Struggling with debt? Ask a debt advisor a question

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

    Could someone provide a template or suggestion on how I should reply to this letter from DWP:

    I am writing in response to your recent enquiry about the Prescription and Limitation (Scotland) Act 1973 and when recovery of debts owed to the Department may be time barred.

    The Prescription and Limitation (Scotland) Act 1973 operates to extinguish a cause of action in Scotland 20 years after it arose or where 20 years has elapsed since it was last acknowledged or since effective recovery took place.

    Provided the 20 year period has not expired, all avenues of recovery remain open to the Department. So if a benefit is is payment from which a deduction can be made, e.g. Income Support, Jobseeker's Allowance, State Pension, those deductions can continue. We can, as appropriate, also recover a debt from the estate of a deceased person.

    The Act also does not prevent us from instructing any of our private sector partners to pursue repayment on our behalf.

    What happens next

    If benefit is in payment, deductions will continue to be taken until the debt is paid back.

    If no benefit is in payment, recovery action will continue until a suitable repayment is in place.

    If no payment is being made we:

    -will write periodically as a reminder of the debt; the law allows us to do this
    -may ask private debt collection agencies to recover the debt

    Ti make arrangements to pay back the amount owed please contact us. Our telephone number is at the top of this letter.

    My personal view on this matter [feel free to correct me if I am wrong] is that any alleged debt becomes barred after 5 years in Scotland [the alleged debt was a result of overpayment of benefits]. I do not believe they have the power to take this to court and they have no way to enforce this debt unless I'm in receipt of benefits or state pension.

    So far I written to them to state that I do not acknowledge the debt and that I believe it is statute barred.

    My intended next step is perhaps to write and ask them to provide proof that the debt actually exists. Would this be a wise move and if so does anyone have a template and some guidance on the matter.

    Hi Frida,

    I've asked one of my colleagues in Glasgow to check this out. They're looking into it and I'll reply as soon as I hear back from them.

    Kind 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
    kaydizz wrote: »
    Hello,

    if you enter into a debt management plan when you have no arrears on your creditors accounts, are the creditors likely to take you to court or take further action to obtain a CCJ when your creditors accounts go into arrears when the debt management plan has been started

    Hi Kaydizz,

    A creditor can request a CCJ if you've not been making full payments and they've issued you with a letter called a default notice (usually sent within a few months of making reduced payments).

    In practice they often don't go down this route, particularly if you are making regular payments of what you can afford. As part of a DMP your creditors will be given details about your finances which will show a CCJ is unlikely to get them any extra money.

    If you were to get a CCJ while on a debt management plan then we'd talk you through how to set up a payment and the courts are usually willing to set installments at a similar amount to the DMP payment.

    Hope this helps.

    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

  • I_will_win
    I_will_win Posts: 49
    First Anniversary Combo Breaker
    Forumite
    edited 5 December 2012 at 6:13PM
    Thoughts of CCJs scares me off a bit to be honest, I have spoke to payplan and they are foning me back on thursday to see what i want to do. I have a loan with bank of scotland,credit card with barclaycard,nationwide,creation and flybe. They have reccomended DMP route, i have heard creation arent great to get on board?? I havent missed any payments yet,should i delibriatly miss the next payments and go into arrears???

    Should i also contact the creditors and say i am going to enter a DMP???
    “Just Say NOvember; Batten Down the Hatches”. #8 £39.30/£[STRIKE]90[/STRIKE]£40 NSD 25/25
    Sept 1st,Halifax, [STRIKE]£650[/STRIKE]/£0.
    Barclays,£[STRIKE]4950[/STRIKE]/£3600,Nationwide,£[STRIKE]2500[/STRIKE]/£2100, Creation £[STRIKE]2445[/STRIKE]/£2370Flybe,£[STRIKE]900[/STRIKE]/£860
    Littlewoods Catalougue £[STRIKE]1120[/STRIKE]/£210
    Argos account £[STRIKE]700[/STRIKE]/£330
  • Hi there kaydizz

    If you are recommended a DMP and return your paperwork to us as quickly as possible, we can usually get you up and running within a couple of weeks. During that time you will have the means to make your creditors aware of what you’re doing. They’re usually a lot more cooperative when they know you’ve come to us for advice.

    We don’t include bonuses or overtime in your budget as it’s not guaranteed (unless you know you’ll be doing overtime for a static period e.g. six months). If you wanted to pay your bonus into your DMP you are more than welcome to (and it is something we would recommend to get you out of debt a bit faster).

    Creditors tend to respond positively to free DMPs as it’s the most fair and realistic way to make consistent payments. Even if they rejected the plan, we would continue to pay them as that will show how proactive you’re being.

    Hope this helps

    Rachel


    Thanks for your help with this it is really appreciated. If a plan is set up in two weeks when would the first payment be due to the debt management plan. Have paid all of my payments on my outstanding creditors in the last week and would not be able to make a payment on the DMP in the next two weeks aswell. Is it possible to set the due date on a DMP so it comes out just after you have been paid for example.

    Thanks again
  • Frida
    Frida Posts: 6 Forumite
    Thanks for doing that James and I will be sure to keep checking for the reply.
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    I_will_win wrote: »
    Thoughts of CCJs scares me off a bit to be honest, I have spoke to payplan and they are foning me back on thursday to see what i want to do. I have a loan with bank of scotland,credit card with barclaycard,nationwide,creation and flybe. They have reccomended DMP route, i have heard creation arent great to get on board?? I havent missed any payments yet,should i delibriatly miss the next payments and go into arrears???

    Should i also contact the creditors and say i am going to enter a DMP???

    Hello,

    I don't know what Payplan's procedures are, but if you were starting a DMP with us we provide you with a template letter to forward to your creditors to notify them you are starting a DMP. This just lets your creditors know what's going on in advance of them getting the DMP paperwork from us.

    There's no need to deliberately miss a payment if you can afford it, though if you've been recommended a DMP I would think this month's payments might be a struggle.

    Again, Payplan might be different, but with our new DMP clients we recommend making a gesture payment to your debts of whatever you can afford in the month before your plan starts.

    As for CCJs, there's no guarantee that you won't get them. However, if you're already paying as much as you can every month towards the debt, then a CCJ isn't likely to get your creditors extra money, which makes it fairly unlikely

    Hope this helps.

    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: »
    Thanks for your help with this it is really appreciated. If a plan is set up in two weeks when would the first payment be due to the debt management plan. Have paid all of my payments on my outstanding creditors in the last week and would not be able to make a payment on the DMP in the next two weeks aswell. Is it possible to set the due date on a DMP so it comes out just after you have been paid for example.

    Thanks again

    Hi Kaydizz,

    We'll usually start DMPs at the beginning of the month, so the next start date will be early January. If you're not going to be paid until after that we could push the start date back to February and you could make reduced payments to your debts from your end in January (creditors are usually alright with this if they know a DMP is starting the next month).

    There is a small amount of flexibility on payment dates but we generally need the money early in the month so we can make sure it gets sent to your creditors later in the month.

    Kind 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

  • Hi Kaydizz,

    We'll usually start DMPs at the beginning of the month, so the next start date will be early January. If you're not going to be paid until after that we could push the start date back to February and you could make reduced payments to your debts from your end in January (creditors are usually alright with this if they know a DMP is starting the next month).

    There is a small amount of flexibility on payment dates but we generally need the money early in the month so we can make sure it gets sent to your creditors later in the month.

    Kind regards

    James

    Thanks James, Sorry just another question. Are all high street banks ok with a direct debit for a DMP being set up on their account. I have a basic current account with HSBC and no debts with them.
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    kaydizz wrote: »
    Thanks James, Sorry just another question. Are all high street banks ok with a direct debit for a DMP being set up on their account. I have a basic current account with HSBC and no debts with them.

    No need to apologise, it's what we're here for!

    Yep, your HSBC account will be fine for a direct debit.
    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

  • I have went to the clydesdale bank this morning to set up a new current account for my salary to be paid into, 1 hour later no further forward,still dont have an account. Getting a call at half 11 to talk mortages to help get pre approved!!!
    I didnt realise it was hard to get an account!!! Have payplan foning me at 11 to ask if i want to go ahead with a DMP, really dont know what to do???
    “Just Say NOvember; Batten Down the Hatches”. #8 £39.30/£[STRIKE]90[/STRIKE]£40 NSD 25/25
    Sept 1st,Halifax, [STRIKE]£650[/STRIKE]/£0.
    Barclays,£[STRIKE]4950[/STRIKE]/£3600,Nationwide,£[STRIKE]2500[/STRIKE]/£2100, Creation £[STRIKE]2445[/STRIKE]/£2370Flybe,£[STRIKE]900[/STRIKE]/£860
    Littlewoods Catalougue £[STRIKE]1120[/STRIKE]/£210
    Argos account £[STRIKE]700[/STRIKE]/£330
This discussion has been closed.
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