Advice and Comments Please

[lazybones]

Evening All

 

Last August I finally realised deep in the finacial mire when I found myself about to take cash out on one credit card to make a payment on the other one.

"STOP YOU MORONIC IDIOT" flashed across my mind.

So I went home, via the CAB, and filled out a Personal Budget Sheet. It was worse than I expected.

 

On 2 overdrafts 2 credit cards and 2 personal loans I owed £25935:o

 

I did the Income and Expenditure bit and worked out that I had £236 left to pay creditors. Eventually got every one to accept lower paymets,stop charges and freeze interest(or so thought)

Found myself struggling to live on what I had left after paying all the bills

and the money to creditors.

 

Yesterday did another Budget Sheet, taking into account pay rise, and rise in price of just about everything I had £183 left so I have written the following letter to creditors

 

Dear Sir/Madam

 

It is with great regret I write to inform you that I am unable to maintain the present level of repayments on the above account. Due, partly to a smaller than expected increase in pay and a greater rise in expediture. And partly due to the refusal of some of my creditors to stop applying charges and interest to some of the accounts.

 

Greater expenditure was caused by, but not limited to, increases in: Rent, Council Tax, Housekeeping,Travelling Expenses and Meals at Work.

 

I enclose a revised personal budget sheet, as you can see, I now have only £183.00 for my creditors.

 

I have worked out the offers on a pro-rata basis, I have written to all my creditors asking them to accept this further reduced offer.

 

Because of my circumstances, please agree to accept this reduced offer of £**** a month. If you have stopped charges and interest please continue, so that the payments reduce the amount I owe. If you have not, please stop them at once.

 

If my circumstances improve I will immediately be in contact with you.

 

Thank you for your help and understanding, I look forward to hearing from you as soon as possible.

 

Yours faithfully

 

 

Any ideas on what the reaction's going to be?

 

Sorry about the long windidness of it.

[Guest louis wu]

You will probably get a mixed bag of reactions.

 

Some will be realistic and accept, others will be harder work.

 

Have a look at this (sorry if you have already), its a lots of templated letters that deal with the 'what ifs' a situation like your brings.

 

http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

 

I think its now just a case of waiting and seeing. Keep us updated as to the responces you are getting.

 

Bets of luck

 

Louis

 

 

 

ps, forgot to ask, have you looked at how much of the debt is penalty charges? You may need to be delicate, but if any of the 'debts' are made up of charges, it must be worth claiming said charges back.

[lazybones]

Hi louis

 

Thanks for your reply, and yes I have seen template letters and budget sheets.

 

As for claiming back charges, have already started process with SAR letters and I am being as delicate about it as the banks are

 

Just posted to get other peoples opinions on the matter really

 

Once again THANKS for the interest

 

Will keep you posted on responces

[Guest louis wu]

Hi Lazy,

 

sorry for trying to teach you to suck eggs lol, it looks as though you are right on top of things:) .

 

My own personal experience of this type of thing was very minor in comparison, but I did find that banks and financial institutions are much less likely to help, they may make the right noises, but thats only to hide the noise of greedy palms being rubbed together. Other companies, however, seemed to take a more practicle approach and did make an effort to help.

 

At least you are doing the right thing, as many (me included in the past) prefer to bury their heads in the sand, which only ends in disaster.

 

I wish you a happy outcome

 

Louis

[lazybones]

Thanks again louis

 

Will plod on down the long road to finacial bliss (owing nothing to nobody)

[MARTIN3030]

If any of the debts are connected to unlawful penalty charges rthen you should look to putting them on hold.

Theres procedures for doing this.

[lazybones]

Hi Martin

 

Yes some of them do have an element of unlawful charges.

 

If they were put on hold does that mean the interest that I could claim on those charges would also be put on hold?

 

PS GOOD MORNING INSOMNIAC

[lazybones]

Hi Lazy,

 

sorry for trying to teach you to suck eggs lol, it looks as though you are right on top of things:) .

 

My own personal experience of this type of thing was very minor in comparison, but I did find that banks and financial institutions are much less likely to help, they may make the right noises, but thats only to hide the noise of greedy palms being rubbed together. Other companies, however, seemed to take a more practicle approach and did make an effort to help.

 

At least you are doing the right thing, as many (me included in the past) prefer to bury their heads in the sand, which only ends in disaster.

 

I wish you a happy outcome

 

Louis

 

No worries louis

 

Getting to the stage that I don't care what they say or do;)

[lazybones]

Hi All

 

A little update on how my revised repayment offers have been received.

 

A & L Loan ........ Accepted lower Offer.

A & L Bank Account Overdraft aka Security Investigations Debt Recovery Division ....... Accepted Lower Offer.

A & L Credit Card aka MBNA ........ No Reply Yet.

HFC Bank Loan ........ No Reply Yet.

Lloyds TSB Credit Card .......No Reply Yet.

 

Lloyds TSB Bank Account OverDraft ...... Phone this afternoon wanting to know if I was able to pay unauthurised part of my overdraft.

When I refered to the new lower offer they said it was not enough and the account would be defaulted passed on to their solicitors.

I asked if that ment they were going to take me to court they said no,

first I get a letter rejecting my offer, then a default notice, then letter from solicitor demanding payment, then debt is written off to a DCA.

When I asked if DCA would act as agent or if they would sell the debt to DCA they said the debt would be sold.

The girl on the phone, from Collection Centre, did say tha this could take some weeks

Unlike them paying back unfair bank charges which seems to take some months.

 

Will keep you posted as things unfold here and on threads in bank forums

[lazybones]

Hi Everybody

 

There has been a development concerning Lloyds TSB.

 

Returned home from work this evening and found a letter from them, copied below

 

Credit Operations

PO Box 501

Brighton

BN1 4DR

 

Our Ref **********

 

IMPORTANT-YOU SHOULD READ CAREFULLY

ENFORCEMENT NOTICE (Served Under Section 76(1) of the Consumer Credit Act 1974)

 

Cheque Account Number *********

Cheque Accuont Balance £351.31

Unauthorised Overdrawn Amount £351.31

 

The terms of the above Overdraft Agreement include the right of the Bank, at any time to terminate the Agreement and to demand immediate repayment of the overdrawn amount.

 

We herby give you formal notice of our intention to terminate the Agreement on 04 May 2007 and to demand payment of £351.31 plus interest, whichis accruing daily.

 

The amount payable is based on the balance as at today's date plus accrued interest and charges. The balance will need to be adjusted to allow for any further debits or credits to the account. In the meamtime your right to withdraw is suspended; you should not write any more cheques, and no other payments out of the account (standing orders, direct debits, etc.) will be made.

 

If you are unable to make this payment you may be able to avoid further action by telephoning us now on 0870 9090979 to discuss repayment proposals.

 

IF YOU HAVE DIFFICULTY IN PAYING ANY SUM OWING UNDER THE AGREEMENT, OR TAKING ANY OTHER ACTION REQUIRED BY THIS NOTICE, YOU CAN APPLY TO THE COURT WHICH MAY MAKE AN ORDER ALLOWING YOU (OR ANY SURETY) MORE TIME

 

IF YOU ARE NOT SURE WHAT TO DO, YOU SHOULD GET HELP AS SOON AS POSSIBLE, FOR EXAMPLE, YOU SHOULD CONTACT A SOLICITOR, YOUR LOCAL TRADING STANDARDS DEPARTMENT OR YOUR NEAREST CITIZENS ADVICE BUREAU.

 

Dated This Day: 26 April 2007

 

 

That's it, and before you ask, the letter was not signed nor is there any clue as to who sent it.

[lazybones]

Just an update on response to my latest budget plan.

 

Lloyds TSB credit card have accepted the new lower repayments.