UK debt, Lloyds TSB in Czech Republic

[asatas]

Hello

 

I have a question regarding a possible debt collection enforcement in EU country. I've lived in the UK for 7 years (Czech citizen..) did my studies, worked, all went quite well. Then one day, I've decided to take out an unsecured personal loan from Lloyds ( done online in few minutes ..). Bit of a bummer, shortly after, I was told that our department will be outsourced and all members will be made redundant. So, I didn't touch the money and started looking for a job ( wasn't waiting for the redundancy, left before it actually happened..). I've found job in CZ and also because of other reasons, I've left the UK.

 

The loan was sort of paying itself off as I tried not to touch the money unless necessary, managed as well to pay some off from my salary in CZ. Now however it became impossible for me to meet payments as paying £ loan with Czech Koruna based salary is just not really viable.

 

The outstanding amount is something over £5000. I'm not sure what to do here, I can't pay it ... I guess my question is. What is the usual procedure in similar cases would Lloyds chase me ? can they chase me through some third party debt collector? or, can I ask them to freeze payments for some time (6 months) ??

 

Any advice will be much appreciated. Thank you...

[cerberusalert]

There is no hard and fast rule but if you explain your circumstances to Lloyds they may accept reduced payments and freeze interest for a period of time, eventually they will sell or pass the debt to a third party who will then continue to pursue.

 

How long have you been back in CZ?

[asatas]

Hi thank you for reply .. I'm back since October 2011. I've called them already and was offered 1 month payment holiday they weren't helpful .. more on a dismissive side ...

[cerberusalert]

That's their normal attitude.

 

As you are no longer a UK resident if they wanted to take any action they would have to do so in CZ now but using UK law. The chances are they will cut their losses and sell the debt to a debt collection company & it is unlikely that they would pusue via a CZ court given the time, energy & costs involved particularly if you have no assets and they are uncertain of getting payment even if they won the action.

 

Because you have been out of the UK less than 2 years it may be possible for you to apply for a DRO http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/bankruptcy/DRO/debtors.htm

[asatas]

Thank you ... Just to clarify, did you mean that the debt collection company, not Lloyds, would have to go through CZ court after buying my debt ? What I mean is, they would have to go the legal way rather than "kicking the door down.." ( sorry I might be asking stupid questions but I've never been in such situation..). Also can they involve family members ??

thanks for the link checking for DRO ...

[cerberusalert]

No-one can take any enforcement action unless they have first obtained a court judgment.

 

Under the Data Protection Act they cannot divulge to your family members anything about the debt nor can they demand payment from them.