Negotiating Final settlements with DCA. Help Needed

[bluey211]

Hi,

 

Due to bad errors in judgement, I have accrued 4 defaults on my credit file which I have recently been made aware of, 3 defaults (700+, 500+ and 500+) are from Lowell dating back to 1/2012 and the other default is with Natwest (11K+), 12/2011.

 

I have come to realise that I am fully liable for these debts and wish only to sort out the issues now rather than later. I see various posts saying to avoid communication with DCAs but if it is my debt, I do not see what other options I have...

 

The natwest default has been passed to moorcroft, who recently sent a letter to my parents address saying they have been asked by Natwest to consider legal action and I can only assume Lowell would have sent the same threatening letters.

 

It is bad enough there are defaults on my credit history, so now I need advice in attempting to negotiate settlements with these companies. I initially drafted up letters to the original credit suppliers but would I be right in assuming they would only redirect me back to the DCAs and would not even accept a final settlement, only the full amounts owed...

 

I am a student with no other income but student loans at the minute and this issue has been affecting me hard the last couple of days. If any template letters to arrange final settlements with the DCAs could be supplied, I would aim to take this action and hopefully rid myself of all the grief they are giving me.

 

If anyone could advice on the defaults on my credit file as well, as they are constantly being updated with the default balance every month and although I can manage it being on file for the next 5 years, would be grateful if there was a way of getting it removed.

 

Please help. Thanks

[citizenB]

You need to establish if the accounts have been assigned/sold to the DCAs pursuing you or whether they are simply acting as collection Agents.

 

I suspect the NatWest account is still indeed with the original creditor and Moorcroft are only acting as a collection agent. This company are pretty unpleasant - they have absolutely no idea (or if they do, they choose to ignore) what the OFT say they can and cant do. I find it quite strange that their first communication with you would be to threaten legal action. £11K is quite a large debt so yes, it is likely NatWest might themselves start litigation, however they need to do things properly.. Eg, they must send a Default Notice, Formal Demand, Letter before Action. Have they done this ?

 

Lowells are a different kettle of fish. They are nasty, vindictive and incredibly keen to incorrectly use the Insolvency courts as a way of collecting their money.. They are likely to issue a Stat Demand at the drop of a hat and as they have 3 of your accounts which total over the minimum amount where they can issue a Statutory Demand. It is likely they will do.

 

However, it would appear that if the debts mentioned above are all you owe, then you could apply for Debt Relief Order - this is where you enter into an arrangement via a Debt Management Company - your debts Must be under £15,000 and you cannot own any assets. If you are a student - don't own your own home - have no expensive jewellery or vehicle, then this might be the way for you to go. After one year, you will be debt free and you can start to get on with your life.

 

You could have a chat with National Debtline who would be able to advise you on this. They are a Free Debt Counselling Charity. http://www.nationaldebtline.co.uk/

 

How old are these accounts ? and when was the last time you made any payment towards them ?

[bluey211]

I have lived in various student accommodations and had not received all the necessary information relating to them, but they are debts I am liable for. Two of the Lowell accounts were only just assigned to them and from my credit report I believe the other Lowell account has been with them since last year.

 

The natwest account sent a formal demand and I immediately followed this up with a response but i received no further communications, which I suspect is down to various location moves. At the time moorcroft sent me a letter but I wrote back stating the account was still in dispute.

 

This recent letter was from Capquest (my mistake), who are saying they have been asked to consider legal action, turns out a spate of voicemails left by a company called dvsl were actually them. However my credit report shows the default under NwB current accounts.

 

No payments have been made to any of the accounts.

 

I am in my final year as a student and looking to get a job after graduation, so I am not sure a debt relief order is the best route.

[Bazooka Boo]

What exactly are these accounts?

Loans, credit cards, overdrafts?

 

What is the Natwest account? A loan?

 

Have you reclaimed any fees/charges that have been added to these accounts?

[bluey211]

natwest account is an unarranged overdraft and lowell accounts are mobile contracts

[citizenB]

Ah, well it looks like the Overdraft has also been assigned / Sold to CapQuest.

 

If there are are any default /penalty charges, then these can be reclaimed to reduce you liability.

 

All I can suggest you do, if you are not comfortable with a Debt Relief order is to produce a budget sheet showing your income as it is (not how you think it might be). There is no point in making a budget that assumes you will be working in X amount of time or that you think you might get a summer job. Nor should you even imply to the DCAs that you are hoping to start work in the near future.

 

I have attached a budget sheet for you below, or you can ask one of the Free Debt Counselling charities to help you complete a Common Financial Statement (this is acceptable to courts and the OFT say it is unfair for Creditors/DCAs not take notice of these)

 

Send the CF/Personal Budget to the Creditor/DCA along with one of the draft letters found in the CAG library.

 

If you show a negative disposable income, then so be it. They cannot get blood out of a stone, despite the claims they make to the Banks when touting for the debt business.

 

 

Ellens Budget Sheet.xls

 

You will find the CAG library at the top left of each screen - highlighted in green.

[Bazooka Boo]

Mobile phone contracts £1 a month to each, end of.

 

Who was the provider, O2 by any chance? Bet there will be fees and charges added to these aswell which you can reclaim.

 

If possible, you should pay the original creditor, O2, Voda, 3, or whoever, failing that, and as long as Lowlifes have the legal right to collect these, then £1 a month.