Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

FOURCANDLES wrote: »

Quick question for friend, he has offered token payments all have said NO but he has sent them a payment for last month, how does he pay them ie no giro slip etc when statements stop? also his one is a loan and used to be paid via dd from the same a bank account how does he do it ie pay it ? just write a letter enclose postal order and account number ? how does he do it?

Hi Fourcandles and thank you for your message,

You are right that he could send them a postal order. However this will cost him the price of the postal order and the stamp on top of the token payment.

The most cost effective way to set up a regular payment is by standing order which you can do for free through the bank. This is similar to a direct debit in that it will go out of his bank on the same day each month, but he will be in control of it as opposed to the lender.

He could also consider sending a cheque or paying over the counter.

With regards to his loan, if he banks with the same lender, I would recommend that he opens up a basic bank account elsewhere. This will prevent the bank from taking money from his account without his permission. This is called the Right of Offset. I have attached a link to a moneymadeclear booklet about basic bank accounts which has a full list of the accounts available on page 6: http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf

Hope this helps.

Kind regards,
Pavan

StepChange_Pavan

winner12 wrote: »

Posting here as well as thread
Recieved a default from MBNA they have accepted my DMP and frozen interest and charges already question is do i reply to the default letter
I have relpied to all their corespondance so far and what will be their next step

Hi Winner12.

Thank you for your message.

A default notice is a formal letter informing you that your account is in arrears. I have attached a link to our CCCS website which explains the collections process in a bit more detail: http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Courtaction/Defaultnotices.aspx

There is no need for you to respond to this letter.

Kind regards,
Pavan

StepChange_Pavan

Windchime wrote: »

Hi

First timer, so unsure if I'm doing this right! Recently, I've recieved many calls from companies offering debt management schemes. I'm very sceptical on signing up as I am currently maintaining regular payments, albeit that the interest rates charged are unrealistic. I'm curious as to how they are able to negotiate with creditors to freeze interest when an individual isn't able to do this? Do CCCS offer a DMP scheme? Can I approach creditors to freeze the interest and on what grounds? Also, by entering a DMP does this have a negative effect on ones credit report? Interested to pro's and con's of entering into a DMP scheme.

Windchime!:)

Hi Windchime and welcome to the forum!

Companies cannot guarantee that they will stop all interest and charges as they will have been set out in the original agreement that you signed when you took out the credit. Sometimes they use this as a sales pitch to entice you to use their services.

You could try and negotiate with your creditors yourself and ask them to freeze interest and charges on the grounds that it is not helping you towards clearing your debts.

CCCS do offer free debt management plans, but these are only offered once we have fully understood your circumstances and see it as your best option. Although we try our best to stop interest and charges, we cannot guarantee that they will be frozen whilst on a DMP with us.

Entering a DMP will affect your credit rating as you will be making reduced payments to your creditors. This link will tell you more about what creditors can and cannot do when you are making reduced payments: http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction.aspx

And this link will take you to a booklet which explains what information is on a credit file and how long this can affect you for: http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

If you would like to speak to one of our trained debt counsellors about your situation, you can call our free helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Alternatively you can visit our online debt advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu

Kind regards,
Pavan

croggy22

Afternoon,

I have debts of over 14,000, i meet the minimum payments but seem to be getting knowhere because of the high interest charged. I have been offered a DMP by Greggory Pennington. I dont mind paying a fee for the service but thought i'd check things out on here first. I looked at he CCCS website and filled in the debt remedy program, however it doesnt offer me a DMP, im not sure why becaus i dont have enough spare money to pay extra off my debts to reduce the balances, it seems i only just pay a few pounds off every month because of interest. Any help or advice would be greatly appreciated.

scott43

hi my name is scott and i need some advice i have around £5000 of debts to about 15 different creditors and i am unsure what to do i can only afford 2 pay back £150 per month which works out at £10 per month for each creditor i made each of tem an offer of £10 per month and every 1 refused and most have now started court action aganst me so i called a debt mangement company who said they would sort things out 4 me which they havent done because now all the creditors have refused the debt mangement plan and i feel now i only have 2 options 1 is to leave the country and the other is commit suicide i really dont know what 2 do because all these companys who say they can help cant and im only gettin around 1 and 2 hours sleep a night i currently live with my parents and they hate debt if they found out about the debts i would have no where 2 live apart from the streets i really cant stand tis pressure and all the phone callsn im getting at worl are causing my boss 2 lose his temper with me son i could end up with no job no home and no life please could you u advise me thank you 4 reading this and i am looking forward2 hearin from you

CCCS_Sue

mia1830 wrote: »

Hi,

I am really considering an IVA as I think it is the only way i can sort out my debts, i did the cccs calculator and it advised an IVA. Before I start one I have just a question or two, my husband and I are not living together at the moment because our debts were getting in the way and we couldn't cope together. We have some joint debts and some individual plus we still have a joint bank account as we have a large OD and could not pay it off, so do we have to be living together to go for an IVA? We do love eachother very much and have said will try and work things out when we have our debt problems sorted. At the minute im claiming tax credits as a single parent as at the minute I am but if we get back together would this mess the IVA up as the tax credits will be lower and we would have less money, would it be better for me to claim as a couple until we know what we are doing? The other thing is our car which we share would we loose it, i start at 6am so i would have to get a taxi i can't get a bus at that time but could get one home, my husband would have to get 4 buses a day to and from work it would cost us about £240.00 four weekly, our car is on HP and is £156 per month insurance is £40 per month and tax is £120 yr, do you think we would loose the car? Thanks in advance for any help.

Hi mia1830 and thank you for your message

It is difficult to give you detailed advice without knowing your full situation, but I really think you need to be sure of your personal circumstances before entering into an IVA, especially as you are considering getting back together.

An IVA is a legally binding arrangement and it is important that you are able to maintain the payments for the full period of the IVA.

With regard to the tax credits, then you would not be able to claim as a couple if you were separated.
You need to inform them about any changes in circumstances.

The car would not be an issue in the IVA.

If you did decide to split up, then your situation would need to be reviewed, as you would both be joint and severally liable for the joint debts, and there may be different solutions for each of you.

If you need any further help regarding entering into an IVA, then you can ring our Debt Remedy team for further advice on this option.

Hope this helps

Regards
Sue

CCCS_Sue

MIW wrote: »

Hi Wendy

I have just returned from holiday to be greeted by a letter from Creation Consumer Finance Ltd advising that my debt (!) has been passed to Lowell Portfolio.

The 'debt' is for £4126.28 from a retailer I had, up until now, never heard of but a google search turns up an East Anglian based electrical retailer.

I have never dealt with them nor have I ever had any account with Creation Consumer Finance.

Smelling a rat I 'phoned Lowell but they refused to discuss unless I revealed personal information.

What's my next step. I have a gold plated credit rating and don't want a scam to spoil it

Hi MIW and thank you for your message.

It is up to the creditor to prove that you owe the debt.

You can ask to see a copy of the original agreement and any other document referred to in the agreement as well as a statement of transactions. Creditors have a legal requirement under the Consumer Credit Act (CCA) to supply this information.
Section 77 of the CCA covers fixed sum agreements such as loans. Section 78 applies to running account credit agreements such as credit and store cards. They are not able to pursue you for the debt until this request is complied with.

I have attached a letter you can use to obtain this information.
You need to send it with £1 for the fee.

The creditor must supply a “true copy” and although this does not have to have a signature showing, by not supplying a photocopy of the original with your signature then the creditor is, in effect, admitting that they do not have it available.


From:
Name:
Address:
Postcode:
Date:
To:
Creditor’s Name:
Account/Agreement No:
Without Prejudice

Dear Sir / Madam

With reference to the above account.

Please will you send me a true copy of the original signed agreement
together with an up to date statement of the account showing all
transactions, including interest and charges, and a copy of any other
document referred to in the agreement.

I understand I am entitled to this information under ss77-79 of The
Consumer Credit Act (CCA) 1974.

I also understand that this information should be sent to me within 12
working days of you receiving this letter. The CCA states that creditors are
unable to enforce an agreement until this request is complied with.

I enclose the required £1.00 fee for each account.

Yours faithfully


Hope this helps

Regards
Sue

winner12

Hi there from previous postings i am struggling with Capital one and Monument accepting my DMP I did complain to the Financial Ombudsmen but they refered me back to original creditors as above they have given final response letters and still have not agreed do i complain to the ombudsmen again they are asking for higher payments than offered National Debt Line suggested I complain I did complain to creditors first before the Ombudsmen is now harrasment

CCCS_Sue

debtfreein5 wrote: »

Hi

I am currently not in any arrears, but am starting to struggle with making my current payments. I am looking to make a "financial arrangement" with my creditors to rid my debt over a 5 year period or to just reduce my interest. They have agreed to this but said it will be on my credit file for effectively 11 years.

The man a MBNA said that a financial arrangement wont neccesarily have a huge impact on my credit report (he said missed payments are worse) but I could do with help getting to grips with how this will affect me going forward.

There are no immediate plans to apply for credit but to say that I wont need to apply for anything for 11 years seems unrealistic.

Obviously I need to get out of debt somehow but ideally need to do it with least impact on my credit record.

Any help gratefully received

Hi debtfreein5 and thank you for your message.

If you are struggling to make repayments on your current debts, and you would like some help to negotiate making reduced payments and to look at all your options,then you could call us for an appointment to discuss your situation with one of our debt counsellors, so that they can explore all the solutions available for you.
All our help is completely free and confidential so any money you have surplus after paying your priority bills is going towards clearing your debts quicker.
The free helpline number is 0800 138 1111.

Creditors do not have to stop interest and charges. It is entirely at their discretion.
With regard to your credit file, information is collected on a ‘live account’ until the account is closed, then kept for six years.An arrangement to pay would depend on the terms of the arrangement agreed with the lender.
Most other entries are kept for six years.
I have attached a link to a booklet called ‘Credit Explained’ which gives further information on this and your credit file.
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Regards
Sue

StepChange_Pavan

rebsk1309 wrote: »

Hi,

A debt of mine for £1000 was bought by Moorcroft in Nov 2008, I had an arrangement and have been paying £25 a month and now currently owe £600.

I missed a payment in June of £25 due to being out of work (only for a short time but this messed up my finances and I defaulted).I payed July & August as normal.

I called them last night to pay the arrears of £25. At first they refused to take the payment saying I had to pay the whole amount. Then I was told to pay £200 and increase my monthly payments. I can't afford this so I asked then to take the payment of £25 which they did very reluctantly.

I was advised throughout the whole conversation that someone will visit our house and our debt will be sustantially increased due to this home visit. I was told to increase my monthly payments but I just can't I am on a realy tight budget. Paying for childcare for 2 children so that I can work takes a big slice of my salary and I am doing the best I can.

I am supposed to cal them back today with an increased proposal but to be honest I am too scared to ring them back as the woman was quite nasty yesterday.

I don't want someone to visit the house, and worried the debt will be increased. I will continue to ake the £25 payments in the meantime.

Any advise would be greatly appreciated.

Rebecca

Hi Rebecca,

Thank you for your message.

You are right that you should continue to make the payments of £25 as you cannot offer them money that you can’t afford. I would recommend that you send them an up to date copy of your income and expenditure to support your offer of payment.

It is unlikely that they will send debt collectors to your house as this will cost them a lot more time and money than it would to call you or write to you. Debt collection agencies tend to use this as a tactic to get more money from you.

However, if they do come to your house, it is important to remember that they are not bailiffs and do not have any special powers. You should just inform them of your situation and explain that you are already offering as much as you can.

Hope this helps to put your mind at ease.

Kind regards,
Pavan