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  • In a bit of a dilemma with a debt collection company. Wonder if anyone can give me a bit of advise.
    I recently asked for an early settlement figure on an unstanding debt which company agrred to. They sent out letter of confirmation stating that upon receipt of payment account will be closed and my credit file updated to show yhe account as "partially satisfied".
    I have been advised that this is not acceptable as wording is very misleading, as it doesn't say anything about not be pursued in the future for the outstanding balance.
    I have wrote 2x letters to the company (BLS Collections) requesteing that neither they or any associate company will further pursue this debt in anyway whatsoever and that i will be released from any liablilty.
    They seem very adamant about not re-wording their letter so I don't know what to do.
    Do I pay the early settlement not knowing if i will be pursued further down the line for outstanding amount, or should I forget early settlement and enter a DAS instead.
  • Frida
    Frida Posts: 6 Forumite
    Hi James,

    First I would like to thank you for taking the time to look into that and let you know that I appreciate the help.

    So the question now is how should I proceed? I have a few things I would like to do and would be grateful if anyone can offer advice on how I go about doing them.

    1. I would like to ask them to prove that I owe this debt and was wondering if anyone has a template I could use when writing to them for this purpose.
    2. Is the local law center free and if so do you have contact details for them.
    3. Finally I was wondering what powers they have to enforce this debt if I continue to not acknowledge it.

    Cheers
  • Hello,

    Do creditors require proof of rent/mortgage payments and copies of utility bills.

    Thanks
  • ChocolateTree
    ChocolateTree Posts: 43 Forumite
    edited 10 December 2012 at 12:59AM
    Just wondered if someone can help with a couple of questions please. I've just received my pack from Stepchange (temporary payment arrangements). The debts are all in my name only, but the Income & Expenditure form and the list of creditors form have both mine and my husbands names on it. I've had to do it jointly as I have no income of my own. I've been advised to send a copy of each off to each creditor with £1 (monthly amount for each creditor) but I don't want to send it with my husbands name on. Can I cross it out?
    Also, one of the debts is with an ex partner but it says "joint" giving the impression it's myself and my husbands debt when it isn't. Do I just write a note next to it explaining? And do I have to send the list of creditors anyway?
    Don't know what to do and wanted to get them sent off asap. Thanks in advance.
  • debtfreedreams
    debtfreedreams Posts: 9 Forumite
    edited 9 December 2012 at 6:42PM
    Hi

    I would be grateful for some advice regarding full and final settlements. I apologise in advance for the lengthy post.

    I am currently on a debt management plan with Gregory Pennington. I currently owe £12,000 and ideally would like to strike a full and final settlement deal. I was planning to go through Step Change or Pay Plan. When I advised Gregory Pennington of this they planted ideas that they were not independent as they are funded by the banks and credit card companies. I realise that this is a sales tactic but it did get me questioning things more.


    I live with my boyfriend and he luckily pays for the limited socialising we can afford. Anyway, the house (in my boyfriend’s name, as I couldn’t obviously get on the mortgage) has gone up in value by about £20,000 due to basic renovations, etc, and the fact that the area has risen in popularity. My boyfriend has kindly agreed to pay off my debt by re-mortgaging. I appreciate that a lot of people would advise against this. However, as a couple of the lenders have not frozen the interest, I am likely to be on the plan for another 10 years at least by my calculations and we both would prefer for me to be out of debt before 38!

    Essentially, I would appreciate some advice regarding whether to make settlement offers myself or whether to go through Step Change or Pay Plan.


    My main issues are:

    1. Step Change have asked for a breakdown of my outgoings as part of the registration process that I am required to do in order that they can make full and final settlement offers on my behalf. I effectively maximised the amount as allowed during the process with Gregory Pennington (i.e. some parts where I overspent/were not allowed such as limited socialising or help towards house renovations would be put into other budget parts as long as those parts came within the recommended allowances).

    I am therefore concerned as to whether if there are some indiscrepancies (Gregory Pennington will not give me a copy of the amounts offered) this information will get passed to my creditors who will get difficult.

    Would I therefore be better making the settlement offers myself?

    Do Pay Plan require this information before undertaking settlement offers on your behalf?



    2. I have met all my monthly DMP payments since I started (although Halifax have kept changing the payment date and so I’ve effectively defaulted a few times). I’m therefore concerned that they will not see me as a liability. As far as I am aware the debts have not been passed on.

    The only risk I could argue for is potential redundancy. I work in personal injury for a law firm and due to legislation cutting costs paid to law firms, many people will be out of jobs (there’s petitions on this basis).

    I hope to be able to get out before then anyway as I am not suited to the work and would like to get into PR/marketing. However, this would require qualification costs and taking an entry-level job. I am confident I will succeed and ultimately earn more in the long-term as I will be more likely to succeed in something I am suited to and enjoy.

    However, is it worth mentioning this? If so, how? And would I be better placed than Step Change or Pay Plan to make these arguments for a reduced settlement on the basis of this risk?

    3. Lastly, should I advise Step Change or Pay Plan that my boyfriend could re-mortgage for the whole funds but would prefer to strike a good deal or shall I advise them I only have half the amount owed? I am obviously concerned that if I advise them of the truth that they will simply tell the creditors, who will then demand the full amount. Whilst I appreciate that I am responsible for my debt, a lot of my debt has been made up of interest and charges and I was young and irresponsible then. I’m also wary of using all of the equity in our house.

    I apologise again for the lengthy post and thank you in advance for any help!


    Thanks
  • Hello

    This is my first time here and, probably like others here, I am in a constant state of panic over my debts. My husband and I have good jobs, but we have ammassed debts of around £30,000 on top of our mortgage. We have remortgaged as much as we can and are not coping at all.

    Our wages last a week or two and then all of our food, petrol, etc. has to be bought on credit cards, as our money all goes quickly on cards and loan payments.

    We've lived like that for years, but now we cannot get any more credit and our cards are all up to the maximum, so we can't get hold of any more money.

    We haven't missed any payments yet, but we are going to this month for the first time. We have always had to pay minimum payments bu drawign money out from other cards. Christmas has sent us over the edge.

    Neither of us can sleep, we are so worried, but we dont know what to do. Are we in debt crisis? I'm not sure whether we are, as we haven't actually missed any payments yet.

    Any advice would be gratefully accepted, thank you :(
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    In a bit of a dilemma with a debt collection company. Wonder if anyone can give me a bit of advise.
    I recently asked for an early settlement figure on an unstanding debt which company agrred to. They sent out letter of confirmation stating that upon receipt of payment account will be closed and my credit file updated to show yhe account as "partially satisfied".
    I have been advised that this is not acceptable as wording is very misleading, as it doesn't say anything about not be pursued in the future for the outstanding balance.
    I have wrote 2x letters to the company (BLS Collections) requesteing that neither they or any associate company will further pursue this debt in anyway whatsoever and that i will be released from any liablilty.
    They seem very adamant about not re-wording their letter so I don't know what to do.
    Do I pay the early settlement not knowing if i will be pursued further down the line for outstanding amount, or should I forget early settlement and enter a DAS instead.

    Hi Blindhat,

    Without seeing the letter it would be hard to say whether their wording is enough to cover you if you make the settlement and they then chased you for the remainder at a later date.

    Over the years I've spoken to people who've made full and final settlements and had creditors come after them later but this was usually when settlements were agreed over the phone and nothing was done in writing.

    I may help to give us a call (http://www.stepchange.org/Contactus.aspx) and we can talk you through your options.

    Regards

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    Frida wrote: »
    Hi James,

    First I would like to thank you for taking the time to look into that and let you know that I appreciate the help.

    So the question now is how should I proceed? I have a few things I would like to do and would be grateful if anyone can offer advice on how I go about doing them.

    1. I would like to ask them to prove that I owe this debt and was wondering if anyone has a template I could use when writing to them for this purpose.
    2. Is the local law center free and if so do you have contact details for them.
    3. Finally I was wondering what powers they have to enforce this debt if I continue to not acknowledge it.

    Cheers

    Hi Frida,

    I'm afraid we don't have template letters for this circumstance, it's a fairly unusual situation for such an old debt to come out of the woodwork.

    You could adapt this letter: http://forums.moneysavingexpert.com/showthread.php?t=2607247 to suit your situation. It's meant for credit debts but could be adjusted for a benefit overpayment perhaps.

    The law centre to contact would depend on what area of Scotland you're in. Govan Law Centre's website has a hand list of where you can get free advice depending on your area: http://www.govanlc.com/scotland.htm.

    As for what might they do next, it's quite hard to say. For overpayments that are a result of fraud then it could be dealt with as a criminal matter, but that doesn't sound like your situation. If you still received the benefit they could make deductions from that for payments. As they've passed the debt to a debt collector, they can pursue you for the debt, and if they cannot recover the money they may pass it back to the DWP.

    I'd recommend getting in touch with one of the legal advice organisations on the link above and they should hopefully be able to give you clearer picture about the best way forward.

    All the best.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    kaydizz wrote: »
    Hello,

    Do creditors require proof of rent/mortgage payments and copies of utility bills.

    Thanks

    Hi Kaydizz,

    For a Debt Management Plan we only ask for proof of your debts and proof of your income (and photocopies are fine). We show your income and expenditure budget to your creditors and they will generally accept the figures shown in there in good faith, so it's very rare to hear of them wanting any more information.

    Hope this answers your question.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    None of this makes sense to me and these two posts seem contradictory.

    If someone is just starting out on a DMP, their creditors will not believe they are in financial difficulty if suddenly they are offered more than the minimum payment when we have entered the DMP because we can not afford to make the minimum payments.

    I believe this is due to Stepchange's method of allocating out payments to creditors based on the minimum payment due rather than the total debt. I honestly consider that this is beneficial to the banks but not us but if you are funded by the financial industry, you will want to look after them ahead of us perhaps?

    Alice

    Hi Alice,

    Thanks for posting. I think my reply to your earlier post covers why we work our payments out this way: http://forums.moneysavingexpert.com/showpost.php?p=57568565&postcount=113.

    You can read more about how the charity is funded here: http://www.stepchange.org/Aboutus/Ourapproach.aspx.

    Hope this answers your query.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

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