Egg card and default - problems with DLC - I am very worried please help!

freight0606

Hello all, I'm new here and would really appreciate some guidance.
I have an Egg credit card with around 5.5k on it and have been
having a rough time recently financially, I'm married with a 20
month old son and the pinch has hit us hard.
Payments to my Egg card have been a bit sporadic but I have been in
touch with them plenty to advise of my situation.
The other day they passed my balance to a debt agency called DLC
(Direct Legal Collections) who have started to pester me.
I haven't picked up the phone to them yet but they have sent an
initial letter followed very swiftly by another saying I have
failed to call them and threatening CCJ's and Bailiff visits.
Egg absolutely refuse to take this matter back in house although
the only reason it got to this is because a default letter they
sent to me was never received but they didn't want to know.
I have since made a formal complaint to Egg but expect nothing to
come of it.
My question is, where do I go from here?
I am a little scared as they are being very threatening and the
thought of bailiffs turning up during the way to my wife and son
horrifies me. I am prepared to make a sensible offer of payment but
I fear they will bully and push me to get more that I can't give
them.
I have read about requesting the CCA and have a ample letter, if I
do this and tell them does this freeze things until they either
respond or fail to respond in the time limit?
I'm just scared to make the call now as I don't know what to say or
what they will try to do so please help anyone if you can.
Thanks greatly.

~Beanie~

My experiences of DLC have been quite good. One of my credit cards defaulted and was taken over by DLC, I contacted them and they agreed to the same repayment terms as my card had previously been on, provided I kept up the payments.

You really do need to contact them ASAP before they do go for a CCJ or similar.

**Amy**

Hi and Welcome

I wouldnt advise calling the debt collectors as they will probably just try and pester you for the money, and pressure you into paying something you maybe cant afford. I would always write to them, never phone.

If you feel you can do the CCA letter then send it and see what happens. Im not sure about the ins and outs about freezing it all with regards to this, but i know lots of people on here have more experience about this.

I would also suggest posting an SOA (statement of affairs). You would be surprised what we might be able to help you save on etc. Its also a good way to see about your debts etc.

http://www.makesenseofcards.com/soacalc.html

With regards to Egg, they probably wont take the debt back now that it has been sent to the DCA.

If you do send a request for yoru CCA i wouldnt suggest sending them any payments, however if you do not decide to go that way then send them token payments of £1 or however much you can afford, via a postal order or cheque, with a statement of earnings attached (basically an SOA but showing what you can afford to pay them).

I hope that makes sense?

x

freight0606

Thanks so far, I appreciate plenty of comments to help me decide what to do as I need to call them today. The debt does still live with Egg - they told me they haven't sold it on - so I just hope they will take it back but don't hold out much hope. Anyone else offer their experiences with this and DLC - from Googling they don't sound very friendly or easy to deal with at all so I am very worried.
Can anyone comment on whether I should do the CCA option as it sounds like a good way of showing them I won't be pushed around. Does this elgally freeze things until the documents are sent? Should I call and say I am reqeusting the CCA and will be happy to make an arrangement once it has been provided?
HELP! My head feels like its about to explode, I have had a really crap time recently and have been tackling all my other creditors to get things into a workable situation but this one has really upset me and I need it sorted out as all the stress has really taken a toll on my wellbeing recently.
Thanks for all your comments, it's good to be among friends with similar problems.

freight0606

Bumping this one back up - anybody else offer any help please?

freight0606

Another bump, can anyone else help me please?

boredofbeingathome

I think you may be better contacting one of the debt agencies listed at the top of the board. If as you say the debt is still with Egg then i think the cca route would be only advisable if you are disputing the debt or the agency they have put it with.I could be wrong on that one though!

As you say, it would only be a delaying tactic and a more proactive approach would be to get in contact with them and outline proposals for repayment. Send out your pro rata payments ( as proof of your intentions) and request that all response be in writing.
The CCCS do an online remedy for this with template letters to send out to your creditors and a cccs number for your creditors to contact.

freight0606

Ok I have composed a letter to be posted (recorded delivery!) today, any comments appreciated.


Dear Sir/Madam,
I am now in the unfortunate position of having to deal with you regarding an outstanding sum of £ xxxxx owed to Egg Credit Card which has been passed over to yourselves to deal with, a matter which I am still in dispute with Egg over – and currently have an active official complaint with them.
I have so far received numerous phone calls from you and two very threatening letters demanding payment in full of the balance owed with the threat of further legal action.
I am unable to pay this sum in full, had I been able it would have been sent directly to Egg and the account would not have been passed over to you.
I am more than happy to come to an amicable arrangement to begin the repayment of this outstanding sum.
Due to my current financial circumstances which led to this situation and despite my numerous efforts to try and negotiate an arrangement with Egg, I am in a position to offer a monthly payment of £50. This is currently the maximum amount that I can afford to offer and an amount that Egg would have happily accepted.
I am willing to review this sum going forwards should my financial situation improve and would be happy to contact you should this occur.
I would also like to formally request that all future dialogue is conducted in written form and that you do not contact me by telephone, email or text message. It is my right to request this and continued contact from you in this manner puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997. Continued contact by telephone would also put you in breach of the Communications Act (2003) s.127 and at this stage I could report you to OFCOM, Trading Standards and The Office of Fair Trading, exposing you to a potentially substantial fine; but I am fairly sure you know this and so will strictly adhere to these regulations anyway.
I would also appreciate if you would stop sending me needlessly threatening letters as this letter demonstrates my complete willingness to pay this debt. Egg has informed me that they still own this debt, not DLC therefore as I understand it, you have no rights to bring any legal action against me – only Egg can do this.
I look forward to hearing from you by letter very soon and I trust that my repayment proposal is acceptable.

Yours Faithfully,

freight0606

Bump - anybody?

AGB863

That reads ok.

You have said to DLC that you have made a complaint to EGG - and that you are in dispute with them therefore DLC should not be trying to collect payment

The OFT guidelines for debt collection says in a couple of sections

Physical/psychological harassment
2.5 Putting pressure on debtors or third parties is considered to be oppressive.

2.6 Examples of unfair practices are as follows:

h. ignoring and /or disregarding claims that debts have been settled or are

disputed and continuing to make unjustified demands for payment

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.
2.8 Examples of unfair practices are as follows:

k. not ceasing collection activity whilst investigating a reasonably queried or
disputed debt.

freight0606

Hi there. Yes, Egg defaulted the account but I never received the letter from them saying they were going to do so. I rang them to make a payment arranagement to be told they had defaulted already, had I known this was going to happen I would have ensured I contacted them the few days before and it would not have happened.
My complaint centres around the fact that them posting the letter does not mean I actually received it, I don't expect anything to come of it but the complaint is in process at Egg. Are you saying that because of this I shouldn't be talking to DLC? They don't seem to think that is the case...

AGB863 wrote: »

That reads ok.

You have said to DLC that you have made a complaint to EGG - and that you are in dispute with them therefore DLC should not be trying to collect payment

The OFT guidelines for debt collection says in a couple of sections

Physical/psychological harassment
2.5 Putting pressure on debtors or third parties is considered to be oppressive.

2.6 Examples of unfair practices are as follows:

h. ignoring and /or disregarding claims that debts have been settled or are

disputed and continuing to make unjustified demands for payment

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.
2.8 Examples of unfair practices are as follows:

k. not ceasing collection activity whilst investigating a reasonably queried or

disputed debt.