Living in France - not sure how to proceed with creditors

[caine62]

Hi all,

 

I'm a brit who grew up in France but who moved back to the mother country for uni and then work. I had a good thing going on in London but was made redundant in April 2009.

 

I had quite a reckless approach to debt, not helped by the nature of my former work (commission based, you're encouraged to borrow so you'll be more motivated to work!).

 

I left the uk and was unemployed for nearly a year but found a job in France in february last year. My takehome pay was 1014eur pm but has just gone up to 1300 last month, which still isn't a lot compared to the GBP 3-4k I was making back in London. However, I'm much happier living the simple life here and don't want to rejoin the rat race ever again.

 

I took out a couple of 6k loans with Lloyds TSB in 05, which I paid off in full in 2008 thanks to my hard work. I was left with an overdraft and credit card with lloyds which they kindly offered to bundle into a refinance loan end of 08 when repayments started getting difficult. I also had an overdraft and credit card with hsbc. I haven't made any payments to anyone since mid-2009, instead just sticking my head in the sand and ignoring the odd dca letter that would turn up at my parent's house (in France, I gave them the address when I moved back thinking the tough times wouldn't last).

 

I have rent to pay, my girlfriend is unemployed (and will be for a while, we met in London and she has just moved over here) and new my life to get on with and enjoy.

 

My debts are: Lloyds refinance loan - 3537.30 total owed and I'm 345.45 in arrears (5 months payments apparently, although I haven't paid them since 2009)

HSBC credit card - 1615.99

HSBC overdraft - 1165.41

 

I've called DG sollicitors who are "acting on behalf of HSBC" and threatening court action. They have agreed to hold the account until next week so I can make them a full and final offer.

 

The lloyds loans I repayed included PPI which I rememeber being unhappy about at the time (the person managing my application said I would have a better chance of being approved for the loan if I took out PPI!). I'm not sure about the refinance loan. Lloyds collections have offered to work out a "reasonable repayment account plan".

 

I would like to sort out these debts once and for all, although can't afford any large payments. What is the best approach to take with both creditors to arrange small but regular repayments? I reckon I can afford to pay around 30 to each of them per month. I fear they'll say it's too small an amount. Lloyds don't have my parents' address but HSBC do and I'm worried that bailiffs could turn up one day or that a CCJ will be found against me in the UK without me knowing anything about it.

 

I'm off to London tomorrow for the day for work so could drop the appropriate letters in the post.

 

Any advice would be greatly appreciated!

 

Thanks

 

Henry

[cerberusalert]

Have you considered reclaiming the PPI?

 

CCJs cannot be obtained against non-UK residents if they have managed to get one using a previous address you can apply to get it set-aside.

 

There are reciprocal agreements between EU member states where cross border action can be taken but they would have to do it through the French courts using English law. As you know the French legal system isn't the easiest to negotiate so it is unlikely your creditors will attempt to.

I would like to sort out these debts once and for all, although can't afford any large payments.

If you wish to make repayments you offer only what you can reasonably afford, if they refuse simply do not pay them anything... they'll soon get the message.

I'm worried that bailiffs could turn up one day

That will never happen.

[caine62]

Thanks Cerberusalert, that's a relief! I want to keep them at bay with minimal repayments until I have enough cash to offer a lump sum. Sounds like they don't have a choice going by what you've said.

 

For the PPI, I would love to reclaim it but want to get the repayment issue sorted first. I'll look into it.

 

Thanks again!

[cerberusalert]

If you reclaim the PPI it will reduce the debts + you can claim interest at 8%.