Creditor refusing reduced payments unless I go through CCCS

gargrave50

Hi all, I've searched and searched DFW as I am sure I have read the answer to this ages ago. What has happened is that HBOS Visa have sent me a very nice letter which INFERS (doesn't blatantly state), that in order for reduced payments to be negotiated I need to contact either CCCS or Payplan.

I took advice from CCCS originally and they helped me to calculate my pro rata payments to all of my creditors, however I have chosen to self admin my DMP. I know I have seen a template letter somewhere which basically says "there is no need for me to go through CCCS to negotiate reduced payments", but alas I can't find it anywhere:mad:.

Any help appreciated.

rayday2

I have been doing my own DMP for over 3 years. I assume you are in the early days? Are you using the national debtline budget sheet and guidance - if not I suggest you do as its very easy and then you can write back to HBOS and say that you use the national debtline and have contacted them for support and seeing as HBOS are a funder of HBOS you do not understand why they are refusing to accept payments on a scheme which they have given financial support too or words to that effect!

gargrave50

Sounds good rayday2. Yes it is fairly early days I only wrote to my creditors on 30th June this year and starting making payments straight away. Think I will adopt your suggestion and compile a nice little letter of my own:rolleyes:. Thanks

rayday2

I found that if you come back at companies they usually do give in and at the beginning companies do seem to make a lot of noise "letters". Three years on I never hear from the ones I deal with. If my circumstances change I offer more - although last time they didn't accept but wanted the original lower payment - they get the higher one! I have now started chiselling away at the smaller ones just to make me feel better when there are less companies I have to deal with.

Just telling you that bit really as a boost keep going and don't let them get you down! National debtline are fab for ringing (I did once with Lloyds) even if you are going it alone.

I assume you have this gem bookmarked too http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf very good tool for getting what you want, throwing some of those guidelines back at them!

gargrave50

Rayday2, you are a star. Thanks I needed a little boost as I felt I was flagging a little. It's great to hear you have managed so well. I hope to be in a similar position to start throwing more money at them shortly, but I will need to persevere. I've book marked the link you posted and will be trying to "throw some guidelines" in to my letter. Hope you don't mind but once I've drafted it I might post it here for some comments / tweaking!

rayday2

No problem there is some great support on this forum. It can feel a lonely road sorting debts out, in the early days I hadn't found this board - wish I had the support I have been given since is amazing makes it a whole lot easier to deal with. Good luck with your letter and give 'em hell!

gargrave50

Popping out to collect my son from football practice and then coming back to give them hell!

gargrave50

Right, this is my "please do what I'm bleedin asking" letter re: above. I'd be grateful for all comments before I send it off.


Thank you for your letter of 24th July 2009, received today.

You will be aware that there is no legal requirement for me to utilise a debt management company such as CCCS or Payplan, and that I am entitled to negotiate directly with yourselves with regard to arranging repayment of the debt owed. As explained in my original correspondence, the pro-rata amounts offered to each of our creditors was calculated on a pro-rata basis by CCCS, as used by the county court. I have taken further advice from the national debtline advice line, who also assisted with the calculations.

Your letter alludes to the fact that a benefit of going to such advisors includes a reduction in interest and a stop to further charges being applied to the account. These benefits are decisions that your company can make regardless of whether you are approached by a debt management company on my behalf, or directly. As responsible lenders, I am sure you are aware that to continue to charge interest and apply charges would not assist in my present financial difficulties, and can only serve to increase my total debt. As you are aware, I have already paid considerable sums in interest to the account. If interest and further charges continue, the weekly payment I make will not even cover the interest and as a result, I will be unable to repay the debt owed to you. If interest is frozen and further charges are suspended, it is estimated that my total debt can be repaid in only 43 months, as the £10 weekly payment will actually reduce the balance outstanding to your company.

The majority of our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. I would therefore be grateful if you would reconsider the offer made to you of £10 per week. I believe that I have taken appropriate advice, and made an achievable and realistic offer of payment to your company, and look forward to receiving your response.

Love fromxx

ME

gargrave50

Any comments please? I'm hoping to send this tomorrow

MyLastFiver

Looks good to me...

gargrave50

Thanks, i've tried to be too the point without being rude, as I am asking them for a favour really!