Letter to Creditors

sgx.saint

Hey All.

I am proposing a new repayment amount to all of my creditors, I am going to paste my draft letter below. Can you give it a once over and let me know what you think? Thanks

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Three matters concerning the above account

1. Circumstances Update &Repayment Proposal
From the 25th of September 2006 I will be a full-time student studying for a four year degree at University. I am now therefore in a greater financial position to increase my monthly repayments to CapQuest Debt Recovery/Egg Plc. I have enclosed a ‘Personal Budget’ sheet which details all my income and expenditure. As you can see from this information, I only have £135.10 left over every month for my creditors. Therefore in view of my current circumstances I can only offer you £61.54 per month, to be reviewed in six months, or sooner if my circumstances change. The offers to my creditors have been calculated on a pro-rata basis using the same method the County Court employs. I have written to all of my creditors asking them to accept the new repayments.

If interest or charges are currently still being applied to the account, despite my previous requests for them to be stopped. I again echo my request that all interest and charges be frozen so that the payments I make reduce what I owe you, for this I would be most grateful.

Should my circumstances improve I will contact you again.

The first repayment will be made on the Monday 23rd October 2006. May I also request a standing order mandate be forwarded to myself so that it is easier to pay you.

In summary, I am fully committed to repaying the principal balance outstanding on my account and I therefore hope you will accept my above offer and I appreciate your assistance in this matter.

2. Legal Action
You have previously stated in correspondence your possible future intentions to commence legal action if I do not offer a ‘satisfactory’ repayment schedule or amount. I would like to address this issue by stating that the method I have used to calculate the above offer of repayment is the same method used by the County Court. Moreover, I would suggest that your refusal to accept my above offer could be viewed as unreasonable and we would ask the court to consider this matter with reference to the Overriding Objectives. The commencement of legal proceedings under such circumstances could be counter to the ‘Overriding Objectives’ of the new Civil Procedure Rules. You will be aware that the Overriding Objectives underpin everything the court does. Moreover, paragraph 4 of the Protocols Practice Direction states that in cases not covered by an approved pre−action protocol, the court will expect the parties “to act reasonably…….. in trying to avoid the necessity for the start of proceedings”.

3. Request for information under the Consumer Credit Act 1974
With reference to the above agreement, I would be grateful if you would send me a copy of the default notice, and an itemised statement of all charges and payments added to the account since the default date. I rely on the Consumer Credit Act 1974 (Sections 77-79). I enclosed a payment of £1.00 which represents the fee payable under the Consumer Credit Act.
I understand that a copy of the default notice and an itemised statement of all the charges since the default date should be supplied within the next 12 working days.

4. For your information

I do not wish to be contacted by telephone under any circumstances and request that you remove my telephone number(s) from your records immediately. All correspondence between myself and any representative of Egg Plc or CapQuest should be in written format only. This is so that an accurate record all communications is kept for legal purposes.

5. Summary

In summary I hope that we reach an agreement in reference to my proposed repayment amount and I hope you have taken onboard all of my above comments. I am as I have made you aware now in full-time education, coupled with the fact that I also suffer from a severe skin disease which is exacerbated by stress. As a result I hope that there is no further undue stress or pressure from your company that could possibly affect my studies or worse my health. I am as I have already mentioned fully committed to repaying the principal balance on my account and I hope that my repayment offer is acceptable.
I appreciate your assistance and hope to hear from you soon.

Kind Regards

rog2

Looks good to me - I hope you get a better response than I did though. MBNA (who else:mad: :mad: ) immediately increased their interest rate to 2.008% per month (26% p.a.):eek: and despite my requests to keep all correspondence in writing Capital1, MBNA and HSBC have been ringing my home number continually from 8.30 am to 9 pm almost every day:mad:
Still it's been a bad week - next week can go one of two ways:rolleyes:
Good luck with the letter - and with uni.
Rog2.

sgx.saint

Thanks, I appreciate it.

I'm a bit nervous as I am a mature student, but I am looking forward to it.

If they keep ringing you despite you asking them not too you can write them a letter stating that under SECTION 40 OF THE ADMINISTRATION OF JUSTICE ACT they are now harrassing you and that you will report them.

That should stop them. A link about harrassment:-

http://!!!!!!.uk/forum/index.php?topic=15.0

sgx.saint

Just had a thought.

Should I add to the letter something like "To make you aware, I have no assets nor do I have any savings therefore any other form of legal action will prove to be fruitless and in my opinion irresponsible." Or something along those lines.

Also, I will be enclosing an income and expenditure sheet which details all my debt and my offers of repayments to other creditors. Is it ok/wise to allow my creditors to see who else I owe money to and the amounts?

rog2

sgx.saint wrote:

Just had a thought.

Should I add to the letter something like "To make you aware, I have no assets nor do I have any savings therefore any other form of legal action will prove to be fruitless and in my opinion irresponsible." Or something along those lines. QUOTE]

I wouldn't bother - they will probably think that you are 'trying it on'. :beer:

sgx.saint

lol. Really? ... Oh, well

rog2

sgx.saint wrote:

lol. Really? ... Oh, well

On a serious point, your letters should be as brief as possible, and you should volunteer no more information than is absolutely necessary. If your creditors require any further information they can always ask you at a later stage. Equally, if you give too much information at the outset, you can weaken your 'fall-back' position if it comes to negociation.
I have found some excellent template letters, which I use, on the National Debtline link at the top of the page. I am sure that there could be one for your situation.:beer:

sgx.saint

Well I think my original letter is all ok? ... Only bit as I said was if it was 'safe' to allow my creditors to see whom I owe money to and the balances and offers etc.

The National Debtline website does say it is ok to provide this information mind you.

rog2

sgx.saint wrote:

Well I think my original letter is all ok? ... Only bit as I said was if it was 'safe' to allow my creditors to see whom I owe money to and the balances and offers etc.

The National Debtline website does say it is ok to provide this information mind you.

Original letter looks fine - just think that if you put too much info in you may detract from original point of letter - go for it:beer:

sgx.saint

I have several debts who are now managed by DCA's.

I have been paying the DCA's on a self managed DMP basis for about 6 months.

After reading various threads on this forum and others, many people advise that I should do a CCA request in order to verify if the debt has been bought by the DCAA and get a copy of the original signed agreement.

Should I now at this stage do this? If so what benefits will I receive from doing this?

Moreover, I am just about to send a letter to all of my creditors offer new repayments. If I send a CCA request, do I halt all payments?