We have so much debt, it seems only hope is selling house!

[Bigdebtor]

Wilchill

 

An excellent letter with Elsa's help. Only thing I would add is to add a sentence stating. " For the avoidance of doubt the enclosed cheque no XXXXX should only be banked if you are accepting my proposal and in all other circumstances it should be returned to me without being banked". This should be put in just after the "I would be grateful....." sentence.

 

Just think of the progress you've made since you first contacted CAG! I trust you tipped everyone's scales who has helped you get there?

 

Keep us posted with your progress.

 

Best of luck!

 

BD

[wilchil64]

Hi BD,

I have of course tipped everyone's scales! I am so grateful for everyone's help.

 

Haven't been able to post the letters today, as I went to the dentist for what I thought would be a filling, instead they pulled the tooth so I couldn't talk to ask for recorded delivery. Will be going tomorrow instead!

 

Thanks for the addition, I'll put that in before sending the letters tomorrow.

 

Actually writing the letters and writing the cheques made me feel like I was doing something. I don't care about the phone calls as I won't speak to them anyway. It's the nasty letters I hate ...

 

Ah, well.

 

In the meantime, the mortgage holiday is agreed and the mortgage company will accept a standing order after the mortgage holiday. The holiday will be a big help as we can get the new account sorted out and get to a point I hope where all payments can go out on one day, because we'll have a reserve to draw on.

[Bigdebtor]

Wilchill

 

That's great to hear your feeliong a lot more positive. Just remember that even after the dentist you're not as toothless as most of your creditors!

 

I'm away for a few days from tomorrow so won't be able to do any furthe replies but you now seem well on top of things!

 

Hope to hear of continued progress from you!

 

BD

[wilchil64]

Wilchill

 

That's great to hear your feeliong a lot more positive. Just remember that even after the dentist you're not as toothless as most of your creditors!

 

I'm away for a few days from tomorrow so won't be able to do any furthe replies but you now seem well on top of things!

 

Hope to hear of continued progress from you!

 

BD

 

Thanks BD, hope you have a good time away. I'll keep on writing the letters, freezing the accounts, filing the paperwork etc.

[Rhia]

Wilchil delighted to see the progress you have made with this worrying problem. The mortgage holiday should definitely make you feel better on its own.

[wilchil64]

Just a quick question: what do I do if they don't accept my offers and agree to freeze interest/charges?

[Undercover-Elsa]

Depends what they say really, let's deal with it as it arises

[wilchil64]

Depends what they say really, let's deal with it as it arises

 

OK.

[wilchil64]

Hi all,

 

Quick question: what exactly is a default notice? I thought it was something further down the line, but reading another thread, it seems it is just a letter from the company we owe money to, stating that we have not made our payment and asking us to do so. Is this correct?

 

If so, I have had such a letter from Santander re. the credit card payment? Should I scan and post here?

 

It just says the following basically:

 

"Credit card account number: x

Arrears: y

Account balance: z

 

I am writing to advise you we have not received your overdue payment of £y.

 

If you have made a payment in the last few days ...... bla bla"

 

with lots of instructions on how we can make a payment.

 

I have written to them, asking them to freeze interest and charges and accept a lower payment. Is that sufficient? Is this a default notice and should I be treating it differently?

 

Thanks in advance.

[Undercover-Elsa]

Hi,

Sounds more like a computer generated arrears reminder. A Default Notice should state:

DEFAULT NOTICE

Served Under Section 87(1) of the Consumer Credit Act 1974"

 

If it doesn't say that..ignore.

Elsa x

Edited June 29, 2010 by Undercover-Elsa

[wilchil64]

Great, thanks Elsa.

[wilchil64]

Another question: (sorry!)

 

Should I be writing to the Santander people who ring several times every day, and ask them to correspond in writing only? I don't want them to turn round at some point and say that they tried to negotiate but were unable to contact us. I have written to them re. our Santander card (didn't make last minimum payment, but sent cheque with letter for lower amount), offering lower payment and requesting they freeze interest and charges but we also have Santander loan, I haven't contacted them yet. They didn't get their payment first time round this month but represented and it went out. So I imagine they are not concerned yet. However, I have now cancelled the DD ready for next month and am preparing a letter to them. I intend to send the letters to the other creditors offering lower payments, requesting freeze interest/charges after the payments should have gone out, as I have now cancelled all the DDs.

 

No further developments so far, but I have set up all my files now so know where all paperwork is.

 

Thanks.

[wilchil64]

Just to let you know, the first lower payment cheque has gone out of the bank account today - M&S Money (credit card) have cashed in the cheque, hopefully they have read the letter correctly and are accepting our lower payment offer and freezing interest and charges.

[DuffNCustard]

Be prepared for a barrage of phone calls and begging letters. They are designed to put the wind up you and to frighten you into paying.

 

These letters are computer generated - if then else, maybe rubbish. If you get a default notice - and it will state that on the letter heading you need to hang onto it. The first one I got (EGG) made my legs go weak - reading it in a panic I was sure they were taking me to court - they weren't it was a 'we may' letter, but if at some future stage they were to decide to haul me off to court this is a pre-requisite.

 

The phone calls and letters may keep coming for a long time - in truth the worst that can really happen is that your creditors get a CCJ and then a charging order on your property - happened to my husband but it did stop all interest so not a totally bad thing.

 

Interest - assume that interest won't be frozen. I was lucky and got my DMP in with the CCCS back in January 2007 and most of my creditors froze interest. Two didn't - winds me up no end but there's not much I can do about it. Creditors will sometimes keep adding charges as a precursor for selling the debt on. Grit your teeth and stick it out, it'll soften your creditors up and make negotiating easier, if they sell the debt on that can also promote F&Fs.

 

I'm all set to be debt free in September 2011 and was horrified that December back in 2006 when Cahoot jacked up the interest to find my debts totalled over £90k - I'm living a very frugal life now but it has its advantages - no more shop crap from Tescoids its all home made now - cakes, pies the lot. But I do miss my magazines and my Friday night port..............

 

You'll get shot of your debt too - and who gives a stuff about credit references then - hell I'm strictly cash now and will continue that way, I'll not keep any of my wonga in a dam bank and I won't be borrowing ever again and if the numbers of decent ordinary folks who post on these forums are considered that's a lot of lost business to the banks - right where it hurts them - their bottom line. With a shrinking pool of 'victims' to fleece there will be more consolidations and 'rationalisations' come-uppance time beckons and a dam good job too! (rant over!!)

[wilchil64]

Hi again,

 

I've received two letters today from companies I have contacted with the letter advised here, requesting they accept lower payments, freeze interest and charges.

 

I have attached the two letters (one from Santander, one from M&S Money). Both my letters were sent recorded delivery and both have been delivered, I checked on Track and Trace. As of this afternoon, both cheques have now gone out of my bank account.

 

I would be grateful for advice on how to respond to these letters.

 

Also there was no form included with the letter from M&S Money for income and expenditure details.

 

M&S are conveniently ignoring the bit in my letter about "For the avoidance of doubt the enclosed cheque no. xxxxxx should only be banked if you are accepting my proposal and in all other circumstances it should be returned to me without being banked."

 

Thanks in advance.

MandSletter.PDF

santanderletter.PDF

Edited July 8, 2010 by wilchil64

[Undercover-Elsa]

Hi Hon,

The Santander one is just a bog standard reminder with no reference to your letter, so ignore that for now.

M&S have a nerve! Let me stew on it, and see what others say, but my gut reaction is NO to the I&E. Only a court can demand that. And to tell them it is for you to tell THEM what you can afford, not vice versa, and despite their hasty cashing of the cheque, if they fail to accept your offer then it should be refunded.

 

Just my opinion, wait for other input

Elsa x

[wilchil64]

Thanks for that Elsa.

 

I'll wait for other replies, but my feelings exactly re. M&S - what a nerve!

 

I thought I had read here somewhere that they can't demand an I&E too.

[wilchil64]

Hi again,

 

More letters in the post this morning! There were two letters from Santander, one just saying thanks for our letter and please contact them immediately on the telephone number quoted as they need to discuss the matter with us. The arrogance .....!

 

I have attached pdf file of scanned other letter from them received this morning. They enclosed with it an I&E form and a booklet "Dealing with Debt" by BBA.

 

Any ideas how I should reply to this? I'm not prepared to ring them. Do I really have to send them I&E details?

 

They have cashed the cheque of lower payment I sent them with my letters stating they were only to cash the cheque if accepting the terms of my letter!

 

Thanks for any advice.

santanderletter2.PDF

Edited July 9, 2010 by wilchil64

[wilchil64]

Sorry slow connection meant I posted the message twice, so have deleted 2nd post!

[wilchil64]

Anyone got any ideas how I should respond to these letters? Thanks.

[Undercover-Elsa]

Hi Wilchil,

Just so we can judge the best way to approach them, what year were the M&S and Santander a/c's opened?

As they aren't going to play nicely, your options are to either carry on regardless, paying them the amount you stated per month or stop paying altogether until they are more eager to negotiate. The problem with the first one is that they will keep adding interest and charges for ever more, so it just prolongs the agony.

They tend to deal differently depending on whether it's a long or short term problem.

I personally would stop payment and CCA them. Once the accounts are defaulted and terminated the interest will usually stop, so you have a static debt to deal with. They then get increasingly "helpful" (tranlation: desperate for payment) and will accept reduced offers. They may pass it on to a Debt Collection Agency..who will be even more desperate. Meanwhile you have been saving that £400 a month (STRICTLY!!!) and will possibly be able to negotiate Full and Final settlements, or a low monthly payment. Assuming they have a valid agreement AND managed to get the Default Notice right. Alternatively, as you will then have the money you've accrued as a buffer, you could then come to a formal arangement through CCCS and pay them monthly.

 

Just my opinion....others may differ.

Don't be too quick to reply to these people. Take your time, think it through. You will get varying advice but ultimately it's up to you how to proceed.

We'll sort a letter out once you decide

 

Elsa x

Edited July 12, 2010 by Undercover-Elsa

[wilchil64]

Thanks Elsa.

 

The M&S card was opened a while ago, haven't found the first documents yet but the earliest statement I can find is dated 18 March 2007, however it has been used until a couple of months ago for purchases and balance transfers initially. Will keep looking for the original agreements which I must have somewhere.

 

The Santander card is from February of this year.

 

I'll have a chat with hubbie but think I'd prefer to stop payment and CCA them. I am however very worried they will take me to court. How likely is this, does anyone know? And how soon do they go down that route? I know it is likely to differ from case to case, would just like a general idea.

 

Thanks for your help.

[Undercover-Elsa]

The M&S one is therefore pre April 2007, which is good.

It's impossible to predict if/when they'll go to Court. 2yrs since I paid anything and I'm still in one piece. You have to monitor the letters you get and decide what's serious and what's the usual rot, and act accordingly.

At any time you can jump in and agree a repayment plan.

Elsa x

[Bigdebtor]

Wilchill

 

I agree you should stop payments and CCA the ones who have taken your cheques and still refused to accept the terms associated with these cheques. I have been threatened with court action many times - but it has NEVER come to court. They have ALWAYS accepted an "affordable" monthly payment and frozen interest - sometimes at the 11th hour.

After all that's all the court would do even if they won - and they risk the debt being unenforceable if they can't produce the original signed CCA to the court or if they've issued dodgy DN's etc.

 

I agree with everything Elsa has said - don't send any I&E - just tell them what you can afford and stick to your guns. They will soften up once they see how hard your own resolve is now. I have been fighting with RBS/Direct Line (and their REAL solicitors) for nearly 3 years - and after many threats of court they eventually accepted my 40% F&F - writing off over £3k just last month. I had actually previously offerred them 50% - which they didn't accept at the time as being "too low" - wanting 75%.

 

Good luck. Keep the faith!

 

BD

 

Donsewu

Edited July 13, 2010 by Bigdebtor

[wilchil64]

Thanks for your reply BD.

 

Hubbie and I discussed last night and agree re stopping payments and CCA'ing the ones who have taken cheques but not accepted our tersm. I'll put together a CCA letter using the template here and post a draft here before sending - can I include something along the lines of "Further to our previous letter, you were asked to only cash the cheque if you accept the terms in our letter. Also, we have informed you of the amount we can afford. We are not legally obliged to inform you of our I&E ... " etc.

 

Congratulations on writing off more of your debt, that's great news! Silly them for not accepting 50% in the first place!

 

I'm trying to keep the faith, just get a little scared sometimes, especially when the letters come through. At least the telephone calls have stopped for now, although I know it's only a matter of time before they start again!