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nellied

Looking for urgent guidance before contacting Creditors

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Hi, I've been reviewing the posts for a little while now and personal circumstances have reached crisis point and we could really use some guidance. I work full time and receive a good income. My husband is self employed and business has been severly reduced for some time leading to the potential for him to have to declare bankruptcy due to lack of cashflow (not yet definate and we're cutting back where we can but still a possibility). Thats the major cloud hanging over us however, more urgently is the issue of no 2nd income coming into the household and an insufficient amount available to pay everything that is due.

Having carried out an income and expenditure breakdown, I am able to meet all of the essentials but not the unsecured loan and credit cards (totalling approx £56k across 8 creditors). My immediate action has been to protect my income and cancel all the direct debits set up with them (I'm not yet in arrears but I will be once all the DD's bounce).

What I'm not sure about is how to best handle the next stage. Panic has obviously set in and it's difficult to get any clarity so I'm hoping someone out there can help guide me. Do I look to contact my creditors with an offer of payment directly myself, do I reach out to such as Payplan or CCCS to do this for me or do I first try the CCA route that I've stumbled across as a possible options whilst reading (that could be a red herring but worth enquiring about)?? Any constructive feedback at what feels like the end of the world right now, would be really appreciated. Thanks

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Hi nellied

 

Welcome to CAG

 

I haven't got the experience to give you the guidence you require, one of the site team or more experienced poster will respond shortly.

 

What I think you should do is send each creditor a CCA Request with a £1.

This is in order to establish if the CCA is enforceable. Once they send you

copies, Scan them onto the thread removing all personal details. The guys here can check and will let you know if they are enforceable. If they are

unenforceable you can stop paying and put the accounts in dispute. It can also help if you want to make a full and final settlement.

 

The other thing you can do is claim back any Penalty Charges over the last 6 years plus. If you have been mis-sold PPI

you can also claim that back with contractual interest. This could make a difference to the amount owed.

You can obtain statements by sending a SAR request with a £10 postal order. All templates and spreadsheets are available on this site.

Edited by rebel11

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Thanks for the quick response and the info - it's appreciated. Would be great to hear from someone on my broader question about how best to contact/handle our creditors for the optimum results. Need to feel in control of this problem so we can then get some head space to deal with attempting to stay solvent. All guidance welcome. Thanks

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Hi.........Go for CCA 1974.first if you go for a DMP with CCCS,they will help you but beware, once you have declared all your creditors to them and then instruct them to delete a creditor because they cannot produce a copy of the original signed agreement,CCCS will be unhappy and take you of the DMP (this is a recent ruling from CCCS) as far as I am aware.,Try to do your own DMP whilst you are awaiting replies from CCA 1974,then those that produce a proper (not recon) agreement make them an offer that you can afford do not be bullied into payments that are not affordable,even if it is passed to DCA.I am sure the Site Team would prefer each Credit Card to have its own Thread as it is easier to deal with.As Rebel states you can also claim back charges and PPI if applicable.Have you statements for each credit card going back to the date you opened the accounts?????????????if not a SAR will be needed,depending on your reply regarding statements.Expect a longish letter writing session,we will help along the way .............FS.......Wish you all the best

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If I may, I would like to expand on my learned colleagues comments ;-)

 

I'm putting my reasonable head on for now (but that may change)

My advice would be to write to each creditor explaining your circumstances. You could use some of the letters here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Send every letter by recorded delivery and for now, don't sign them, just print your name. (this is for personal security reasons-more on that should the need arise)

 

Once you have a response from the creditors, you can then decide what to do for best. Any creditor that is not helpful, CCA them.

 

As advised, if their are any penalty charges for the accounts or PPI which you didn't need, reclaim them.

 

Bookmark the above link and this one:

 

The Consumer Forums - Debt collectors

 

You may need them in the future.

 

Choose which card you want this thread to concentrate on and start new ones for the others.

 

Fox


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

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Thanks for the solid advice. Not aware of any late/default fees at all in the past and never taken PPI so don't feel the SAR route is needed. Taking on board what you've shared, I intend to use the letters to contact each creditor and propose a pro rata payment. Once I hear back, I can do exactly as you suggest and pursue the CCA route if they're not willing to accept. Do many companys choose to go down the county court route? Not that I'll have any choice as I can't create money that doesn't exist but it would be good to have an appreciation of how often it happens? Thanks again and should the business side not work out, I'll very likely be posting again for more sound advise. Fingers crossed not but I know where to come.

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While you are making payments, any creditor is going to look silly going to court to enforce a debt you are servicing (even at a lower rate than normal)

It isn't unknown though, especially if you have property (which I think you do)

If they did take you to court (and you either admitted the debt or lost the case), the judge would take your financial cicumstances into account and make you pay an amount which is binding on both parties. The creditor would then have to go back to court if they wanted more money than the judge ordered.

 

One of the reasons the creditors or DCA's don't use the court very often is that they can co-erce you into paying more than you can afford.

 

Nearly everyone on CAG says never phone a creditor. It is their tool of choice to bully, pester you and put pressure on you to favour them over other creditors


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Thanks again. This is really useful information and helps get my head into a better space. Yes we do have a jointly owned house but I've been looking into the current values in the local area (in the unfortunate event that my husband has to go bankrupt as I wanted to assess if it's likely we'll lose it) and I actually don't believe there's any or possibly very little, equity. I'm hoping it doesn't come to that being the only route for us but if it is, I've just been trying to gain as much information as possible.

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Hi

 

The only thing I can say, is that I am with a debt management company and have been for 2 years now (payplan), and it really takes away the pressure of having to deal with your creditors yourself, and make payments etc. The debt management company are always there to deal on your behalf with any legal action or creditor communication you may get. x

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Thanks for taking the time to respond. It always helps to know people are out there that can and are willing to help.

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Have a read of this :-

http://www.consumeractiongroup.co.uk/forum/debt-management-debt-self/120603-how-get-out-debt.html

 

I'd also send CCA requests with £1 for any loans, store credit or credit cards. If they have added unwanted PPI you can reclaim this, and if they have not got a valid credit agreement with you then they cannot enforce repayment.

 

Don't let the stress that you guys must be feeling get you down. Hopefully business will pick up for your other half, and all this excelent advice will be for nothing :p.


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Thanks for all the help you've all provided. As at last week I sent each of our creditors an income and expenditure form with a covering letter setting out our situation and requesting a token payment of £1.00 for the foreseeable future and until circumstances change (which we still hope they will). The letters will have landed via recorded delivery on Thursday and so far no replies are in. One creditor continues to phone only my husbands mobile number, leaving messages for a call back but he is unavailable most of the day and I've been dealing with the paperwork rather than him so he hasn't returned their call. My question today is, do we sit tight and wait for written responses to come in or do we stop screening incoming calls and if it's one of the creditors, just deal with them verbally? Would be grateful for any guidance. I don't want to get into a conversation if the person on the other end of the phone isn't one of their decision makers anyway and they're just pushing for payment rather than to make an arrangement. thanks

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It really isn't in your best interests to speak to anyone.

 

Any decisions need to be in writing. How can you prove what was said on the phone (unless you recorded the call) and besides, it's very rare for you to speak to the actual decision makers. it's usually one of their trained monkeys.

 

I would hold fire until they write back.


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Thanks silverfox. That's how I've handled it so far and just really wanted confirmation it was the best route. I've provided them with everything they require so not avoiding that aspect. It's just the Halifax that are bombarding my husbands mobile (they have our home number but haven't even tried that yet!). I've pulled some more info together from the site on the CCA requests I can make as well should any of the creditors refuse my proposal.

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Rule one of CAG: Never speak to a DCA over the phone

Rule two of CAG: NEVER speak to a DCA over the phone!!

 

:razz:

 

I'd send the CCA requests ASAP just to see if you can get more breathing space.

 

Them phoning your husbands mobile... When I was in a similar situation to yourself I just answered the phone to them, listened to them asking for my security details (as if I'll pass them on to the monkeys :p) and reply with the one line "All correspondence in this matter needs to be put in writing" then hung up. They get bored of it before I did. In fact I used to keep them on the line (when I wasn't busy) until they hung up (call center staff hate this as in some places it gets monitored and they can be disciplined for hanging up on a customer) and everything they said my reply was in a different tone to the previous time "All correspondence in this matter needs to be put in writing"... trust me your hubby will have a blast :p

 

Again, don't let them get you down :)


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HI Nellied,

 

If you have online access to any of your CC accounts, it is a good idea to remove all the telephone numbers.

 

Which companies are you dealing with, it helps others to give their experiences?

 

Always keep the envelopes of any letters you receive, may be important later on.

 

When you send any letters recorded delivery, you can get a copy of the signature receipt from the Royal Mail website using the tracking system after delivery, keep this with each letter.

 

It's useful to get an A4 ring binder for each creditor to keep your paperwork straight and makes it easier to refer back to anything

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Hi...you seem to be going down the correct route at this stage,just await answers from the various creditors.You will find as you look around the site some companies are more difficult than others,it appears that you are having a slight annoying problem with Halifax,they are persistent and a pain,they waste loads of money and time achieving nothing,will look out for your replies ...all the very best >>>>FS

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Hi, hoping for some more good advice if you can please. I've had my first reply in from a creditor (Nationwide) in response to my I&E, sent with the covering letter and proposal of a token payment. States that after careful consideration they are unable to accept. It also says if I do not contact them in next 7 days they will serve default notice and refer to debt recovery team (actually doesn't seem correct though as with acting proactively on this, I'm not yet in arrears so haven't officially defaulted - presume from this, it's a standard letter??). Question now is do I write again, resending I&E and asking them to reconsider? If so, is there a letter template I could crib from? They state to get advice from CAB but I've actually done exactly what CAB would recommend and contacted them. Now Im in process, it would just help to understand how this normally plays out and what to expect. Thanks in advance.

Edited by nellied
subsequent note could stop this one being noticed

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Hi - locutus, FS and Dotty50 - just wanted to say thank you. The replies really do help. This is a whole new experience for me and I'm way out of my comfort zone so your help is invaluable.

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I take it you have a loan or credit card with nationwide... I'd again advocate a CCA request.

 

Basically you are entitled to a copy of the original signed agreement, that has to contain some prescribed terms for £1. If they fail to supply this they cannot enforce repayment from you. You will notice the word CCA is hyperlinked, follow that link and it will take you to the templates section of the website, just amend with your details and send it to them recorded delivery with a £1 postal order. Now there is a chance they'll be able to comply with your request so you are risking a couple of quid, but I would be surprised if it didn't put you into the driving seat, or at least buy you some breathing space. We'll have you back into your comfort zone soon I hope.


If in doubt, contact a qualified insured legal professional (or my wife... she knows EVERYTHING)

 

Or send a cheque or postal order payable to Reclaim the Right Ltd.

to

923 Finchley Road London NW11 7PE

 

 

Click here if you fancy an email address that shows you mean business! (only £6 and that will really help CAG)

 

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thanks locutus. Any advice in respect of a direct response to the letter and whether writing again asking them to reconsider is the way to play it (aside from a CCA request)? thanks

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Well, if you are acting reasonably any judge will laugh them out of court. They can however trash your credit file. It may be worth asking for their complaints procedures to rattle the cage a little :)


If in doubt, contact a qualified insured legal professional (or my wife... she knows EVERYTHING)

 

Or send a cheque or postal order payable to Reclaim the Right Ltd.

to

923 Finchley Road London NW11 7PE

 

 

Click here if you fancy an email address that shows you mean business! (only £6 and that will really help CAG)

 

If you can't donate, please use the Internet Search boxes on the CAG pages - these will generate a small but regular income for the site

 

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thanks locutus. I've drafted a reply to go off via recorded delivery again and will then sort out the CCA requests to each creditor. Likely to need more of this helpful advice as I move along so I'll post individual threads as each one responds. :)

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If you do get into hastle with any of them and decide to create a dedicated thread to them, post a link here so everyone subbed to your thread can follow :)


If in doubt, contact a qualified insured legal professional (or my wife... she knows EVERYTHING)

 

Or send a cheque or postal order payable to Reclaim the Right Ltd.

to

923 Finchley Road London NW11 7PE

 

 

Click here if you fancy an email address that shows you mean business! (only £6 and that will really help CAG)

 

If you can't donate, please use the Internet Search boxes on the CAG pages - these will generate a small but regular income for the site

 

Please also consider using the

C.A.G. Toolbar

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Hi Nellied,

I am in a very similar position as you.

(Please see thread just started http://www.consumeractiongroup.co.uk/forum/debt-management-debt-self/268095-do-i-tackle-debt.html )

 

I do not understand what some of the abbreviation are you use…what is a CCA ?

Many thanks!

 

 

 

 

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