creditor.

 

depending on outcome:

 

if no cca exists reclam charges and offer massively reduced f and f to clear and clear CF

 

if cca exists , relaim charges and offer reduced full and final or nominal monthly payments

 

or

 

if no cca exists, refuse payment

 

if cca exists offer payment

 

Ida x

[JohnnySocrates]

Hi Ida,

 

Thanks for your response it is very helpful. I can see that having a hard and fast list is not possible because there are so many variables not least of all how much hassle and pressure a person can take.

 

In regards to closing off the debt, how does this work? If in your example no cca exists you refuse but the company doesn't take you to court then what does happen?

[IdaInFife]

it will be a waiting game.

 

5 years no payment then statute barred,

 

anyone going through cca route has to realise that it is not a quick fix, no cca means no enforceable debt not no debt

 

ida x

[JohnnySocrates]

Hi Ida,

 

Thanks. I see the situation, I think but please correct me if I'm reading it wrong: If I "win" on the grounds of CCA I could be chased for 5 years for the debt and any damage on my credit report would remain for 6 years.

 

I am considering bankruptcy after I have explored the options and tried to strike a deal with the creditors. Can I ask what your experience of bankruptcy is? I have read all about the function of bankruptcy but not so much the day to day reality of it. I did find an interesting site Piggy's Bankruptcy Website - Information and advice . I would welcome your view if you care to share it.

[maroondevo52]

Hi Ida,

 

 

In regards to closing off the debt, how does this work?

 

If they cannot come up with your agreement, this puts you in a good position to offer a 'full and final' payment to get shot of the debt.

 

Regards.

 

Scott.

[JohnnySocrates]

Thanks Scott, I see the logic in this but I do get the sense that it can be difficult to get through to someone inside the machine who can make the decision on full and final settlements.I will be exploring this option as it does appear to be a solid approach.

 

Do you know of anyone who as used the very real threat of making themselves bankrupt to get a lender to accept the full and final payment? It does appear that through applying via LILA an individual can almost demonstrate to a lender that it's the offer or nothing.

 

I guess it's a shame that you can't submit your application for bankruptcy with a 14 day "cooling off" period to demonstrate that it is real to the lenders.

 

I did read that you can get released from bankruptcy via composition (http://www.aib.gov.uk/MainNav/Services/Legislation/howlongbankruptcy/offerofcomposition) but this I doubt would repair the credit report damage. It also requires the offer to be at least 25p in the pound.

[IdaInFife]

going BK will have much the same affect on your CF as it will stay there for the 6 years.

 

 

where as a disputed cca will drop off after 6 years of default.

 

noone can say to you 'right do this', from what you have posted you obviously have researched quite a bit.

 

you have to decide what is best for you and your family and what you would feel most comfortable and happy with.

 

 

i got rid of a few things using f an f with no cca, offerd 10 % they went asked for 15 % and clear up of CF was included. Bit their hand off as was prepared to go to 40 %

 

Ida x

[JohnnySocrates]

Thanks Ida. I do agree with your comments regarding 'what's right for you', a better person than me once said that 'a wiseman listens to the weight of public opinion before making up his own mind'. I do subscribe to this and as such always research before deciding on a course of action.

 

In this case it is especially important as there are so many variables involved and, of course the lenders have no set public policy for dealing with this situation. If they did it would undermine all their collection efforts.

 

I am mindful at this point of a book I recently read, 'Tipping Point by Malcolm Gladwell', which talks about how and why things appear to explode into the wider population from small beginings. It does appear to me that the current financial position of the country has helped create forums such as this which in turn is doing a wonderful job of education both in dealing with the 'here and now' reality for individuals and the longer term, more widespread understanding of all things financial. In the longer term this education could prove the 'tipping point' in breaking this modern financial 'dealer' and 'addict' situation we all face. That said history does show that we appear to be incapable of learning from history or our elders (but this probably won't be news to anyone with teenage children).

 

It's not to say that people are not responsible for their position but to say that creditors like debtors can be blinded or even seduced by the promise and opportunity that credit can bring. I'm sure we are all very familiar with the lines like 'house prices can only keep rising based the current fundamentals of supply and demand'. The key difference is what happens and to whom when the bubble bursts. This is very elegantly described in Naill Ferguson's 'Accent of Money' (great book and TV show) or in the profits currently being posted by the likes of Wells Fargo in the US.

 

I think for my part I will embark on process to correct my situation based on the information I have gained from this and other information sources. I'll post the actions, events and outcomes for all to see in the hope that I too can contribute. I do hope I can count on your council and that of your peers through my coming adventure.

 

To this end I believe that in any endeavour you should always have a plan, what you would judge to be a satisfactory success. In your case I guess it would be paying 40%, the fact you got agreement on 15% is an outstanding outcome.

 

It's important in any plan to understand your tolerance, what are you prepared to give, to loose, in short what are you prepared to put up with to achieve your goal. To my mind this is key especially dealing with a subject as emotional as debt and its collection. I recommend reviewing these values frequently as circumstances just like moods change.

 

I have accepted bankruptcy as the final step in my plan based on my lack of assets, level of debt and current employment situation. However, my plan consists of a number of steps before this, namely seeking agreement on a full and final settlement. The ultimate goal of my plan is therefore to clear my debts by the end of 2009 and now I'll set about acheiving that, I'll post to you soon.

 

My thanks again.

[Secretjay]

 

 

 

if no cca exists reclam charges and offer massively reduced f and f to clear and clear CF

 

 

 

Ida x

 

 

Hi,

 

Can I ask,

 

if a dca says there is no cca, do you reclaim charges from the original creditor and if successful this will reduce the balance of the debt, then contact the dca again with a low F & F ?

 

Thanks