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Worried_Soul

CCCS_Sarah - my appointment is next week. But I still don't know what to do. My husband thinks that I should just get as many jobs as possible to keep paying these bills and study full time. He is worried how my bad credit report will effect us trying to buy a place together in the coming years. But I am just so depressed and I think that studying full time and working long hours will literally push me over the edge. I spend more time thinking about my debt than anything else. I'm online now suppose to be researching but all I do is worry about my debt all day long.

CCCS_Sarah

janesyd wrote: »

My husband has received a letter from a collection agency for a demand of over £6000, for a bill we paid in full 3 years ago.

My husband had an old Barlcay loan sevreal sevreal years ago that ended up in defalt, hense this went to a CCJ. basically we ended up paying a collection agency the aggreed £20 a month, until September 2005 when we we came into some money and asked for a full and final settlement. As there figure was slightly higher than we could afford we gave them a figure we could afford to which was accepted. Hooray the god knows how old debt was finally paid.

Now we have recently had a letter from a differant collection agency demanding over £6000 saying the debt was never repaid to barclays. As we haven't got any records any more of the company that we paid the 'FULL AND FINAL SETTLEMENT' to we have no idea who to contact to prove payment was made and nothing is owing. We were told that if we can provide a bank statement with the payment made in 2005 then they will wipe the slate but a phone call received today they have now said WE need to contact barcalys to prove the debt is paid and they won't accept the bank statement. In between all this we have been thretened with court action and bailiff's.

I have spoken to my MD at work about this situation and he tells me to just write to them refuting claims for monies as the debt was paid over 3yr's ago and THEY have to prove we owe the debt. But as we have had threats to which will distroy our credit rating which we have worked really hard on the last 2 yr's to correct I don't just want to leave it.

Could someone help me as to what i should do next and what legal rights have I got?

Would you be able to get hold of an old bank statement to prove that you made the payment? Your bank should hold records for the past six years.

This is quite a common problem with full and finals, as often the amount is paid and accepted, however the creditor makes an admin error and the remainder of the balance does not get cleared as agreed.

Can you remember which collection agency you paid the full and final payment to? It may be worth contacting them and asking for a subject access request. The collection agency then will have to provide you with all the notes on your old account. Hopefully there will be some note made on the account to back up that you have been offered the amount so this along with proof of payment should be enough to back up your case.

ss_villa

Hi everyone,just joined this site after reading through about 50 pages last night about DMP's

ive now set up a DMP with cccs and now waiting for my welcome pack and i also applied for a new basic bank account with barclays which is in the process.
just a question or two, i have a car with black horse on finance,is this included in the DMP as its on finance or will i have to set up a new direct debit when i get my new account running,? also, if it is not included in the DMP and i set up a new direct debit for it,being as its black horse will my current loan with lloyds tsb be able to have acsess to my new account even if i have only set it up for black horse?

When i get approval for my new bank account should i then cancel all direct debits and switch only the ones i need which aint included in DMP?
when do i tell the bank i have switched accounts?

and finally, now that i have set up a DMP with cccs,do i continue to pay credit cards,loans etc..... untill i recieve my welcome pack or shall i just cancel direct debits and wait till my DMP is set up so i can get some money behind me.

many thanks for any help.............glad this forum is here to help people in the same boat out.

CCCS_Sarah

creditwreck wrote: »

Hi I've been on a DMP (my own)with CCCS for a couple of years it is great, and have been paying off debts

My husband and I brought a house 5 years ago pre-DMP and with a 5 yr fixed rate (HSBC) will we hav a problems getting another fixed rate in Apr when this one runs out, and would it be at a higher rate than Normal????

Thanks in advance for any advice!!!!

Depending on which company you apply to you would pay a higher rate, as you would be classed as a higher risk to the provider. However once your situation improves, your credit file will improve and therefore you would stand a better chance of getting a better rate.

I will PM you with a number for a mortgage broker that we refer clients’ to, they will be able to look at the market for you and see what rate you could get.

GAZZA544

Hi we have BR las tmonth with financial problems but as we had 2 secured loans on the house which the keys have been given to the mortgage company bu what do I tell the secured loan companies as they are ringing non stop asking for immediate payment.one knows my works number and keeps calling reception and asking for me and I am starting to worry that my employer is getting fed up with it.I have told them not to ring employer but they keep doing it.

CCCS_Sarah

mui7087 wrote: »

Good morning, can i first of all say what a fantasitc site this is. I have spent many sleepless nights worry about my finances and feel sure that I can find all the help I need here.
My problem is this, I am already in a self managed CCCS DMP and upto now it has worked just fine with most of my creditors accepting the payment plan. However, Barclaycard has called me and said that they will not start to add reduced interest to my account and are 'bullying' me for more money. I have explained that this is not possible and the only way I could di it would be to default on payments to my other creditors, something I am not prepared to do. They said that they would allow the current agreement to continue for 3 months more but would then insist on higher payments. Can they do this, I know that I cannot give anymore and am concerned that they may start legal action? Once more, Barclay are one of the lower debts that I have. Can I request a long term agreement from them.

Many thanks in advance for your advice

Stand your ground! Sounds like you are doing a great job. The key is to stick to the reduced payments, as these are fair to all your creditors.

How long ago did you set up these reduced payments? If it is over 12 months, it might be worthwhile just sending an updated budget to keep them onside.

If you need help completing a new budget, we would be more that happy to help you put together a new one, you would just need to call for a new appointment.

Even if it gets to the three months and you don’t increase your payment and they say they are not accepting your reduced amount, sent it anyway!

Hope this helps a little

Sarah

CCCS_Sarah

parsamonious wrote: »

Quote:
Originally Posted by parsamonious
Hi

We'd really welcome your comments on our situation as posted elsewhere on the forum. I've cut and pasted our SOA below and would be very grateful if you could help. We have an appointment with an IP in a couple of weeks time so have some time to change our minds about going down that route.

"brief history, myself and wife have sank into financial dificulty, no excuses, simply spending more than we earn. We've tried to borrow ourselves out of it but just gone further under, we're at the point that although we both have good jobs and earn well we simply don't earn enough to cover all our debts. We've sold the toys to cover monthly payments. Recently been to CAB who advise IVA and have an appointment with them. However reading this site it seems that we may have an alternative with CCCS. I've filled out their forms and reckon with CCCS and huge efforts to reduce our monthly expenditure we would possibly be able to avoid IVA. I'd really appreciate any thoughts, (already accept that the Sky will have to go, we get broadband phone & telephone package) We moved house just before the down turn in house prices (not in negative equity yet, but not really concerned as we don't plan to move for decades)"



Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1570
Partners monthly income after tax....... 3262
Benefits................................ 72
Other income............................ 0
Total monthly income.................... 4904

Monthly Expense Details
Mortgage................................ 1198
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 195
Electricity............................. 29
Gas..................................... 50
Oil..................................... 0
Water rates............................. 25.55
Telephone (land line)................... 11
Mobile phone............................ 60 2 mobiles
TV Licence.............................. 11.61
Satellite/Cable TV...................... 48 will reduce to basic package at 21
Internet Services....................... 0 inc with sky package/line rental
Groceries etc. ......................... 400 Intend to get this down to 300
Clothing................................ 80 Will aim to cut this right back
Petrol/diesel........................... 250 should read 350 (2 cars - need both due to work requirements, not luxury)
Road tax................................ 30
Car Insurance........................... 34
Car maintenance (including MOT)......... 30 should read 45 for above reason
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 525 CSA payments
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 20
Buildings insurance..................... 20 (combined buildings & contents ins. amount is 36)
Contents insurance...................... 16
Life assurance ......................... 25
Other insurance......................... 185 This relates to the endowment policies for the mortgage
Presents (birthday, christmas etc)...... 30
Haircuts................................ 80 This is for 2 adults and 2 kids but will reduce to 60
Entertainment........................... 40
Holiday................................. 100 Accept that this will be cut back to minimum for next 5 yrs
Emergency fund.......................... 0
Total monthly expenses.................. 3523.16

Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 271000

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 260000...(1198).....0
Total secured debts........... 260000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan...........................11000.....258...... 5.6
Loan...........................10500.....239...... 5.6
Loan...........................4600......203...... .0
Credit Card....................17500.....410.......15.0
Store Card.....................445.......42........26.49
Credit Card....................8862......222.......18.9
Loan...........................24500.....370...... 9.9
Overdraft......................1000......50....... .0
Credit Card....................250.......7.........17.9
Credit Card....................12750.....241.......17.9
Total unsecured debts..........91407.....2042......-

Monthly Budget Summary
Total monthly income.................... 4,904
Expenses (including secured debts)....... 3,523.16
Available for debt repayments........... 1,380.84
Monthly UNsecured debt repayments....... 2,042
Surplus(deficit if negative)............ -661.16

Personal Balance Sheet Summary
Total assets (things you own)........... 271,000
Total Secured debt...................... -260,000
Total Unsecured debt.................... -91,407
Net Assets.............................. -80,407

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========
two adults one child living in house, two cars (nothing flash)which we both need for work

Hi Parsamonious

I have highlighted in blue some areas that may be questioned by your creditors if you approached them with your budget.
If you are experiencing financial difficulties it unfortunately also involves changes in lifestyle, to reduce expenditure in the aim of becoming debt free quicker and reducing costs to reasonable figures that your creditors would expect.
Things like holidays would normally be classed as luxuries so would be something creditors would be unhappy about, and to try and reduce if possible areas like food, clothing and haircuts. I am unsure about what the other insurance cost is for but this does look high.

If you have an appointment booked with a counsellor, or have used Debt Remedy the costs highlighted will normally be questioned.

Regards

CCCS_Alan

Alan,

we really appreciate your reply but I realise that my SOA was rushed and misleading, it relates to what we do now, before we tighten our belts. (which probably explains our situation) I have answered your blue replies with red to clarify. What we really want to know is would it be likely that with around £1,100 per month to pay off around £2,000 would we be able to manage with a DMP rather than an IVA and would loan & card companies freeze payments. They are all main lenders.

Looking at your budget, it may be possible to look at a dmp, if the areas highlighted were reduced as this would reduce the term down.

When do you finish paying CSA? This will make a huge difference to your budget also.

How many children live with you? Looking at your Child Benefit you are only receiving the amount for 1 child (well slightly less, should be £18.80pw). You mention in hair cuts 2 adults 2 children?? Is one of these the child you pay CSA for?

I would recommend you have a telephone appointment, so we can have a good look at your budget and discuss this in detail with your options.

If you would like an appointment, please call 0800 138 1111.

ineedhelp2008

CCCS_Sarah wrote: »

Hello,

I would suggest that you both have an appointment so that we can take a look at things in detail for you.

Tax should be classed as a priority so this will need to be budgeted. Sofas are generally done on a personal loan not hire purchase. What finance company is it? If it is Hitachi Capital or Black Horse I am 99.9% sure it is a Personal Loan, however if it is a company like brighthouse the chances are is on HP.

For your unsecured creditors, pay what you can afford until you have an appointment and cancel your unsecured direct debits to insure you don’t incur charges from your bank.

If you would like an appointment please call 0800 138 1111

Hi Sarah

So does this mean that yes, the sofas will be repossessed if on a Personal Loan?

CCCS_Sarah

c7sdus wrote: »

Hi,

Hope someone can advise. I have been paying Payplan £1189.72 for the last 29 months and have never missed a payment. On the PP website it states that my DMP started at £72011.56, I have paid £34501.88 and have £37509.68 outstanding. If I carry on paying my monthly ammount then creditors should be paid off July 2011.

Payplan have told me that this does not take into account any interset added since DMP started and that they will contact all creditors at end off plan to apply for interest to be removed from accounts. What they are not able orwilling to tell me is how successfull they are in having interest removed.

I have contacted all my my creditors this morning as it has really been worrying both wife and I and there has been £11.5K in interest been added, most of it by Lloyds TSB (aprox 10K) so my total outstanding as of right now is £49081.02 not the £37509.68 that payplan have.

Can anyone please advise how successful comany's like Payplan are in general but with Lloyds TSB particularly in having this interst removed.

cheers

C7

Hi C7,

It is a really tough situation, as there is no way of making the creditors stop the interest and charges and they are under no obligation to pay them back either.

As far as Payplan are concerned, I am unsure of their success rate. What I would suggest is, if the creditors do continue to apply the charges then this is just going to make the debt increase, so there may be other options that are available to you – so I would insist on a review of your account.

CCCS_Sarah

Worried_Soul wrote: »

CCCS_Sarah - my appointment is next week. But I still don't know what to do. My husband thinks that I should just get as many jobs as possible to keep paying these bills and study full time. He is worried how my bad credit report will effect us trying to buy a place together in the coming years. But I am just so depressed and I think that studying full time and working long hours will literally push me over the edge. I spend more time thinking about my debt than anything else. I'm online now suppose to be researching but all I do is worry about my debt all day long.

When you apply for a mortgage, the lender will make an assessment of your credit file and decide whether you would be classed as a ‘risk’. The higher the risk you are to the lender generally the higher interest rate you will pay. There are always going to be lenders out there that will lend in most situations, but they will charges a higher rate of interest.

You will need to look at your situation and decide what is the best option for you, id it clearing your debts? Finishing university? Or buying a house?