Advice needed badly, please help!

Fading_Star

Hi everyone,

Around five or six years ago, when I was still a teenager, I bought some items from two catalogues. The total sum was around £100 on each catalogue. I then went to Uni and forgot about the debt, as I moved address. I know it's really bad, I know I never should have ignored it, but I was short on money as a student and it seemed so easy to just ignore it as it did go away, the letters stopped.
Out of the blue, they have contacted me now, years later...... a company called Bryan Carter solicitors is threatening to take me to court. I am in a really bad financial situation at the minute. A close relative of mine was diagnosed with cancer a year ago and I had to quit work to care for them. I've had to take a dramatic cut to income, and still have other debts to pay. I recently started work to top up my income, but for various reasons have had to stop working, and have no income at all at the minute while I wait for my benefits to be re-instated.
When they are I will be living on just over £360 a month. I have loans to pay, a credit card, and then living costs. I told Bryan carter the situation, and they said they couldn't accept less than £20 a month for each debt. I really can't afford that. I've had to skip a payment this month as I have nothing at all to pay with but they keep hounding me, threatening me and calling non stop.
I'm really scared about getting a CCJ, but I just can't afford the repayment terms they want. However, I'm not sure if I should just let them apply for a CCJ, as my original debts of £100 each have gone up to £600, and £250 with charges...if they applied for CCJ they have told me in writing that they'd apply for the original debt amount, saving me over £600.
Again, I know it was bad to ignore the debts, and I do want to face up to them and pay them now, I just cannot afford the repayments they are demanding. What should I do?
Thanks for reading and in advance for replies

Tixy

Hi and welcome

Can you answer a few questions so we can see if we can help you.

When bryan carter originally wrote to you what information did they provide? are they collecting both catalogue debts?

Have you ever written to bryan carter or just spoken to them on the phone?

When did you start paying them (recently)?

Are you in england/wales or scotland or NI?

The original debts - after you ordered the items did you pay anything at this point at all? do you know what date you bought the items or last paid the catalogues?

Fading_Star

Tixy wrote: »

Hi and welcome

Can you answer a few questions so we can see if we can help you.

When bryan carter originally wrote to you what information did they provide? are they collecting both catalogue debts?

Have you ever written to bryan carter or just spoken to them on the phone?

When did you start paying them (recently)?

Are you in england/wales or scotland or NI?

The original debts - after you ordered the items did you pay anything at this point at all? do you know what date you bought the items or last paid the catalogues?

Hi Tixy, Thanks for your reply

When Bryan Carter wrote to me, it was to say that they had taken over the account from phoenix recoveries/frederickson international (I hadn't received any letters from them as I'd not been living at the address they were writing to).
They wrote to inform me that they'd be handling the account from previous creditors who were acting on behalf of littlewoods extra. They offered to accept a one-off payment of £280 to settle the £600 debt, which I could not afford. They then sent a letter by recorded delivery saying they were preparing court forms for the sum of £100 (the original amount).
I called the company and explained the situation, they told me that the lowest repayment they could accept was £20. I agreed to £20 per month. Shortly afterwards, I received letters from them acting on behalf of the other catalogue. I called once again to set up repayment terms and agreed to £20, despite not really being able to afford it.
I haven't written to them, only spoken to an advisor on the phone.
When I ordered the original items, I did make payments for a few months. I also paid charges that were added to the account when my payment had been late. I have no idea how much I paid or for how long for though, as it was so long ago. I also don't have any of the paperwork or anything left as I have lived abroad since taking the debts and had to downsize most possessions/paperwork.
I started paying them in November, although I've been forced to miss the January payment. £40 a month doesn't seem like a lot, but I'm paying over £120 for other credit cards, loans and debts (that I could easily afford when I was working, but not now my circumstances have changed), so almost half my monthly income is going on covering debts.
Lastly, I live in England.
Thankyou so much for your help and taking the time to reply, I really appreciate it

Tixy

Great thanks for the info.

Firstly do you think there was a period of 6years between when you stopped the original payments until when you started paying in November? If there was a full 6year gap then the debts would be statute barred and you wouldn't need to pay them anything.

If there wasn't a 6year gap then I would first suggest that you write to bryan carter and ask them for a full transaction breakdown of the balance they claim is due. Its best to send this letter recorded delivery so that they don't just ignore it. In fact its probably worth sending a CCA request where you ask for a copy of the consumer credit agreement and a breakdown of the balance (it does cost £1 to request this for each debt -you'd need to do 2 seperate letters with the individual ref numbers). If they cannot provide this CCA then you would be able to stop payments. See this template letter -

If they can provide the CCA and the breakdown of your debts I would then write to them, explain you are currently unemployed and can only afford a token payment of £1 per month to each debt. They may say that they won't accept this on the phone but if you are on benefits then you do not need to pay anymore. Even if it went to court (which is unlikely) a judge would not order you pay anymore than you can afford each month.

Fading_Star

Thankyou Tixy! I will get writing to them today, see what they say!
What do you think the likelyhood of them taking me to court in the meantime would be? I'm just worried that if I write and send the letter they may issue the CCJ in the period between receiving the letter and acting on it.
Thanks again for all of your help, it is very much appreciated!

Tixy

CCA request & statement of account template

Dear Sirs,

Account No: XXXX

I hereby formally request a copy of my Consumer Credit Agreement, pursuant to s.77-79 of the Consumer Credit Act 1974 (CCA1974).

I require you to provide me with a true copy, or reconstituded copy of the credit agreement relating to any account you deem to be mine, together with any other documentation the Act requires you to provide. You are reminded that should you fail to comply with my request; the provisions of s.77 will apply.

If it is your view that you are not the creditor, s.175 of the CCA1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties. Your attention is drawn to ss.5(2), 3(b), 6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

I also remind you of your duties, in line with recent OFT Guidance (issued Oct 2010) surrounding Unenforceability, I presume you're aware that the OFT has stipulated that 'sections 77-79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account & Hire Agreements'. This simply means that under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account.

In line with the OFT Guidance, and the Consumer Credit Act, please find attached my £1 payment, which is the statutory fee - note that these funds are not to be used for any other purpose. If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee and then remove the incorrect entry from your systems.

Yours faithfully


Sign digitally

Tixy

It very unlikely that they would proceed with any court action once they have received that letter. If they did then to obtain a CCJ they would have to send court papers to you first - if that does happen then come on here for advice on completing them to say they haven't provided you with the info you have requested.

RAS

Once the debt is in dispute, you only need one defence of any legal action - the debt is in dispute.