Can Littlewoods force me to go to a Debt Management Company?

PinkMohawk

I seem to have reached a bit of a 'stand off' while dealing with Littlewoods and don't know what to do next.

I am paying them £6 a month, as I am with my other nine creditors. They keep telling me the offer is too low, so they can't accept it. Then they say that I should contact a Debt Management Company, so that they can negotiate with them instead of me.


Why do they want me to do this - what do they have to gain? And can they MAKE me do this? (What I mean is, if I don't do it, will it let them be able to do something nasty to me?)

What I want is for them to pass the debt to a debt collector, as I know it's highly unlikely that I'll ever be able to pay them the full whack each month, but I don't know what to do to get it to that stage, without causing more trouble for myself.

I have been dealing with the other nine debt collectors for some years, and just before that, I DID go to the CCCS. They told me what to do and everything has been fine. BUT, throughout this time, I was still using Littlewoods for household things like beds, a fridge, etc, and paying them properly each month. I know I shouldn't have done that, but I have never been in a position where I can buy any large items like that in one payment. So I was simply too worried to let Littlewoods go, in case something huge that we really needed came up! So I kept using and paying Littlewoods for as long as I could, but now my circumstances mean I simply can't keep it up, so I need to pay them the same 'token payment' that I'm paying everyone else.

Littlewoods have now put my account on hold for 6 weeks "while I contact a DMC", which I don't want to do, and I don't see why I should have to. So what should I reply to them? Or should I just stop replying, keep paying the £6 and wait for them to send it to a debt collector?

Thanx for any advice!

PinkMohawk

GeorgeUK

So lets get this straight.
Although you took advice from CCCS before, they did not set up a DMP with the other companies for you?

Is the total amount you have available to pay towards your debts each month less than £100?

You might find it worthwhile to post up a statement of affairs - we may be able to spot some areas in which you can make savings.
http://www.makesenseofcards.com/soacalc.html

And no, Littlewoods can't force you to go with a DMC - i think they are just wanting to make sure they are getting their fair share of your disposable income.

VanillaDelia

I am on a DMP and I doubt CCCS if you were with them would make them a better offer, if they made an offer it may well be also £6 and they wont budge from that to give them preferential treatment, they will just advise to keep making the payments I would imagine.

I have a littlewoods one on my plan and they have told me they wont accept anything lower than £7.50 now, it use to be £5 and they are only getting £5 from me through CCCS. I am pretty sure they will get use to the idea in the end as I hear nothing more from them now.

PinkMohawk

Hi George,

The CCCS got me to write a budget (statement of affairs), with their guidance, and told me to share my disposable income evenly between all my creditors. I did this with all my creditors, (EXCEPT Littlewoods, for the reasons explained above.) And I've kept up the payments ever since, (even increased some, since the beginning.)

I have £60 a month as disposable income, so I am now paying all 10 creditors £6 a month, including Littlewoods.

I have sent Littlewoods my budget and list of creditors, and it's really annoying that they seem to be just assuming that I'm not being honest about it!

A question about statement of affairs: The ten creditors mentioned are mainly in my name, but a couple are in my mum's name (we live together, with my 17 year old son, and combine all our money to run the house.) Should I be sending creditors a COMBINED HOUSEHOLD statement of affairs, or should I be separating our debts and using a statement of affairs each for my mum and I?

Thanx for your help!

PinkMohawk

VanillaDelia

Also the DCA they will send it to will be NDR who are littlewoods in house DCA and they will be the same. Keep paying them at £6 and eventually it will go to a external DCA, but this may take time.

Just checked and the reason I don't hear anything anymore is because its been passed to an external DCA who seem to have accepted payments.

PinkMohawk

Hi Vanilla!

That's exactly it. There's no point in going to a DMC as I've already done what they would tell me to do! I only have the money I have! It's just hard getting Littlewoods to realise that, for some reason!

Thanx for the understanding and reassurance!

PinkMohawk

GeorgeUK

Inform them that you have been in touch with CCCS and that they have stated that you should split your available funds between each creditor evenly (which is kinda what you are doing now). As you do not have £100 or more avaialbe to put towards your debts, i don't think CCCS would be able to set up a DMP on your behalf.

You may actually be paying Littlewoods more than you should be though.
Total up all your debt
Divide the amount owed to littlewoods by this total
multiply the result by the funds you have available (£60)
This answer is how much you should be paying towards Littlewoods and you can work out how much you should be paying towards each debt. If you should be paying less than £6 to Littlewoods, tell them so but you are willing to maintain the current payments.

PinkMohawk

Thanx for the tip, George, but when I do that sum, I get the answer of £14.25, which I can't afford! lol

CCCS did tell me years ago that I didn't have enough for them to offer me a DMP. I will tell Littlewoods that and see if it helps! Thanx!

PinkMohawk