Help please!! How far will these people go?

YummyMummy78

Hi all,

I've been reading various posts on here and been getting quite scared! I'd really appreciate some advice.

I owe several thousand pounds to three different credit cards. Basically I maxed my credit cards as my partner lost his job at the end of last year. I have also recently had a baby and my health has not been great. I am currently on maternity leave. Due to these circumstances I couldn't keep up my minimum repayments and, stupidly, ignored their correspondence and phone calls as I didn't know what to do - I had no money to pay them and felt too ill to think about it. One of these debts has now been passed to a collection agency who have written to me demanding payment in full within 4 days, which I cannot afford to do.

I recently contacted the Consumer Credit Counselling Service (CCCS) who advised that I write to each of my creditors and offer them a token payment of £1 per month as that is all I can currently afford. I'm now waiting to hear back following sending out my letters offering the token payments.

I'm particularly worried about the debt collection agency though. So far, i've not taken any of their phone calls as i've been told that they can be nasty on the phone and not to enter into verbal conversation with them.

I've been reading everybody else's horror stories and would really like some advice about how far they can go. Can they force me into bankruptcy, or force me to sell my house to pay off my debts? I'm also worried that they might turn up at my house.

What usually happens?!!!

Any advice would be greately appreciated.

PS: Apologies for the long rambling post! Thanks

dancingfairy

Right let's start at the begining:1) often they are just scare tactics and they will threaten andything and everything to get their money2) it is highly unlikely they will come and visit you - IF they did they generally have as much rights as the postman or the milkman ie not many - there is a letter you can send basically saying you are revoking any implied permission there is for them to come and visit you and you are not willing to see them. IF they did turn up you tell them to leave and if they refuse call the police. However it is far more effective for them to threaten this otherwise there would be hundreds of people having people visit them at home - practiclt everyone in the country would have someone or other visiting them at home so not exactly practical.3) The only people you really need to worry about is if they are court appointed bailiffs if you fall behind on your council tax or your mortgage or anything - but not the run-of-the-mill debt collectors. 4)Bankruptcy - again - a scare tactic - they can't just make you bankrupt without going through the proper procedures and this costs them time and money and generally they don't get anything in return so it's not something they generally do.5) Selling your house - again scare tactic - again a procedure that costs them time and money and needs the proper paperwork. They can apply for a charging order on your house (subject to the right paperwork etc) which means that when you sell your house they will get their money but only in very rare circumstances can they push for a house sale so please don't worry.6) You have a) realsied you have a problem and b) contacted CCCS so you've done the right things.Please don't worry too much - check on here if they start sending you stuff but a lot of it will be scare stuff - IF they do start any legal action you can then deal with it at the time.df

dancingfairy

I'm sorry I can't get the formatting to work today- it's taking out all my new lines and paragraphs df

Marthasdad

Hey YummyMummy - dont panic!!!

OK, you've got some debts, but it's not a crime - Debt Collection agencies have very little power and are not allowed to harass you etc. However, you do need to contact them (in writing only) to sort out the problems - trust me, I know how easy it is to igmore the letters and phone calls, but I promise you, this just makes it worse.

So someone can help you more (I'll help where I can, but I'n not an expert) - can you post up a Statement of Affairs, so we can see what you have coming in, what you owe and how much you have left each month to pay your creditors?

Please try not to worry - remember that your priority is your baby and noone can change that - you have to pay for him/her, food, electric, gas, council tax, water, tv license, rent/mortgage all before you pay your creditors and they can't make you pay what you haven't got.

You asked about them taking you house - well they can't just take it - they would have to go through the courts to get a charging order on the house first, but hopefully you're a long way from that - you need to open the letters and find out how far down the road they've gone before you ccan deal with them - when you've done that, you'll feel a whole lot better I promise!!!

worried_jim

DON'T PANIC. Please take a deep breath and count to ten. You are now doing the right thing. No body is going to turn up on your doorstep ever, they may tell you that they "could" and that this "may" happen. You have already contacted a debt charity and have offered a token payment. If you receive a call be polite and calm, explain that you have contacted the cccs and give them your ref number, they will know that you are dealing with the issue and although that won't stop any letters of further calls until a payment arrangement is in place as it is an automated chain that you will be in ,it will demonstrate your willingness to get it sorted. Remember they are chasing most people who are choosing not to pay and to ignore the debt- this is not you.
to help with your s.o.a. use this-
http://www.makesenseofcards.com/soacalc.html

YummyMummy78

Thank you so much for your advice and support. That's made me feel better already

I have drawn up an SOA, with the help of CCCS. There are a couple of areas that I can cut back on, and i'll hopefully be better off financially once I return to work, which will all help towards getting out of debt.

Just wanted some reassurance really about the scary stuff - mission accomplished so thank you very much

dancingfairy

Indeed - the whole point of a lot of DCA is to threaten people and get the money however they can. Most people don't know what DCA's can and can't do so DCAs will get away with what they can - after all they need their comission don't they :rolleyes:.
As one of the other posters said - a lot of it maybe we 'may' do this or we are 'considering' blah basically so they think they are not breaking any laws or regulations.
Don't let their hot air get you - in fact don't even bother to talk to them on the phone - it's much harder for them if they have to write to you as you then have a record of what's said.
If you get any trouble - come back on here and find out what you can do about it - there are people you can complain to about the DCA's are breaking rules and they can face fines or their licences taken away - you do not have to put up with any rubbish from them.
Stick with CCCS and if you are ever worried contact them or National Debtline or post on here and someone will set you straight.
Good Luck
df