Helping daughter with DMP

[glossyfitz]

Hi all

Long story short - daughter recently separated from husband and left with mountain of debt to pay off.

You guys thankfully helped me out some years back to deal with creditors, bailiffs, etc until I got sorted. (Thx dx100)

Is there a letter I can use to let her creditors know that I am helping her deal with her debt?

 

[dx100uk]

no need too..why do you need to tell them at all?

expand upon why you think you need to do this?

dx

 

[glossyfitz]

Hi dx100!! Nice to speak to you again.

Well, she's not in a very good place atm and I'm a bit anxious about her mental health tbh.  She's working 2 jobs to keep herself and her 5 year old son so I said I'd help her out.

I do intend passing on what I learned here a few years back but thought I'd get her started by writing to her creditors on her behalf.  

[dx100uk]

well you dont write upon her behalf, with as her. 

then they wont get confused.

can you list her debts please? use her credit file too.

original creditor.

the DCA if its been sold on

type of credit

when taken out

last payment date

how much outstanding 

what defaulted date is on her credit file.

 

[glossyfitz]

Nothing has happened yet dx100, however due to her circumstances (recently separated) she will no longer be able to pay.

I have advised her to open a new bank account and have her salaries paid into it and then stop paying Lloyds Overdraft, Lloyds Personal Loan, Lloyds Credit Card and MBNA CC.

She has been paying atm approx £600 per month for these debts but now can only afford about £200.  As soon as she stops paying I will draft up some letters for her creditors.  Once I get her statements I will check if unfair charges have been added.

I'll keep in touch here with each step and updated you, if only to try and help others! and I no doubt will have forgotten a thing or two!! so I might need some advice.

TIA

[dx100uk]

get them all defaulted by the issuance of a default notice before she ever thinks of starting payments.

per id not send anyone anything until their DN appears.....

and id forget the OD totally .

dx

[glossyfitz]

Thx dx100 - yep, I've read a few threads here about OD's (hers is with Lloyds). 

To be honest most of her debts are with Lloyds -  loan/CC/OD and one with MBNA so really only 2 creditors to deal with.  But yeah, she's stopped her direct debits for these and I've asked her to sit tight and wait until she gets her Default Notices.

[dx100uk]

[glossyfitz]

Hi again, daughter is receiving text messages and one letter about her personal loan.  Should we send a letter yet offering pro rata payment? Or just sit it out until Lloyds send Default Notice?

TIA

[dx100uk]

On 30/11/2023 at 11:51, dx100uk said:

get them all defaulted by the issuance of a default notice before she ever thinks of starting payments.

per id not send anyone anything until their DN appears.....

and id forget the OD totally .

dx

txt? who from? block and report all debt txts to spam 7726.

scan up this letter to pdf please read upload carefully.

as i said...until any of her debts get defaulted via the issuance of a default notice (if applicable) and a defaulted date appears on her credit file, you do not pro rata anything to anyone.

the prime objective here is to get them all defaulted on her credit file...THEN we'll look at whats next.

a few months even a year of no payments wont hurt anyone.

[glossyfitz]

ok dx, thanks, the text was from Lloyds bank asking her to contact them to discuss her account.  She's panicking bless her; I've told her to sit tight for the minute and not to reply or call them.

[glossyfitz]

Hi All, Happy New Year! 

Just an update - daughter is now being charged daily by Lloyds for her overdraft - already she's over her overdraft limit because of these charges.  Should I SAR Lloyds yet?  I would like to get her account put on hold so they can't keep adding charges.

Cheers

 

[dx100uk]

they'll do that anyway.

prob what 99% of the debt is made of anyway.

banks dont do court......they'll eventually sell it on.

and a debt buyer wont go near a courtroom door on an OD account whereby bank charges are involved.

which is why i said in the 1st place

forget any bank OD Debt totally.

 

stop panicking.

dx

 

[glossyfitz]

Cheers dx x

 

[glossyfitz]

Quick update guys

Daughter has decided to send Financial Hardship letter to Lloyds with a breakdown of her I.E.  I will let you all know what they come back with.

[dx100uk]

wouldn't bother if i were you.

wont have any effect and all it will do is put pers financing details in your file that if they sell it on, a DCA will be able to look at in detail.

none of their business.

pers as its an OD debt. 

id just ignore it exists as i said above.

dx

 

[glossyfitz]

Hi All - update on the debts.

Default Notice has been sent to daughter for the loan.  She wants to start paying this off so she's done an I.E. sheet.  I have an SAR typed up for her to send aswell.

 

[London1971]

Just to weigh in here, I could tell you what happened to me, and how much of this kind of debt I was in but it would bore you..  She is wasting her time typing up SAR's etc and i.e sheets.  Also wasting hard earned money paying them one penny even, money that could be paying for her kid's food etc.

Even if she won the lottery tomorrow and paid off every penny, her credit rating would still be the same damaged as if she didn't pay back anything, that's why it's pointless.

[glossyfitz]

Thanks but she doesn't want to end up with CCJ's on her file and doesn't want to end up going to court either.  She would rather pay off her debts but can't afford to pay the full amounts atm.

[London1971]

There is a mis perception  that CCJ's 'end up' on People's files, like they just walked on there, it just doesn't work that way. Each debt that defaults will be brought by a debt buyer (DCA) such as Lowell or Capquest, likely for pennies in the pound. You need to use critical thinking skills here, why would a creditor sell a debt so cheaply?

The answer is, because most of them are unenforceable in court, and are very easy to defend, just read hundreds of cases on this forum for proof. Likely you are wondering why so many still receive CCJ's? I can guarantee you 99% of them are because most people think it's a smart idea not to inform the DCA when they have moved address. Due to a Quirk in English law that can result in an undefended default judgement.

Many defaulted debts won't go anywhere near a court, Out of 20 Creditors I had, only 4 tried.  That's why your Daughter is doing herself, her kids and you a massive disservice by paying a single penny.

[glossyfitz]

Really? only 4???? wow ok, I'll have another word with her - she hasn't actually set anything up just yet.  Not sure she will agree with me though.

I on the other hand have received a DN for a fluid account - but that's for another thread

Thank you for your input x

[dx100uk]

On 02/01/2024 at 18:32, dx100uk said:

banks dont do court......they'll eventually sell it on.

and a debt buyer wont go near a courtroom door on an OD account whereby bank charges are involved.

which is why i said in the 1st place

forget any bank OD Debt totally.

stop panicking.

dx

 

please ignore dont pay anything this is a bank OD debt.

stop letting her be a DCA Cash cow.

dx

 

[London1971]

It actually makes things worse paying of defaults, read up on statute barred. 6 years from the day of default, a debt becomes Statute Barred, unless of course you keep making payments, in which care it resets the clock back to 6 years again.

Also forget about the moral angle, your daughter is just a number on a spreadsheet now , it's not like the money has been borrowed from friends , family or anything.