"Write Off" your debt companies

[Deleted User] · 3 September 2009 at 10:27AM

Was with a debt management group before called christians against poverty but they were not doing their job properly and after almost a year, decided to do it myself. I came to an agreement with each company that i would pay them all money each month till the money was paid back. 3 companies have sent me a thing saying it will be like 2021 with the £15 am paying back and 1 wants £10 a month and it will be like 2026. So am paying out about £55 a month in total. The reason being am not paying much is cos am on incapacity benefit.

This I dont mind paying but yesterday I got a call from a company which is like 1 of those ones that claim they can wipe of up to 70% of your debt. The man asked me how much I was in debt and at a rough estimate I said £10,000. He then said that the companies that claim 70% are lieing and at a push could only manage about 30%. He said that its possible that they could save me between 10 and 30 % and for this they would take a 8% cut.

He said that i would carry on just paying normal payments but would have to increase it to £80 a month. Again I dont mind paying extra a month as long as this is genuine.

Are these companies genuine that claim they can wipe of your debts? He also said the 8% They would just take a little from me each month instead of me paying all this in 1.

Thanks

GeorgeUK · 3 September 2009 at 11:03PM

These companies cannot wipe out your debt - a debt can only be wiped out when you die and even then only if your estate doesn't cover it.

Please do not go with any of these companies.

What they are looking at is that a debt may not be enforcable. It will still exist so will not be wiped out, but if it is regulated under the Consumer Credit Act 1974 and the agreement was made before 6th April 2007 then there must be certain terms on the agreement for it to be enforcable.

You can apply for a copy of the customer credit agreement (CCA) for a £1 fee. Some places give you a reproduction rather than a copy of the original (which they are allowed to do under the 1985 amendments) so you may need to send a subject access request under the Data Protection Act (fee £10) to see exactly what was on the original agreement.

If they don't have a copy of the agreement, then they are unable to enforce it - if they were to try to take you to court, they would need to produce the original agreement.

If any of the required terms are not there, then again the agreement will be unenforcable. Creditors however will try to disute this and state that as you borrowed the money you should pay it back. They also usually add a default to your credit file if they haven't already done so.

It is much cheaper to do this yourself rather than getting a company to do it and leave you stranded part way through once they already have their 8%.

Here are some other threads that go into it a bit more.
Details: http://forums.moneysavingexpert.com/showthread.html?t=578486
Legislation: http://forums.moneysavingexpert.com/showthread.html?t=1496721

RAS · 3 September 2009 at 11:23PM

George is right. The Office for Fair Trading and the justice ministry have both issued warnings about this sort of company, as has Martin and there is a huge thread on here.

There are several ways inwhich creditors can shoot themselves in the foot. For the most part, people on here can help you for nothing or very little achieve what these companies offer for a massive fee.

You can send CCA letters, check default letters, reclaim PPI and charges etc, etc.

[Deleted User] · 3 September 2009 at 11:57PM

Ok thanks for that. By the way the name of the company is: One Debt Solution

RAS · 4 September 2009 at 12:02AM

There are hundreds if not thousands of them around.

if you are in financial difficulties, read the stickie of newbies on the front page, post a soa and we will help out as much as we can.

[Deleted User] · 7 September 2009 at 6:37PM

Just got a call and she said "Hi its Sarah here from 1debt soultion, i know you have been dealing with steve. I said oh yes ive decided this is not for me" She then said "why and i said i just want to do it myself. she then said so you can legally wipe of debt from some sort of 1974 agreement. and then said we have already sey up a payment for you at £80 a month. But I actually didnt agree or sign anything. Then said how that only they can wipe of thousands from my debt and will have me debt free at the worst 5 years and at best 3 years Where as it will take 16 years myself. Said she is phoneing me again later so will i just say not intrested and hang up?

Jesthar · 7 September 2009 at 11:26PM

That would be the best idea. They can't do anything for you you can't do yourself, except they'll charge you a small fortune for the service...

thefoolonthehill · 8 September 2009 at 1:41AM

defiantely tell them you are not interested. Did you give them your bank details over the phone? if so contact your bank first thing and cancel any payment they have set up.

if you upped your payments to 80 per month the amount of time it takes to pay the debt would come down anyway.

GeorgeUK · 8 September 2009 at 9:00AM

Why would you want to pay then £80 per month for something that will cost £1 (for a copy of the agreement) and a few stamps?

As i said above - this 1974 thing is the Consumer Credit Act. There are plenty of templates and information here that you can use for free.

[Deleted User] · 8 September 2009 at 1:49PM

thefoolonthehill wrote: »

defiantely tell them you are not interested. Did you give them your bank details over the phone? if so contact your bank first thing and cancel any payment they have set up.

if you upped your payments to 80 per month the amount of time it takes to pay the debt would come down anyway.

No I never gave them any bank details or nothing. I did end up getting the other call later last night and i simply said "Am not intrested" and then i hanged up the phone. However the same woman from the company again just phoned me right now and said and "its sarah here again from 1 debt solution" this time i was a bit more harsh and said "get lost" and then hanged up the phone. Who Can I report them to if they keep doing this to me? Thanks

"Write Off" your debt companies

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