help with creditor negotiations

pink1310

Hi i feel a little lost i went to the cab on monday he told me bank rupcy or creditor negotiations so i opted for that.

Hes drafting me the finance plan and how much i could pay back can some one guide me in what to do after that or some one who has done it before.

Do i ring them this month regarding i cant pay the full amount?
and go and see natwest regardiing my loan with out the letter yet

also does anyone know about consumer credit act 78?

would i be alagable for that one credit card was taken out in 2006.

many thanks indvance

Nicola

podperson

Hi Pink,

I would maybe write out to them advising that you are struggling with the repayments at the moment and are currently taking advice from CAB so a financial plan will be following shortly. If you ring up they tend to try and make you make a payment you can't really afford and plus it is always good to have everything in writing.

Regarding your credit card, if you think you're inelgible does that mean you have requested your credit agreement and they have been unable to produce it? If not and you are looking to go down that road then that would be first step, there are templates I believe and will need to include a £1 postal order. If they are unable to produce this then can send them an account in dispute letter saying that you don't believe the debt is valid and therefore won't be making any more payments. Please be aware that even if they don't have a valid agreement that doesn't mean that they will just forget about the debt, only that they would have a much lower chance of defending it if they took you to court, so they will still chase you for the money and pass to debt collectors etc.

immoral_angeluk

The consumer credit act covers all consumer credit... but it's not clear as to what you mean. The consumer credit act isn't something you're eligible for, it just applies to all consumer credit. Do you mean these various things about having debts written off etc?

DarkConvict

As above the consumer credit act applies to all credit, it is the law to define how it works.

Any credit taken out Pre April 2007, uses consumer credit act 1978, post April 2007 credit uses consumer credit act 2006.

Creditor negotiation is basically another word for a DMP, Debt Management Plan. You do a budget sheet for your income/outgoings. And whatever you have left over (the surplus) you pay to your creditors on a pro-rata budget. If you are not very financially aware it maybe best to get CCCS, CAB, National Debtline or PayPlan to personally handle the matter. You pay them a single monthly figure and they pay all your separate creditor on your behalf.
Creditors do not like been paid less than min payments and as such you will get letters/phone calls. Some may not agree to the lower payments so you get defaults and even CCJs. Its just the process you have to go though if you have borrowed more than you can afford to repay.

immoral_angeluk

DarkConvict wrote: »

As above the consumer credit act applies to all credit, it is the law to define how it works.

Any credit taken out Pre April 2007, uses consumer credit act 1978, post April 2007 credit uses consumer credit act 2006.

Creditor negotiation is basically another word for a DMP, Debt Management Plan. You do a budget sheet for your income/outgoings. And whatever you have left over (the surplus) you pay to your creditors on a pro-rata budget. If you are not very financially aware it maybe best to get CCCS, CAB, National Debtline or PayPlan to personally handle the matter. You pay them a single monthly figure and they pay all your separate creditor on your behalf.
Creditors do not like been paid less than min payments and as such you will get letters/phone calls. Some may not agree to the lower payments so you get defaults and even CCJs. Its just the process you have to go though if you have borrowed more than you can afford to repay.

Just to clarify this, CAB don't take payment from the clients, we negotiate with the creditors to accept the offers, but then it's down to the client to maintain them. I think CCCS etc do take payments though.

DarkConvict

Cheers Angel, I didn't know that. But with the way CAB works as a place of general advice it makes sense.

immoral_angeluk

DarkConvict wrote: »

Cheers Angel, I didn't know that. But with the way CAB works as a place of general advice it makes sense.

Because we're mainly run by volunteers, bar specialist staff, we would generally simply not have the financial means available to be able to deal with the admin cost of dealing with that many payments

pink1310

Hi yes sorry i ment would i be able to see if i can get my debt written off by the cca 78.
kind regards Nic

DarkConvict

Debt is not written off by the CCA 1974, if an agreement is not compliant it just prevents it been enforced by a court. I.e. a CCJ and Bailiffs.

The Claims Management Regulator at the Ministry of Justice and the Office or Fair Trading (OFT) are warning consumers to think carefully before responding to businesses claiming that they can arrange for outstanding balances under loan, credit card and other consumer credit agreements to be written off and secure compensation.

http://www.oft.gov.uk/news-and-updates/press/2008/consumeralert

'Unenforceable' means a lender can still chase a borrower for payments and register non-payment with credit reference agencies, but it cannot use the courts to enforce the debt.

http://www.moneysavingexpert.com/news/loans/2010/01/oft-warning-over-debt-write-off-claims

Basically, they can still ask for payment and damage your credit file. It is never written off.
What you can do is refuse to pay if they can't take court action and wait for statute of limitations (6 year rule) to take affect. But that does mean your waiting out 6 years of harassment.


Edit


How to check the enforceability of a pre-april 2007 agreement - https://forums.moneysavingexpert.com/discussion/2305463