Advice needed - starting to address bills!

dadooronronrondadooronron

Hello

My partner and I have realised that we need to address our spending habits. We moved house a couple of years ago and did some huge renovations on it but of course costs escalated and we used credit cards and overdraft to finance everything. We are now just about up to max on cards and overdraft and realise this needs sorting out.

We have contacted CCCS but decided to do our own debt remedy plan - based on their online assessment. We have contacted our bank and advised them that we realised we are constantly up to limit on overdraft but intend to make small reductions in it. They contacted us and said great to keep them informed and that they were fine with it and if we needed to go and chat anytime they would look at spending etc with us.
- one positive result.

We have paid reduced payments to credit cards last month and 2 weeks ago sent letters (from this site) explaining situation and offering reduced payment on pro-rata basis. We have been bombarded with calls. We have sent off reduced payments with further copy of letter this week. However, we are receiving calls at home and numerous calls at work - which is totally unacceptable.

I sent letters (again from this site) yesterday to MBNA and Capital One as they are the people constantly ringing requesting they only contact in writing and quoting Acts regarding harassment etc as stated in letters.

I am really wondering

(a) does this letter regarding phone calls make a difference? Are they likely to continue ringing anyway - and if so -what do we do next?

(b) What happens if they refuse reduced payments?

(c) Can I commence claiming back charges from them while I am asking them to accept reduced payments - or is this likely to make them really angry :mad:

(d) Post just came!! Capital One sent letter saying sorry to hear about circumstances blah, blah,blah - but they find it works better to chat to them and can we ring them - what now - I have said communicate only in writing - so do I write back and ask what information they require?


Sorry for long post and I hope it isn't in wrong place

I have been trawling through this site for months and have now decided to act!!

thanks in advance for any advice or suggestions

GeorgeUK

Hi Ddrrrddrr (i'll call you Dr)

If you haven't already done so i suggest you take a look at and possibly post up a SOA - this calculator is really good to see where your money is goind and what you should have left if you are sticking to budget.
http://www.makesenseofcards.com/soacalc.html

The telephone letters do make a difference, but it can take a few months to get this onto their system and all departments to be made aware that they shouldn't be calling you. If they continue to call, report them as stated in the letter. Did you send it by recorded delivery so that you have proof that they received it?

If they refuse reduced payments, they have a few options. They can moan and groan that this isn't enough but still take your money as they probably are right now, they may pass your debt to a Debt Collection Agency (DCA) (sometimes inhouse) who will pursue you for payment and possibly accept your proposed repayment schedule, or they (or the DCA) may take you to court to get a court order to make you pay. If it went to court, the judge would look at your income, expenditure and debts, then decide on this what a fair amount to pay each month was.

CCCS and Payplan are recognised by the banks which is why most prefer you to be with them and will possibly be more forthcoming in freezing interest and charges.

For the bank charges, you can reclaim if you feel you have a case, but until the House of Lords decides on the court case that's under way, then the FOS and banks agree on what a fair amount to charge is, your claim may be on hold for some time yet. I would suggest that it is worthwhile to get your claim in now though but any charges you get back will probably be put towards the balance rather than going to you in cash.

Credit card charges are not part of the case that's with the House of Lords so you should be able to do your claim on those.

For Cap1, i wouldn't bother calling them. If they require more details they have your address and are capable of writing a letter. I would ignore and cards like this that get sent (personal opinion).