Too much debt to handle...what's next??

[Big Shoooz]

Hi, was just wondering if anyone has sent a hardship letter to their creditor(s) asking for their outstanding debt to be written off and if so, have you been successful or unsuccessful? Are some creditors more than others likely to agree to write the debt off and is there a limit to how much they will write off?

[dx100uk]

i will be quite frank and say i have not ever heard of this being successful

 

however it would be wrong to comment without knowing something about he debts you have

 

dx

[Tingy]

Finance U £2500

Welcome £4300

Carlyle Finance £5200

Egg £18000

Motaquote £130

+ several others. Amounts are approximate as I haven't looked up exact amounts, but aren't far off!

[dx100uk]

well most of those are good candidates from reclaiming/insurance mis-selling.

 

dx

[Tingy]

all my write offs have been due to hardship caused by health.

[dx100uk]

well the op is certainly a candidate for ill health write-offs

would of been nice to know that rather than go hunting for the info..

 

dx

[Tingy]

You need to read the threads Martin - I think all of mine have been posted up! lol By the way - don't take tht comment seriously, you do a fantastic job!

 

I'm always slightly wary as you never know who reads the threads, and though my illness is 100% real I don't like anyone to feel I'm "using" it. I would honestly rather have my debt back and my health back, but that is not the way my life has panned out. I do mention it in asking people to write off my debt, but use the argument far more that I have no money, no prospect of having any money, so will they consider writing it off please? I have been surprised by the results.

[Big Shoooz]

Finance U £2500

Welcome £4300

Carlyle Finance £5200

Egg £18000

Motaquote £130

+ several others. Amounts are approximate as I haven't looked up exact amounts, but aren't far off!

 

It's surprising there are so many creditors out there who DO have a heart!! The Egg debt must have been a great relief Tingy.

[Tingy]

TBH I was resolved to Bankruptcy which may well still happen. I'm not sure it's that they have a heart, I think it's that thhey can see the futility of making you bankrupt which costs them money and helps me!

[Big Shoooz]

Should DCA's be supplying me with statements of the payments I have made to them since they took the debt off the original creditor? Do I have a right to demand statements even if they don't legally have to supply them?

[DonkeyB]

Yes, and if they do not, they cannot charge interest (bits below shamelessly nicked from Cerbs or Shadow). Has the account been terminated or sold?

 

 

Consumer Credit Act 2006 Amendment:

 

Section 11 inserts a new section 86D after the new section 86C (inserted into the 1974 Act by section 10). Section 86D sets out the consequences for a creditor or owner if he fails to give a notice as required by sections 86B or 86C. If the creditor or owner fails to provide a notice of sums in arrears when required to do so, then during the period of his failure to provide the notice (i.e. from the date that it was required to be given until the end of the day on which it is eventually provided), he is not entitled to enforce the agreement. In addition, the debtor or hirer is not liable to pay any interest that relates to the period of the creditor or owner’s failure, nor is the debtor or hirer liable to pay any default sum (see the notes in respect of section 18 below) which becomes payable during that period.

 

 

Sums in arrears under running-account credit agreements:

 

86C Notice of sums in arrears under running-account credit agreements

 

(1) This section applies where at any time the following conditions are satisfied—

(a) that the debtor under an applicable agreement is required to have made at least two payments under the agreement before that time;

(b) that the last two payments which he is required to have made before that time have not been made;

© that the creditor has not already been required to give a notice under this section in relation to either of those payments; and

(d) if a judgment has been given in relation to the agreement before that time, that there is no sum still to be paid under the judgment by the debtor.

 

(2)The creditor shall, no later than the end of the period within which he is next required to give a statement under section 78(4) in relation to the agreement, give the debtor a notice under this section.

 

(3) The notice shall include a copy of the current arrears information sheet under section 86A.

 

(4) The notice may be incorporated in a statement or other notice which the creditor gives the debtor in relation to the agreement by virtue of another provision of this Act.

 

(5) The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice.

 

(6) Regulations may make provision about the form and content of notices under this section.

 

(7) In this section ‘applicable agreement’ means an agreement which—

(a) is a regulated agreement for running-account credit; and

(b) is neither a non-commercial agreement nor a small agreement.”

[Big Shoooz]

I am dealing with several DCA's via a DMP company and none of them have ever supplied statements so I don't know if the amount

they think is outstanding is correct against what I have paid them.

 

All the outstanding balances that the DMP company show are lower than the balances the DCA's show

which is why I would like the DCA's to supply me with statements from the day they took the debt from the original creditor until the present time.

 

None of them are charging interest (yet!) but it's useful to know that they are not allowed to if they don't supply statements.

 

If I send the DCA's a CCA, can I also request statements at the same time?

[the_shadow]

If you request it in writing from them (get proof of posting etc) and they dont then they are failing the OFT debt collection guidelines..

 

Section 2.2

 

e. failing to provide debtors or creditors with information on status of debts, for example, not providing requested balance statements when reasonably requested

 

S.

[Big Shoooz]

If you request it in writing from them (get proof of posting etc) and they dont then they are failing the OFT debt collection guidelines..

 

 

 

S.

 

Thanks S.

In that case, I think I will send them CCA first to find out the exact date they took control of the debt and then I will request statements.

[Big Shoooz]

After reading a post by one of the CAGgers on here, stating that once a debt has been sold to a DCA then the debtor no longer has to repay the debt because they have no contract with the DCA, only with the debtor, it got me researching on the internet.

 

 

My research has found that It ‘seems’ there IS some kind of law about this which is generally unknown to the public but when put into practice it does actually seem to work.

 

 

Now, I’m certainly not suggesting that everyone with a debt should get it obliterated in this way, nor am I saying that debt avoidance is acceptable but the aforementioned “become debt-free system” does have some valid points, mainly about the way we are treated once we struggle with our debts and how we can fight back.

 

 

I was wondering if any CAGgers have any experience of clearing debts in this way or know of anyone who has?

 

 

I’m really not sure if it is all a [problem] but the main website I have been looking at (which I will not name on this site unless I am allowed to) seems to have a good few claims of successes (although my sceptical side makes me think they could just be fictitional successes!).

 

The website also does not charge to receive all the tools needed to go down this route so may not be a [problem] after all because [problem]s usually involve handing over money. But I still have to remember the old saying “if something seems too good to be true, it probably is!”.

 

 

Then again, you have to wonder if they really are successes....who’s to say the OC will not resurface further down the line to reclaim the debt from the DCA and start the whole process again?? Also, if this method becomes more popular, what’s the chance of the laws being changed so that this method becomes illegal and everyone who has used it ends up in the slammer for fraud??

 

I’d be very interested to hear anyones views/experiences on this.

Edited August 18, 2012 by citizenB
formatting

[unclebulgaria67]

Sounds that like a fantasy site to me. How does the site that you have not mentioned make any money or at least cover its costs ?

 

A DCA if they purchase a debt, can enforce it, as if they were the original creditor. With some very old loans or credit cards, if they can't provide the CCA, it makes it very difficult for them and in many cases they won't bother. From what I understand most DCA's work from spreadsheets and they don't have any of the paperwork from the OC. This is why if you ask for the CCA, they often can't provide it and have to make a request to the OC.

[ims21]

It is nonsense....forget about it

[Bandit127]

Is this a free man that wanders the world, completely ignorant of the Law of Property Act 1925 (1926?) and it's consequences? Who thinks (mainly due to internet ignorance) that a DCA has purchased a sum of negative equity called "a debt" at a reduced price?

 

Not just purchased the rights to the benefits and duties of that debt under said Act, as is the case in staute?

 

Hmm, not a defence I would rely on...

[Big Shoooz]

Thanks all for your input. I was looking for the clarification you have given me that this site is a load of tosh (and there are other sites like it too).

My question now is, WHY are sites like them allowed to exist?

[ims21]

My question now is, WHY are sites like them allowed to exist?

 

Same reason as conspiracy theory sites, those that think that an ex TV sports presenter is Jesus and a myriad of other "way out" ideas are allowed. People can have their own sites to express their own opinions on things....some are loony and some are not.

[Big Shoooz]

Same reason as conspiracy theory sites, those that think that an ex TV sports presenter is Jesus and a myriad of other "way out" ideas are allowed. People can have their own sites to express their own opinions on things....some are loony and some are not.

 

But I think the sites which tell people they can obliterate debts when they quite clearly can't are far more of a threat to innocent people than those that pose as Jesus....believing some mad ex sports presenter is Jesus can't land you in serious trouble with The Law unlike the sites that tell you how to get your debts cancelled unlawfully.

Have those kind of sites not been investigated or prosecuted?

[Big Shoooz]

Also, if what these sites are promoting is actually unlawful, then why aren't the banks and DCA's who they are targeting and supposedly beating, doing anything about it???

[Big Shoooz]

I'd suggest you could do similar with this entire thread...

 

Bigshoes, WHAT gives you the right to have a go at my post??? We ALL have a right to question things that appear wrong and that's all I was doing!!!!!! Maybe your just jealous over my similar name lol!

[Big Shoooz]

Bigshoes, WHAT gives you the right to have a go at my post??? We ALL have a right to question things that appear wrong and that's all I was doing!!!!!! Maybe your just jealous over my similar name lol!

 

In fact, until Bigshoes...bigsocks put their unwanted tu'pennyworth in, I believed that CAG was a site to be relied on, where it was full of very pleasant people who are extremely generous with their time and free advice. Now, after Bigshoes' intrusion, I am not filled with confidence to post anymore threads in case of being ridiculed. Bigshoes....you are not a member of a lending service by any chance are you???

[BRIGADIER2JCS]

Lets calm ths down now.

 

The situation is that when a debt is sold the debt purchaser aquires the rights and obligations of the original creditor as set down in the original terms and conditions

of the account.

 

Big Shoooz, Please be aware there a peoplel who just love to to spout nonsense to get attention ignore them and the site team will deal with them appropriately.

 

Brig.