What direction to go in with my debt?

frostyvanboosh

Hi all,
I'm sorry my first post is asking questions, I usually make a point of introducing myself to forums first but I had a visit from a man from Moorcroft Debt Recovery today so wanted to get on it pretty sharpish.

Basically I've had a debt with Lloyds for around 4 years. It started as a student overdraft, then I went over that and got charged and lost control. I opened an account at a different bank and pretty much just ignored it. Over the years it collected interest and bank charges and now moorcroft have been chasing me for the best part of two years. The debt is currently at approx £4500. I've never paid anything towards it out of anger towards the charges I received that I felt were unfair.

Anyway, as I said, I got a visit from a man from Moorcroft today. I told him I was busy but he could come back on Tuesday as I'm busy this weekend and have a job interview on Monday (I didn't mention the interview to him)

I was self employed up till around 3 months ago but I'm now unemployed (hopefully not for long) with absolutely no savings and no income. Luckily my outgoings are minimal as I live with my mother, so no rent (bless her).

I thought about asking for full and final settlement, but I can probably only get £500 together. Maybe £1000.

Any suggestions at this point would be greatly appreciated. I will be visiting my local CAB office next week for advice as well.

bottleofred

Hi frostyvanboosh and welcome to the forum,

The first thing you can do is refuse a doorstep visit from debt collectors. As the debt is 4 years old and has been sold on to a debt collector you could well offer a full and final settlement. However, I would only do this in writing and make sure you get written confirmation that the amount agreed is as a "full and final settlement of the debt". You would then keep the confirmation for 6 years. I'd make an initial offer of 20% and see how you get on, but don't talk to them on the phone or face to face. Send the letter below.

Dear Sirs,

Account No: XXXXXXXX

Please be advised that I will only communicate with you in writing. I have noted your repeated attempts to contact me over the past few weeks and these have been duly logged by time and date. Should it be your intention to arrange a doorstep visit, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make such an appointment with you.

There is an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v Sheppard & Short Ltd [1959] 2 QB 384. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and, if you do so, you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

Yours faithfully

frostyvanboosh

bottleofred wrote: »

Hi frostyvanboosh and welcome to the forum,

The first thing you can do is refuse a doorstep visit from debt collectors. As the debt is 4 years old and has been sold on to a debt collector you could well offer a full and final settlement. However, I would only do this in writing and make sure you get written confirmation that the amount agreed is as a "full and final settlement of the debt". You would then keep the confirmation for 6 years. I'd make an initial offer of 20% and see how you get on, but don't talk to them on the phone or face to face. Send the letter below.

Thanks for getting back so fast, bottleofred! I've followed your advice and sent them both the letter you put above and an offer full and final settlement (fingers crossed). The man still came today and seemed pretty miffed when I told him I had sent these letters. He ticked a box in front of me and told me I'll be going to court now. I don't know if this was just a threat or not...

Couple of other questions I've got; If they don't accept the offer I give and I can't really afford much more, Would I be able to accept that offer and pay in say, two or three installments, or would I have to pay that full amount in one go?

And I also thought about telling them 'I urge you to accept this offer otherwise I may be forced into bankruptcy ( I have no idea what that entails, so excuse me if thats a stupid question)' or something along those lines. Silly idea?

Thank you!

climbgirl

frostyvanboosh wrote: »

He ticked a box in front of me and told me I'll be going to court now. I don't know if this was just a threat or not...

They'll say a lot of things to try and scare people into paying. They know that a court cannot and will not make you pay more than you can afford to.

So even if it comes to that (and it's a remote possibility that it will go to court so don't worry too much), if you can prove you have no money coming in and no savings, then the court can't make you pay more than you have.

Wait and see what their response to your full and final settlement is.