How to negotiate with debt collection agency?

LoMax

Hi All,

Im hoping someone can give me clear instruction on what to do as I fell into financial trouble around mid 2006. Basically I lost my job and had a personal loan and CC debt from L1oyds for about 6000. When I stopped making repayments the solicitor letters started arriving through the door which I tried to ignore. Then I started getting letters from a company called M00rcroft Debt recovery which I also ignored as I had no money. I went to CAB for advice but they couldnt help as I really had no income to pay back anything. I was considering bankruptcy and leaving the country but was advised to just leave the country without bankruptcy and all debts would be written off in 5 years. So I did leave the UK in May 2008.

I am now living in Ireland but have since got a job offer back in the UK starting mid Janurary which I have accepted. Im now worried whats going to happen on my return. I would like to clear my debts and start again on a new page if I could but not sure how to go about it. Basically I have about 2000 euro savings and my new salary will be £22,000. I will also need to open a new bank account in the UK for my wages and worried I will be cleaned out by this agency if I do. Im thinking to contact this agency from Ireland and try and agree a settlement before I return to the Uk which doesnt give me much time and Im not sure how to go about it!

Can someone advise please as Im starting to feel the stress again which I really dont want anymore.

Thanks for reading

katsu

As long as you open a bank account which is not connected to Lloyds - so co-op would be fine, but an old TSB account wouldn't - then they cannot take your money without your consent.

Your debts would not have been written off even if you had stayed away 5yrs. Some of them could have possibly become unenforceable (after 5yrs in Scotland or 6 in England & Wales) but I don't think you could have guaranteed that happening as opposed to the bank selling the debt to debt collectors and the bank or debt collector taking you to court to get a CCJ against you.

You will probably need to make arrangements to repay the debt through regular payments - I'm sure someone will come along soon and help you with info on this and your options.

melamoo

i am currently paying moorcroft myself, they are not the nicest of people but hey thats their job. i owe 235 on a catalogue i tried to negotiate payments via mail but my letter conveniently got lost my own fault for not sending it recorded delivery. if you want the adress ect i do have it. as for advice i dont have any, sorry. but if you need the adress just let me know.

LoMax

Thanks for advice so far. I will take that address from you thanks...PM sent.

I was thinking if they see my contact information in another country then they might be more negotiatable as I dont think they can follow me in Ireland (south) for it?

Numpty_Monkey

Your debts could be "Statute Barred" deepends when the last time you acknowledged them ie made payment, 5 years for Scotland 6 years for England
You don't want to start the clocking running again

Is there a an Eire version of CAB you can contact

LoMax

There is an Irish version but dont think they will have advice for the UK. The main thing Im looking for is advice on how to settle with this collection agency but no takers so far

ALIBOBSY

The important date is the one you last acknowledged the debt or made made a payment. From the sounds of it this would be sometime in 2006/2007 or early 2008. So unlikely to be statute barred.

Once you move back the debt collectors will start contacting you but this could take some months. You could either use this time to save like mad for the point when you have to start negotiating settlements/payment plans, or you could get your credit file and write to them all direct. The credit file will show you if any have got CCJ's against you as well-if these were obtained whilst you were abroad you could get them set aside by the courts, but this costs money and they can reapply for them again-although they may be prepared to settle instead.
NEVER phone them or give them your number, do it all in writing so they cannot lie and threaten you verbally.

Best bet is to negotiate full and final settlements if you can, these debts may well have been sold on and on again. The companies concerned will have very little paperwork and will be glad of any offer of payment on an account they may well have marked unrecoverable.

Debt collectors pay low amounts for debts and this amount drops each time it is sold on. many pay as little as 2p in the £, but an average seems to be between 10-20p in the £. So start low with any offers say 10% of total and work upwards.
If you haven't any money to settle you will need to negotiate a payment plan, and may not be able to work this out till you have come back and worked out your outgoings. Some debt collectors will negotiate both a reduction in the balance and a payment plan if it is over a shorter period.BTW never pay over the phone by debit card, have seen cases where companies use the details to take cash out when they shouldn't. Insist on standing order only so you keep control.
Whatever you do always ask for evidence off them to prove both the debt is owed and the balance left, gives you more of a strong position in negotiating if they have no evidence to use in court. Obviously a different kettle of fish if they already have CCJ's.

If I were you I would come back, work out my budgets and save like mad. Then deal with them as and when they come up. Try to settle in full and ensure you get a letter accepting your payment in "full and final settlement" of the debt and ask them to confirm in writing that "no attempt will be made by themselves or any other third party to collect any balance above the agreed settlement figure". I would also ask that the credit file is marked as settled "in full" not "partially settled", with a zero balance.
But from the sounds of it any defaults or CCJ's will probably be from 2006 so if you get them settled now they will all drop off your credit file in 2 years time anyway.

Good luck

ali x

BTW agree with the OP avoid bank accounts linked to those you have debts with just in case, although they aren't supposed to "raid" accounts like you suggest, but better safe than sorry.
It is likely given your credit file and the time abroad you may well only get a basic bank account, so have a read up about those.

LoMax

Alibobsy, Thank you so much for that info.

So my first step should be to obtain my credit report which I am about to do. My only concern now is when I give the Credit File Co. my contact info are they going to pass it on to my debtors? Can anyone advise plz.

LoMax

bump...if someone could tell me the answer to my question please