I am new, and need some basic help!

[tof54]

Hello guys,

 

Here is the situation, for some stupid reasons, (went travelling for a year thinking that I got all my finances under control), I came back recently with around 20K in debt, between a bank Loan with RBS and 3 Credit Cards. As this has been a year since they haeard from me, all those debts seem to have been passed on to Debt Collectors, namely:

 

Link Financial Lin (MNBA card)

 

Risk Management alternatives (RBS Mint Card, RBS Standard Card and loan).

 

My questions were the following:

 

does that mean that I am blacklisted for 6 years, disregarding the actions I take now?

 

what r the implcations with respect to get Credit Cards and/or loans in other countries (I have left the UK and have no interests there, no house, nothing etc.)

 

If I intend to negotiate with them, what can I realistically ask for? For example, could I negotiate to pay the debt in full over 6 month or a year, with payment wvery two months.

 

I do not intend to dispuete the debt but need to see how best to sort this things out. got a young family and I am very worried about the implication of all of this.

 

HELP PLEASE

[djdave]

Hi,

 

There's no such thing as a "blacklist", but chances are there are defaults on your credit file which will make it harder to obtain credit. For £2 you can get a copy of your report from Expierian, Equifax or Call Credit. Experian offer a free trial online but remember to cancel before a month's up or you'll get charged.

 

Debt Collection Agencies have no powers beyond writing a few letters and making calls. However they can start court action if you don't pay.

 

Also remember that they cannot force you to pay more than you can genuinely afford, even if that's only £1 per month.

 

Make a realistic budget and work out what spare money you'll have at the end of each month. Don't leave yourself short. Divide it pro-rata depending on how much you owe each DCA and make them an offer.

 

Have nothing, NOTHING, to do with any of them over the phone. Put everything in writing.

 

Of course, without a valid copy of your credit agreement the debts are unenforcable. You would want to check that each DCA has got a valid copy before you start any payments, wouldn't you?

[payingonlyencouragesthem]

 

I do not intend to dispuete the debt but need to see how best to sort this things out. got a young family and I am very worried about the implication of all of this.

 

HELP PLEASE

 

You should always dispute debts you can't pay. You may think you owe the money but if the Consumer Credit Act 1974 Agreement you signed is faulty or lost then actually you don't. You need to write to all these debt collectors using this template http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html#post162367

You will find that few, if any, will produce enforceable agreements. You need to sort this out even if you live overseas as some international credit checkers will pick up UK CCJ's.

[tof54]

Thanks for the quick answer, Dave....

 

Just to clarify things, why NEVEr to do things over the phone. The problems i have is that I am on the other side of the world, and if I do it via letters, will take weeks beofre it reaches them.

Other things, if I start making payment to them, what are the chances that they can trace back my other account (outside the UK) and get me into trouble there?

Last but not least, assuming they write me for defaults (which they serve me on some Credit Cards), how does that affect my relation with, VISA or MASTERCARD in another country?

Thanks for the help and sorry for the naive nature of the question.

[rory32]

Just to clarify things, why NEVEr to do things over the phone.

Because verbal communication can be denied and they will try and pressurise you into committing to more than you can afford. These people often talk to you in a very threatening way over the phone that they would never put in writing. I would suggest after initially contacting them you use e-mail to communicate with them due to your location, although avoid putting things like bank account details on e-mails.

 

Other things, if I start making payment to them, what are the chances that they can trace back my other account (outside the UK) and get me into trouble there?

.

If you're not in the EU I wouldn't worry about this. Even if you were it's still not straightforward

 

Last but not least, assuming they write me for defaults (which they serve me on some Credit Cards), how does that affect my relation with, VISA or MASTERCARD in another country?

At the moment it possibly will effect you as you will need to provide details normally for at least the last three years. Having said that it may not effect you depending on what country you are in.

[tof54]

Hi,

 

So far, this site hasd been of great help to help me handle my newly found Debt problems.

 

A couple of questions:

 

I have made phone contact with one of the DCA via phone cos living in South america would be far too slow.

I understand that a basic steo would be to ask for a copy of the CCA, but I also read that I need to pay 1 pound for that right? Is that true. I wanted to asked them via email to send me a copy beforer making any payment, is that possible, do they have to comply with an email request with out the 1 pound fee?

I mean, I am willing to pay the debts, in part obviously, but the request of the CCA has been made to me by all the site users, so I guess I should do it.....

 

Thanks in advance

[rory32]

understand that a basic steo would be to ask for a copy of the CCA, but I also read that I need to pay 1 pound for that right? Is that true.

Yes. They can waive the fee but you have to include it. I would suggest that this request you do put in writing rather than e-mail. E-mailling this request probably isn't good enough as notices need to be served in writing.

 

Even if they can produce this document you are still in a very strong negotiating position, particularly if you inform them you are not coming back to live in the UK.

 

I think in that instance they will take whatever they can get as full and final settlement because it would not be worth chasing you for the debt.

[tof54]

OK, I have couple of questions:

 

1) disregarding my negotiation with the DCA, I am right to think that my Credit Record, due to the default notices, will be affected egually?

 

2)I read onthat website, that DCA "buy off" the debts from the banks, so for, let say a debt of 4K or 8çK, tey do not actually pay that much? What is the percentage "ish". Living abroad with no intention to go back to the UK, I would like to posibly make them an quick offer (2 o 3 payments) but it would help me to know how much they are likely to have paid for my debt.

 

As always, thanks so muych. In a 1/2 day that i have used tis website, I feel lighter, less alone and with a much better understanding....

[rory32]

In answer to your questions:

 

1. The defaults effect your credit record in the UK. It will probably have no effect on your credit record in South America as they won't check UK records. If you can build up a good credit record in South America then that is what they will look at particularly once you have been there another 2 or 3 years.

 

2. Percentage wise the norm that DCA's pay for debts is around 10%. They tend to pay about 20% for debts that are easy to collect and as low as 2% for debts that are approaching statute barred or are going to be very difficult to collect.

[tof54]

rory,

 

thanks a lot.

 

However, even though I live there (South america), I also bank in France...what r the chances of that to affect me? I have recently renewed my VISA there and had no issues, but just wondering how quick or how easy it is for them to check French records, and as said previously, assuming my credit is bad in the UK, what would happen if I apply in France, or in the US (got also bank account there) for another VISA or MASTERCARD? Would these guys check UK records?

[rory32]

They only tend to check National records and assess you on your credit rating in that country.