Threatening Court Action

kazzaj

Hi guys
I posted an earlier thread, but didnt get much help, its a tricky one though, so maybe I need to seek specialist advice.
I owe my son's nursery £3000 in outstanding fees following personal problems I was going through last summer when I missed quite a few payments. When my son first started the nursery manager told me that they would chase for payment every five weeks if it had not been received, and I know I was niaive, but because they didnt chase me, I didnt think the amount I owed was any where near as much as it is.
I am now paying regularly every week, but cannot afford to pay the amount I owe in arrears. they have forwarded it to a debt management company who called me last week. They want payment in full by the end of the month else they will commence legal proceedings. I offered £50 per month while I try and get some money from somewhere. They asked me to try and get a loan or borrow against any equity in my home, and gave me two weeks to put a decent offer together, but said they would not consider less than £750 per month. My credit rating is shot, I will not get a loan and besides, do not really want to add interest or have to take a secured loan for something that I have not even signed a CCA for.

Does anyone know what I can do in this situation, and what will happen if they take me to court?

Many thanks,

tasha38

kazzaj

im fairly new so dont have much specialist knowledge but the CCCS seem to be terrific according to lots of peeps on various threads. even the CAB are fab, if you can get through to them.

what kind of contract did you sign with the nursery, if any?

also from a recent encounter with a CAB worker regarding someone elses finances, debt companies tend to bully people into paying full amounts- this is how they make their money. if they already had a distress warrant(i think thats what it is called) it would be a different matter but as there isnt one and you are offering to make payments, my understanding of this is that they should accept your offer. however my memory is vague around this, so please check with specialist agencies. mind you seeking advice/help from specialist agencies and getting them to contact debt agencies, i feel gives you more power.

hope this helps
good luck

mountainofdebt

I remember your earlier post and I did reply to it but I don't know what, if anything has happened in the last 3 weeks as I've not been around much....been away and came back only to have some personal problems.

Anyway I really do think (and it sounds as if you haven't done this) is to sit with the nursery and agree the amount outstanding....apologies if you have done this.

Once the figure has been agreed you would need to put together a repayment plan in writing. Keep a copy.

I personally think that even if it did go to court and you could prove that this is all you could afford a judge would make you pay it back at a higher rate - better to agree a realistic figure than one you know you won't be able to stick to.

kazzaj

The paperwork I signed was more an application for a place really, just giving details of emergency contacts etc. It doesnt mention anything about payment, although on the back you are supposed to sign to say that you have seen certain documents, such as their terms and conditions. I never had a copy of this, so wrote this on the form and initialled it. A copy has never been provided.

Mountain - you dont think a judge would accept £50? I think I would be struggling to commit myself to more than that on a longterm basis.

What will happen in court. Will they issue a CCJ or not, being as a CCA is not involved here?

I was also concerned that the debt recovery company were telling me to go off and get a loan. From reading other threads, I was under the impression that this is bad practice?

thanks to all

mountainofdebt

Do you REALLY owe this money?

This is what we were saying to you in your previous thread!!!! Why are you so ready to accept that you owe this figure on the nursery's say so alone????

As for my comments in my previous thread what it should have read (and this is what comes of thinking faster than you can type - especially when you're using the internet at work!) is that if you can prove that £50 is all you can afford I doubt very much whether a judge would force you to pay more.

As for getting a loan I would tell the debt collectors where to go! (my guess is that then the 'problem' is someone elses and not theirs or the nursery's)

But PLEASE check that you do owe this money......it does seem an awful lot for the times your daughter is actually there.

mandi

hi,
forget the threats of this company "not " accepting any less than £750 a month Kazzaj.. they are full of hot air!! your offer of £50 is more than fair as long as you keep up with the payments.. secondly court action is a long way down the line, as usally companys that chase you for money, and cant get it.. just go back to the company you owe it to and say they cant get it, and its then passed on to another to try and collect, and so on

These debit collection agencys are paid to get the money back, and in my own personal experience they are a bunch of bullys, but have very little power!! Ive had people lie to me ,swear at me, and so called "calling cards" telling me that they are gonna turn up at my door!! So stick to your guns, and dont offer anymore than you can afford, and if you need any more help or good advice contact the National debit line on Tel 0808 808 4000. they can offer lots of help and support

kazzaj

Thanks Mandi your advice and support is appreciated.
I know I am the one who has got myself into this mess, but its nice to hear a few words of encouragement. I will stick to my guns. I have to phone again on Tuesday and will reinforce my offer of £50 per month. Although she did say that they normally commenced their legal proceedings at the end of each month so it maybe that they still decide to pursue this?
Thanks anyway.
K

mandi

oh and another thing.. dont give them your landline number .. theyll just bombard you with calls.. give them your mobile if you must that way you can see whos calling ..

mandi

kazzaj wrote:

Thanks Mandi your advice and support is appreciated.
I know I am the one who has got myself into this mess, but its nice to hear a few words of encouragement. I will stick to my guns. I have to phone again on Tuesday and will reinforce my offer of £50 per month. Although she did say that they normally commenced their legal proceedings at the end of each month so it maybe that they still decide to pursue this?
Thanks anyway.
K

Shes talking utter rubbish!! put your offer in writing to them, also include details of your income and outgoings, include everything right down to pet food, clothes, tv licence kids pocket money anything that you spend money on at all , and be polite but firm, please let me know how you get on, we all can get into situations we dont plan, youll be fine . Promise

jen_jen_2

the person you owe is the nursery, will they accept the £50 and call off the debt collectors?

sometimes its easier to go back to the orgional creditor and negotiate directly

Dammam

I hate these bullying tactics they use, takes a person with a strong stomach to do that job I guess.
I had soooooo many similar calls, letters etc when I was in debt. One of them even got my work phone number and started calling there! The same one that called me a liar and kept hanging up on me while I tried to explain why I didn't have the money they wanted - I was at my lowest ebb then!
But I persevered through the threats and came out the other end. They're relying on you to crack under the strain, and they don't give a damn what happens to you (hence encouraging you to take out secured debt to pay them off - they'd probably come after you for THAT debt once you fell into difficulties).
I'm not sure if it's too late to agree terms with the nursery, but it's worth a try - also get a full breakdown of what you owe.
CAB sounds an excellent idea.

Keep strong, keep smiling and good luck - I'm sure you'll get through this just fine (as long as you don't listen to any nightmare tales from the debt collectors).