Bit of help please!!

[NeilF]

Hi,

 

I understand that this question has been asked quite a few times but my worry has not really been addressed and I'm hoping for a definate answer.

 

Ive had a littlewoods account since 2005. I'm a student and could not find work during the summer holidays. I tried to ring up littlewoods 3 times but each time got a nasty woman reluctant to hear me out and kept repeating to me that I had to make the minimum payment of £570 by such a date. My balance is only £1300 so i was shocked to find it so high.

 

After reading in these forums I sent off for a cca, got a reply yesterday saying they 'could not find it but heres a copy of our latest terms' and I have today responded with the account in dispute letter.

 

Ok my question is, now that im refusing to pay the debt, what laws are there stopping them from reporting the debt to credit agencies for 6 years(or however long they do it) I am going to be leaving uni next year and was maybe hoping to get a morgage or at least try to in the next few years. I dont want the blemish on my record. What are the chances that this will affect my credit score drastically?

 

I hope this make sense and someone can help.

Thanks

Neil.

[UnitedFront]

They will keep writing to the CRA's, unfortunately, regardless of what the law says. I have heard of caggers taking these people to court to try and stop this.... hopefully some of these guys will be along soon.

 

UF

[cerberusalert]

It's a bit of a moot point this really, even though there's no agreement and it follows because of that they do not have your permission to process your data which includes registering defaults, the OFT & the ICO seem to think because the debt morally exists they should be allowed to register the default with the CRAs.

 

There are a couple of things you can do however. The first is to negotiate a full and final settlement of the a/c at a lower amount with the proviso that any defaults are removed from your credit file. The other is a s.10 notice see; Knocked back by a DCA on a Sec 10 notice? - The Consumer Forums

[NeilF]

Thanks for the replies. Thats pretty much what I suspected. I cant really afford a final payment, might just have to live with the default.

 

Any advice from anyone on how badly this will affect my chances of getting credit or a mortgage would be appreciated.

 

Thanks again guys.

Neil.

[cerberusalert]

You will have a better chance of getting a reduced settlement after the creditor sells the debt on to a DCA who will have paid around 10% of the face value of the debt. There is nothing to stop you negotiating a settlement in a couple of years time prior to applying for a mortgage, besides it'll take that time before mortgages become more freely available again.

[Huff&Puff]

If it is the only default, it probably won't affect anything very much.

[transparentspoon]

First point - don't ever call anyone, get it in writing. My life has been a lot more peaceful since I told all my creditors that I'll only deal with them in writing "so that there's a written record of all communications".

 

Doing a Subject Access Request might be the first step (just to see whether their paperwork is in order) but the "full and final settlement" is obviously an acknowledgement that you owe the debt. It might get sold on to a debt collection agency who will be more likely to accept a lower sum (bearing in mind that they probably bought the debt for 10%-25% of its real value) so if in doubt play the waiting game...

 

In the event of a settlement, don't forget that you can ask for a note to be added to your credit record if the information is inaccurate or disputed (there are three main organisations so you'll need to request copies of your record from all three and also write to all three to get the note added).

 

Not sure how the default would affect your mortgage - if you apply for a credit card in the future then the chances are that you might just have to pay a higher rate of interest. Best option for a mortgage might be to go through a reputable broker - reason for this is that they might be able to speak with the underwriters directly if there are any queries. Provided your income stacks up and you don't have any significant borrowings it might not be a problem. You can always get a mortgage if you're really, really after one but the conventional way is usually the simplest.

 

Good luck!

[NeilF]

Thank you all, i really appreciate all the help, you've put my mind at ease. For the mean time I think I'm just going to wait to see what littlewoods has to say if anything. If i can get a reduced settlement some time down the line when i have a little more available cash, that will be the best option.

 

Thank you again.

Neil

[transparentspoon]

Neil - most important thing is to not worry about any of it If at any point you do start to worry and/or panic just think:

 

What's the worst they can do to me?

 

Prison - NO. Take all my possessions - NO. Order me to pay a small amount of money over a reasonable period of time - POSSIBLY.

 

Important thing is to take control of the process and make them respond to you, not the other way round. From a legal perspective, I doubt there are any organisations out there that have a proper handle on their internal systems or full awareness of their legal obligations.

 

I know this because I have four (count 'em) different types of debt with a well-known bank and none of their departments talk to each other, nor do they share the same information with each other. As soon as this debt is passed over to a DCA they have to make sure that the whole chain of information is maintained. I've had instances where the wrong credit card number or even a completely different credit agreement has been sent to me by a DCA, so you can rely on either the lender or the DCA cocking something up somewhere down the line.

 

Now go and enjoy your weekend!

[NeilF]

Hi guys got another problem, bit of advice please.

 

I have been receiving letters from littlewoods saying they cannot find my cca, the account is now in default and that no further action will be taken.

 

I was happy with this, but today I recieved a letter from them. (I haven't got a scanner so ill type out the gist.)

 

 

"

Default Noice

Served under section 87(1) of the consumer act 1974.

We refer to the above agreement which you have entered into with us. The payment clause of the agreement provides that you must make the required periodic payment in full by its due date. You are in breach of that clause because you have failed to make all of your periodic payments in full when due, and arrears amounting to £15.49 are outstanding.

 

To remedy this breach the payment must be made by the 14th Sept 2009

 

IF THE ACTION REQUIRED BY THE NOTICE IS TAKEN BEFORE THE DATE SHOWN NO FURTHER ENFORCEMENT WILL BE TAKEN IN RESPECT OF THIS BREACH.

 

IF YOU DO NOT TAKE ANY ACTION REQUIRED BY THIS NOTICE BEFORE THE DATE IS SHOWN THEN FURTHER ACTION IS SET OUT BELOW.

 

 

If you have any problems paying this you can apply to the court for surety more time"

 

 

Bassically they a bunch of money on to get it to £122.27

 

I then open another letter from the same day. Same letter just with £540.57 to pay and a penelty of £1130.45 if not paid.

 

I thought once the account was in dispute they cannot do anything to me unless its in the court. I dont want to go to court, I just wanted them off my back for a while untill I can make a final payment in a year or so.

 

What can i do!!!???

Please Help.

[cerberusalert]

Without a CCA they cannot take any enforcement through the courts. The default notice they have sent is a legal requirement before they can mark your credit file. Then they will terminate your a/c and sell it to a debt collector. Again, without the CCA they can do nothing.

 

They have already admitted that they don't have a CCA so there won't be any suprises in the future. You don't have to pay anyone anything now.

[NeilF]

Ok thanks.

 

What happens when the debt collectors approach me?

 

Should I just Ignore them?

 

Thank you for your help.

Neil

[cerberusalert]

Keep the letter from Littlewoods where they say they can't provide the CCA & when a DCA gets in touch send them this http://www.consumerforums.com/resources/templates-library/86-debt-collectors/574-letter-when-account-has-been-passed-on-whilst-agreement-request-is-in-dispute including a copy of the Littlewoods letter.

[NeilF]

Thank you so much, really put my mind at ease!

 

Neil.

[NeilF]

Hi again guys,

 

Everything has been fine so far with littlewoods, got through 1 month without them hasseling me. Today i got a letter saying i have missed a minimum payment and they have charged me £12 for the pleasure. I was told tht they cannot charge me anything when my account is in dispute!? Is this true?

 

What should I do?

 

Thanks again.

Neil

[Huff&Puff]

No, they cannot add charges while it is in dispute. Complain to Trading Standards.