Feeling Down And Depressed

[ScabHunter]

You are far more "on your own" dealing with companies who don't give a monkey's about you but only care about your wallet than you are with the good people of the CAG. As evidenced by the quality of the response here, there is plenty of help and support available.

 

The important step is to create a strategic plan. We can't give you one, because it all depends on your circumstances.

 

1) Banking Security

 

Whatever your income is now, make sure it is paid into a bank account totally unrelated to any group you are having issues with. Securing your present income is the first step in getting some peace of mind, and in digging yourself out of debt trouble.

 

2) Communications

 

If you have multiple alleged debts, you are going to be bombarded with letters and silly telephone calls. It is important to be prepared for this, and to have a system in place to handle it.

 

Get a trueCall if you are able to. If not, or the telephone is not important to you, just pull the plug out of the wall when you need peace and quiet. If you do happen to answer the telephone, and it is a debt collector, just use the BT Phone Book advice for dealing with nuisance calls.

 

As I have no family, the only calls I ever receive are nuisance calls. I just pull the plug out and forget it. The last time I received a genuine telephone call was August 2007, just after my father died, and I doubt whether I'll ever get another one.

 

As for the paper mountain, get a filing system. If you don't have a box file, improvise with large envelopes. One large envelope for each alleged debt. It is essential to keep all relevant paperwork together.

 

We all get bombarded with junk mail from idiots anyway. What I have done is put a black bin bag at the bottom of the stairs. Everything which does not need to be filed goes in there. Only letters which need to go in the file come up the stairs. When the black bag is full, it goes out with the household rubbish. This, I have found, is the easiest way to get the paper mountain under control.

 

3) Challenging the attacker

 

Once these systems are in place, you are in a position to quickly read any letters which come in, and also to reply to anything which needs a response.

 

Follow the filtering system -

 

If a letter has no account details on it, it is simply a phishing attempt. Ignore it. File it away to use in future complaints as it breaches OFT guidelines.

 

If a letter has account details, but they are not yours, send a "prove it" letter.

 

If a letter has correctly identified one of your accounts, but there has been a period of six years somewhere in the account's history with no written acknowledgment or payment, send a "statute barred" letter.

 

If the alleged debt is not barred, but is a credit card or loan regulated under the Consumer Credit Act, send the CCA letter asking for a true copy of the agreement. You could also send a Subject Access Request to the original creditor if you believe there are unfair charges or mis-sold PPI. If an account has been terminated and passed on, I would send a SAR anyway, as you need to see the default notice.

 

If it is an overdraft, Subject Access Request the lender to get the information you need to calculate unfair charges.

 

As these letters are templates which need very little alteration, it shouldn't take much effort to handle a multitude of accounts.

 

One good idea if you really have a huge number of alleged debts is to draw up a "master sheet", with the names of the accounts down the left hand side of the page, and a progress report along each line. This lets you see instantly where you are with each account.

 

4) Work out your strategy

 

This is impossible to advise on, as it depends on the individual. If you have no assets and are on benefits, you could think about the Debt Relief Order as a "Get Out Of Jail Free" card. If everything goes pear-shaped, and you end up with CCJs and a whole stinking mess, you can be ready to pull out your trump card and get rid of it all.

 

There are, of course, consequences and considerations with this, but the Debt Relief Order can give people a chance to live again sometime in the future.

 

If you are a property owner, you can consider letting out a room to a lodger for some tax free income, which might cover the payments on any alleged debt which is enforceable. It all depends on your circumstances. A property which now has negative equity can still become an asset if you use it in the right way.

 

Nobody gets out of debt hell in five minutes, and especially not during a depression. Nevertheless, there is always something which can be done, and there is always someone on CAG who can help.

 

There are people who have been through bankruptcies, business failures, messy divorces, bereavements and many other tragic and difficult circumstances, and have come back to have successful lives. It has been done and it is possible.

 

This is one thing I would like to work on in the future - trying to add another dimension to all of this. CAG has proven to be brilliant at helping and supporting people through debt hell. Now, I would like to see us go forward to another dimension. If we can show half as much intelligence, teamwork and dedication in business as we have on CAG, we should all be able to make successful lives for ourselves.

 

As ever, I extend the same offer to you as many of my colleagues have. I am only a PM away.

 

SH