Help im in Debt!!!!

[manindebt]

Posted the below in general debt thread...

 

Hello All,

 

Im new to this site but boy am i glad ive found it, ive just signed up today so that i can pos this thread. Basically ive been reading threads on this site for the past hour and not really found the info im looking for so that i'd be direct and ask, but also feel that i have some knowledge that will help all of you who have credit cards with Citicards and Goldfish (ive had some interesting conversations with them really tell you more further down).

 

Basically the information im looking for is what reduced repayment plans will various creditors accept i.e what percentage are they looking for or what amount as a minimum or over what period of time must the debt be paid off. Im hoping that with all your contributions to this thread we can all get an idea of the different criteria for the varios different credit card and loan companies. You can all help by advising what amounts or percentages youve had agreed either through a discussion over the phone or Debt Management Plan and over what period of time your plans have been accepted/agreed for.

 

Ok im in debt to citicards, goldfish, egg, marbles, aqua, northern rock,Lloyds tsb, hsbc, Welcome Finance. Total debts are around 27000 and i have no assets to speak of.

 

Over the past 2 weeks ive taken advice from the CCCS and contacted some of my creditors to make reduced payment plans. What i would like is your assistance with knowing what my creditors are likely to accept as reading the various threads it seems even if one pro ratas an offer of payment some of them will still take to court as it doesnt meet there minimum criteria i.e 50% of normal minimum payments etc.

 

So heres how ive done so far.

 

Goldfish: Accepted reduced minimum payments of 55% of normal payments over the phone with no income and expenditure form required for a period of 6 months with a review then with possible extension for another 6 months.

 

Citicards: This one you will all find interesting, ive spoken to 2 individuals there John and Lee i think although i could be wrong, who have advised me that in order to avoid filling in income and expenditure forms they will agree to reduced payment plans on a short term basis as long as certain minimum criteria are fulfilled, both myself and my brother have a card with them and as we have different balances i know the criteria for reduced payment plans basd on how many months in arrears the accounts are.

 

For all long term reduced payment plans 1% of the balance as long as it is pro ratad with income and expenditure form completed, is what they are looking for (thanks john) and for short term difficulties accounts which are 2-3 months behind they will accept 1.40% - 2.2% of the balance with no income and expenditure form to be filled in and whilst they wont freeze the interest they will reduced it to around half of current, but this will only be done for 5-6 months although i reckon an extension can be gained, secondly if account if 5 months plus behind with payments and has been defaulted or due to they will accept 1.2% over the phone with no income and expenditure form filled in for a period of 12 months with a freeze on interest and charges after this im presuming they would like the relevant paperwork (thanks Lee) although i'll update you all in 12 months when my account has been on this for 12 months.

 

The reason i was told they avoid requesting the forms is to save time and many are returned incorrectly and so may mean accounts getting defaulted or passed to DCA. Cant believe staff there would tell me about all their possible arrangements available, have they not heard of CAG???(although i do think that they were eager to get payments out of me and so told me about all their arrangements and basically told me to pick one)

 

What i would like from all you readers is information regarding my other creditors, have you had reduced payments accepted if so what percentage and over how long?

 

Thanks

 

Manindebt

[Hax]

I don't think that there are any hard and fast rules here. A few years back I sought the help of a debt counselling company called Gregory Pennington. Basically, I filled in an income and outgoings (excluding debts) form and they then took what was left out of my income and divided it up on a pro-rata basis between the creditors.

 

I later went to the CCCS as they didn't charge a fee - and they did exactly the same. If a creditor takes you to court - then I think that the court will only carry out the same process - so in effect, any creditor will be better off just accepting the payment plans proposed by a body such as the CCCS as they don't incur any solicitors fees and they're not running the risk of you just going for a IVA which would quite likely see the amount of debt being greatly reduced thereby leaving the creditor out of pocket.

 

 

That said, you'll probably find that most debts will end up having to go to a DCA (frequently an internal one belonging to the parent company) before any payment agreements are actually accepted. It seems to be that the initial company aren't willing to negotiate to the lower repayment figure so the debt gets passed on - but the 1st DCA may not be willing to go as low as the proposed payment so the debt gets passed on again. This can happen a couple of times until it settles with someone willing to take the greatly reduced payments.

 

HTH,

 

Hax

[manindebt]

Sure does Hax, my posting above was also to help those with an outstanding balance to citicards, if you dont want to fill in and income and expenditure or that citi are your only creditor then if you call their collections department and offer to pay:

 

Account in arrears by 3-4 months: 1.4% of the balance, then will be ok for a 3-6 month repayment plan with interest reduced and charges frozen (as advised by John) and possibly an extension after that.

 

Account in arrears by 5-7 months: 1.2% of the balance, then will be ok for a 12 month epayment plan with all interest and charges frozen (as advised by Lee).

 

Potentially if you're sick and tired of all the charges and interest they are piling on at the moment why not call them and offer the above and get them stopped or reduced. (",)?

 

Anyway just in my opinion.

[rory32]

The CC company's and DCA's don't dictate how much you can afford to pay. You dictate to them how much you can afford to pay based on your income and outgoings.

[Hax]

You're not actually dictating - you're making an offer. One, which they are not obliged to accept (although most will). So, dictating isn't exactly the right word to use here...

[rory32]

They are obliged to accept any offer that is reasonable. If all you can afford to pay is £1 per month then that is all they will get. They could take you to court but if £1 is all you can afford the judge will only award them £1 per month and they are completely aware of this.

They will often ask you for far more than you can afford and completely ignore your statement of affairs. This is why I use the term dictate - you must be firm and tell them NO this is all I can afford, I have enclosed payment in line with my ability to pay.

[icepop55]

I agree with you on this Rory. You must take a stand on your ability to pay therefore dictate would be appropriate.

To give Manindept a short responce to a negotiable deal. I am with many other C/C £££££££ in debt. MBNA were willing to take £2000.00 from a £10000.00 debt.What there were not willing to do is take the £2000.00 in installments.

Yet what really confused and ****ed me off was to sell my debt to a DCA for the same amount 20% or less.I call that neglectful at the hightest order. What was the point? I let you work that out.

[rory32]

The point would be tax benefits to them from selling the debt!!!!

[icepop55]

Therefore the story goes, if you don't have a lump sum forget a easy ride.

[rory32]

Therefore if you don't have the lump sum dispute the debt.

[icepop55]

Thats fine Rory. So CCA them etc.. and what? We all know the stalling tatics from both sides.Banks etc.. are shamless and have been and still are very sloppy in what there say and do.

This is what I read on all despatches on site:

 

I am confused, angry and most of all nervous. I am desperate to talk, but terrified it would mean more trouble.

 

In the 'Sunday Times Money' section today (comment by William Kay) quote;

Gordon Brown must deal with the bank charges mess. It may not be up there with sorting out Iraq, but 3m people have downloaded a standard form to complain about what they see as unfair treatment by their bank,and thousands more claims are being sent in every week.

That's a lot of votes to sway with firm action and banging heads together.

A favourable verdict at Birmingham C/C last week gave banks renewed hope that they could continue their curmudgeonly habits. The decision is not binding, but it will only encourage banks to continue their petty tactics of prolonging disputes. It is a truly Dickensian approach which has rightly been criticised by Judge David Mackie of the London mercantile court.

The Competition Commission has weighed in with a report recommending clearer statements, 14 day's warning of charges and making it easier for customers to move to another bank.

The British Bankers' Association rather sniffily pointed out that clearer statements are no use to those who don't read them, implying that many don't-but whose fault is that?

The real problem is that the banks can't agree amongs themselves what to do, and the laggards usually win.

 

CARRY ON THE FIGHT OVER BANK ETC...CHARGES.

[rory32]

"Thats fine Rory. So CCA them etc.. and what?"

 

If you send them a CCA request and they don't supply it after 12 working days from receipt of the request they are in default. When they are in default the debt is unenforceable and you can withhold payment.

If after another 30 days (calender this time) they do not produce a copy of the agreement they have committed a criminal offence (up to £2.5K fine).

Even if they do produce an agreement it is often unenforceable because it doesn't comply with The Consumer Credit Act 1974.

So while the debt still exists it is unenforceable which means you don't have to pay it, they can not lawfully enter a default on your account and they can not successfully pursue you through the courts.

[icepop55]

Rory.

Thanks for the input. It seems your a night owl too?

In my own thread I state that I deal with all my creditors through the CCCA under a DMP.

Would you say then that I should contact the CCCA and explain what I am doing and tell them to suspend payments to all creditors that have not complied under the CCA request.

[gizmo111]

This thread has absolutely nothing to do with claiming back charges from Citi card so I am moving it to general debt.

[rory32]

I certainly would. They have no legal right to your continued payment until they produce a copy of the agreement.

[rory32]

Sorry gizmo, we have certainly gone a little off topic.

[gizmo111]

Sorry gizmo, we have certainly gone a little off topic.

No worries rory - it didn't really start out a s a citi charges thread;)

[icepop55]

My apology too Gizmo.

[landy_alert]

Hi ka2:)

 

I have asked the site team to move this post to a place where you will get more help tailored to your own needs, rather than being stuck on an old thread.

 

Good Luck with your fight against LTSB/SCM!

 

Landy x