Littlewoods - please can I have some advice?

[FlipperDipper]

I have a Littlewoods account that I have kept in good order since I opened it (in 2007 or 2008 if I remember correctly) - I've only ever been late with a payment once which was when we lost our baby but they were fine about it and I made the payment a week after it was due. Other than that it's been kept perfectly.

 

I owe £610.95 right now, but my credit limit is something like £2000 because they keep increasing it however I haven't been buying anything on the account (and haven't bought anything for nearly six months) because I want it down to zero.

 

My hours have been cut at work from 42p/wk to 19p/wk because of childcare issues, dropping my salary from £19k to around £9.5k, I was still meeting the minimum payments though.

 

Then, without going into too much detail, work messed me around a lot after I told them I was pregnant again. They shunted me off into a side department with zero prospects for advancement and a more restrictive working environment because they were "downsizing", on the same day they hired someone to replace me in my old position. I ended up signed off on the sick with ante-natal depression which dropped my income further, I'm now on maternity leave and getting £128 p/wk SMP.

 

I'm ashamed to say I've fallen behind with my Littlewoods account. I tried to pay my minimum payment this morning to find that I'd missed the due date by five days and that next month's statement has already been issued. I had the money to pay one month's and was expecting to pay next month's on my next payday, but now the next statement has been issued they're expecting a double payment from me of £190!

 

I have £80 which I can pay today, this was my normal payment, but I don't have the £80 for this new month until I get paid or the late fees they've added which bump the total to £190.

 

I'm going to phone them tonight and discuss it. I'm planning to ask them to freeze the account and set up a payment plan of £80 a month until it's paid off, which will take 8-9 months (everything on the account is on the minimum repayment length and therefore zero interest).

 

Has anyone asked them anything like this? How receptive/helpful were they? I'm eight months pregnant and I really can't handle anyone being horrible to me (I'm not trying to play the pregnancy card, I'm just still stressed from trying to sort work out).

 

Are there any key phrases or terms I should mention? I know some places will be obstructive until you mention "the magic words" at which point they roll over. I'm rubbish at complaining and I'm worried they will railroad me into taking out the extended payment plan which will drop my monthly payment but will mean that interest is added and it will take longer to pay off (2-3 years instead of 8-9 months).

 

Any advice on how to proceed would be appreciated! This is my only debt and all other household expenses are fully covered.

[silverfox1961]

Hi and welcome to CAG.

 

In my opinion, you should be doing this is writing. Agreements made over the phone can be denied (unless a recording exists)

 

In the library are some letters to help you negotiate with Littlewoods:

 

http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

 

This one contains lots of template letters and budget planners to help you work out what you can afford.

 

Can you afford £80 a month? Are you stretching yourself by doing so? I would be making an offer that you can keep to so long as they freeze interest and withhold any charges on the account.

 

If you can, send all letters by recorded delivery-if not, get a certificate of posting from the post office

[FlipperDipper]

Thank you

 

I think writing may be my best bet, that way I can't be put on the spot and pressured re: taking out the extended repayment terms. I can afford £80 a month, I worked it out as £20 a week (their payment month is actually four weeks) and my husband can give me £50 of it so it's workable.

 

I'm going to have a look at the template letters now and get cracking on it. Hopefully keeping the account so well since I opened it will count in my favour and I can sort it without too much aggro.

[silverfox1961]

 

I'm going to have a look at the template letters now and get cracking on it. Hopefully keeping the account so well since I opened it will count in my favour and I can sort it without too much aggro.

 

Hope for the best but expect the worst. I have found that when you are managing your repayments, creditors are your best friend but once you get into difficulties, they treat you like a pariah. Hopefully that won't happen to you as you will be offering more than token payments but we'll see.

 

Good luck

[dx100uk]

must agree with SF here.

 

i'd be inclined not to promise £80

but p'haps £40

give yourself some breathing space.

 

and look at reclaiming those charges too.

 

just remember its YOUR MONEY

 

you decide what happens NOT THEM.

i would simply write a letter TELLING them its £40 PCM till XXXXdate

tough!

 

its not a priority bill,

 

dx

[FlipperDipper]

Great advice guys, thanks!

 

How does this sound:

 

Dear sir/madam

 

I have been a customer for several years and have always kept my account in good order however my circumstances have recently changed.

 

I cannot now afford the monthly minimum payments because I have had to reduce my hours of work and this has had an adverse effect on my income, in addition I am now on maternity leave which has reduced my income even further. I missed making a payment in June and the July statement has now been issued requesting a double payment - £190 in total. This is nearly a third of my monthly income and paying it will lead me unable to meet my other financial obligations.

 

I have enclosed a Personal Budget sheet showing my income and expenditure.

 

In view of my current circumstances, please would you agree to accept an offer of £50 per month. If late charges or missed payment fees are being added to the account I would be grateful if you would freeze these so that all payments made will reduce what I owe you. I also request that any late charges or missed payment fees already applied are refunded as soon as possible as to continue to apply these in the current situation is counter-production and unfairly penalises me.

 

I currently owe £610.95. I propose to pay 12 payments of £50 and a final payment of £60.95. This will clear the account.

 

Should my circumstances improve I will contact you again with a revised offer which will see the debt repaid faster but at present this is the best offer I can make.

 

I am able to make the first installement by debit card upon acceptance of this offer and can arrange either direct repayments, a direct debit, or a standing order for the remainder. Please advise which method you would prefer.

 

Thank you for your assistance and understanding in this difficult situation.

 

Yours,

 

----

 

I can practically see their automated response already but, as pointed out, they can't take what I don't have and from reading elsewhere on the site if they did take me to court (which would be a long way down the road anyway) the court would just set it at £50.

[silverfox1961]

I am able to make the first installement by debit card upon acceptance of this offer IN WRITING

 

Aside from the above, I feel that is a good letter. They may not stop the charges but you can reclaim them at a later date anyway

[FlipperDipper]

Well the letter is on it's way to them, got a letter this morning from their arrears department which must have crossed in the post with my letter, hopefully they'll accept the offer.

 

When I did my budget sheet I made allowances for nappies and clothes for my child (soon to be children when number two arrives) because he's still at an age where he outgrows his fairly quickly and the baby will too, I also allowed "miscellaneous" of £60 which is things like the opticians for me and playgroup for the little one, the odd treat, and those random little bits that crop up like birthdays or whatever.

 

Are they going to think I'm taking the pee budgeting for playgroup and birthdays when I can't afford to pay them more than £50 a month? Also my income came to £856 and my outgoings are £844 including the proposed £50 to Littlewoods, can they ask for that £12 difference on top of the £50 offered? I admit I've had to average some of the expenses because they differ slightly each month, for example my spend on nappies fluctuates depending on what special offers are on, same for food shopping and my bus fares alter depending on how much I travel.

 

Sorry for asking so many questions! I just read elsewhere that Littlewoods sell accounts to Capquest and I'm a little bit irrational about them possibly doing this to mine. I've dealt with Capquest before back when I finished university and their tactics are shameful to say the least.

 

Thanks again for all the help and advice

[biggeorge]

Have you considered sending in a CCA request, these companies are known to have a very a messy file system and

chances are they won't have a valid CCA for your account.

I have just done the same CCA for my own and my wifes account with shop direct and received letters back, accounts

closed no cca (until we can find one) Saved us £1800 from both accounts.

 

George

[FlipperDipper]

I opened the account with one of their street sales team, I think it was in 2007 or 2008 ( I'm fairly certain it was Summer 2008 now I think of it) and I don't recall signing anything.

 

The CCA is the credit agreement, isn't it? How does it work? If they can't produce a copy they can't claim the money back?

[FlipperDipper]

And the phone calls have started ... five today, even though I told them on the first one that I've sent them a letter (which should be there by now) and I'm not willing to discuss it over the phone. My husband answered the fifth one and told them the same thing I've been saying all day, the advisor got quite shirty with him and said they'll "just keep phoning until FlipperDipper speaks to us".

[biggeorge]

Defo get a CCA request in to them, Without a valid credit agreement they cannot take you to court.

Since you applied on the street 2007/08 and didn't sign nothing I would like to see what they come up with.

 

Just because there is no valid CCA does not mean that the debt goes away just no court action.

Puts you in a better position to come to a payment arrangement (if you choose to pay).

 

 

Send in CCA request then come back after 12+2 days with either reply from them or no reply which then

puts the account in dispute and you can stop paying anything.

 

George

[FlipperDipper]

They came back to me this afternoon after my letter so say they'll accept £53 a month (I'd offered £50), this was over the phone but apparently a letter is also on it's way to confirm it. First payment is due 31st of this month. I'm a bit shocked it's been so easy, I'm kind of waiting for the bite if you know what I mean?