Virgin and CCA

MeeBroke

I have an outstnading balance on a Virgin card of £17,484. Along with my other CCs and loans I can no longer make the minimum payments. The rest of the details are on here in other threads but I need some advice about this particular card as it's the one breaking the back of my finances.

I have never missed a payment, been late or offered a reduced amount. Today I rang them to request some sort of arrangment. They gave me an earful about irresponsible spending etc and told me to send in and SOA. I just looked online and they have removed my limit (which is fine I longer use the card).

Now, before I send them an SOA...is this the correct approach? Should I also be requesting a CCA? If so how do I find out the correct address to send it to? I can't seem to find a link to the template either.

Thanks in advance

rog2

MeeBroke wrote: »

Now, before I send them an SOA...is this the correct approach? Should I also be requesting a CCA? If so how do I find out the correct address to send it to? I can't seem to find a link to the template either.

You are, of course, entitled to request a copy of your consumer credit agreement, and the link is:

www.nationaldebtline.co.uk/england_wales/factsheet.php?page=getting_a_copy_of_your_credit_agreement_and_account_details

By all means, read the information that you will find on that link, but be aware that unless Virgin are unable to provide you with a copy of the executed cca, this will do nothing to lessen, or negate, the debt.

You do not appear to be questioning the debt, as such, merely looking for a way to come to some arrangement with them, e.g. reduced monthly payments, freezing of interest and charges, etcetera.

If this is the case, then I feel that you need advice which is more general than just a 'cca request', so I would suggest that, before sending Virgin a copy of your SOA, that you talk with one of the Debt Counselling Charities, such as:

• National Debtline - www.nationaldebtline.co.uk/ - tel. 0808 808 4000
• CCCS - www.cccs.co.uk/ - tel 0800 138 1111
• A Debt Adviser at your local CAB

Any of the above organisations will be only too pleased to advise you on your best options for dealing with Virgin. They are fully endorsed by this forum and are professional, impartial and cost-free.

Good luck.

MeeBroke

Many thanks for that. I have taken advice from CCCS and they have suggested a DMP but I am trying desperately not to go down that route as we were just about to consoledate our debt into our mortgage when we discovered two things:

1. We are in a fixed rate with 11 months remaining, settlement fee £4000

2. Our lender has already written off 33% of the value of our home due to current economic situation

I just want to try to tackle this one debt. Everything else we can manage (CCCS have helped us SOA and reduce our outgoings considerably). We want to be in a osition to remortgage and sort it all out once and for all but need to get throug hthe next year.

We both have good, stable incomes.


Note: the link to that letter template says that I should sign it. I thought thios was a no-no? I'm assuming I should alos not pay by check as it would also have my signature?

rog2

MeeBroke wrote: »

Note: the link to that letter template says that I should sign it. I thought thios was a no-no? I'm assuming I should alos not pay by check as it would also have my signature?

We don't reccomend a signature - simply print, or write your name.

I would like to go back to what you've said regarding the advice from CCCS, and I would strongly reccomend that you try to negociate a reduced payment period with Virgin - possibly with the help of CCCS.

Is it possible that you can transfer some of your Virgin balance to another CC that has a lower interest rate?

MeeBroke

rog2 wrote: »

We don't reccomend a signature - simply print, or write your name.

I would like to go back to what you've said regarding the advice from CCCS, and I would strongly reccomend that you try to negociate a reduced payment period with Virgin - possibly with the help of CCCS.

Is it possible that you can transfer some of your Virgin balance to another CC that has a lower interest rate?

I've been making minimum payments (£454) by transfereing to a 0% card but I can only maintain this for another couple months. The rate on the Virgin is 2.1%

MeeBroke

Been trying to get through to either CCCS or Debtline for an hour. Guess they're busy

Should we default to get the ball rolling? We've never, ever missed a payment on anything before.

rog2

MeeBroke wrote: »

Been trying to get through to either CCCS or Debtline for an hour. Guess they're busy

Should we default to get the ball rolling? We've never, ever missed a payment on anything before.

Keep trying NDL and CCCS - they are, not surprisingly, very busy at the current time.

You might, in the meantime, like to consider making 'token payments', of say £1 a month, to Virgin. Have a look at the following link:

www.nationaldebtline.co.uk/england_wales/factsheet.php?page=28_review_pack_for_people_who_have_no_available_income

There are some template letters - I would suggest that you keep all communication, with Virgin, in writing until you have spoken with CCCS/N-Debtline.

MeeBroke

rog2 wrote: »

Keep trying NDL and CCCS - they are, not surprisingly, very busy at the current time.

You might, in the meantime, like to consider making 'token payments', of say £1 a month, to Virgin. Have a look at the following link:

www.nationaldebtline.co.uk/england_wales/factsheet.php?page=28_review_pack_for_people_who_have_no_available_income

There are some template letters - I would suggest that you keep all communication, with Virgin, in writing until you have spoken with CCCS/N-Debtline.

I hadn't really considered making token payments. I could probably afford to make £100 payments instead of £450. How long do you think they would allow me to do this?

SerenaGoode

Meebroke,

I understand your aversion to a DMP. However you may be making your end situation worse by delaying. A few points:

It will be hard to sort this out without a default on the Virgin card, which will mar your credit record anyway.

Mortgages are still going to be really tough to get in 11 months and the house price will probably be even lower. You may not be able to roll the debts into the mortgage even then.

And do you really want to anyway? Remortgaging turns unsecured debts into secured debts, thus putting your home at greater risk if you get into trouble again - and rates may rise in a few years creating serious problems, even if you do manage to fix it short term.

I'd suggest thinking very hard about whether you should bite the bullet, accept your debts are out of control and go down the DMP (or maybe even IVA) route before you let them get even higher as you struggle to pay one set of bills with another set of credit.

DMPs are difficult and stressful. But after a few nasty months you start to see that there is light at the end of the tunnel.

Finally - is the Virgin card really an MBNA card (eg do they run it)? If so, it's worth bearing in mind that they are dreadful to deal with, very hassly, and will do anything to string you along and get more money out of you while they can. Don't trust them - talk to CCCS and National Debtline and take their advice. I spent about a year fighting the reality of my situation and feel better now that I have accepted that my credit record won't be great for a few years and that I need to come to terms with all my creditors.

Good luck whatever you choose. it may also depend on whether you see an eventual move to a cheaper home as an option as that might be an alternative solution if you can muddle through the next year?

rog2

MeeBroke wrote: »

I hadn't really considered making token payments. I could probably afford to make £100 payments instead of £450. How long do you think they would allow me to do this?

Again, you need to bounce this question at one of the debt charities, but, in essence, as long as you are making 'token payments' the creditor will not be able to force you, through the courts, into making payments at a rate you can not afford. There are some posters who have been making 'token payment' for many years.

SerenaGoode

MeeBroke wrote: »

I hadn't really considered making token payments. I could probably afford to make £100 payments instead of £450. How long do you think they would allow me to do this?

I'm not sure, others may know. But I suspect they would keep charging interest in this period, thus increasing your total debt.