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CAR248

Hi,

I am looking for some advice. I am currently struggling with various debts and am going to write to all creditors with a statement of income/expenditure and offer them a payment. I have a few questions though:-

1. I live with my fianc! however at the moment we only have my income (which for the last 8 months has been reduced due to reduced hours and then a pay cut). My fianc! is starting his own business and hopefully we should have another income from that. At the moment the all outgoings for the household are coming out of my wage. In my statement can I also include outgoings that relate to my fianc! but not me? Also he has a few credit cards as well and is considering writing to ask if these companies will accept reduced payments for now. Can we send the one statement to all companies, showing all debts (although none are joint) and showing what surplus we have at and then that being split between them?

2. I am really worried that the creditors will turn round and say no to my proposals. If so what happens next?

3. If accepted how long before the creditor will be looking to review the situation?

4. If my situation improves, how soon should I advise the creditors? With my fianc! starting a new business, until that settle downs we won’t know for sure how much more a month we can pay. If I have extra one month should I just split between the creditors?

5. My fixed rate mortgage ends in July and I will go on to the variable rate which should save around £160 per month provided the base rate stays as it is for now. Do I have to immediately advise the creditors of this?

6. I have a bank account at the moment with Lloyds and also a credit card with them, which isn’t in arrears and all payments are up to date. Although I know all creditors will have to be included. Can Lloyds take the funds from my account using setting off (I think that’s what is called). If so what are they entitled to take – the full outstanding balance or just what is missed on the credit card. Or if they have agreed to a reduced payment will that be ok.

I would appreciate any help. Hopefully this message isn’t too rambling. I would be grateful for any help as I am getting to the stage that I don’t know what to do next.

Thanks in anticipation.

CCCS_Sarah

cheapopete wrote: »

Hello good CCCS people,

Last year I was put in touch with DFD via the Debt Advice Trust. I have signed an IVA proposal, but now everything seems to have ground to a halt due to a complete lack of communication between DFDs own departments.

The IVA was proposed on the basis of Northern Rock converting my mortgage to interest only, thus reducing my monthlies and leaving money available for my other creditors. (2 cards, one loan, one bank mobile phone etc) But it was all pushed through before NR had received my application to convert, which they subsequently have rejected, stating that I did not match their lending criteria.

DFD said that I may have to go bankrupt, but in the mean time someone from their end spoke to NR, and NR sent me another (same) form, with a letter saying that they had spoken with DFD and also their requirements had changed recently, so would i please fill in the app.

I contacted DFD, and faxed them the forms asking for advice on how to fill them in. They failed to call me back, and when I called a few days later, was told, we've been in touch with NR and they can't help you, so unless NR's 'Help' department can do something the IVA won't go ahead.

As it stands, creditors were contacted, but the Meeting of Creditors, was postponed. During this time, I have been making full payments to NR, but have some arrears to sort out.

My main financial prob is that after events that ocurred last year, I can only pay the full mortgage if I get overtime (of which there's plenty now) or find extra work, and there's nothing left to pay the other debts,(according to DFD's 'suggestions' about my outgoings on the IVA).

I have suffered with tinnitus for many years, and am very disorganized. This makes form filling very stressful. I have been very depressed for various reasons. So I could do without this confusion. I work in a machine shop without too many problems.

Ironically, in the last week or so, I have started to become angry about the whole situation, which is better than the depression.

I have a reasonably friendly solicitor, and was thinking about a letter from him to dismiss DFD.


Thanks in advance for any help.

Pete. :¬)

Hello,

Thank you for you message.

As your IVA is legally binding I would recommend that you speak to your IP and if you have no luck, you could make a complaint to the Insolvency Service. I have attached a link to their website and complaints procedure for you http://www.insolvency.gov.uk/howtocomplain/complaininssip.htm

Sarah

huskypup

Hello

Some advice please

I owe alot of money and am in the process of sorting out a DMP (not sure if going to sell administer or go through CCCS), we have worked out that if we sorted out the debts in my name we can pay the ones in my husbands name ourselves - because technically at the moment I don't earn enough to cover the minimum payments in my name - we are using HB's money to pay them.

Our mortgage is with the one account with some where along the line is underwritten by RBS, as this is an offset mortgage all our money gets paid into this account and all our direct debits come out of it - it is the only bank account we have....(bear with me please)

The credit cards I am struggling to pay are Tesco, Egg and Barclaycard and I have a Tesco loan, now I have just realised that Tesco are also somewhere along the line underwritten by RBS - where does that leave me with the one account and my mortgage - will they try and take any moneys we have (which we don't technically have because any money that is left at the end of the month is taken off our mortgage).

I have spoken to Barclaycard who have reduced payments for 3 months then I am to contact them to sort out whether I am going to approach them for a DMP or to let them know if I am going with a company to do it for me. Tesco, have advised me to cancel next months DD - so I default them contact them straight away and we can sort out reduced payment for a couple of months until we decide which way we are going - Egg I am waiting a phone call back through reduced payments shouldn't be a problem (according to the lady I spoke to).

So what Im asking is - what do I do about our bank account - as it is our mortgage and my husband is going to continue paying all of his debts.

Help please.

CCCS_Sarah

Phil-1956 wrote: »

Thanks for the reply & subsequent phone conversation. I asked the solicitors to convert it to a Tomlin order & they agreed. Their terms however are exactly the same as the terms for not proceeding with the CCJ. ie I have to pay them the full amount owed including interest that has already been added on to the loan for the original term (Until March 2015). Failing that I can pay them £490 per month. (Original loan payments were £384 per month) This is plainly impossible unless I go into further arrears with the mortgage & pay no other creditors (My DMP payments are £200 per month).
Any advice ? Can I file a defence that they are being unreasonable & unrealistic. That their demands are prejudicila to other creditors, & that they should not be demanding the full amount of interest as the term has another 5 years to run (& I would be entitled to a rebate if I could repay early).
Thanks in anticpation

Phil

Hello,

Thanks for your reply.

Seems like the creditor is not being very helpful. You could try this from a different angle and approach the court directly. You could apply for something called a Time Order. This gives the court the opportunity to reset the terms and payments of the arrangement. You could attach any relevant paperwork e.g. that a CCJ would affect your work, you have tried a Tomin Order and the creditor is not willing to reduce the payments so still unaffordable so now you are asking them to help.

It may help if you have a detailed budget from a debt advice charity too such as CCCS, CAB or National Debtline as this shows you have tried a number of different types of negotiation.

I have attached a link to the National Debtline’s website so you can have a read about Time Orders.

Hope this helps
Sarah

CCCS_Sarah

noregrets2010 wrote: »

Hi there,

I'm in the process of getting all my paperwork together etc in order to apply for a debt relief order through CCCS.
My car is currently for sale and I just have a quick question regarding the proceeds of it.
A friend has lent me the money to pay the HP finance off on my car which was £4182. I'm hoping to sell my car for a minimum of £5250 which means I would have £1068 left over. I'm aware that I have to split the proceeds with my creditors, however, I do really need another car as the university I go to is over 50 miles away and I'd end up spending nearly double on public transport commuting there than if I had a car.
So basically, am I allowed to buy a car up to the value of £1000 with the sale of my car once the finance loan is paid off and then split the proceeds with my creditors?

Kind regards

Noregrets2010

Hello,

Have you already had your appointment with the CCCS, if so was a DRO discussed?

Sarah

CCCS_Sarah

thecrafypenguin wrote: »

I entered into a DMP with CCCS in January and just when I was starting to relax and think we had finally got our finances under control I got a letter from Abbey saying our loan is in arrears. Having phoned them they told me that they never enter into arrangements or reduce interest because it is a loan and all they will do is monitor it then after 7 months pass it to a debt recovery agent. What will happen then with regards to this and will I be expected to pay the loan back in full, this has got me very worried.

Thanks

Hello,

Try not to panic, this is standard procedure. I have attached a link to the CCCS website that explains about the collection process in detail for you. If they do pass the debt on to a collection agency then you would just need to let the CCCS know and we will change what company we are paying for you. If they ask for payment in full, you just keep making the reduced payments as they can not have what you have not got.

This is the link to the collection process for you

https://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx

Let me know if you have any other concerns, I will be happy to help

Sarah

CCCS_Sarah

tedsd wrote: »

Hi, can I just ask a quick question? I wrote to one of my creditors with my token payment and asked that they only contact me in writing due to recently being off work with stress.. they are phoning me daily from various phone numbers both on my landline and mobile. Do I write again asking them to delete my details or do I send a letter of complaint? I'm concerned after reading a post on here saying that the financial ombudsman thinks that these types of calls are ok so I'm unsure if I can actually do anything? Thanks in advance. Ted

Hello,

Try the letter below and see how you get on. If the continue then make a log of dates, times and peoples names if possible and then you could make a complaint to the OFT with regards the Debt Collection Guidelines.

Sarah


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

CCCS_Sarah

thepedestrian wrote: »

Yes thanks - does sound dodgy dosent it ! - I did write to Mercers and Bcard with the same offer and when no letter of acceptance came I rang them to find out what was happening ( incidently , how does it work if Mercers act for Bcard and then Bcard sell it to Mercers eventually at a greatly reduced cost - what incentive is there for Mercers to accept a F AND F for Bcard ? )

Regards - and thanks for all the good work !!

Mercers and Barclays are the same company

CCCS_Sarah

roomtobreathe wrote: »

Evening all.

Not in any arrears or missed any payments yet but the minimum repayments on a number of cards and loans are getting very difficult to handle.

I've run through the process at CCCS and very helpful it was too. So I have the option to try and deal with my debts that way.

However, I have a couple of smaller loans with large repayments that I can probably clear within 12 to 18 months if I can get a bit of a breathing space. This would give me enough leeway to start attacking the bigger cards.

What I don't really want to do is to extend the debt on my smaller loans into years when I could pay them off quickish given the chance.

So how amenable do you think the larger debt credit cards would be to reducing interest and accepting a reduced payment? Is it practical?

Hope I've made myself clear!

Ta.

Hello,

The first question is really – can you afford to make all the payments? If not, if you offer one creditor reduced payments you will need to offer them all reduced payments as this is fair.

If you can afford the payments, then you could look at switching some debts to 0% credit cards and then overpay the other debts as this would reduce the debts much faster and save you money overall.

Hope this helps
Sarah

CCCS_Sarah

Triggles wrote: »

I just have a question regarding bank accounts. Debts (other than a joint overdraft, which I am slowly making small payments on) are in DH's name only. I have a separate bank account with my name on it only.

Because our joint banking account is well into the overdraft (to the limit really), DH's pay packet is deposited into my personal account, and I send out payments by standing order for him to various creditors. He does not have any other bank account, as he figured he wouldn't be able to get one. The problem comes if he ends up getting brought into court regarding any of these debts. He's just received a notice of legal action from solicitors for MBNA, as they state he hasn't been in contact with them or paid them (which isn't true - up until October he was making full payments, then in Nov/Dec token payments, and in January greatly reduced payments but at least more than token payments, with a letter each and every month, including SOA and explaining what was going on). If he has to go to court, the only banking info he has of his own is the joint account, which isn't being used right now as I am trying to whittle away at paying off the overdraft. I don't want to send my personal banking details to court, as these bills are not in my name. Would it be best for him to open a basic account at Barclays or a cashminder at Coop so that he can set up standing orders himself and have banking records to show in court if need be?? I don't know the best way to handle this.

Also a brief question regarding inhouse collections - 2 accounts of DH's have had the arrears sent to "inhouse" collections, and they are charging regular charges as well (such as £12 extra each month for attempting to contact us numerous times by phone - even though we told the main account months ago that we only wanted contact by post in writing - plus I am puzzled as they don't have our current phone number, so heaven only knows if they are calling someone else or simply getting messages saying number no longer in service). I am a bit frustrated with this. What is the best way to handle this? Do we just send a letter to them saying that we are dealing with this directly with the main account? We can't afford to send a payment to main company PLUS a payment to their inhouse collections for arrears. It just seems like they are making it ridiculously more complicated than it needs to be.

Hello,

The debt should only be collected by one company at a time, you will need to find out which company is collecting the debt and make the payments directly to them. If he can not afford the full amount then he will need to make the payments based on a detailed financial statement – if he need any help completing one of these then he could use our free online debt advice facility Debt Remedy. Debt Remedy will also let him know his best options based on his budget. The link will take you there www.cccs.co.uk/ref/drmse . If he would prefer an appointment with a debt counsellor then he could call out helpline free on 0800 138 1111.

He should be able to open a basic bank account; I have attached a link to basic accounts that he could take a look at http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

With regards the letters he has being receiving, these will be standard collection letters. I have attached a link that explains about these in detail for you https://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess/Lettersfromcreditors.aspx

Hope this helps
Sarah