Old and new debt, DMP and Paypal disaster - Please help with a way forward

[Islainaspiral]

Hi

 

I’m in difficulty and not sure what to do and hoping you can help guide me. I’ll say a bit of history but looking for help with managing the debt and how to go forward with it please.

 

We used to live in England in a mortgaged house and sold it because mortgage expired, downsized considerably and bought a flat outright (in joint names) in Scotland in June 2021.  We moved to be nearer to family. We live a fairly basic life, and keep costs down so can’t reduce spending much more than we do plus we are on a DMP which tells us how much is allocated, so the DMP with stepchange isn’t realistically providing enough to live off but I can manage it and I’m too scared to stop it in case it messes things up, at the moment all the interest is frozen.

 

Since moving to Scotland my husband has had to go out to work to make ends meet and has taken some interest free credit cards and in desperation loans, plus family loans (we’ve had a lot of expenses we weren’t expecting to have and needed basic second hand furniture and repairs to property) 

 

I have a brain tumour and ill health but not ill enough to qualify for any help. I struggle mentally and physically so it’s all just a struggle. I often have dark thoughts and then feel fine but wouldn’t because I have a history of depression and can handle that, but it’s difficult knowing my tumour is growing all the time and at any time I will need an operation, I feel like a burden. My husband also has a history of depression and can be fragile, he’s a good person so he’s not being uncaring leaving it to me, he just can’t cope with it all and is happy and thinks I’m strong, because I am, but fully accepts I’m ill and looks after me in that way. 

 

I do matched betting to bring in income and am self employed so we get tax credits. I use Paypal for business. He gets a small pension and we can’t claim universal credit (meaning if I stopped my self employment and therefore tax credits too) so have to keep that going. If I stopped my work and use husbands pension in entitled to, which is £700 it always says universal credit is £0 and council tax slightly reduced.

 

I think I’m also starting to get a gambling problem from pressure at trying to make enough money to get ahead again but I might just be about ok. I’m not sure. I feel like putting stops in place but realise it will cut off an income stream, I’m usually quite good at it and am disciplined most often. I’ve tried talking to my husband and explained the dangers of matched betting and our lack of money and I just about keep us above water but he seems to not want to go there and just says it’s all fine and encourages me to continue the matched betting, I feel more and more  pressure to raise the money to pay for things like minimum payments doing matched betting was short this month because of no work due to Covid,  and almost raised everything I needed and with enough profit to also pay the Paypal direct debits, which are 3 days behind

 

I had £2000 in the bank (my betting bank plus earmarked paypal direct debit payments) and Paypal were meant to take £500 in direct debits for the 11^th but instead took all the other direct debits for the 12^th and 13^th January (totalling another £1000) at 2am early hours into the 12^th so that meant I didn’t have enough money spare to invest to earn what I needed to continue the cycle for further direct debits I’d taken in addition that day and for the next, so I had totally lost control to earn it back, knowing I had less to invest. I had worked so hard to earn that extra money for bills and I know its my fault but had Paypal not take the direct debit two days early I know I would have kept the cycle going in my favour and instead I’ve lost my focus and my control and owe them £2000. I’m too upset

 

I don’t know what to do so looking for advice please.

I’ll own the debt it’s my fault, that’s not the issue, and I’ll earn it back but I can’t pay it back anytime soon now I have lost my betting bank, not without taking high risks which I think is unwise.  They are so annoying taking it back 2 days early technically it said 3 days after the 13^th so sometimes it’s the 14^th, but I always have it ready for the day it states. I don’t want to gamble more to make it back its too big a risk. 

 

I don’t know what to do or how to go forward managing all the different arms of my life, arms being DMP, Starling, husband new debt while having DMP with me, and Paypal disaster plus life in general. 

 

We are starting this month to use credit to buy food and pay for electricity and council tax and I had to pay one credit card minimum payment with a credit card. I don’t know how the government can think people can survive when work is stopped (hospitality work) but nothing is put in place to replace it and still expect us to pay for council tax, food and electric etc.

 

We have also been taxed the last few months on what income we were earning which is below the tax threshold because we have a pension the tax code for employment is too low and pension too high and the tax office keep ending our call after holding on for 20 minutes. We were just about managing but because work stopped, that shortfall has probably pushed us over the edge.

 

I worked so hard all week doing the matched betting and I’m not supposed to get stressed, but I can feel how ill I am, I’ve told my husband but he just carries on oblivious, I’m starting to get too pressured in finding money now. One thing I can’t do though is stop paying his cards and loans because they are all new and it’ll look bad being on a DMP, which is what is stressing me out a lot I feel caught between a rock and a hard place with his name on my DMP and I can’t ask Stepchange because I read somewhere that they can end the DMP if you take out debt even though I haven’t. 

 

Here is the financial history:

 

1)     Husbands credit card on old CCCS plan:

 

Royal Bank of Scotland, Credit card, £7000, started 1989; defaulted 23/2/2010 (now managed with Wescott working on behalf of Cabot – RBS  who bought it) paying £1 per month since 2010,  last paid January 2022.

 

2)     My Starling account:

 

Starling bank, overdraft, £400, taken out 2019. On a payment plan with them paying £15 month since June 2020, all interest frozen and no default, last paid January 2022

 

3)     DMP in joint names:  all debts in my name: started August 2020 (husband helped me start DMP by using his pension as income)

 

Barclaycard,  CC, £1400 (Now transferred to PRA group who have purchased it) started 25/8/18; defaulted 16/7/20

 

Clydesdale Credit card £2700 started 14/5/18; defaulted 30/3/21

 

Aqua Credit Card £3900 (now with Cabot Financial) started 3/12/18;  defaulted 12/11/20

 

Aqua Loan £1700 (now with Link Financial) started 28/9/19; defaulted 28/10/21 (as stated  on credit file) aqua sold portfolio of loan accounts  to asset link capital    24/7/2021, ALC7 are now the lender and now its terminated link financial are servicing it.  Also it defaulted with a notice on 1/6/2021, 1/3/21 AND 2/2/2021

 

Tesco Credit Card £144  started 1/12/2019; defaulted 7/10/20

 

Nationwide, Credit Card, £1500 started 30/4/19; defaulted 28/12/20

 

Marks and Spencer, Credit Card, £850 started 18/10/19; defaulted 13/1/21

 

Totals monthly payment to Stepchange £40 last paid January 2022

 

4)     Current debts all up to date in husbands name:

 

Capital One Credit Card £400 0% interest July 2021 up to date last paid January 2022

 

Fluid Credit card £500 0% interest August 2021, up to date last paid January 2022

 

Amazon Credit card £1000 0% interest November 2021, up to date last paid January 2022

 

Monzo Home Repair Loan  £2000 November 2021, up to date, last paid January 2022

 

Likely Loans, Loan £1500 (high interest) December 2021, up to date due end January 2022

 

Monzo overdraft varies up to £750 currently £450 September 2021 interest paid January 20222

 

5)     Paypal business account, direct debits (my account):

 

Upcoming negative balance approx £2000 from January 12^th 2022 from unpaid direct debits due to gambling error trying to make up extra money husband is losing from having no work. Last paid £1500 January 2022 but will owe £2000

 

6)     My credit report:

 

Barclaycard has balance £0 with no mention of PRA group. 

 

Starling, Tesco and Newday credit cards are missing from credit report

 

All others from DMP are on the credit report.

 

7)     Husbands credit report:

 

All the new debts are there and up date

RBS old debt is not on credit file

 

8     Several family members £2000 total (long term loans) borrowed April to July 2021

 

9)     We are up to date with priority bills but Januarys bills, I had to put on the credit card.

 

10)  Only told Stepchange and Starling of new address but all mail is redirected from old address.

 

11)   New debt was taken out in our new address and they all asked about old address

 

12)  In February 2022, we will have enough to pay all bills outright, all minimum payments, all loans instalments, Starling, DMP.  I will not have enough to pay Paypal.

 

I don’t know what to do because I’m with a DMP and it’s all in order. He is managing his credit cards which are interest free for a few months, so we don’t want to go into default on them, the DMP is only showing on my credit file. Weirdly we were managing fine and had enough to cover the loan and cards and pay all bills with husbands wages and my matched betting but Christmas and then loss of work which we weren’t expecting so have lost maybe £800 there because shifts were cancelled and its zero hours casual work and when he starts work again next week its paid a week in hand, we’re so close to being ok. 

 

 

At the minute I’m worried sick about Paypal.

I’ve also always been worried that I have a DMP and didn’t ever add Starling because at the time had holiday payment breaks and both DMP and Starling plan were arranged at the same time and felt it was too late to add Starling to the DMP after negotiating a freeze of interest and low payment with them, and we also didn’t add my husbands RBS debt because it was also an old payment plan so it’s a strategic worry for me. I’m also worried my husband has credit cards while his name is on my DMP. I think he wishes he wasn’t on it. I’m terrified we have to sell our property. 

 

I read Citizens advice and they seem to say you can lose the house if a creditor puts a charging order in place and we have full equity available (£90,000) so I’m worried about that. I have read lots of  threads on here too but I’m struggling to find what to do with recent debt and the situation we’re in now, mixed up with old debt. 

 

I have tried to give all information I can think of and thought I’d be better to just ask directly and see what we should be doing for the best because it all feels all over the place, I didn’t want to take advice intended for someone’s situation and apply it to us in case it’s a different situation and I read we are supposed to treat them all the same. Sorry for it being so long and thanks for reading. 

 

 

Thank you

Isla

Edited January 14, 2022 by dx100uk
formatting

[dx100uk]

seems to me your biggest worry from your side is paypal.

 

you indicate this is a business A/C?

 

the old debts aren't costing you much but:

 

CCA request these please:

 

42 minutes ago, Islainaspiral said:

Barclaycard,  CC, £1400 (Now transferred to PRA group who have purchased it) started 25/8/18; defaulted 16/7/20

Aqua Credit Card £3900 (now with Cabot Financial) started 3/12/18;  defaulted 12/11/20

 

Aqua Loan £1700 (now with Link Financial) started 28/9/19; defaulted 28/10/21 (as stated  on credit file) aqua sold portfolio of loan accounts  to asset link capital    24/7/2021, ALC7 are now the lender and now its terminated link financial are servicing it.  Also it defaulted with a notice on 1/6/2021, 1/3/21 AND 2/2/2021

 

it puzzles me why this new aqua loan has been sold on....

 

i'm wondering with all this recent credit you both have been able to attain, that proper affordability checks were carried out.

im toying with the idea of send all the 2020/21/22 leaning an irresponsible lending complaint...

 

 

[Islainaspiral]

Hi

 

Thank you

 

Yes, it’s a business Paypal account but mainly for small sales to do with eBay and at one point I had a website and wanted to take payments.

 

I’m very worried about Paypal

 

Isla

 

 

Edited January 14, 2022 by Islainaspiral

[dx100uk]

so very historic, certainly pre brexit.

 

i'd just cancel ALL the CP'sA/DD that exist to PP with your banks, cant hurt you at all for a few months if at all, and PP accounts of that era dont/can't appear on credit files either.

[Islainaspiral]

The Paypal account has been open a long time but ALL the debt happened this week. I’ve always been fine with Paypal and paid direct debits routinely. I don’t qualify for any credit or working capital because I don’t turn over enough. Am I going to be in trouble with Paypal and can they take our flat. The debt is all from gambling and not from business.

 

I’m terrified, I can’t stop shaking.

 

Thank you for your advice, I’m reading the link you gave and taking in the advice. It’s much appreciated.

 

Isla

 

 

Edited January 14, 2022 by Islainaspiral

[dx100uk]

Debt is not criminal in the uk..take your house..not sure where you are getting this rubbish from. No one can do that for consumer credit debt without a very very long and costly court process . Pp most certainly cant!!

 

cancel their DD now on your banks webportal  and ensure you have no debit cards listed as funding source s on you pp wallet area.

 

There is stuff and all pp can ever do.

 

[Islainaspiral]

Thanks dx100uk,

 

I’m so relieved to hear that.  I’ve just cancelled the DD and removed the debit card from my Paypal account.

 

I had a CCJ years ago for a £1200 overdraft after husbands redundancy and a charging order was going to be put on the house. I paid it off by borrowing from family days before a court hearing. 

 

I just worry in case because I’m a sole trader they targeted me even though the overdraft was a personal bank account and my husband didn’t get a CCJ even though his was £7000.

 

I don’t know much about all this though so probably just a bad experience. 

 

Thank you so much for your help

 

Isla

Edited January 14, 2022 by dx100uk
added A few blank lines only..dx

[dx100uk]

id also look and dump the DMP.

use our pro-rata letters in the debt collection forum.

 

but get those CCA requests off.

 

dx

 

[Islainaspiral]

Thanks dx100uk,

 

I’ll send the CCA requests off and pro rata letters - thanks - I’ve jus† been reading through them.

 

Would you recommend offering the same as what I am paying to each through the DMP?

 

On the budget sheet should I add my partners income and should I include his debts?  I’m understanding that the pro rata letters are to be sent to the ones on the DMP,  not my husbands current ones. Hope I’m understanding correctly.

 

It worries me to cancel the DMP but I definitely am taking your suggestions on board and will look to do so.

 

Isla

[dx100uk]

i'd do it for everything you or him.

take control.

get the ones owned by DCA's out your hair as paperwork from that era could be debatable at best .

 

you';ll be amazed how quickly it will all either slowly be non enforceable, so forget them.

or 

how effective IRL complaints can be , esp at removing all interest and penalty charges - which are of course unlawful and should be removed anyway.

 

dx

[Islainaspiral]

Thanks for your help dx100uk and for answering so quickly. I really appreciate it.

 

I’m definitely going to take control and I’ll keep you updated when I get the replies for the CCAs.

 

For the first time in a long time I feel a weight has lifted,

 

Isla

 

 

[dx100uk]

the more you read here the stronger we become.

 

dx

[dx100uk]

If you'd have come here about the od ccj the fleecing powerless dca woulð not have won nor tried for a co, od's are notoriously difficult to litigate and enforce if defended properly.

[Islainaspiral]

Yes DX,  I wish too we had known about this forum, we paid a few other smaller debts at the time using our mortgage equity just to get them off our back. I think even though we paid them at 60% they were full of interest and charges and I mean silly amounts added over and over.  We probably paid what we spent and were let off the interest by getting the reduction. 

 

It was wasted money, I realise now having read many cases on here, several were DCA and we have never fully recovered financially. My husband has always been adamant that in the future, he’s working to save and he wants to pay the debt to Cabot for RBS credit card, they have offered £2120 settlement.

 

I’ve been reading lots of cases on the debt threads. I’m going to continue reading over the weekend.

I’m taking on a lot of info and still trying to settle things in my head.

 

I can see that as I follow the advice you gave and I’ve already started with that, that things will slowly filter out and progress will happen. 

 

I’m just clarifying that I’ve explained our situation fairly so you get a true picture of how it is. 

 

I have started the letters but having to hand write them this weekend because I don’t have a printer. I keep noticing you recommend letters and not emails. 

 

What is the reason please for not sending emails I am interested to know. 

 

I negotiated Starling by email in 2020.

 

Regarding irresponsible lending you mentioned toying with the idea, I was thinking about it and just want to add a bit more info if that’s ok.

 

At the time my husband applied for the loans he had started a new part time job in corporate hospitality, we could afford the debts. His credit report was very good and there were no defaults and nothing linked to being on a DMP. He is linked to me but when we click on my name it shows nothing about my poor credit history, they would have to search my name properly to see that and it is poor too. There was reference to him having the two credit cards at then £300 each so they probably couldn’t see that there was anything of concern. 

 

It’s only because the hospitality has closed down until next week that we have lost the income we were expecting to have and where there was a lot of work it will be much more reduced until it starts up in full swing plus everyone will be wanting the work so there will naturally be less to go round.  

 

Does the credit report info I’ve added mean we should still do the irresponsible lending letters?

 

One of the loans, Likely Loan, is over 50% interest and all the credit cards are over 39% to 49%  interest when they started. He got an Amazon card offered at the checkout and the Likely Loan was offered through Amazon a few days later when a credit card application was refused and loan offered instead. Monzo was offered through the app at 19%, with an overdraft that seems to go up £1ish a day and a flex option of £1000.

 

These new debts at the time seemed like they were helping us when other cards with low interest rates said 0% chance of being accepted and would not consider us, we were only ever offered poor interest rates from the beginning apart from Monzo which was 19%. It mostly all happened at once so wouldn’t have shown on the credit report.

 

It just feels wrong having taken this on, now saying he can’t afford the payments, when most are so new/recent and I think I’m worried that in the past we’ve lined the pockets of the the DCAs and now it’s potentially the bank that tried to help that suffers, Monzo did genuinely seem to want to help like they have a different outlook and that people shouldn’t be penalised, it feels bad to then say they are being irresponsible when it’s probably our own fault for taking it on. 

 

I have the dilemma though about treating each creditor fairly and therefore is it right that some from the DMP (my debts) are allowing pro rata payments and the new debts (husbands debts) are being paid in full. We are two separate people though and when I stop the DMP that will sort that. 

 

The pro rata letters ask for both our info though so we are treated as one and the advice you gave yesterday was to pro rata all. 

 

Our DMP never included husbands wages because he only started work in August and DMP was reviewed in June, so it feels all conflicting, what will the creditors on the DMP think when they find out husband has taken further debt when on my DMP even though that was my debt. 

 

The Aqua credit card I had, had loads of £12 charges plus high interest, the interest would take me over the limit, I get charged £12 over limit fee and it spiralled out of control. If it had been realistic interest I would have managed but Covid happened and I lost my income streams and had to take payment holidays and close part of my business but they continued to add the interest during the payment holidays. The Aqua loan was offered through the app and was the final straw I think. 

 

You said “the more we read the stronger we become”, that’s very true I’m feeling that already, 

 

The best thing has been sharing all this and realising how I have been seeing things wrong in the past and applying the correct way forward to my situation now. 

 

 

Thank you again 

Isla

[dx100uk]

god for future readers never ever use equity release to pay any consumer credit debts!! check the enforceability on everything then go pro-rata route.

 

8 minutes ago, Islainaspiral said:

What is the reason please for not sending emails I am interested to know. 

 

because it gives debt owners a free way to harass you. always write no phone ever on any debts - they'll LIE on the phone!

 

23 minutes ago, Islainaspiral said:

Does the credit report info I’ve added mean we should still do the irresponsible lending letters?

 

poss not if the cra files were ok.

 

with regard to pro rata...

i would lump everything together as a team.

 

get the debts that are cash cow accounts removed, dont inc them.

 

as for penalty charge, they are unlawful and should be removed as well as the interest they attracted.

 

slowly slowy catchy monkey.

1 step at a time.

 

[Islainaspiral]

Thanks DX for offering sound advice again, I’m definitely taking on board all you’ve said, hehe 1 step at a time yes, and thanks for clarifying everything.

 

You’ve helped so much, I cant thank you enough

 

Isla

 

 

[theoldrouge]

“. My husband has always been adamant that in the future, he’s working to save and he wants to pay the debt to Cabot for RBS credit card, they have offered £2120 settlement.“

 

Get the CCA request sent to Cabot

Fat chance they will be able to come up with a 1989 agreement 

Dont even think about paying them

 

at the moment 

 

 

 

 

[Islainaspiral]

Thanks theoldrouge - much appreciated.