Dilemma, what do i need to do

Debtworry_2

Hi all,

Hopefully i have posted this in the correct thread.

Basically in or around 2006' i set up an agreement with my credit card company, they froze interest i paid them £20 a month to clear the debt, this ended a few months ago as they said they would need the full minimum payment, i wrote to them explaining i could not afford the full amount and that i was signed off living on benefits with depression.

I then contacted CCCS who said they would pay them £1 a month on my behalf, along with another credit card and a bank account, so in total £3 a month, i have since moved into my own council property and have changed address with bank, the credit card company sent me a letter middle of august saying i had to pay them £327 for late payment and charges and if i never paid they would seek a CCJ, i contacted CCCS who said it was standard letter and if you haven't and cant pay then how do they expect you to.

In 2009' i applied for the PPI back from a loan i took out from the same bank, and was given £1500 back, that was all spent on my car as it needed work doing.

This morning i received a letter from my bank with whom i took the loan out (letter arrived at my parents address not my own address) stating they have reviewed the PPI and have given me a further £329. Will i need to use this money to pay off the £327 they are asking for, also will it matter that i opened it as it came to my parents address ? If bailiffs turn up i would prefer them at my own property than my parents.

Any advice appreciated.

Thanks

KingElvis

They will almost certainly take the extra PPI to pay off the arrears on the loan.

Best bet is to stop letters going to your parents house and have them come to you, that way you're sure who and what you're dealing with.

Are you "hiding" as such in your new place?

Hope it works out anyway.

Spiggle

I'm no expert so please don't take this as being anything such as advice rather it's an observation.

If you didn't know you were going to get the £329 from the bank, you won't have budgetted to use it. So isn't it logical to use it to pay that debt off and be free of any more hassle related to it?

Only my thoughts and good luck whatever you decide to do.
Spigs

Debtworry_2

Hi Elvis

Thanks for the reply, i can pay the cheque that arrived this morning into a new bank account, an account that CCCS advised i opened, just wondered if i didn't pay the £327 that my credit card wants they can say "we sent you a cheque for £329 why didn't you pay"

I'm not hiding in my new place, i changed all my letters to my new place, but when i wrote and claimed back my PPI i was still at my parents house, i guess thats why they sent the cheque there ?

Debtworry_2

Hi Spiggle,

No wasn't expecting it so never budgetted it, but if i pay them i might get the question as "you can afford to pay us xxx amount so we wont accept the £1 token each month", plus with my sons birthday and xmas coming up this money will come in handy i wont lie

KingElvis

Debtworry wrote: »

Hi Elvis

Thanks for the reply, i can pay the cheque that arrived this morning into a new bank account, an account that CCCS advised i opened, just wondered if i didn't pay the £327 that my credit card wants they can say "we sent you a cheque for £329 why didn't you pay"

I'm not hiding in my new place, i changed all my letters to my new place, but when i wrote and claimed back my PPI i was still at my parents house, i guess thats why they sent the cheque there ?

Well for Gods sake don't pay them the whole thing, keep that cash and pay them what you can afford.....saying "we sent you this" means nothing, it's your cash

I would've thought they would take it but it may be a seperate company issuing the refund?

Debtworry_2

KingElvis wrote: »

Well for Gods sake don't pay them the whole thing, keep that cash and pay them what you can afford.....saying "we sent you this" means nothing, it's your cash

I would've thought they would take it but it may be a seperate company issuing the refund?

The PPI was a refund from LloydsTSB a loan i took out, and it is LLoydsTSB credit card that are asking for £327, well i had to pay by the 27th Sept so thats past now anyway

annibee

From the looks of it you neednt really be in debt as youve now had money twice to cover the amount? personally i wouldnt let it get as far as bailiffs paying visits to either me or my parents house i would just pay off the seemingly small debt. Also 1500 on repairing your car? Didnt you think at the time it might be worth popping a bit off the debt? not judging but it seems you dont wanna be in debt and you have the option not to be?

Agreed the extra money would be handy but if your car is worth so much maybe you could sell it get something cheaper and buy sons bday and christmas presents from that?

Good Luck with whatever you do.

Debtworry_2

annibee wrote: »

From the looks of it you neednt really be in debt as youve now had money twice to cover the amount? personally i wouldnt let it get as far as bailiffs paying visits to either me or my parents house i would just pay off the seemingly small debt. Also 1500 on repairing your car? Didnt you think at the time it might be worth popping a bit off the debt? not judging but it seems you dont wanna be in debt and you have the option not to be?

Agreed the extra money would be handy but if your car is worth so much maybe you could sell it get something cheaper and buy sons bday and christmas presents from that?

Good Luck with whatever you do.

I totally agree, the car was a gift from my parents retirement money, so it doesn't seem right to sell a gift, and the plan was when i got my PPI payment to pay off the debt, but as always happens the car decides to havea fult, and at the time i was still in paying the £20 a month that Lloyds accepted, it's only recently that they have no longer accepted this offer and typically when i'm skint, especially with moving into my own property.

Plus the 2 lots of money i received first £1500, then this £329, isn't enough to pay off the debt, as the debt is £3960, so not a substantial amount, but it neededn't had been that high if they hadn't keep charging late payments and interest

annibee

Debtworry wrote: »

I totally agree, the car was a gift from my parents retirement money, so it doesn't seem right to sell a gift, and the plan was when i got my PPI payment to pay off the debt, but as always happens the car decides to havea fult, and at the time i was still in paying the £20 a month that Lloyds accepted, it's only recently that they have no longer accepted this offer and typically when i'm skint, especially with moving into my own property.

Plus the 2 lots of money i received first £1500, then this £329, isn't enough to pay off the debt, as the debt is £3960, so not a substantial amount, but it neededn't had been that high if they hadn't keep charging late payments and interest

Yeah dont sell a gift lol

I thought the debt was 327 which is why i was confused as to why you just hadnt factored in paying it off obviously i see now it was a bit more! they wouldnt factor that in when requesting payments as its not an expected income plus its a refund for somehting and im sure theres something about refunds not being able to be accepted as accountable money. (loophole probably)

Anyways good luck with it, CCCS seem to be advising you well so just stick with them spend the money and if you havent got it they cant have it anyway can they

Debtworry_2

Thanks.

Will give CCCS a call on monday and see what they advise to do with the money.