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Struggling with debt? Ask a debt advisor a question

edited 5 November 2012 at 6:44PM in Debt-Free Wannabe
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Former_MSE_WendyFormer_MSE_Wendy
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edited 5 November 2012 at 6:44PM in Debt-Free Wannabe
CCCS has rebranded as StepChange Debt Charity and we've started a new discussion here


This thread is for people wanting to start getting help with their debts. If you are already a CCCS client please contact the Aftercare team rather than post in this thread (their contact details are in your Welcome Pack).

The Consumer Credit Counselling Service (CCCS) has several counsellors answering questions in our forum. There are three ways to contact them:

1 - To ask them a question please post it below and Pavan or Mat will post a reply here. If your question is about bankruptcy post your question in this thread.

2 - If you would prefer to ask a question in private you can send a private message to CCCS Private Messages and one of the counsellors will get back to you.

3 - CCCS's Debt Remedy is a free and confidential online tool allowing you to work though a budget plan and if you get stuck you can chat to a counsellor anonymously as you do.

This is discussion thread part two, see part one.
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Replies

  • Hi, I have been rather stupid in the past with my finances but since 2010 I promised myself I would stop & get myself sorted.
    I am happy to say that I kept to this, however, I have come accross a hurdle which I didnt forsee & desperately need some advice.
    In Aug 2009 I opened a DMP with Payplan, but I never paid into this. Then is Oct 2009 I took out a Payday loan. I have now begun making regular monthly payments to Payplan, however because this Payday loan was takin out after I signed the DMP agreement they are refusing to deal with them.
    I have been warned by this company that they could take me to court, they have said they have registered a CCJ with Northampton County Court however I have never received paperwork to back this up, which I have advised on numerous occasions. The ammount I owe is £325 which doesnt seem alot but I simply do not have funds to clear it. I have been discussing this directly with them myself, they have offered numerous payment plans but all unaffordable for me. Where do I go from here? I do not want to be taken to court over this but it seems I cant agree with them an affordable monthly payment.
    Any help would be much apreciated.
    PS Payplans advice was just to deal with them direct as they cant. (Helpful)
  • huskypuphuskypup Forumite
    169 posts
    Originally Posted by CCCS_Sue viewpost.gif
    Hi huskypup and thank you for your message

    When you set up a DMP with us, we ask you to sign an agreement to say that we can negotiate with your creditors on your behalf. If you have already signed this, then that should be fine.

    I would recommend that you follow the advice already given by our client support team at CCCS, especially as we have already sent the required documentation to them. If the creditors contact you, explain that CCCS are now dealing with the payments.

    Regards
    Sue


    Sue

    Would be ok for me to write to them again and say basically what you have said above - as they have now sent two of these letters and they say they will not action anything on his account without his signature.

    It just seems strange that my Tesco CC was 3x his and they accepted the DMP without any of this hassle - and the name on his letter was the same as the name on my letters accepting the DMP's without any signatures.

    user_online.gifquote.gif report.gif
  • Originally Posted
    Hi,

    Wonder if anyone can help. I have been in a DMP now for a year & have made all payments on time at £400 per month. (I owe about £100,000). I am self employed as a mortgage broker & the bottom has fallen out of the business. My recent review shows me as having more out go than income so I have dropped my DMP payments to £200 until things pick up. (I considered an IVA but the varaible nature of my income makes this a difficult option)
    One of the debts is with Nat West from whom I borrowed £25,000 over a 7 year period two years ago. They have recently filed for a Court judgement demanding £29,000+ which includes all of the interest that is payable on the loan over the next 5 years.
    I jointly own our property with my wife with a mortgage & secured loan & very little equity. We are now 1 month in arrears with the mortgage.
    I have filed an acknowledgement giving me another 14 days to file a defense.
    My major concerns are as follows
    As a mortgage broker I am regulated by the FSA (As an appointed rep of a network). I believe a judgement will put my job at risk, but am unsure. Any body know ? I have written to Nat Wests solicitors telling them this but they have replied to the effect that Nat West are continuing the action unless I pay them the full amount or £490 per month. (The original payment was £384 per month)
    I am looking for employment outside the industry but this is not easy.
    If I were able to repay the loan now or in the future I would under the terms of the loan be entitled to a reduction in interest. But the CCJ is going to be for the amount borrowed PLUS future interest. Can they do this & is there a defense.
    The DMP company have told me that Nat West are going to be looking to place a charging order on the house effectively making it a secured loan. My Wife would object to this as she owns half & is not party to the loan.
    Selling the house currently is not an option as I would have a hefty penalty to find on redemtion of the mortgage. However if I did in the future I would intend to offer any equity to all creditors on a pro rata basis. Surely Nat West seeking a charging order are being unfair to other creditors who have been (in the main) more co-operative by freezing interest.
    Can anyone advise me on the above in particular any points I can make in my defence.

    Thanks in advance

    Hi Phil,

    Thank you for your email.

    I would recommend that you call for an appointment as soon as possible for the CCCS to help you complete a detailed budget and look at your options. You will need to speak to your mortgage lender as soon as possible and come to an arrangement for the missed payment.

    With regards the CCJ, if this was going to affect your work then you could apply for a Tomlin Order. You would need to find proof from your governing body of how a CCJ would affect you.

    If the creditor agrees to a Tomlin Order, a document or schedule would need to be drawn up by a solicitor or a court appointed mediation service. This would then be presented to the court to agree the order. Solicitor’s fees for this service vary depending upon the complexity of the case.

    If you default on the order, the creditor can return to the court and apply for a judgment to be entered without having to re-start proceedings.
    The order then becomes public and will be registered as a CCJ with the same enforcement options e.g. bailiffs, attachment of earnings etc.

    Sarah


    Thanks for your reply.

    Seems like the creditor is not being very helpful. You could try this from a different angle and approach the court directly. You could apply for something called a Time Order. This gives the court the opportunity to reset the terms and payments of the arrangement. You could attach any relevant paperwork e.g. that a CCJ would affect your work, you have tried a Tomin Order and the creditor is not willing to reduce the payments so still unaffordable so now you are asking them to help.

    It may help if you have a detailed budget from a debt advice charity too such as CCCS, CAB or National Debtline as this shows you have tried a number of different types of negotiation.

    I have attached a link to the National Debtline’s website so you can have a read about Time Orders.

    Hope this helps
    Sarah

    Hi,

    The Judgement has now been issued, & I have to pay them £549 per month. It seems that the court has taken no notice what so ever of the income & expenditure that was sent to them. I can't pay this as I am struggling to pay £200 per month into the debt management plan. I am now in arrears with our mortgage & also working in the evening to try & keep up.

    I have checked & I have to report the fact that I have had a judgement issued. It seems that I may not lose my ability to create an income, but its not guaranteed.

    On top of that I'm starting to feel the stress. I had a heart attack several years ago & don't want to risk another

    Any advice on what to do next.

    PS I know that Nat West are likely to want to get a charging order which explains why they are being so unhelpful. I would want to contest this as half of the property is my wife's, their is little if any equity, & it would be unfair on my other unsecured creditors (who unlike Nat West have been more helful & frozen interest instead of adding 7 years worth on upfront)

    CCCS_Matthew;30444761Hi there.

    Once the CCJ has been issued you have 14 days to contest the amount by writing the court a letter. Hopefully you may find the court reassess things and accept a reduced amount.

    After 14 days you must then fill out an N245 form instead to request a redetermination of the amount.

    I would suggest you contact the court to see why your offer was rejected, and request a rationale to why the reached the conclusion of £549. It might also be worth checking that they received the paperwork in the first place. Did you send it recorded delivery?

    If all else fails you could request a court hearing to speak to a judge about the situation face to face. You can do this by filling out an N244 form with a fee of £75.

    As far as a charging order would be concerned, you would have the ability to defend it at a hearing. It's worth noting that a charging order would only be granted on your equity if the debt it only in your name.

    I also think it might help if you came for an appointment as suggested by Sarah so we can review your overall situation and give you much more detailed advice. It's quite difficult to go into a lot of detail about things via this forum. We can also make sure that your income and expenditure is reasonable. If your costs are high this may explain why your creditors have not accepted previous offers of payment.

    Regards,
    Matthew

    Hi,

    Further to the above a lot has happened since. The main point is that my wife died suddenly on the 10th March. As a result on attending the court hearing the judge slated me for not being prepared, but adjourned it until 25th May, when I told him why. It was revealed that Nat West are going for a charging order at the same hearing.
    Because of my wife's death, the income has fallen although I am able to get bereavement allowance for 12 months. The nett result is that I can no longer afford the £200 per month I was paying into the DMP. On the other side of the equation I will get £40,000 life assurance payout once probate is approved. With that money I could pay off a secured loan of £34,000 which would mean I can pay more on the DMP (It would free up £500 per month which could all go on this. The other alternative would be to offer full & final settlements on all of my unsecured debts. The total outstanding on the debts are £107,000. I have no idea if the creditors are likely to accept this, but is the prefered option.
    One of the things that concerns me is that most of the creditors have frozen interest & a full & final settlement would seem to me to penalise them. The judgement for Nat West for example is for the full amount owed INCLUDING interest that would have accrued over the next 5 years (Interest is front end loaded). This means that I will be payoffering 37p in the £ rather than 40p to all creditors.
    Finally at court it appears that the way is open for Nat West to apply for the charging order as I am in default of the original unaffordable judgement for £549 per month. This seems unfair to me as I requested the redetermination within the time period of 14 days & even had the court fee of £35 returned because of this. is this correct.

    Sorry to ramble on here, but would appreciate any advice ?
  • CCCS_SueCCCS_Sue Organisation Representatives - Private Messages may not be monitored
    966 posts
    huskypup wrote: »
    Originally Posted by CCCS_Sue viewpost.gif
    Hi huskypup and thank you for your message

    When you set up a DMP with us, we ask you to sign an agreement to say that we can negotiate with your creditors on your behalf. If you have already signed this, then that should be fine.

    I would recommend that you follow the advice already given by our client support team at CCCS, especially as we have already sent the required documentation to them. If the creditors contact you, explain that CCCS are now dealing with the payments.

    Regards
    Sue


    Sue

    Would be ok for me to write to them again and say basically what you have said above - as they have now sent two of these letters and they say they will not action anything on his account without his signature.

    It just seems strange that my Tesco CC was 3x his and they accepted the DMP without any of this hassle - and the name on his letter was the same as the name on my letters accepting the DMP's without any signatures.

    user_online.gifquote.gif report.gif

    Hi huskypup

    You can write to them and explain that as you are going on a DMP, CCCS are now dealing with the payments.

    As I do not have access to your account details, it is best to get further advice from our client support team. If they have already said that you have no need to sign, then you should not need to.

    Regards
    Sue
    I am a CCCS Debt Counsellor and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on CCCS in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • CCCS_SarahCCCS_Sarah Organisation Representatives - Private Messages may not be monitored
    1.6K posts
    Hi, I have been rather stupid in the past with my finances but since 2010 I promised myself I would stop & get myself sorted.
    I am happy to say that I kept to this, however, I have come accross a hurdle which I didnt forsee & desperately need some advice.
    In Aug 2009 I opened a DMP with Payplan, but I never paid into this. Then is Oct 2009 I took out a Payday loan. I have now begun making regular monthly payments to Payplan, however because this Payday loan was takin out after I signed the DMP agreement they are refusing to deal with them.
    I have been warned by this company that they could take me to court, they have said they have registered a CCJ with Northampton County Court however I have never received paperwork to back this up, which I have advised on numerous occasions. The ammount I owe is £325 which doesnt seem alot but I simply do not have funds to clear it. I have been discussing this directly with them myself, they have offered numerous payment plans but all unaffordable for me. Where do I go from here? I do not want to be taken to court over this but it seems I cant agree with them an affordable monthly payment.
    Any help would be much apreciated.
    PS Payplans advice was just to deal with them direct as they cant. (Helpful)

    I would recommend that you either contact the court or get a copy of your credit file to see if they have issued you with a CCJ. If they have, then you could try and contest this and say that you have never received any paperwork.

    You do need to make a fair payment towards this debt, so if payplan are not allowing you to add the debt then I would recommend that you either run your own DMP or approach a non profit organisation to include all your debts.

    If you would like an appointment with the CCCS then our helpline number is 0800 138 1111.

    Regards
    CCCS
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_SueCCCS_Sue Organisation Representatives - Private Messages may not be monitored
    966 posts
    [

    Hi,

    Further to the above a lot has happened since. The main point is that my wife died suddenly on the 10th March. As a result on attending the court hearing the judge slated me for not being prepared, but adjourned it until 25th May, when I told him why. It was revealed that Nat West are going for a charging order at the same hearing.
    Because of my wife's death, the income has fallen although I am able to get bereavement allowance for 12 months. The nett result is that I can no longer afford the £200 per month I was paying into the DMP. On the other side of the equation I will get £40,000 life assurance payout once probate is approved. With that money I could pay off a secured loan of £34,000 which would mean I can pay more on the DMP (It would free up £500 per month which could all go on this. The other alternative would be to offer full & final settlements on all of my unsecured debts. The total outstanding on the debts are £107,000. I have no idea if the creditors are likely to accept this, but is the prefered option.
    One of the things that concerns me is that most of the creditors have frozen interest & a full & final settlement would seem to me to penalise them. The judgement for Nat West for example is for the full amount owed INCLUDING interest that would have accrued over the next 5 years (Interest is front end loaded). This means that I will be payoffering 37p in the £ rather than 40p to all creditors.
    Finally at court it appears that the way is open for Nat West to apply for the charging order as I am in default of the original unaffordable judgement for £549 per month. This seems unfair to me as I requested the redetermination within the time period of 14 days & even had the court fee of £35 returned because of this. is this correct.

    Sorry to ramble on here, but would appreciate any advice ?[/QUOTE]

    Hi Phil and thank you for your message

    As mentioned earlier, I would recommend that you call us for an appointment to discuss this in more detail with one of our debt counsellors, as it is difficult to give you detailed advice via the forum without knowing your full financial situation.

    There may be other options you could consider apart from a full and final settlement.
    We can also discuss the charging order in more detail with you and any defences you could consider.
    The free telephone number is 0800 138 1111.

    Regards
    Sue
    I am a CCCS Debt Counsellor and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on CCCS in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy
  • Hello,

    This is my first time, so please bear with me.
    • We have £30,000 secured against our property - Loan
    • We have a unsecured loan of 7,000
    • We have £37,000 in equity in our property
    • We want to sell the house to clear all debts because we cannot afford payments anymore
    • The house is not selling
    Questions:
    • Can we force a repossession?
    • Can we speak to the mortgage company and loan company and agree for them to take the house?
    • If the house is repossed and sold for less than we owe, can they chase us for the rest of the money?
    • Any ideas?
    Any help is greatly appreciated.

    Kind regards

    ULB:A
  • CCCS_SarahCCCS_Sarah Organisation Representatives - Private Messages may not be monitored
    1.6K posts
    Hello,


    This is my first time, so please bear with me.
    • We have £30,000 secured against our property - Loan
    • We have a unsecured loan of 7,000
    • We have £37,000 in equity in our property
    • We want to sell the house to clear all debts because we cannot afford payments anymore
    • The house is not selling
    Questions:
    • Can we force a repossession?
    • Can we speak to the mortgage company and loan company and agree for them to take the house?
    • If the house is repossed and sold for less than we owe, can they chase us for the rest of the money?
    • Any ideas?
    Any help is greatly appreciated.

    Kind regards

    ULB:A

    Hi ULB,

    Thank you for your post.

    I would recommend that you have an appointment to discuss this in detail. The problem is if your home is repossessed then its not likely that you will get the same for it, as if you were to sell it.

    Have you tried dropping the price a little to see if it sells?

    Is the reason you can no longer afford your mortgage because you have had a change in your situation? If so, there are various schemes in place to help, if you have an appointment then we will be able to see if you are eligible for any of them.

    If you would like an appointment please call our helpline free on 0800 138 1111.

    Regards
    Sarah
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • Hi,

    I have a terminal illness although it is manageable. I separated from my wife 6 months ago, but no financial issues are a problem with the divorce as no equity remained in the marriage. I owe £8000 and i am struggling badly. I looked at a debt relief order yesterday, but do i meet the criteria?

    I have nothing apart from a television, and a car i have to pay £164 a month for. I live in furnished accommodation. I have nil available income. Could you please offer some advice?

    Thank you.
  • Jacey53Jacey53 Forumite
    292 posts
    Home Insurance Hacker! Cashback Cashier
    ✭✭
    Hello

    I have started a DMP with CCCS which is going well 2 months in - the relief I feel is enormous.

    I have 5 creditors - one has agreed to reduce interest and freeze all charges on my account for a year with a possibility of a full and final settlement at that point.
    The other 4 will continue to add charges and full interest. I understand their point of view, particularly as the amount I can pay is not much below the minimum payment anyway, but it will take a long time for me to pay off the debt.
    Is this something that they would be prepared to rethink? Could i go back to them in say a year and suggest they freeze or reduce the interest?

    Even if not, when I start being able to meet the minimum payments, does CCCS stop the DMP? Or do you stay with me until it is paid off in full?

    Also if I can save a few pounds from my food budget each month, will I be allowed to pay a full and final settlement under a DMP?

    This is not urgent - it's a long way off yet.
    Sealed Pot challenge 2011 member 1051 - aiming for £365
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