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CCCS_Sue

Mark,_London wrote: »

Hello,


I have a credit card (CC) debt that was £13,300 at the time a CCJ was awarded against me. A Charging Order was then issued against my house because I couldn't pay the CCJ. I have made no payments against the debt and I have been unemployed for over a year.


I was rather surprised to now receive a letter from solicitors acting for the debt company I owe money to that stated that the debt was now £18,200 because of added interest.


According to the statement they have just sent me, each month they are charging me two types of interest - one just called “interest” at a rate of 8% and which amounts to around £90 per month and one called “post judgement interest at 12%” which amounts to around £45 per month.


I was surprised to receive this letter because I have other CCJs for CC debts but the other companies have sent me statements showing that no interest has been added post CCJ, even when they have also had a Charging Order issued.


My questions are various:

1. Can interest be added post CCJ for a CC debt? Advice that I have read elsewhere suggests that it normally can't for CC debt, save for some cards that have a 'special clause' (and that advice sounds odd as you'd imagine all CCs would have that 'special clause' about contractual interest; why would some CC companies want to lose out)?

1. If interest is payable, do the two types of interest (and interest rates) make sense? I appreciate that doubtless the two rates are statutory interest (8%), and that plus base rate (4%). So if interest is payable, then at what rate(s)?

1. Does the fact that the company hasn't contacted me for a couple of years (I have always been at the same address) have any bearing? Could there be an obligation on them to issue regular statements (and if not, forgo some payment?). I was shocked to see interest was still being added.

1. The solicitors write with the statement that our client “may be able to freeze the interest if you can enter into an appropriate payment plan”. This raises my suspicions about whether I owe them interest or not because I told them, before they wrote this letter, that I would only be able to make a token payment because I am unemployed and they seemed agreeable to that. I can't see that any company would voluntarily give up about £135 per month (which is what they are claiming as interest) to instead revive a token payment of, say, £40 per month.

1. If they are wrongly trying to charge me interest, I would like to take that matter further. Do you know what solicitors body or similar I could refer them to?

Any advice you can offer is very much appreciated.

Hi Mark and thank you for your message
The right to add interest after a CCJ depends on the type of judgment and whether the agreement was regulated by the Consumer Credit Act:
With non regulated debts over £5000,statutory interest at 8% is automatic and will continue to accrue on the judgment balance at the same rate after a final charging order.
With regulated debts, no contractual or statutory interest is normally added after judgment and a final charging order does not alter this.
However, in rare cases, (Regulated debts with post judgment contractual interest claimed )– a creditor may claim ongoing contractual interest after judgment. This must be specified in the terms of the original credit agreement and the creditor must send letters prescribed under s130A CCA at least every six months informing the debtor of this. In this case the contractual interest would accrue as a separate debt and would not form part of the judgment balance.
Interest is not stopped if the debt is enforced by means of a charging order.
The charging order application does not need to specify this.
If you would like to get further legal advice regarding this, then you could contact ‘Community Legal Advice’

They offer free confidential legal advice and may be able to offer further assistance.

http://www.communitylegaladvice.org.uk/

Kind Regards
Sue

dexter555

Hello Dexter555 and thank you for your message.

If you don’t already have a CCJ, have not made a payment or written to them admitting the debt within the last 6 years, the creditor is legally unable to pursue you for the debt.

This is known as statute barred and refers to the Limitation Act.

If you believe that the creditor is timed out to collect the debt, you could use the template letter below.
Alternatively, you could work out an income and expenditure and offer them a realistic amount that you can afford each month. You can use our online Debt Remedy facility to help you do this: http://www.cccs.co.uk/ref/drcu

Kind regards
Pavan

Example letter – limitations act

From:
Name:
Address:
Postcode:
Date:
CCCS Client No:
To:
Creditor’s Name:
Account/Agreement No:

Without Prejudice

Dear Sirs
Ref
I do not admit any liability for your claim and will not be making any payment towards it, as it is now more than six-years since any cause of action may have accrued. Any claim would, therefore, appear to be statute barred under section 5 of The Limitations Act 1980 and any court claim will be defended on that basis.
In addition section 2.14 of The Office of Fair Trading Collection guidance states that it is unfair to pursue such claims where, as here, the creditor has made no contact during the relevant limitation period.
If, however, you have substantive evidence that your claim is not statute barred then please supply it to me within 21 days. If you are unable to provide such evidence please confirm that no further action will be taken against me.
Yours faithfully
(Signature)
(Print name)


Hi i posted this on the 8th oct and sent the sample letter to the collection agency on the 10th oct and have not had any responce from them should they have sent some kind of letter to me as its is now over the 21days ?

greenback

CCCS_Sue wrote: »

Hi and thank you for your message

Fantastic to hear that you only have four payments left to being debt free

Our client support team will contact you to confirm when your DMP has finished and the last payment has been made.


Kind regards

Sue

Thanks for your reply. This will be the first time I have been debt free for 15 years, it's a good feeling and just wanted to say to everyone, it can be done. CCCS have been great and although my debt was compartively small compared to some, it took the kindness of the people at CCCS to help me to get through it, especially the hardest part which is facing up to it and doing something about it.

oneway81

hello,

I have just received my booklet and plan, it says i need to post off various things inc default notices for all my debts, i dont have these for a number of debts as i havent got as far as not paying most of them yet, i have various payday loans which are due to be paid at the end of this month and i wont have the funds to do so, i have only been paying the interest thus never going to be debt free unless they are included in my DMP.

How should i go about this ?

Do i wait for them to go to the default stages before adding them to my dmp ?

any help would be great

angelflower_2

hi

I have been on a self administered DMP for the last two years and all been going well until a secondary debt took me to court to get more money. My repayment plan was denied and they were awarded the decree. I now have a charge for payment. I therefore readjusted all my figures to take into account they were now a priority debt and they have agreed to accept a monthly payment. I have however, had to advised other priority debts that their pot is reduced. All debt will be cleared in under 5 years at current rate.

I am worried that I am not protected in anyway and am consdering a DAS or trust deed. Have an appointment with CAB but wondered what your opinion would be of going down this route.

CCCS_Sue

oneway81 wrote: »

hello,

I have just received my booklet and plan, it says i need to post off various things inc default notices for all my debts, i dont have these for a number of debts as i havent got as far as not paying most of them yet, i have various payday loans which are due to be paid at the end of this month and i wont have the funds to do so, i have only been paying the interest thus never going to be debt free unless they are included in my DMP.

How should i go about this ?

Do i wait for them to go to the default stages before adding them to my dmp ?

any help would be great

Hi oneway81

Thank you for your message

We need up to date statements so that we have all the information such as account numbers, addresses of creditors and current balances.

You could send a photocopy of the statements you have as long as you ensure that you include all the information we need.

Send a copy of our template letter (notification of DMP) to each of your creditors including the payday loans. This explains you are going on a DMP and you can include a token payment of what you can realistically afford until your plan is set up.

You need to include all your debts on your DMP whether they are defaulted or not.

If you have not already done so, if you have debts with your current bank account, then you need to change to a basic bank account elsewhere. This prevents the bank taking money from your account without your permission to pay off debts you have with them. This will put you back in charge of your finances and is explained in your booklet.

If you need further help, then please contact our client support team who will be more than happy to advise you further.

Kind Regards
Sue

simon31leeds

CCCS_Pavan wrote: »

Hi Simon,

Unfortunately I’m not aware of anything that you can do if you agreed to sign for the new arrangement.

I’m assuming that you think that it’s affecting your credit file and that’s why you can’t get another loan? There could also be other reasons why you have been declined and the article on improving your credit file may still help.

You would need to discuss this with RBS but if you’re not happy with their reasons you could contact Consumer Direct for further advice on where you stand.

Kind regards,
Pavan

Hi Pavan,

Sorry - we still seem at crossed wires. I'm talking about an informal 'arrangement to pay'. I've never signed an agreement in this regard particularly, this was just when I fell behind with my payments, they asked if I could come to an arrangement to pay to catch up with the payments. This is now over 3 years and I am up-to-date and more with payments but they will not remove the 'arrangement to pay'. Because it is marked on my credit file as an 'arrangement' this is hampering my ability to obtain credit elsewhere.

All I want to know is, can I do anything to force pressure on RBS to remove the 'arrangement to pay' bearing in mind I have paid all payments under the arrangement for over 3 years and I just want to revert to paying them normally, not under an 'arrangement to pay'.

This doesn't relate to interest rates or agreements signed, it is simply classed by them as an 'arrangement to pay' and reported on my credit file as an arrangement. The arrangement is causing me to be unable to obtain a loan to consolidate my credit and I am wanting to know where I stand.

Please help and ask if you need anything clarifying further.

CCCS_Sue

angelflower wrote: »

hi

I have been on a self administered DMP for the last two years and all been going well until a secondary debt took me to court to get more money. My repayment plan was denied and they were awarded the decree. I now have a charge for payment. I therefore readjusted all my figures to take into account they were now a priority debt and they have agreed to accept a monthly payment. I have however, had to advised other priority debts that their pot is reduced. All debt will be cleared in under 5 years at current rate.

I am worried that I am not protected in anyway and am consdering a DAS or trust deed. Have an appointment with CAB but wondered what your opinion would be of going down this route.

Hi angelflower and thank you for your message.

Without knowing your full financial situation I am not able to say which would be your best option at this stage.
However, I have attached some further information on debt arrangement schemes so that you are aware of what they are and who can apply.

Basically, a debt arrangement scheme (DAS) allows you to repay your debts at an affordable amount each month.

While you are on a debt arrangement scheme you are protected from diligence or being made bankrupt by your creditors.

You may be able to apply for a debt arrangement scheme if:

• You live in Scotland
• Have more than one debt
• Have some money left over, after you have worked out your essential expenditure and drawn up a personal budget

Under a debt arrangement scheme you make one affordable monthly payment to your debts. Your payment is sent to an approved payment distributor who sends the money to your creditors. If you make the arranged payments your creditors can not add any more interest or charges to your debts.

Once you make an application for a debt arrangement scheme, you are protected from diligence for six weeks while your application is waiting to be approved. Once your debt arrangement scheme has been approved, you will continue to have this protection as long as you keep up the payments arranged.

Once you have repaid your debts in full your debt arrangement scheme will end.
The scheme will be cancelled if you don’t make the payments that are required. Your creditors can then add back on to your debt all the interest and charges that had been frozen when you started the debt arrangement scheme.
CCCS are not able to set up a DAS, but your local CAB will be able to help you if you have all the necessary criteria to apply.

If this isn’t an option and you would like to see if a trust deed would be more suitable, you can use our online Debt Remedy facility for further help and advice.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation. If you would like to get immediate advice on your situation, follow the link to go directly to Debt Remedy: http://www.cccs.co.uk/ref/drcu

Alternatively, you can call for an appointment free on 0800 138 1111.

Kind Regards
Sue

CCCS_Sue

bohemian wrote: »

Hello,I am new to the forum and would greatly appreciate some help.I have recently been declined for car credit and credit cards despite being a married home owner and being in a relatively well paid and secure job.This surprised me so i went online and checked my credit file.
To my surprise i have 5 defaults listed which explains why i am being declined credit.
3 of these defaults are from British Gas one for £660, one for £175 and one for £332.These are apparently related to a property i only lived in for 18 months and paid a monthly direct debit to British gas for.I received no contact from them and they just whacked these defaults on there with no explanation at all.
There is also a default from Orange mobile phones for just £35.This is because i cancelled my direct debit and rang orange to cancel my contract a month in advance as you should.They then told me that i hadnt cancelled a month in advance and i owed them a month (despite me taking out a new seperate contract with them)i told them i had done everything properly and i wasnt paying the months charge and asked them to go and listen to the recorded telephone call in which the operator assured me i owed nothing which they said they would do.I heard nothing further from them and they went ahead and whacked a default on there too.
The last one is possible the most annoying.This is from npower who accosted me in a shopping centre one day explaining how they were cheaper.I told them i didnt have time but was interested as i wanted to save cash.They asked me for my home address so they could send out information in the post.I gave them my details and left.a couple of months later, i received a letter from them stating that i owed them for utilities charges as they had taken over the account a couple of weeks after i spoke to the rep.I refused to pay them on the grounds that they fraudulenty took over the running if the account and told them to take me to court if they wanted and that i believed any court would understand my stance.Again, no further contact just a default whacked on my file.This is ruining my life at the moment as with two young children and a new house there is a need for a small amount of credit at the moment which i simply cannot get because of these defaults
Is there any way i can get them removed ????

Hi bohemian and thank you for your message

Your creditor will usually send you a default notice after three to six missed payments. You are given at least fourteen days to pay.

Once default notices are added to your credit file, they are difficult to remove and they do stay on your file for six years from the date of issue.

If you don’t agree with the default notice being served, as you think they have been placed on your file incorrectly, then you could write to the creditors and ask if they would be prepared to remove the notice from your file.

If they do agree then you need to get them to put this in writing to you.

For further advice on this, I have attached a link to a booklet called ‘Credit Explained’ which will give you further information on what to do if you believe information on your file is incorrect. Pages 19/20
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

With regard to Npower, I would recommend that you contact ‘Consumer Direct’ for further advice regarding this. If you did not agree or sign up for the account, then they should not have issued a default notice.

Consumer Direct is the government-funded telephone and online service offering information and advice on consumer issues. It is funded by the Office of Fair Trading and delivered in partnership with Local Authority Trading Standards Services.
http://www.consumerdirect.gov.uk/

Regards
Sue

badchancellor

Hi. I'm emerging from years of having my head in the sand over the family finances; for various reasons I've taken over management of them from my partner. I've been really shocked at what I've found and the biggest shock has been the tens of thousands owed on three credit cards for which we are paying extortionate interest. We are paying off the minimum each month and hopefully will be able to afford to pay off more than that soon, but even so with an average 28.3% APR it's not going to disappear very fast, if in our lifetimes! There is no real "room" on the cards and we've avoided any CC spending for some time. I think the money on the cards may be from balance transfers themselves from some time back. Have made a couple of applications for new cards with 0% periods and been turned down; not sure if this is because of the extent of the debt or poor rating (we haven't ever missed payments, but have unwittingly gone over overdraft limits a few times). Is there any chance these card providers might lower the rate? Or what would you advise would be the best way of going about finding a card/cards with a lower rate to transfer to? I'm working my way through the advice on this board but still finding it hard to pick out the information that seems most applicable to my situation. Look forward to hearing from you...