Bad debt - Help needed please to sort myself out

[macca73]

Hi

 

I have quite a large number of debts that are quite old. Maybe going back as far as Mid 2003. The total amount outstanding on them is around £30k.

 

They are spread as follows;

 

HSBC - Unsecured Loan - £20k

HSBC Current Acct - £3k

HSBC Credit Card - £4k

Egg Credit Card - £1.5k

Capital One Credit Card - £1.5k

 

I have not been able to pay anything against them for over a year due to loss of emplyment and finances. However, I was always to frightened to contact them as they don't listen.

 

I am now in a position to pay them, but have been flooded with harrasement letters. And reading some of the threads on here, it seems that calling them is not a good thing to do.

 

The debts are with the following DCA's;

 

HSBC Loan - NCO

HSBC Current Acct - IQOR

HSBC Credit Card - IQOR

Capital One - Capquest (I think)

EGG - Not sure, no letters for a while, but can find out.

 

I have toyed with the idea of entering an IVA and also going as far as Bankruptcy. I live in Council rented housing and have no assets (apart from my car which is only worth around £2k).

 

Can anyone give any helpful advice as to what they feel is my best options.

 

Again, looking at other threads, should I send off CCA's to each DCA?

 

I would be grateful if anyone could help as I do want to get things sorted, but am just unsure of what my next move should be.

 

Thanks

[wednesday1867]

First things first, you need to send them all a sar, these will cost £10 each.

 

You might be able to put the 3 HSBC accounts on 1 sar, saving £20 straight away not sure tho, maybe someone else will know.

 

Then you can start reclaiming all charges, which should bring your balances down.

 

You can also send CCA's to see which if any have proper agreements for you, CCA costs a £1 per account.

 

Im sure someone who knows more than me, will offer some assistance

[macca73]

Hi

 

Thanks for the advice.

 

From what I keep reading, I should send CCA's first to each, in order to get my paperwork in order first. Am I right in thinking that I send the CCA's to the DCA's and not the original creditor?

 

Also, from what I have been reading, should I send Posal order's for each accont and never sign anything with my signature?

 

thanks

[spindoctor]

Hi Macca and well done for taking the first step in taking control.

 

Without the full picture of your finances it not ideal for me to give advise, but from what you say, you are unemployed with £30k of unsecured debt and live in rental accommodation.

 

I would say that you can't afford an IVA so it's a no-brainer really. Your only option is bankruptcy. Although bankruptcy should be treated as the final option, in your case I would say it is the only option. Your creditors are not going to sit by patiently for ever. They WILL take legal action sooner or later.

 

Therefore, the best thing to do is to take the bull by the horns and file for bankruptcy yourself. There is a fee involved (I can't remember how much but I think its in the region of £350).

 

Don't take my word for it. Contact someone else for advise from CCCS, CAB or national debtline. See their websites for more information.

 

There is also another very good forum on the Motley Fool website. I'm sure people on here won't mind me directing you to them because they send people here occasionally.

 

Anyway, good luck.

 

Crezzie

[PriorityOne]

A a rule, CCAs go off (by rec. delivery) to any DCA who is chasing you for payment, regardless of whether you are paying them already. One CCA request for EACH account.

 

If these accounts have been bought by DCAs and there are no CCAs for them.... then they are stuffed.... because you are not legally obliged to continue making payments to them in the absence of a properly executed CCA.

 

If payments are being collected on behalf of the original creditor however, then the accounts will be passed back to the original creditor.... leaving you to negotiate directly with them. You can then send a SAR to re-claim all unlawful charges and bring the balance down to its correct level.

 

When you send the CCA requests off, it's best to enclose a PO for £1 instead of a cheque.... as this removes any temptation for a DCA to scan your sig. onto a non-existant Agreement. Also.... use a different sig. on the CCA request.

[PriorityOne]

Your only option is bankruptcy. Although bankruptcy should be treated as the final option, in your case I would say it is the only option.

 

 

No disrespect, but I disagree with you....

[macca73]

Cheers for the advice.

 

I am currently employed full time and think that an IVA would be an option. But should I just follow the route of this, or should I consider the CCA route first?

[spindoctor]

No disrespect, but I disagree with you....

 

 

I don't pretend to be an expert, but on what grounds do you disagree?

[PriorityOne]

I don't pretend to be an expert, but on what grounds do you disagree?

 

You said that bankrupcy was the only option for this poster.

[PriorityOne]

Cheers for the advice.

 

I am currently employed full time and think that an IVA would be an option. But should I just follow the route of this, or should I consider the CCA route first?

 

The CCA route will establish whether a company has a legal right to collect payment from you. No CCA = no enforceable debt.... well worth knowing before you consider any of the more drastic options available to you.

[Curlyben]

I agree with P1 here, there are other routes open BEFORE bankruptcy is even considered.

 

As mentioned the FIRST action is to ensure the legality of these debts.

Once this is proven then reclaim of unlawful charges and pentalties.

Then and only then make repayment arrangements.

There are various groups out there that can offer excellent advice in this regard.

A few that come to mind are

CCCS - Free Debt Advice from the UK's Leading Debt Charity

National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

Free Debt Management company | Payplan

 

even an IVA would be better than FULL bankruptcy.

[Goldlady]

Agreed. Macca I was in similar situation and close to bankruptcy but thanks to this site I am slowly climbing out of the mess. When you consider the interest and charges on credit cards, and the fact that the credit limit increases (or certainly mine) were most certainly irresponsible lending as I was paying the minimum payment on a number of cards and clearly was not in a position to borrow more!

 

I worked out that if i had not borrowed the money in the first place and waited for the BIG COMPANIES to pay us after 90+ days instead of 30 (self employed 15 years) I would not have any debt at all. We are all at the mercy of the big guys and it is time the worm turned.

 

Send your CCA requests Macca and if they can't find them - tough. And please don't let me see any more posts from 'holier than thou' people who have a nice fat salary to budget on every month and look down on those of us who have fallen on hard times. If I get rid of at least some of my debts because the lenders have not got their paperwork right I will not lose any sleep over it. I could go on - but I won't.

[macca73]

Cheers Guys, really appreciate your help with my problem.

 

Do I send the CCA requests to the DCA's?

 

I'll try and keep this thread updated as I may need help with the legality of the agreements when (or if) they come through.

 

Thanks again

[Goldlady]

If you send them to the DCA's they will refer back to the original lender - that is what happened with mine. So I think yes you should as they are the people claiming the money from you - the proud new owners of the alleged debt.

[PriorityOne]

If they have bought the debt.... they may still tell you that they are referring to the original lender, even if they don't. With no CCA however, they will be stuffed....

 

Fingers crossed for you.... make sure they all go by rec. delivery, so you have proof of when they were sent/received.

[macca73]

Thanks P.ONE

 

Since yesterday, I have been researching the posibility of doing an IVA and I have a monthly Surplus that should be acceptable. However, around 90% of my debt is with HSBC, so they will get the final say as to whether it is accepted. What is the likleyhood ofthem accepting this and also what will happen if they don't accept the IVA?

 

Thanks again people

[PriorityOne]

I would wait and see if any of the HSBC debts have been sold on, before considering an IVA. Were the accounts taken out in 2003.... or passed to a DCA in 2003 ?

 

You can only pay what you can afford to pay, after monthly expenses have been taken into account.... so try not to stress about if's and maybe's at this stage.

 

[sequenci]

Thanks P.ONE

 

Since yesterday, I have been researching the posibility of doing an IVA and I have a monthly Surplus that should be acceptable. However, around 90% of my debt is with HSBC, so they will get the final say as to whether it is accepted. What is the likleyhood ofthem accepting this and also what will happen if they don't accept the IVA?

 

Thanks again people

 

HSBC will be the core creditor who will decide the make or break of the IVA, i know for a fact that they will not consider ridiculously low percentages in the pound. If you DO decide to go down the IVA route it would be VERY important that you shop around and speak to a good 5 or 6 practitioners. I personally would avoid any who advertise on day time television. You can find a local IP here:

 

about us menu

 

Also bear in mind that an IVA will cost you a great deal of money, some fees have been known to be as much as 10-12k. If the IVA fails for any reason it *may* put you in a worse position than when you stated it.

 

Prior to deciding what option to take it would be really important to consider contacting one of the debt help charities such as National Debtline or The CCCS. As you live in rented accomodation you might be in a position to seriously consider bankruptcy as a cheaper and more valid alternative to an IVA.

[macca73]

The loan was taken out in 2003 and I probably defaulted around the end of 2005.

 

I have looked at bankruptcy and to be honest it does look a viable option, the only concerns I have are about my work finding out. That really would put the nail in my coffin. I did read that the court can ask for the amount to be deducted from my wages, which in turn would mean contacting my employment, is this right?

 

With regards to contacting a number of IVA companies, if I only have a set disposable income, surely the amount they will take will be the same. But I think I can see what you mean, some ask for you to pay for 62 months instead of 60.

 

Oh, and the HSBC debtsare with NCO DCA.

[sequenci]

I have looked at bankruptcy and to be honest it does look a viable option, the only concerns I have are about my work finding out. That really would put the nail in my coffin. I did read that the court can ask for the amount to be deducted from my wages, which in turn would mean contacting my employment, is this right?

 

yes, this is called an income payments arrangemet/order, you would be asked to pay between 50-66% of your disposable income for three years to your creditors. this order is discretionary and would be ordered by the official receiver. have you a HR dept at work? could you ask them of any possible implications?

 

With regards to contacting a number of IVA companies, if I only have a set disposable income, surely the amount they will take will be the same. But I think I can see what you mean, some ask for you to pay for 62 months instead of 60.

 

their fees and the amount expected you to have in your budget for essential expenditure vary dramatically.

 

Oh, and the HSBC debtsare with NCO DCA.

 

 

have they bought the debt or are they just working for HSBC? get a CCA request off to them pronto if you already haven't.

[Goldlady]

My friend who is insolvency practitioner advised me against doing an IVA because of the fees involved (a large amount of what you are paying never reaches the creditors). And also the creditors don't get their money until the end of the IVA period so they don't tend to like it either. It might be that you can make private arrangements with them (as I have done with mine) where they freeze the interest and you pay them a sensible payment each month which is directly clearing the debt. (This all went fine for me until my income dropped and some of them wouldn't accept a further reduction short term). But you might find that they will negotiate - it shows on your credit record as 'arrangement' and you might get defaults but it won't affect your job and is better than going bankrupt.

 

Or is it? If you go bankrupt and it is a no fault you will be discharged after 6-12 months. My IP friend suggested I did that but I was too scared and we do have a small amount of equity in the house.

[macca73]

Hi

 

NCO have definatley brought the debt. I got a couple of letters from HSBC telling me a short time ago.

 

I too am scared of bankruptcy, but I can see it as an option. I am just so worried about losing my job. But I do see the IVA as a good alternative. It's legally binding, and as long as I am paying what I can afford each month, this is an option?

 

I'm a little apprehensive dealing with the DCA's alone. I know they can get heavy and pushy and I'm not up to receiving harrasment over the phone or via the post. Can they at any stage come round to my property?

 

Thanks again, you guys are a big help and I certainly don't feel alone with this weight on my shoulders anymore. And I'm sorry for all the questions. Just trying to work out what is the best option for me and my family.

[Goldlady]

No they can't come to your house - well if they do they are breaking the law. You have to remember as well that if the debt has been sold to a DCA they will have paid as little as 5% of the total value for it.

 

I was as scared as you 18 months ago. I gave my OH power to speak to them and he was really hard and negotiated the payments with them. I am now no longer afraid to answer the phone.

 

It is your decision in the end.

 

Is bankruptcy likely to affect your job? I would think unless you are in the financial services industry or legal profession it wouldn't make any difference. Lots of people in high ranking professions have gone bankrupt - in fact it is not seen as shameful anymore.

[Curlyben]

Mecca, be calm and remember the CAG mantra.

NEVER talk to a DCA on the phone !!!

They will say anything to get money from you.

Always deal in writing ONLY.

 

Now I think you are jumping ahead of yourself here as you are assuming that ALL of these debts are legally enforceable by the DCA's.

 

You need to remedy this situation as soon as possible.

Look back a few posts and there's information about a CCA request to ensure that these DCA's have the legal right to collect these debts.

 

You may end up being pleasantly surprised at the outcome.

 

We're here to assist if we can, but please listen to what we have to say.

Alot of what is involved is waiting for responses from DCA's to your legal request.

 

Hope this helps.

[gizmo111]

Hi MAcca,

 

What is your job, is this a permenant position?

 

Have a read here may help you with your options a litle more.