I've had enough. Should I just stop paying my debts to these and leave the country?

SallyBeans_2

gonzo127 wrote: »

this might sound rosey however i expect these people have had to declare themselve bankrupt or had a IVA to get the debt 'wiped' out, as you know these companies will not just so oh thats fine i will not bother to try and get the money back form you

any which way your friend has gone it will have much wider and longer implications to them than a DMP usually does as you will always have to declare you have done this even when it has dropped of your credit file after the 6 years

Thank you very much for your reply. I am interested to read this because there MUST be a penalty to having your debts waived / scrappned / cancelled etc.
Surely you cannot just go and say to the bank this is all I've got take it or leave it? - the bank won't just cancel the debt and forget it as we'd all do it and MSE threads would stop. I guess you're right in that whatever way you go, PAYING OFF MUST BE the answer otherwise you'll never be free, even after 6 years!

gonzo127

SallyBeans wrote: »

Thank you very much for your reply. I am interested to read this because there MUST be a penalty to having your debts waived / scrappned / cancelled etc.
Surely you cannot just go and say to the bank this is all I've got take it or leave it? - the bank won't just cancel the debt and forget it as we'd all do it and MSE threads would stop. I guess you're right in that whatever way you go, PAYING OFF MUST BE the answer otherwise you'll never be free, even after 6 years!

oh yes there is always a payment when debt is concerned no matter how you pay the debt

this is the way i see the different ways of going about it

pay it 'normally' = you pay interest but have no negative impact on credit history
pay it through DMP = you generally dont pay interest however your credit file is shot
IVA = well dont know much about these however i think you get upto 40% of debt wiped out but the terms and condidtions of them mean they are only suitable for about 3% of people so there must be something difficult in them
Bankruptcy = debts wiped out but will generally stick with you for life as you will always have to declare it when asked otherwise you are committing fraud

GeorgeUK

Really not sure about the legalities around this but i cannot imagine that they can trasnfer a debt to another form of debt without your authorisation - and it was to your detriment.

When was this 'credit card' opened for you?
I take it you never signed anything?

I would strongly advise posting what happened regarding this transfer on the consumeractiongroup forum. That's where i go to get info on legal arguments of various debt related matters. I think this may not be that common so hopefully they will be able to explain what has happened, why they did this and if it is lawful.

In my opinion, the overdraft debt was owed but no longer exists. This new credit card is unenforcable as you did not request the credit and made no agreement to pay the assigned interest rate.

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/
You may need to wait a day or two before you get a reply - the board isn't as busy as this one.

I can't see how this can be allowed - otherwise all banks would transfer creditcard debts that they don't have a properly executed credit agreement for to an overdraft which wouldn't require an agreement. And they've done the reverse? Hopefully before April 2007???

SallyBeans_2

gonzo127 wrote: »

oh yes there is always a payment when debt is concerned no matter how you pay the debt

this is the way i see the different ways of going about it

pay it 'normally' = you pay interest but have no negative impact on credit history
pay it through DMP = you generally dont pay interest however your credit file is shot
IVA = well dont know much about these however i think you get upto 40% of debt wiped out but the terms and condidtions of them mean they are only suitable for about 3% of people so there must be something difficult in them
Bankruptcy = debts wiped out but will generally stick with you for life as you will always have to declare it when asked otherwise you are committing fraud

Hi and thanks for that,

Yes, I don't really know what IVA's are but like you say, it's best to get rid either normally or with a DMP and not have the hassle in the future.
I personally don't want to get a mortgage or credit cards ever again - I had a mortgage for 20 years and it was a struggle and the area deteriorated and then noone wanted to move there, so I was left with this 'albatross around my neck', even renting was a poor option as renting in the area was like signing away the decor and being prepared to fork out for new decor everytime it was re-rented. I have very little but at least I don't have all the hassles anymore. Being in debt has made me so much more careful. I find ebaying bits and bobs helps too.
So thanks for your great advice, it is very, very much appreciated.
SallyBeans:beer:

Happytogetdebtfree

Hi sally just wanted to wish you all the best with everything and say chin up :-) x

SallyBeans_2

GeorgeUK wrote: »

Really not sure about the legalities around this but i cannot imagine that they can trasnfer a debt to another form of debt without your authorisation - and it was to your detriment.

When was this 'credit card' opened for you?
I take it you never signed anything?

I would strongly advise posting what happened regarding this transfer on the consumeractiongroup forum. That's where i go to get info on legal arguments of various debt related matters. I think this may not be that common so hopefully they will be able to explain what has happened, why they did this and if it is lawful.

In my opinion, the overdraft debt was owed but no longer exists. This new credit card is unenforcable as you did not request the credit and made no agreement to pay the assigned interest rate.


You may need to wait a day or two before you get a reply - the board isn't as busy as this one.

I can't see how this can be allowed - otherwise all banks would transfer creditcard debts that they don't have a properly executed credit agreement for to an overdraft which wouldn't require an agreement. And they've done the reverse? Hopefully before April 2007???

Thanks Geroge, I know this sounds implausable and quite frankly wrong. It is definately strange that I get a regular Barclaycard statement each month and the interest is ridiculous. This is definately from my overdraft. I hate the fact that they can't seem to say, "Ah, she's having a hard time, we'll get some interest out of this fool all the same", but to totally scr*w me is really not ethical.

I will take your good advice about the consumeractiongroup, and yes, I agree in that I NEVER signed nor AGREED to anything, I thought, when I first received a statement, shortly after starting the DMP in Oct 2008, "Oh here we go, it's easier for Barclays to just transfer the debt to a barclaycard, I can see their logic, albeit wrong logic, and they get the interest each month, no hassle, all done and dusted.
It's wrong, all so, so wrong

debtstressed

gonzo127 wrote: »

oh yes there is always a payment when debt is concerned no matter how you pay the debt

this is the way i see the different ways of going about it

pay it 'normally' = you pay interest but have no negative impact on credit history
pay it through DMP = you generally dont pay interest however your credit file is shot
IVA = well dont know much about these however i think you get upto 40% of debt wiped out but the terms and condidtions of them mean they are only suitable for about 3% of people so there must be something difficult in them
Bankruptcy = debts wiped out but will generally stick with you for life as you will always have to declare it when asked otherwise you are committing fraud

Makes sense. However, how often is the typical person asked or affected by the fact whether they are bankrupt or not? Only instance I can think of is if one is in a proffession that excludes bankrupts. I have heard of stories of bankrupts getting it together and rebuilding their credit files the going on and getting mortgages and accounts within a few years of being discharged.
Business owners go bankrupt daily when their businesses fail and some get back on their feet and are running successful businesses again. Simon Cowell is an example.
With a DMP your file is shot for 6 years but thats coupled with living the way OP described for that period or longer while you struggle to pay back creditors who can be most unhelpful and keep piling on the interest. Apart from the 'moral obligation' and play on emotion sometimes it is not in the debtor's interest to suffer like that. Debt collector's recognise this moral and emotional aspect of personal debt hence the red letters, harrassment and nuisence calls.

Im not saying its an easy option or a get out of jail card that should be abused but I feel that people have an emotionally tinged view of bankruptcy as they add a moral obligtion to the equation. Unfortunately that emotional and moral aspect is not applied by the banks when they are dealing with you when you get into difficulties. Banks are not gonna recognise how hard you tried befor you failed...how you ate beans on toast to make that one extra pyment. Owe £1000 or £12000....a default is a default...stays on for six years......1 default or ten makes no difference.....your file is just as trashed....end of.

Life is for living, banks are businesses and take risks. People should take the option that is in their best interest...just as businesses do, just as the banks do too. Businesses go bankrupt everyday and no-one bats an eyelid....why the big deal when an individual does it?

I reckon that is why OP felt a bit miffed by how her friend dealt with her debt. I totally see where she is coming from.

The only reasons I see a DMP being suitable is if the debtor has a property to protect and/or the debt can be paid back within a reasonable amount of time - 6 years at most. (the time it takes for your credit file to start recovering) 8, 10 12 year DMPs - whats that about? Is it in the debtors best interests?

In case my point of view is wrong I pose a question...two credit files - one on a DMP with defaults (1 or 10 defaults or CCJs - your credit file is just as trashed) and the other belonging to a bankrupt (possibly discharged within a year) - What advantages does the DMP credit file have over the bankrupt credit file? - I cannot see any but Im happy to be corrected.

These are my thoughts - I have been wondering about this for a while......please don't lynch me!:eek: but do correct me if I am wrong!
I actually hope Im wrong.

Can you tell Im having one of those days?:p