Start of my journey - +£70k debt

[Mr Ploppy]

Hi everyone,

Firstly quick background I owe about £60k all in unsecured thankfully.

The largest is to Nationwide £22k

rest is split amongst various loans and credit cards.

Halifax

MBNA.

Only one other is above £10k just.

My fault entirely fantastic job changes to mediocre one.

Trying to keep head above water and latest bill increases have caused me to take control of my past idiocy.

Home is in joint names no loans on car.

These accounts are all only a few years old all in my name.

Am I right in thinking

1. Create a parachute bank account.

2. Allow the accounts to default.

3. Wait for them to be sold or legal action started.

4. Request the CCA's

5. Then decide payment plan etc if applicable.

Do I only make contact if I receive a claim form etc. 

Do you then make payment arrangements etc if I feel it and they supply the CCA's?

Thanks very much in advance

[theoldrouge]

Welcome to CAG
best to list each debt and when account started individually for better advice
Your certainly along the right lines on your general understanding

[Mr Ploppy]

Great I will get that info on the thread tomorrow. 

 

Good to know I'm on the right track.

[mantis shrimp]

You mention Nationwide at £22K. Is this secured on your house?

 

EDIT: Sorry - you have said all unsecured.

Edited June 7, 2022 by mantis shrimp

[Badtimes123]

Welcome to CAG, another great first post!

 

Yes, list all debts as there could be something else worthwhile depending on what info you provide us.

 

I agree you're definitely on the right track, a couple of notes to add to your already decent understanding though:

Once defaulted start pro rata payments at £1 PCM

Only once a debt is sold should you CCA

 

BT

[dx100uk]

7 hours ago, Badtimes123 said:

Only once a debt is sold should you CCA

if the debt is seriously old from takeout date say 10yrs+ , then CCA regardless as long as it's covered by the consumer credit act.

if its an OD i would seriously consider an SAR and stop any payments if its opening date is that historic

 

this 22k nationwide one concerns me the most..

 

dx

 

[Mr Ploppy]

Yes it's a big one. Luckily it's not secured.

 

Would you let it default and see what the postman brings?

 

Thanks for your advice

 

Missing information as promised

 

Credit cards

 

MBNA £7000

 

Halifax £8000

 

PayPal credit £5000

 

 

Loans

 

Nationwide £22000

 

Shawbrook £9000

 

Hitachi (Novuna) £6000

 

Post office (Bank of Ireland) £10000

 

Creative Finance (CURRYS) £4000

 

Sorry it's actually £71k I added wrong, good god.

[theoldrouge]

and the dates the various accounts started? seems to be a lot of loan accounts were they all taken out around the same period of time?

[Mr Ploppy]

Hi,

Most of the loans were taken out during 2021. The Hitachi one was the start of this year 2022. Mbna 2017, Halifax 2019.

 

Thanks 

 

Do just to confirm a few things :-

 

1. Don't speak to them on the phone.

 

2. Pretty much ignore letters.

 

3. Safety save everything  in folders (I usually take photos and keep important letters). Especially official notices.

 

4. If I get a letter before action post it up. Would you then consider pro rata payments if it's a large amount and CCA is supplied or wait for PAP to be adhered too?

 

My employment would not be affected by CCJ's luckily.

 

Thanks again all for your help.

 

I know it's a long road but I slept much better last night. 

[Badtimes123]

Glad you slept better! that's a good sign as you are taking control.

 

1 - yep, letter only comms

2 - All EXCEPT a letter of claim, but return to CAG if you're ever unsure about a letter

3 - yes definitely will help

4a - If you get a letter of claim <-- click and follow post 2

4b - Guidance here suggests starting pro rata payments as soon as the account defaults

 

Lastly, spend a few evenings reading up threads on CAG so you get even more comfortable with what's to come

Edited June 8, 2022 by Badtimes123

[theoldrouge]

seems to me 51k in loans in one year is verging on irresponsible lending, unless your income at that time warranted it
the two to be most wary of are as dx says Nationwide and imo Bank of Ireland 
Organise your parachute account asap
You need to be careful being a home owner
Are all the debts in your name only?
 

[Mr Ploppy]

Hi,

Yes they are every single one.

 

I already have a backup account with Starling.

 

Thanks 

[Mr Ploppy]

Just like to give a very brief update.

 

Firstly Shawbrook are a persistent bunch over 5 letters and 16 calls none answered.

 

Secondly Post Office (Bank of Ireland) have started ringing a company I used to work for over 3 years ago. I wouldn't have given them the number as I didn't work there when the loan was taken out. Really not happy about this at all as I never gave it them or told them I worked there. My friend forwarded a recording of it to me.

 

I opened another bank account just to be safe. Neither NatWest or Coop would let me open one this was at the beginning. Luckily HSBC would not trouble at all. 

 

That's about it so far

Edited July 29, 2022 by Mr Ploppy

[dx100uk]

you must have put where you worked on the agreement.

[Mr Ploppy]

Yes you are correct. I think they asked for previous employer, came to me while walking the dog. Why they are calling them is beyond me though?

[dx100uk]

simply to try and pressure, harass embarrass and intimidate

thats all they can ever do.

 

 

 

[theoldrouge]

As I said previously Bank of Ireland are one to be very wary of

Start researching CONC in regards to debt collection 

[Mr Ploppy]

Thanks for the reply I will have a read.

 

 

[Mr Ploppy]

Another brief update. Today I received a Default Notice from Novuna. They were quick but at least it will stop the amount increasing.

 

It seems compliant has the latest notes on etc. Dated 28th July arrived 5th August, action required before the 18th. I'm assuming it's 3 working days for 2nd class post.

 

Once it's defaulted should I write to them offering token payments or sit tight?

 

Thanks in advance.

[dx100uk]

Yes you can start the pro rata process.

 

Dx

[Mr Ploppy]

So the time line would look like this.

 

1. Default.

 

2. Token £1 payments by standing order.

 

3. Sold or Letter before action received 

 

4. Request CCA

 

5. Agree Pro rata payments on receipt if everything checks out.

 

At the pro rata stage would you supply your own IE breakdown?

 

Just planning ahead.

 

Thanks again for your assistance 

 

 

[Mr Ploppy]

Just a brief update.

 

Received a DN from Nationwide which is good as being the largest one I'm glad it won't increase anymore and I can get it sorted.

 

I have decided to change my plan of action to the following. I think I would prefer to deal with the OC. I know this will change but it can't hurt. Plus I would rather pay them than the other parasites.

 

I have prepared all my IE forms and Pro Rata letters for defaulted accounts. Once the default date is passed I will send them. 

 

Thanks all

Edited August 17, 2022 by Mr Ploppy

[dx100uk]

Yes always only deal with the OC if the debt has not been sold 

 

 

[theoldrouge]

Yes agreed far preferable than dealing with the parasites 

If or when they do sell the accounts then change your approach 

[Mr Ploppy]

Just a thought if you come to an payment agreement with the OC is this binding even if it gets sold on?

Especially if it has no time limit.

 

I have heard some DC's can get a bit excited if they know you have some money or property.

 

Thanks in advance