Cap One - default received. What's next ?

Caponehelp

Hi folks,
Since before Christmas I have been unable to work due to illness. As I am self emlployed, no work = no money.
Capital One called me in December and asked what was going on, I explained. They then rang numerous other times asking the same thing over and over again to the point where I just stopped taking their calls.

Last week the calls stopped and today a letter has arrived telling me that I now have a default, my account is terminated and they may sell my account to a debt company (i'd be amazed if they haven't already). They go on to say that door to door agents may well be used to recover the money.

They don't ask me to contact them and they say they will contact me which I would imagine from the research I have done will be via a debt collection company.

My credit is pretty much worthless anyway so the default or a CCJ has no impact, but I DO want to start to pay them off a very small amount every week.

Does anyone know what happens next ? Will there be a knock at my door ? I don't really want to have people knocking on my door when the kids are at home

If this company refuse my offer will they have power to enter my home and start seizing stuff ?

Help!

Hax

My understanding (and I welcome any corrections!) is:

You should hear in writing before someone turns up at your door. And even if they do, unless they are court appointed bailiffs, then they have no rights whatsoever. Do NOT let them in!

And, before court appointed bailiffs turn up, they would have to get a CCJ issued against you, in which the judge would set out a repayment schedule - it's important you respond to any CCJ notices and put your case forward so that payments are hopefully inline with what you can afford. If you fail to make the payments set out in the CCJ then you may get a visit.

In reality, this will go to a collections company who will, most likely, accept any offer of payment you make - especially if you back it up with a statement of affairs.

You should contact one of the debt charities such as CCCS or Payplan or talk to your local CAB and get advice. It's also worthwhile visiting the Debt Free Wannabe section on these forums - there are loads of people there who are in the same situation as yourself and even more people who have been through it and can provide help and support.

Good luck!

Svenena

You'll probably get a letter from the debt collection agency in the first instance, asking you to pay the whole amount by a certain date. If you phone them up (don't just ignore it!), you can arrange to pay back in small increments. Don't let them talk you into paying more than you can afford. If it's only £5 a week, at least that's something. Once you get some work again, pay it off asap, as a settled default looks better than an unsettled one.

Russe11

Letter every other week from CapQuest most likely.

Kyresa

Do NOT phone them, email or write (and send recorded).

Keep everything in writing so you have proof if you need it that you have tried to deal with your debt - debt collectors deny everything you ever tell them!

Pheebs67

Kyresa wrote: »

Do NOT phone them, email or write (and send recorded).

Keep everything in writing so you have proof if you need it that you have tried to deal with your debt - debt collectors deny everything you ever tell them!

Don't you think it's a bit late for that? Having evidence that you've sent a letter to a debt collection agency doesn't prove you've tried to deal with your debt if you've chosen to "stop taking" the calls that, however annoying and repeatative they might seem, are intended to help agree a solution to the debt before it defaults.

If anything, just doing this makes you look stand-off ish by being unwilling to discuss the situation via the most direct means - via telephone. (Granted - If you do feel that you want documented evidence of your conversations, by all means back them up with a letter afterwards to summise what was discussed - best of both worlds)



A few questions;

a) How long ago did you get your default letter (when was it dated)?

b) Was it a default warning letter (Statement of Arrears - telling you how much you owe and warning that if you don't pay it all they'll default you - you must've had one of these either now or in the last couple of months - if so, when?) or an actual Notice of Default Sums (NODS - tells you you've been defaulted etc - sounds like you've had this)

c) How much is the debt? Roughly?

d) do you have other debts that you're currently unable to service?


Without knowing more, my generic advice would be to phone Capital One to discuss. There's usually a period of a couple of weeks before your account is passed off to a debt collection agency and it depends upon the severity of your debt and your payment history as to who they're likely to pass you on to.

If you call them and explain what's what, they might be able to keep you in-house. (Ie. with Debitas)

If you do nothing and wait for them to contact you, you'll just have to deal with whatever agency you get.

Either way, be proactive - even if you've got very little money to pay them right now, phoning them regularly to say that nothing has changed and when you're expecting it to change will mean that they won't be ringing you - you're more in control of the dialogue and less likely to get unwanted phone calls at random times.

Unless your debt is HUGE then I very much doubt that bailiffs will come knocking on your door - they are far too expensive.

Caponehelp

Thanks folks.

I won't go into detail but the calls cause me extreme stress, coupled with the fact i don't trust them means that I would prefer to do this via letter. I understand this is my right ?

The debt amount is £2500, Cap on have closed my account and I have received a default.

Cougar Financial have now written to me demanded full payment within 7 days. Obviously that isn't going to happen as I have about £200 to my name.
I was going to write to them with the template letter from this site asking them to restrict all correspondence to letter. Should I add to that letter details of my circumstances ?i.e. no money , out of work etc etc ?

I need to write to them ASAP so any advice would be welcome.


Thank you .

TakingControl

Try not to worry too much. I would send the template letter to request all corespondence to be done via letters. Then maybe ring one of the debt charities like CCCS or PayPlan to discuss your situation with them and they can advise you of the best course of action.

I defaulted with Capital One Credit Card in November 2009 and they accepted a payment plan based on my debts to all creditors and my income.

Good luck

Caponehelp

OK , things have moved on a lot.

I made an offer of £60PCM to pay off the debt. I was told that this was beneath the minimum they would accept and asked me to send an income/expenditure form. I duly did this.

I had another call from them and and reiterated that I wasn't able to pay the £130PCM minimum they were asking for. They said there is nothing they can do and they would go back to the client (presumably cap 1) and decide what further action to take against me. I assumed a CCJ at this point.

Today I had another call from another guy who said that they had never requested an income.expenditure form and he doesn't have it. On top of that he said it has no relevance as he says they will now just take the money directly from my meagre wage packet before I even get it. An attachment of earnings ? He said that they could get this as I had signed an agreement when I took out my card with Cap 1 and I wouldn't even be present at court when the attachment decision is made.

I also received a card through the door today telling me that they will be calling in person at some point between 9am and 9pm tomorrow. This concerns me as my kids will be here all day on their own and I don't want a 'heavy' appearing at the door.

Two questions

1. Can they get an attachment even though this will cause me and my family hardship ?
2. How likely is it that a collection bod will appear tomorrow ?

All advice gratefully received.

MichaelCR

Caponehelp wrote: »

Hi folks,
Since before Christmas I have been unable to work due to illness. As I am self emlployed, no work = no money.
Capital One called me in December and asked what was going on, I explained. They then rang numerous other times asking the same thing over and over again to the point where I just stopped taking their calls.

Last week the calls stopped and today a letter has arrived telling me that I now have a default, my account is terminated and they may sell my account to a debt company (i'd be amazed if they haven't already). They go on to say that door to door agents may well be used to recover the money.

They don't ask me to contact them and they say they will contact me which I would imagine from the research I have done will be via a debt collection company.

My credit is pretty much worthless anyway so the default or a CCJ has no impact, but I DO want to start to pay them off a very small amount every week.

Does anyone know what happens next ? Will there be a knock at my door ? I don't really want to have people knocking on my door when the kids are at home

If this company refuse my offer will they have power to enter my home and start seizing stuff ?

Help!

Sorry to hear about your unfortunate circumstances !

First things first, Is did you try to make a small payment plan with capital one before the default was received ? Lenders would rather work out a payment plan then sell the debt off to a collection for 60% less then the debt is worth.

Where debt collection is concerned,

How much do you owe ?

Debt collections DO NOT HAVE POWER TO ENTER YOUR HOME UNDER ANY CIRCUMSTANCES UNLESS YOU ALLOW THEM TO.

However they can use unlocked doors to gain entry from my knowledge (Although rare), So make sure any entrances to your house are locked at all times.

Usually you'll receive calls and letters from the DCA, For a year, Before they start knocking on your door. (i know because i have a default).

Some helpful advice for you and anyone else,

http://www.debtquestions.co.uk/prob_bailiffs.php

Caponehelp

Outstanding amount is £2500.

Can they just get an attachment on earnings and there's nothing I can do ?

Thanks for your reply