How to deal with creditors when on JSA?

[Ryan88]

I am currently in receipt of Jobseekers Allowance and was wondering if there was anything good I could quote or use in my defence when dealing with creditors to negotiate the lowest possible amount I pay in any kind of payment plan?

 

Did search around a bit first but couldn't find much apart from a few interesting posts in one topic (which I can't link to as I have less than 10 posts)

 

For instance, if you are in receipt of JSA, DLA or similar, then you can offer £1 per calendar month with the government's backing..."

 

Dear Sir/Madam,

Account Ref: 123456789

 

With regards to my current “repayment agreement” with you, I am in a position to be able to offer you no more than £1 per calendar month.

I own no property, have no savings or appreciable assets and rely on Job Seekers’ Allowance as my sole source of income. I quote the Department of Work & Pensions, who state:

“You will be paid the sum of £65 per week, which is the legal minimum on which the Government believes you need to live on.”

I really am struggling at the moment and I'm sure anyone who has ever been on JSA can testify it's not easy.

 

If I inform the creditors that I can only afford a certain amount and if they want more they will have to take me to court, will this do any good?

 

I'm guessing that surely no court would make someone who is on JSA pay anywhere near the types of monthly payments that most creditors initially demand?

 

And what is the likelihood of a creditor taking someone on JSA to court?

 

All my debts with creditors are £600 or less, if that makes any difference.

 

Thanks

[dx100uk]

list them

 

dx

[andydd]

I found most creditors sympathetic when I was on JSA, Cap 1 and Egg agreed on £1 a month, although Egg suddenely assigned debt to Apex with no warning, although Apex havnt chased me for anything so they are currently getting nothing, BC wanted £10 a month and the only one who wanted more was Nemo, I paid them 50% of my original monthly amount.

 

Most companies realise that even if they were to chase you through courts they may run into unenforceable contract issues and even if not, a court may only say you pay a small amount per month anyway.

 

Andy

[Crocdoc]

There is very little chance of a creditor taking you to court for such a small sum, offer £1.00 to each of them and NO talking on the phone.

[Ryan88]

Thanks for the replies guys this place seems so informative.

 

Only found out about it the other day and I have to say what a great website.

 

So there is very little chance they would take court action over a JSA claimant who is offering small token payments per month based on those above balances?

 

My credit file is already really bad with a few defaults so I'm not bothered about what they can do to that, I just only want to pay what I can afford.

 

I just worry about all the ridiculous interest/fees they can potentially add.

Edited March 16, 2012 by Ryan88

[andydd]

Its important to get their agreement before paying reduced amounts otherwise you may get fees/interest, most will require you to fill in an Income & Expenditure form and show proof of JSA.

 

Theyd all be pretty dumb to start any action (also bear in mind, youll be eligible for waiver of court fees and maybe free legal advice, I took advantage of this and started various court proceedings against my landlord, mostly successfullY) although some may sell them on to other companies (often for as little as 1-10% of the amount) so sometimes its good to jump in and offer a full and final settlement (assuming you have a bit of cash), they may settle for 10,20,30,50%..worth a try.

 

Andy