Struggling with debt? Ask a debt advisor a question

hadleigh47

This is the text of thread left elsewhere on this forum and would welcome CCCS and anybody else to comment

'I have a DMP with CCCS. Last year I used some redundancy money to pay up front fees with Claim Management UK ( to clear mis-sold debts and deal with mis-sold PP!) who are difficult to get hold off to say the least. They sub contract work to Innovative Finance who want me transfer the DMP to them . This way they can deal with the creditors direct regrading mis-sold credit and PPI.
I know CCCS are funded by credit industry and thery have not always been consistent and now they should have told me that I should consider bankruptcy and not a DMP which I took out with them back in 2005.
No-one is given me good advice . You do pay fees with Innovative Finance. just how good are they?
Any thoughts '

canonalberic

Hi there.

My wife and I have about £40 000 of debt from credit cards. At the moment we can't make anything but token repayments, but in a year's time my wife will have started work as a teacher, so our financial situation will improve.

What would really make things easier for us would be if we could get creditors to hold off on adding interest and penalty charges to our accounts; with the amounts owing frozen, we stand a chance of paying our debts off. If interest keeps piling on, that will be a lot more difficult. I'd be really grateful if you could let me know:

• what I can do to make it more likely that they'll agree to freeze the interest?
• if a debt is passed over to a collection agency, does it still carry on attracting interest?
• is there any kind of time limit or size limit to debts (i.e. is a creditor obliged to stop increasing the debt with interest at any point)?

Many thanks for your help.PS- should add that we've seen a CAB advisor and drawn up a staement of our financial affairs (demonstrating that we haven't the resources to make any more than token repayments) and this will be going off to creditors shortly.

canonalberic

hello all
Another quick question. My wife and I currently owe around £38 000, and are making only token repayments atm. There's a possibility that I may be able to borrow a sum of money from relatives, which would make it possible to pay off one of our creditors (all are credit card accounts, btw) comepletely. This would obviously be very attractive, and it would make sense to pay off one creditor completely rather than spread the amount borrowed amongst all the creditors (because one account settled would no longer accrue interest, whereas the amount paid off across all of them would be lost if interest carried on being added). But would I be putting myself in the wrong leally by not dealing with all of them on a pro rata basis?
Thanks for your help again.

CCCS_Sue

loma79 wrote: »

Hi, I've 2 main issues I could do with help with, first of all, I have a catalogue debt of £132 from 2002 that I could not afford to pay at the time, (kids were really small, money was tight) I had forgotten all about it, even while paying off other debts after university as it was not listed on my credit reports. Since this time I have finished a university course and have been working as a nurse for 3 years, now a debt collection agency have been in touch by mail and are calling 2-3 times daily for this money. I can afford to pay this, and would pay it if it was going to the people I was actually due it to, but knowing that these vultures (Robinson Way) have probably paid no more that £20 for my debt, I am reluctant to pay them as it is almost pure profit for them. Do I really have to pay?

The other issue is that I went to university so that I could afford to buy a larger house as me and my kids are crammed into a tiny council house with no chance of getting moved in next few years as there aren't enough properties left. We can't move area due to other issues. My credit score is low however, 339. I have no missed payments in last 4 years, last defaults, 2 of them, are from 2006 and are now settled, but I have 16 accounts, mostly settled but for small amounts from provident mainly. I had to use them as I couldn't get credit and was paying off my student debts initially after uni. I feel like I'm in a viscious circle now, I earn £29,500pa and have a disposable income of £1000pcm, but I can't get a mortgage. I can't find a way out. Private rental properties are rare and very expensive where I live and also seem like a temporary option for my kids. Homebuy schemes won't touch me as repossession in shared equity is a legal minefield. Is there anything that I can do to get a mortgage?

Thank you x

Hi Ioma79 and thank you for your message

I have attached a link to this site which has some useful information regarding improving your credit file which may help.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
Mortgage lenders are tightening up on their lending criteria at the moment, so I’m afraid obtaining a mortgage can be difficult.
It may help if you can clear the sixteen accounts you have as soon as you possible as this may also be hindering your application.

With regard to the catalogue debt, creditors are unable to legally pursue you for the debt if, after six years;

• The creditor has not already obtained a county court judgment (CCJ)

• You or any one else owing the money (on a debt in joint names) has not made a payment

• You have not written to the creditor admitting you owe 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 may wish to use the template letter below.

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)

Hope this helps
Regards
Sue

CCCS_Sue

hadleigh47 wrote: »

This is the text of thread left elsewhere on this forum and would welcome CCCS and anybody else to comment

'I have a DMP with CCCS. Last year I used some redundancy money to pay up front fees with Claim Management UK ( to clear mis-sold debts and deal with mis-sold PP!) who are difficult to get hold off to say the least. They sub contract work to Innovative Finance who want me transfer the DMP to them . This way they can deal with the creditors direct regrading mis-sold credit and PPI.
I know CCCS are funded by credit industry and thery have not always been consistent and now they should have told me that I should consider bankruptcy and not a DMP which I took out with them back in 2005.
No-one is given me good advice . You do pay fees with Innovative Finance. just how good are they?
Any thoughts '

Hi hadleigh47

Thank you for your message

I do not have access to your client details, but if bankruptcy has been recommended, then this is because it is the best option for you at this time, possibly because your circumstances have changed since your initial appointment. If you would like clarification on why bankruptcy has been suggested as an option, I would recommend you call our client support team, who will be more than happy to advise you further.

I am not able to comment on the fee charging company you mention, but if you have a DMP with CCCS at the moment, then all the available money you can afford is going towards paying off your debts. We do not charge any fees.

You do not have to pay a company to look at reclaiming mis sold PPI for you as all the information you need to do it yourself is on this website.

Regards

Sue

clareb2010

Hi

We are in the process of gathering the information you need for our DMP however you ask for statements.

I have a loan that was not paid last month ( need to send Token payment ) and they are very agressive when i phone them. I have a statemnt from June is that ok?

Also can i print of the statements from our online banking as we do not get statemenst?

Thanks
Clare

CCCS_Sue

canonalberic wrote: »

hello all
Another quick question. My wife and I currently owe around £38 000, and are making only token repayments atm. There's a possibility that I may be able to borrow a sum of money from relatives, which would make it possible to pay off one of our creditors (all are credit card accounts, btw) comepletely. This would obviously be very attractive, and it would make sense to pay off one creditor completely rather than spread the amount borrowed amongst all the creditors (because one account settled would no longer accrue interest, whereas the amount paid off across all of them would be lost if interest carried on being added). But would I be putting myself in the wrong leally by not dealing with all of them on a pro rata basis?
Thanks for your help again.

Hi canonalberic and thank you for your messages

In answer to both of your emails,the creditors are under no obligation to stop interest and charges. It is entirely at their discretion. When a debt is passed to collections, the interest can stop but there is no guarantee.
If you have a lump sum to offer and you have been making reduced payments for sometime, then you could offer a full and final settlement offer to all your creditors to clear all the debts. I do have some information regarding full and final settlements, and if you would like a copy then send me (Sue)an email to [EMAIL="contactus@cccs.co.uk"]contactus@cccs.co.uk[/EMAIL] and I will forward it to you.
The creditors do not have to accept a full and final offer, but if you have been making reduced payments for sometime, they are more likely to consider your offer.

If you would like any further advice on your options and would like to speak to one of our counsellors, you can call free on 0800 138 1111.

Regards
Sue

CCCS_Sue

clareb2010 wrote: »

Hi

We are in the process of gathering the information you need for our DMP however you ask for statements.

I have a loan that was not paid last month ( need to send Token payment ) and they are very agressive when i phone them. I have a statemnt from June is that ok?

Also can i print of the statements from our online banking as we do not get statemenst?

Thanks
Clare

Hi Clare and thank you for your message

We need your most up to date statements that show the outstanding balances, addresses of the creditors and your account numbers.
If you send us what you have, and then if we require any more information, our client support team will contact you.

Regards
Sue

brokenmum

My child has won a means tested scholarship to a specialised boarding school. My contribution will be relatively small compared to the overall fees. Is this an 'acceptable' expense? What about travel to visit her and very expensive school uniform?

FlipsLDC

Quick Question - Im currently in a DMP and Ive just realised that the car lease runs out in December, The 2 options given are to Give the car back (which Ideally I dont want to do as we need it for work) or pay a balloon payment of £3400. Which realistically means borrowing more money. This means as far as I can see i have 3 options

1) Give the car back and if possible enter a new lease agreement
2) Get a loan to cover the balloon payment
3) Give the car back, defer 3 months payment in order to buy a small
runaround.

In CCCs experiences are any of the above viable options or if you have any other suggestions please advise.