Ask a CCCS counsellor a question

CCCS_Matthew

treading_carefully wrote: »

Why would a bank want to alter a credit agreement to stipulate specifically in the new agreement that it is for business purposes only and not covered by the Consumer Credit Act.?

If things went t*ts up for the debtor, ie cannot pay and bank goes through their legal processes to recover the maximum they can, what is the difference to both bank and debtor in the credit agreement being treated as a business loan as opposed to being covered by CCA. What is the advantage of it being covered by CCA.?

Surely a bank can instigate bankruptcy proceedings in either case and get the same outcome.?

Appreciate any feedback on this issue.

It's difficult to answer this without knowing more about the actual debt in question.

Debts up to the value of £25k are only covered by the Consumer Credit Act. How much is for the debt in question? If it's a debt not covered by the CCA, it means the creditor has to take enforcement action via the High Court rather than the county court. If the creditor in question has realised that the debt is not covered by the CCA then they would be leaving themselves in a possible situation to where the debt would be unenforceable due to the fact that the agreement does not relate to the type of debt.

Not sure whether that helps at all?
Matthew.

CCCS_Sue

stevieblunder wrote: »

Hi there, can you advise my on your pro-rata calculation and how you consider 'monthly contractual' payments rather than just divvying up debt in proportion to overall amount owed...

What if debts get to CCJ stage and the numbers are different to what a judge decides? I may owe over £1000 on a payday loan for example - but my payment is only £5 vs a much higher payment for another creditor who i pay £50 per month too. CCCS have entered £1 as the minimum contractual payment.

Either way is fine with me - just don't want the worse case scenario of a CCJ which comes out asking for a higher amount...

Hi stevieblunder and thank you for your message

The pro rata payment is calculated on the surplus amount available on the budget after paying all your priority bills.
This is so that all the creditors get a fair share of whatever is left.

The calculation is:-
Individual debt x surplus per month divided by total amount owed = individual offer

If you received a CCJ asking for the full payment to be made immediately or asking for a monthly instalment you could not afford, you could request a more affordable monthly instalment is set. If this were to happen, then you can contact us for further advice.

If CCCS have advised that you pay £1 month token payment, then this means you are not able to make a reduced pro rata payment, as you have no surplus in your budget, and it is a ‘gesture of goodwill’ until your circumstances change.
It is not a minimum contractual payment. This is the amount you would be paying if you could afford the full amount.

Hope this helps!

Regards
Sue

teas_are_50p

I had a debt of just over £5000 on a credit card, which the credit card company sold to Arrow Global. Arrow Global then used a solicitor Bryan Carter to CCJ me for approx £375.00
I thought this a bit strange but I was ordered to pay £50 a month.
In the mean time it was passed back to Arrow Global even though I had been paying regularly but still have £25 to pay to satisfy the CCJ. I emailed Fredpay (who take the payments for Bryan Carter / Fredrickson) and they said if I pay to them £25 they will inform the court that the CCJ is satisfied.
Should I send them a payment? Arrow Global havn't updated my credit file since January 2009 and as I havn't been persued by anyone for over a year now I don't really want to approach them. Also I can't understand why I would get a CCJ for a percentage of the debt?

CCCS_Sue

leemint wrote: »

Hi,

I've done the debt remedy on your website and it gave me the two options of letting you deal or deal myself. I've decided to deal myself, but just not sure where to start really, also I am receiving alot of telephone calls at the moment from withheld numbers. Do you recommend that I get them to remove my number from there system.

thanks

x

P.S Also on that note, when we make the payments by standing order do we need to ask them for bank details etc

P.P.S I have sent a request to yourselves for the DMP help, do you know how long this takes?

Hi leemint and thank you for your message
You can ask your creditors to remove your details from their telephone database and communicate in writing only.
I have attached a sample letter you can use :-

To whom it may concern

Dear Sir/Madam

I am writing to ask that you no longer contact me by telephone as your calls are causing me considerable stress due to the frequency, and that they are being made at inappropriate times. Please remove my telephone number from your database and send all future communication in writing to my home address.

I have provided the most recent copy of my income and expenditure to make you aware of my current financial situation. I will continue to make my payment of x on the x of every month and will keep you informed of any changes in my circumstances as I am keen to resolve this issue as soon as possible.
I understand that following this request if you continue to call I can contact the Office of Fair Trading to make a formal complaint.

Please confirm in writing that your records have been amended.

Yours sincerely

You would need to choose whether you wish to do the DMP or make the payments yourself.

The Debt Remedy booklet will advise you further, regarding making the payments yourself, but if you need further assistance with this, we do have a Debt Remedy Support team who can help you. The telephone number is in the booklet.
If you have sent off for the DMP pack,then this should be with you shortly,but again, the Debt Remedy team are there if you require further help and assistance

Regards
Sue

CCCS_Sue

AzimScot wrote: »

I have a few questions:-

1. If you take out a DMP/IVA or declare bankrupt how much does it effect your credit rating? How many points are removed? How long do they remain on your file? Does this include during the time you take to pay off your DMP/IVA?

2. Trust deeds are for Scottish citizens I understand you can write off any debt after 3 years without any fee what so ever and minimum payment can be about £100 per month?

3. How easy is it to repair and improve your credit rating after DMP/IVA?

Thanks.

Hi AzimScot and thank you for your message

I have attached a link to a booklet called ‘Credit Explained’ which will give you further information regarding your credit file
Both Bankruptcy and an IVA would remain on your file for 6 years.

click here

In most cases , a trust deed would mean you making a monthly contribution to the trustee based on your surplus income for a known period, usually 36 months. Any fees involved in setting up the Trust Deed are included in the monthly payments.

If you feel you may be eligible to look at theTrust Deed option, then I would recommend that you call for an appointment to speak to one of our debt counsellors for further help and advice

If you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.
With regard to improving your credit file, I have attached a link to a section here on Money Saving Expert which has further help and advice.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score


Regards,
Sue

nataz

BIG question - can I or my children have a savings account whilst on a DMP?

Im about to start a DMP and have just short of £1000 in savings belonging to both my children. Do I have to declare this? And can I put it in a savings account? Obviously I would prefer to not have to pay creditors with it.

Or should I just put it in a piggy bank??

CCCS_Sue

rainbowj63 wrote: »

I am have an telephone appointment next week with CCCS but am really fretting. I have no debt with my bank at all and am worried i will have to close my account and have trouble re - opening another bank account - i think i will be doing a DMP for my debts and wonder how this affects my bank account ?

I went bankcrupt years ago and found it so difficult to get someone to give me a basic account i am dreading doing it again as my credit rating is so poor.

Hi rainbowj63 and thank you for your message

If you have no debt or overdraft at your current bank, then you would not need to change to another bank account.
The counsellor will discuss all your options and answer any other concerns you have at your appointment.

Regards
Sue

CCCS_Sue

clelmt wrote: »

hi was wondering i am a self employed childminder with £6000 worth of debt. can you help self employed people with the online debt remedy

Hi clelmt and thank you for your message

We do not have an online Debt Remedy for the self employed but you can make an appointment to speak to one of our debt counsellors on the telephone.
To book an appointment with one of our trained counsellors you would need to contact our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards
Sue

CCCS_Sue

nataz wrote: »

Hi I have just received the initial letters for my DMP this morning. I put an application in last week for a new bank account with a different bank to my current on but have not heard anything from them yet. I have a large overdraft and a credit card with my bank, should I postpone telling them about my DMP until the new account is up and running, with all direct debits transfered? What do I do about the credit card payment? Should I just pay this one? I only had one loan direct debit, the rest I just paid when due, so I have cancelled that.
Also the CCCS letter asks for the month the DMP is starting, but Im not sure what to put.
Finally, do I have to declare any savings I have, most of which belongs to my kids?
Thanks

Hi nataz and thank you for your message

You need to send a copy of the ‘Notification of DMP’ letter to each of your creditors, along with a token offer as a goodwill gesture until your plan is set up.
It is better to have all your money transferred into your new bank account before sending your current bank the letter, but you can offer a token payment for the credit card. If you try and make the full minimum payment on the card, it could leave you short to pay your priority bills.
The DMP normally starts on the first of the month. As I do not have information regarding your account, I cannot say which month this will be, but it is normally after we have received all your details and the new account is set up.
I would recommend that you call our client support team if you are not sure.

We would need to know of any savings or assets you have in your name.

Regards
Sue

CCCS_Sue

hackenbush wrote: »

Can you confirm that if I send a letter asking for the CCA then the CC Co have to stop any demands for payment until they supply it?

thanks

Hi hackenbush and thank you for your message

A CCA request is used when you are being asked to repay a debt that you have no recollection of ,or if you are disputing an amount requested.
You need to put the request in writing and enclose a fee of £1.

A creditor is not entitled to enforce the debt until they supply the information.

Regards
Sue