Please Help - Confused and Could Really Do With Some Advice...

[solair1973]

Hi

 

Please can somebody offer me a bit of advice if possible.

 

I have been in a DMP with PayPlan for approx 12 months and have kept up the agreed monthly payment without any issues. I have been contacted again by KPR (Nationwide DCA) saying that my pro rata payment is insufficient and that I need to increase my monthly payment by approx 10x (not possible of course). They rang me up a lot earlier in the year with demands like this, but they have never offered me a settlement figure before.

 

They offered me a settlement figure of £2k over the phone which is approx 40% of the outstanding balance. I do not have access to this amount of money so the only option seems to be the worst case which they said would be to take me to court and get the debt secured against our house.

 

I have asked my parents if they would consider lending me the funds to pay the settlement figure as I don't really want to go to court. I do not know if they can afford to lend me this to be honest, they are currently thinking it over to see what they can do to help.

 

Even if I could borrow enough to offer a lower settlement figure, would this be the right thing to do?

 

I am concerned that if I do this I will be seen to be favouring one creditor over all others and it could make things worse in this respect. If any other creditors become aware of the fact I have paid another creditor off early will this cause more problems for me? They are not the largest creditor either. I read another post on this forum earlier that someone had received a letter saying that a creditor was aware that another balance had been paid off!

 

If I do discuss the idea of a settlement figure with a view to my parents helping out do I need to ensure that we receive correspondence which confirms it is a final settlement to ensure they do not return for the balance in the future?

 

I guess PayPlan would not be too keen on us doing this either would they? I guess they would say all payments should be made pro rata to all creditors?

 

I'm confused and could really do with some advice!

 

Many thanks in advance!

[dx100uk]

if anyone offers a 'discount' to settle a debt

 

99 times it means there is an issue with them enforceing it through court

 

it will either be a paperwork issue

or

the bal is made of mainly unlawful charges or mis-sold ppi.

 

what was the original debt type?

 

pers i'd stop payments to them and ignore from now on

 

dx

[solair1973]

Hi dx

 

Thanks for your reply. It's a credit card debt. I did wonder why they would offer a settlement figure in this way, at what is a fairly low level I suppose (40% of total debt).

 

I do not have any of the documentation with me at the moment, but I have always declined the offer of protecting payments on any loans/cards so I don't think it can be this. Also, they were pretty good from day one with my DMP - the froze interest unlike many other creditors.

 

I have never requested any additional info re: my account with them like SAR or to request a copy of my agreement etc. I had always fully intended to make every effort to repay what I owe, but I am now concerned that the possibility of taking me to court is a little scary - more for my wife than me I suppose. But, if they take it to court and get a decision which forces full repayment of the £5k it would mean selling the house. Is this the possible outcome of this situation?

 

On the other hand, even in I can get some money together from parents etc to maybe make a counter offer and propose a lower settlement I am concerned about other creditors finding out and then them demanding additional payments.

 

I know what you are saying re: there must be something wrong with the account but it's the first one of our creditors to take this direction and I am confused as to what I should do!

 

I'm not sure about how I would stop the payments as PayPlan obviously send the pro-rata payment on our behalf - I guess they would advise me to keep paying them and see what happens.

 

Should I send a letter asking them for a copy of the CCA and the SAR (not really sure what this is and if I need it)

 

I think I have red so much on here today/tonight that I've got myself even more confused!!

 

Thanks again for your reply, I have seen that you provide a lot of good help to people on here!

[dx100uk]

can you outline a little bit more of the history of this debt with dates etc?

 

its very rare for the oc to offer a discount

 

we need to get to the bottom of their thinking

 

something is def wrong though.

 

p'haps an sar might be an idea

 

as for payplan, you can tell tell them to remove that debt from your dmp, but lets jump the hurdle after the sar return

 

dx

[wittsend]

subbing, nationwide have also offered me a very large discount, but would only mark my credit file as part settled.

[dx100uk]

def NEVER pay off a debt when thet will not mark it satisfied and remove all neg data too!

 

dx

[BRIGADIER2JCS]

It is worth noting that extending borrowing

to pay off existing debts an lead you into a

vicious circle so please take care.

[solair1973]

Thanks for your replies.

 

To be honest I am not sure when I first got the card, maybe 5yrs ago approx. I used the card and always paid the balance off but then it started to build up etc... Approx a year ago I realised that I could not keep up with the amount of debt and contacted PayPlan for help. I never missed any payments and since going into the DMP I have always paid the agreed amount every month.

 

I was issued with a default notice last September and then KPI started contacting me a little while after. Early this year I received a letter re: a charging order on the house to secure the debt. After speaking to KPI they allowed me to carry on with the pro rata payment with a view to me increasing the monthly payment sometime in the future.

 

It must be about three months since they last called, but they have now made contact again (via phone) requesting the increase and offering the settlement figure.

 

To be fair to them, as soon as I set up the DMP they froze the interest etc and the settlement offer is appealing but I realise that borrowing further money to finance this is probably not the best idea. PayPlan also advised me when KPI were demanding extra payments last time that I should not treat them favourably as other creditors may find out and that will not work in my favour. A couple of other creditors are owed more money than Nationwide also but up to now have been OK with the pro rate payments.

 

If I was to settle anything by borrowing from family I would only do it if it was a full and final settlement and that this fact is confirmed in writing prior to me sending any payment.

 

Funny really, I had a phone call from PayPlan this morning re: my first annual review so I will speak to them about this again this week during my review.

 

From the feedback given here so far and the fact I have other creditors with what could be considered a bigger claim on any additional funding from family etc I may well be best to stick to what PayPlan have calculated and keep sending the pro rata payments. I just hope this doesn't mean that Nationwide will be able to take me to court and place a charging order against the house as I have also read in places that this can force the sale of the house in order to pay the money owed immediately.

 

I do realise that I have borrowed the money that I owe and do intend to pay it back. I read so much on here about CCA's, SAR's etc and to be honest it is quite confusing to know what to do. I also think it does seem a bit strange that they are offering a settlement figure in this way - would it be very naive to think that this is them being reasonable about things and looking to get a return of some funds rather than them not having the CCA info etc...?

 

After all this anyway, I might not even be able to borrow money from family - if this is not an option then that's the decision made anyway!! if I can borrow sufficient money to reach a settlement I do not want to create further problems with other creditors either!

 

Confused

[BRIGADIER2JCS]

If you have not done the CCA request and DSAR

I think as discounts are being offered, this is the time to do them.

 

Brig.

[solair1973]

Hi

 

Just a quick update on this. I did not do a CCA request or a DSAR - it all went quiet again and I carried on paying the monthly pro rata payment.

 

I have just received a letter today though which basically says 'You have failed to pay the amount outstanding. A claim has today been sent to the County Court to recover the full sum outstanding together with court fees (£264)'

 

It says that they are still prepared to consider a reasonable offer from me either as a lump sum or payment by instalments in order to halt any further legal action.

 

This letter is now on Nationwide headed paper rather than being from KPI.

 

PayPlan were firm with me that I should not favour one creditor over another and to continue paying the pro rata payments.

 

What I'm wondering is - at this stage should I now do a CCA request or a DSAR? I do not really fully understand what this involves and how long it takes - am I too late now?

 

Many thanks in advance for any help/advice

[dx100uk]

are you sure its says will

porb just a threat-o-gram

with lots of ifs/mights/maybes.

 

i still think something smells on this debt

esp the discount.

 

what does your cra file say about this debt?

 

dx

[solair1973]

Hi

 

Thanks for your reply. Yes, it definitely says 'A claim has today been sent to the County Court to recover the full sum outstanding together with court fees totalling £xxxx'

 

It does then say that 'we remain prepared to consider reasonable payment proposals....' and tells me to contact their recovery team to discuss it.

 

The last paragraph then says 'you will shortly receive NW's claim from the court with info detailing how you should respond. If you do not take any action a CCJ will be registered against you'

 

I presume my CRA file is my credit rating? I have not had a look at one of these in years - where is the best place to get one from? I guess I can just order one online at somewhere like Experien??

 

What should I be looking for an my CRA relating to this?

 

Many thanks again for taking the time to help, I really appreciate it

[dx100uk]

if the debt shows!

 

dx

[solair1973]

OK, I'll get a report tomorrow - stupid question perhaps, but for what reason wouldn't it show?

 

I will have to order a report in the morning so I can see what kind of things are shown on it - I haven't got a clue

[dx100uk]

if its not showing then one wonders if its statue barred?

and thus not enforceable

 

dx

[solair1973]

Oh right - I just assumed they would include anything on there and it was up to the debtor to 'spot' these things and force the issue re: the legality of it etc

 

I'll get a credit report tomorrow and see if it is there - if it is, would you then recommend doing a CCA request - or would you assume that they are certain about it to take it to county court?

 

Cheers again for your help/advice

[dx100uk]

please post up the letter

 

scan the required letters/agreements/sheets

as a picture file

remove all pers info inc barcodes etc using paint

but leave all figures and dates.

goto one of the many free online pdf converter websites

convert the image to pdf format.

or if you have PDF as an installed printer drive use that

or use word and save as pdf

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

NB:you can set where it goes in the post by hitting insert inline.

the hit reply button

dx

[solair1973]

Hi

 

Thanks again - I have attached the letter that I received yesterday. I just have to go out for a while but will sort out getting my credit file later

 

Thanks again for your help, I really appreciate it!

NationWide Edited.pdf

[dx100uk]

interesting they say will

and then if we continue in the same letter

 

any how

have you all the statements.

i bet the 'discount' is unlawful fees [late/over etc]

and PPI

that both can be reclaimied and they know it.

 

dx

[Sniktar]

Any CAB can get you a FREE credit report from Experian