Littlewoods illogic--help please.

two_2

I have found myself in serious money problems due to an unexpected loss of £400.00 per month. At the present time the only people I have fallen behind with are Littlewoods. I am managing loans and c cards just ok.

I have been to the CAB who are suggesting a DRO. I am obviously a bit scared of that. They sum up that there would be very little to pay each month, possibly £20.00 per month max. payed for one year then debts are cleared.

I have phoned Littlewoods three times and explained this, giving them my CAB case number. I told them I would be prepared to pay off this debt at £80.00 per month until it was cleared. I cannot believe that no-one has the simple common sense to see the logic in my offer. Each time I am told that as the debt would run longer than three years they cannot entertain my offer.

I pointed out that they would be lucky to receive £240.00 in total for the 4k I owe them when the DRO is applied. Surely, I said, it would be better for me to pay it all off even though it would take a long time. All I am told is, they can`t do it, it exceeds the three years allowed to pay. How frustrating for me when I do wish to clear my debt.

Right then, does anyone know names and addresses of senior management at Littlewoods that may listen to me and help me pay what I owe. I feel I must write to someone who may excercise some initiative on this matter. I have Googled but am having no luck at all--- so help please. Thanks.

skylight

Don't bother yourself with it.

Its illogical, its daft but its also business sense for them. There are tax reliefs etc on bad debt that can be written off so you are more beneficial to them for the amount to be written off than for it still to be live and re-paid slowly that then creates a deficit on the balance books. Its not that the call staff have no common sense; its that they have a policy they have to adhere to that made by the board and we all know how intelligent board members are......


If you paid them the £88 per month, they are not going to refuse it as they are not allowed (unless its less than £1.) There is stuff all they can do; they cannot take you to court as the judge will tell them to bog of as you are paying for a realistic term. This is all AOK as long as they are not adding charges/interest to the account cos that messes it all up, then you will need their consent to pay in order to get these stopped. In this case, it may be in your interests to tell them that you are refusing to pay any money and that you suggest that they pass the account onto a debt collector much faster than usual as they are far more amiable to the £88 per month.

What is wrong with a DRO? If CAB have suggested it rather than a DMP then perhaps you should re-evaluate their suggestion. A DMP would go on for years and years; circumstances change etc.

two_2

Skylight--thanks very much for reply. You talk real good sense on that one and I am grateful for that. Littlewoods so far have not mentioned interest, so far!! but will add £12 per month for being in arrears

---

cheers

blind-as-a-bat_2

Oh it will be more than that, when NDR (littlewoods in house DCA) get involved it will at least double.

Your wasting your time with littlewoods, trust me.

It will eventually get sold on, usually to lowwels or cabot

On a side note, if you go for a DRO, you will not pay anything towards your debts, so the info you have is wrong, or you miss understood

Holes_in_my_pocket

DRO will clear your debts as you said you havnt the means to pay due to losing £400 a month i would consider DRO , it would give you a clean slate and a fresh start

debt_doctor

two wrote: »

I have been to the CAB who are suggesting a DRO. I am obviously a bit scared of that. They sum up that there would be very little to pay each month, possibly £20.00 per month max. payed for one year then debts are cleared.

What ?

There are no ongoing payments in a DRO, just a one off fee of £90 payable to the insolvency service. Seems some confusion between a DRO and a DMP (debt management plan)

DD

fermi

debt_doctor wrote: »

Seems some confusion between a DRO and a DMP (debt management plan)

Or paying the DRO fee by instalments maybe? (not sure what they do with those)

blind-as-a-bat_2

Or an NT code had not thought of that before, so never looked:o, as DRO's are for those on low income, they may not hit the level to pay tax, but if they do, can you have a NT code applied while on a DRO

debt_doctor

fermi wrote: »

Or paying the DRO fee by instalments maybe? (not sure what they do with those)

If someone wants to pay by instalments then the intermediary generates and prints off the bar code imediately after the first page of the application (name, address etc) and then saves the application.

The applicant takes the bar code to the post office each time they wish to pay something (any amount), but must be paid within 6 months.

I must admit that we dont push the fact that you can pay by instalments, for our own reasons.:o Case workers can only have a certain number of cases open at any one time, and if we had to keep a case open for 6 months until the applicant had the money (and the ongoing work keeping creditors at bay etc) then the ability to open new cases is seriously restricted. CAB's process 80% of all DRO applications.

In practice, if the applicant cant raise the fee in a month we will close the case and ask them to return when they have saved for the fee.( giving them a financial statement, offer lettrs and advice how to keep creditors at bay whilst they save) Generally, because the client was paying something to creditors, they use this money for the fee.

There are of course exceptions. I had a client a few months ago who kept making appointments with me to finalise the DRO and pay the fee but not turn up. It turned out that he was alcohol dependant and although desperately wanted and needed a DRO,every time he got paid although he had the best intentions, the pub was a stronger influence. I agreed ( with his written permission)that I would collect the fee from him myself and I went to the post offce and paid it for him, it was the only way.

Also, managed to persuade him to join a residential re hab program and now seems to be doing rather well im pleased to say.:j

DD

debt_doctor

blind-as-a-bat wrote: »

Or an NT code had not thought of that before, so never looked:o, as DRO's are for those on low income, they may not hit the level to pay tax, but if they do, can you have a NT code applied while on a DRO

There is nothing at all in the guidance notes about that ! I was about to say that there is no provision to make payments to creditors in a DRO (which is true) but actually an NT tax code isnt about that really, it's about the inland revenue not having a prefference.

Hmmm.......

DD

blind-as-a-bat_2

debt_doctor wrote: »

There is nothing at all in the guidance notes about that ! I was about to say that there is no provision to make payments to creditors in a DRO (which is true) but actually an NT tax code isnt about that really, it's about the inland revenue not having a prefference.

Hmmm.......

DD

Yes, but to a BR it is prcieved as a payment, it even is presented as a form of IPA, by some OR's, it does not cost the BR anything, but some think it does, if they dont get it explained properly:think:
It is the only way i can see the OP getting the impresion they may have to pay something for 12 months though Unless it is a mistake, or misunderstanding:rolleyes:

Have to admitt though i have not heard of a nt code being applied to a DRO, by any that have gone onto them so far