Ask a CCCS counsellor a question

CCCS_Sarah

acheekymunky wrote: »

Hello,

I am hoping you can give me some advice. I have been on a DMP for about 3 years and still have about £30k outstanding debt. I dont see how I will ever pay this off. I did contact Payplan last year (they are not who my DWP is with at the moment) and they said I could not apply for an IVA as I was not even earning enough for that! My circumstances have improved after leaving rented accomodation with my boyfriend and moving in with my parents. I want to clear my debts but we also want a mortgage. I am guessing we will not be offered one if my name is on it as I have used up 100% of my credit and my Experian credit report records my defaults on about 6 creditors.

Do you advise I stay on my DWP as I am probably for the rest of my life or should I try and get an IVA? how will this affect me if we ever have to apply for future credit i.e another mortgage in the future?

Thank you in advance

Hello,

I think James has answered a lot of your questions below and offered some good advice. Have you spoken with payplan and asked for a review? They will be able to have a look at your budget and discuss your options in detail.

Sarah

CCCS_Sarah

jeanm wrote: »

I finally got in touch with CCCS over a year ago, after 6 months of burying my head in the sand following my husband's job loss in 2008. It was such a relief when the letters and telephone bombardment stopped. We pay a manageable amount to you and my creditors seemed accepting. Although, I do pay an extra £5 each month myself to MBNA and that keeps the debt from being sold on. I need to avoid court judgments as I work part time in finance myself and I would be asked to leave(ironic, eh).All interest and default charges were stopped, and that was a great help as the balances were finally going down instead of up. But, 2 months ago, Barclaycard started phoning to say they hadnt received payments. We checked and they had got their regular reduced amount. Interest and default charges were back. Now, they phone up to 20 times a day on my husband's mobile(which he now leaves at home on silent) and the house phone, starting at 8am and sometimes up to 10pm. We have both told them about the arrangement with CCCS, giving them our reference number with you. They still keep on with the phone calls,making it very difficult after we have had the same conversation 10 times in a day, to say again. So, now, if they say it is Barclaycard, my husband will not answer. We have written to them, asking them to stop phoning and we are paying what we can through our DMP. But, I have seen online that we are not alone and this letter will probably fall on deaf ears. We have put in the letter that my husband is no longer available on the phone numbers they have (true, as his mobile was registered in my name, the house phone also). What more can we do? CCCS are writing to them with a re-proposal but the phone calls are getting so annoying. There are 6 missed calls since 8am this morning so far on his mobile. It makes no difference if he answers it. They will phone back later. I answer,they ask for him, I say 'is it Barclaycard?' they say yes and they hang up.
On a separate point, would it be of more long-term benefit to pay off one credit card balance as a reduced settlement? My husband may be due a tax rebate, just enough to pay off £360 as a reduced settlement we were offered on a £1150 balance. I know it will still show badly on our credit rating, but the rest of our debts are going to take 12 years at this rate anyway. So I can't see our credit score improving before then.

The phone calls you would be able to stop, I have attached a letter below that your husband could use to forward to the creditors. With regards the settlement offers, I would recommend that you call our client support department and discuss this with them.

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

mason1983

ive been on a dmp for a year but recently have had to take a large pay cut to stay in work in effect this will make my dmp payment change from 559 down to 225 do you think they would accept this thanks in advance

cherub1971

I am hoping someone can help me with a debt problem.
I spit with my ex-husband almost 8 years ago and we had several debts together. One of which was a loan to Loyds TSB for approx £8000. At the time I tried to pay the loan but I objected to paying the full amount as it was in joint names. I was told that they would recover the money from whoever was willing to pay. As my ex-husband was not willing to pay, I stopped paying.
The debt was taken over by 1st credit, who hounded me to pay. Again I told them that I was willing to pay half but would not pay my ex-husbands. They said that because I had aknowledged the debt, they would persue me for the full amount as they couldn't trace my ex-husband. I gave them his address but still they wanted the full amount from me. Again I refused to pay. I have tried many times to come to some arrangement but without success.
Many years have passed and I have moved 5 times and been remarried so have a new surname. I have no CCJ's, I have a mortgage and my credit history has always been fine with no sign of this outstanding debt.
In the past month, I have received several letters in my previous surname, from a local baliff/debt recovery company once again asking for the money. I have ignored all the letters but dont know what to do. I am not sure whether 6 years has passed since I aknowledged the debt so cannot assume that is statute barred.
This is my first post on here and I am hoping that someone can advise me. Many thanks

jamesd

Cherub1971, assuming no county court judgment was obtained against you for this debt, continue to ignore them until either you are certain that it is statute barred or until you get served court papers indicating that legal action against you has actually started. Once you're certain that it is statute barred you can tell them that regardless of whether it's your debt or not it's statute barred and you're not going to pay it. If they phone, don't even say who you are, just say they are unwelcome. If they show up at the door say they are unwelcome and that they should depart from your property and you have withdrawn from them their implied right of access to your property for the purpose of reaching your front door.

Court papers means actual papers from a court giving case details, not merely threats of legal action or letters from a solicitor.

You can expect them to continue periodically seeking payment but actual court action isn't very likely.

If they had taken you to court originally they would, based on your description, have received a judgment that you must pay all of the amount. After this long it's unlikely that they will go to court. More likely that it's a debt collector just trying on the off chance that you can be intimidated into paying.

The last time when you negotiated with them about partial payment is likely to be the date at which the six year clock started counting, unless you admitted that any part of the debt was yours after that.

You might like to ask for your credit reports from the main credit reference agencies to see what information they have about this debt, though from your post it seems that you may already have done this and that there is no record, a good sign. That may provide some useful indication of just when it becomes statute barred if you don't have any other information to go on.

CCCS_Sarah

nobodysdriving wrote: »

Hi,
I have been on a DMP in the past, it's 'horrible' but it's the best solution out of them all I think (if it suits your situation). Anyway, I have decided to start working 6 days a week to COME OFF the DMP and have come off it over 2 years ago. Now am working 6 days a week, I even work on my holidays to pay off my debts (approx £30,000 left to pay!!!), am meeting all my payments religiously every month and should have eradicated everything within 3 years from now (then I can have weekends off work like a 'normal person').

Anyway, I am eployed by NHS and work my extra hours for the same employer. Now I had a 'bombshell' dropped by HMRC that my tax contributions in past TWO YEARS have been UNDERPAID.
I have checked it all and they are right, I owe the 'tax man' £6000!!!
I am now about to start proceedings to see how I can pay this to them.
I know that all I can afford after I pay my rent/bills/food and debts I am already paying off (and I am paying the MINIMUM every month) I only have £20 or £30 per month to spare.

Someone told me that the 'tax man' won't accept something that little, the 'tax office' has not told me yet, I've only just sent them a letter asking them to review situation so am still waiting for them to ask me how much I can afford and for them to ask me to provide them with a breakdown of earnings/expenditure.

My questions are:
do they have to look at my bank statements and look at EVERY PENNY I spend? after I pay my debts I don't spend much in 'leisure'. Myself I don't go out, I don't drink I don't smoke, I don't have holidays, but I do subscribe to braodband for my son (who is 14), buy him a video game once a month or so and give him £50 pocket money a month, and I don't want to stop that, the poor lad is 14!
Can they force me to pay more than the £30 I can afford to give them?
if so then I will start defaulting on my other debts (other debts are loans/hire purchase/credit cards/store cards). I have NO savings or assetts.

I think it would not be fair for the tax office to ask me to either stop my son's pocket money or to default on my other debts, after all they are the people who got it wrong for 2 years and now want to cover up their mistakes....

any advice?

thank you so much

ps I reallyd don't want to end up on a DMP again because of something that's not my fault

Hello,

Thank you for your question.

Tax debts are classed as a priority because of the possible implications of not paying. You could try and speak to an organisation called TaxAid, they advise on tax issues. This link will take you directly to their website http://www.taxaid.org.uk/ .

To negotiate a payment arrangement with them, you would have to produce a financial statement and they would not accept high expenditure on things like pocket money and games etc as these are classed as non essential items.

If HMRC does want a higher amount than the £20/£30 you have suggested, then you may again need to have to look at reduced payments. If you would like an appointment at that point to discuss this you can call our helpline free on 0800 138 1111.

Regards
Sarah

CCCS_Sarah

digitdemon wrote: »

Thanks Sue for the advice, but I'm basically trying to get advice on my original question, i.e. whether they're are companies that manually process loan applications. As I said I'm after a loan that will pay off my credit cards and close the accounts in the process, therefore not entitling me to any more credit. If I apply for such a loan at present I get declined due to the automated process that takes place, i.e. it thinks I'm applying for another £12,000 worth of credit.

I realise that consolidating and taking out new credit cards is not advisable, but this is not my aim. My credit cards were used to fund recent urgent changes in my life and I didn't have the time to go through a loan application. Now I'm looking to shift these debts to a consildation loan that will result in a far lower monthly repayment for me. To confirm, I had no debt whatsover on my cards prior to last month.

Hope for your advice and help.

Thanks.

You would be able to appeal and as for an underwriter to manually review the decision.

Hope you get it sorted and give me a shout if you have any further questions.

Sarah

CCCS_Sarah

mason1983 wrote: »

ive been on a dmp for a year but recently have had to take a large pay cut to stay in work in effect this will make my dmp payment change from 559 down to 225 do you think they would accept this thanks in advance

I would recommend that you have a review of your account, as there may be other more suited options available to you now your situation has changed.

If a DMP is still an option for you, the bottom line is your creditors can not have what you have not got to give them. So even if they say they are not accepting the payments, send them anyway.

Sarah

CCCS_Sarah

cherub1971 wrote: »

I am hoping someone can help me with a debt problem.
I spit with my ex-husband almost 8 years ago and we had several debts together. One of which was a loan to Loyds TSB for approx £8000. At the time I tried to pay the loan but I objected to paying the full amount as it was in joint names. I was told that they would recover the money from whoever was willing to pay. As my ex-husband was not willing to pay, I stopped paying.
The debt was taken over by 1st credit, who hounded me to pay. Again I told them that I was willing to pay half but would not pay my ex-husbands. They said that because I had aknowledged the debt, they would persue me for the full amount as they couldn't trace my ex-husband. I gave them his address but still they wanted the full amount from me. Again I refused to pay. I have tried many times to come to some arrangement but without success.
Many years have passed and I have moved 5 times and been remarried so have a new surname. I have no CCJ's, I have a mortgage and my credit history has always been fine with no sign of this outstanding debt.
In the past month, I have received several letters in my previous surname, from a local baliff/debt recovery company once again asking for the money. I have ignored all the letters but dont know what to do. I am not sure whether 6 years has passed since I aknowledged the debt so cannot assume that is statute barred.
This is my first post on here and I am hoping that someone can advise me. Many thanks

Hi Cherub1971,

Creditors are unable to legally purse you for the debt if, after six years;

• The creditor has not already obtained a county court judgment (CCJ)

• You or any one else owing the money (on a debt in joint names) has not made a payment

• You have not written to the creditor admitting they owe the debt

This is known as statute barred and refers to the Limitation Act.
If you believe that the creditor is timed out to collect the debt, you may wish to use the template letter below.

Example letter – limitations act

From:
Name:
Address:
Postcode:
Date:
To:
Creditor’s Name:
Account/Agreement No:

Without Prejudice

Dear Sirs
Ref
I do not admit any liability for your claim and will not be making any payment towards it, as it is now more than six-years since any cause of action may have accrued. Any claim would, therefore, appear to be statute barred under section 5 of The Limitations Act 1980 and any court claim will be defended on that basis.
In addition section 2.14 of The Office of Fair Trading Collection guidance states that it is unfair to pursue such claims where, as here, the creditor has made no contact during the relevant limitation period.
If, however, you have substantive evidence that your claim is not statute barred then please supply it to me within 21 days. If you are unable to provide such evidence please confirm that no further action will be taken against me.
Yours faithfully
(Signature)
(Print name)

nobodysdriving

CCCS_Sarah wrote: »

Hello,

Thank you for your question.

Tax debts are classed as a priority because of the possible implications of not paying. You could try and speak to an organisation called TaxAid, they advise on tax issues.

To negotiate a payment arrangement with them, you would have to produce a financial statement and they would not accept high expenditure on things like pocket money and games etc as these are classed as non essential items.

If HMRC does want a higher amount than the £20/£30 you have suggested, then you may again need to have to look at reduced payments. If you would like an appointment at that point to discuss this you can call our helpline free on 0800 138 1111.

Regards
Sarah

THank you Sarah,
basically you confirmed my 'fears', even though it was the tax office fault that my tax was underpaid month in and month out for 2 years they can still take priority over my other debts (I don't think it's fair, if they made a mistake they should not have priority, I can understand if I made the mistake...anyway....).
I will have to wait and see what we settle on.
I really don't think the £50 a month my 14 year old gets and one video game every other month is non essential. If I didn't give him this he may be loitering in the shopping centres, shoplifting and doing drugs! if the video game and the pocket money keeps him happy (so he can go to cinema etc with friends) then he will stay out of trouble in my view, I can now see how many teenagers end up loitering and getting into trouble (especially the ones who live in towns....like us). Sorry I am going off topic here as this is not something you personally decided yourself, it's just what's accepted in 'debt-land'. I am just SO bitter when this is happening NOT BECAUSE OF MY FAULT! even when you think you are doing the right thing and being a law abiding citizen, working 6 days a week to pay back what you borrowed, someone can happily knock on your door and force you to go bankrupt as the tax office demands more than £30 I WILL GO BANKRUPT. I dont have to work 6 days a week so if they make me default on my debts and force me to face a DMP then I WILL STOP working overtime and on my basic pay I can go bankrupt no problem!

rant over, sorry had to get it off my chest

thank you for your kind advice, I DO appreciate it, and CCCS will hear from me no doubt about bankruptcy if tax office is being 'mean to me'

PS tax aid refuses to speak to me as I EARN TOO MUCH MONEY :rotfl: (what a laugh!)