Practical Advice

[James9]

Hello everyone,

 

 

I am in a bit of a sticky situation and I am not sure which path to take.

 

During my studies a high street bank gave me an overdraft (around £4000) and a credit card (around £8000). These debts are both unsecured. After I finished university I left the country for a year. Part way through the year the bank closed my accounts and told me that my debts would be passed to a recovery agency (had they kept the account open and asked for a affordable payment they would have been much more likely to get their money back).

 

I am now back in the UK but not living in the same address. Therefore, I have not received anything from a recovery agency and as far as I know the bank does not have my new address.

 

I would like your opinion about what I should do. I see my options as being

 

1. Ignore the problem and wait for 6 years (I have a basic account with another bank which I can use)

 

2. Try to find out the credit collection agency and offer them a small one off payment to settle all the debts (about £10 000). This would have to be a very small payment as I am currently only working casually.

 

The problem with option 1 is that I am worried that the agency will find me in the future and enforce the debt (maybe when I have earnt some money). I am also worried about the agency making me bankrupt because a profession I wish to join in the future bans bankrupt members. However, I understand that it is unlikely that the agency will file a bankruptcy petition in my absence as this would cost them and they wouldn't receive anything.

 

The problem with option 2 is that if I contact the agency to negotiate with them then they will have my contact details to serve court orders and hassle me for the money.

 

 

What is the best way to proceed? Have I missed any other options?

[dx100uk]

i would not worry too much

 

the 'agency' has no powers legal wise anyhow.

 

have you checked your cra file the damage might already have been done?

 

dx

[James9]

are you sure about that? couldn't they make me bankrupt in the future if they found my address to serve the notice on me?

 

I am not really worried about my credit rating, I understand that it will be terrible for the next 5 or so years but dont plan on taking any credit again.

[Crocdoc]

You could always just sit and wait and see, if the agencies catch up with you there are numerous ways of avoiding bankruptcy at that stage. Debt Collectors don 't like Bankruptcy, first and foremost because it's a BIG WORD and secondly because they rarely get any money from the process.

 

Remember this is an industry who survive by the use of threats as aposed to action in most cases.

[Tingy]

My suggestion would be to sit it out and wait for them to contact you. In the meantime spend 3 x £2 and get copies of all your credit reports to see what is on them, if anything. In order to close your accounts the banks must have defaulted you and it would be good for you to have this information.

 

A DCA is very unlikely ever to make you bankrupt. If they did, it would certainly not be straightaway. They'd track you down, and then you go through the process of checking they have the legal right to collect the debt, then arranging a repayment plan. IF they do find you within the next 6 years, then it would be worth your while coming to an agreement if you are wanting to join a professino such as law where you cannot afford to be made bankrupt.

[James9]

Thank you for your advice.

 

Well it seems the way to go is to sit tight and see if they manage to find me. I am not sure how they will try to do this.

 

I do have my new bank account linked to my current address, maybe that was a bad idea?

 

How about my electoral role address? should I leave this as my old address?

[dx100uk]

if credit is not an issue then forget voters

 

however, it is a bigger downer than several ccj's if you do want future credit.

 

the more years on voters the better.

 

dx

[James9]

so you think that registering my new address on the role would help them find quickly?

 

Also, I have heard of Banks making people bankrupt without notice even when the individual does not attend the hearing. What would be the point of that assuming that the debt is unsecured.

[dx100uk]

if you have all your ad's showing on your cra they will already know where you are

 

as for bk, i think you are reading too many panic sites.

 

if that ever happened then you would have the perfect excuse to get any proceedings set aside.

 

get those cra's done

 

dx

[Tingy]

I take it these loans were entirely different and in no way attachable to a normal student loan?