Attachment to Earnings advice please?!

Caroline_83

Hello,

I've recieved a letter in the post this week and it is a default notice which states I need to pay £1118.64 arrears within 14 days otherwise they will apply for a Attachment/Arrestment of earnings.

I contacted the creditor a few months ago to negotiate a new monthly direct debit amount. I was paying £25 a month and wanted to double it when I started my new job. The only problem I had was that there was a period of 3 months where I couldn't pay a thing (waiting to start work).

The man on the phone was incredibly rude and would not accept my offer of doubling what I paid. He said that it would not cover my arrears and further upset my credit score. I was frank and explained my credit score went to the dogs a long time ago and I was done with losing sleep over it so long as I get this paid off EVENTUALLY!

Anyway, the letter has arrived and I'm scared. The last thing I want it to have them take money from my wages each month when I have only just found myself a good job with a steady wage. I am prepared to negotiate a new monthly figure for a second time but I'm not sure where I stand with regard to the Default Notice.

Any help would be welcome...xxx

fermi

Is this a debt collector or the original creditor?

They would need a County Court Judgement first, that you fail to pay, before they could apply for an attachment of earnings.

Implying that they can just apply for one straight out is waaaaaaaaaaaay out of order. :mad:

Have a look at the OFT guidelines in this link:

https://forums.moneysavingexpert.com/discussion/2992820

There are sections in both the Guidance and letter guidance that would forbid writing letters that suggest that they can take action that they cannot, or leave out important legal steps in a way that misleads.

Honestly, plenty of people here have had CCJs, and it's as rare as hens teeth for them to ever progress so far that an attachment of earnings order is made.

Make sure that you put offers in writing and don't deal with it over the phone.

What about the default notice troubles you?

Caroline_83

It is the original creditor, Welcome Finance.

The covering letter reads:

You are hereby served under Section 87 (1) of the credit Consumer Act with the attached default notice. We intend to exercise our rights to enforce collection unless you clear the arrears within fourteen (14) days or alternatively contact us with you proposals for settlement.

(Re-reading that last line offers me some encouragement actually. Initally I thought that "settlement" would mean the whole lot but it could mean making monthly payments?)

Be advised that if you fail to contact us and legal action becomes necessary we may apply through the courts for an Attachment of Earnings to be made and deducted through your employers.

This notice should include a copy of the current Office of Fair Trading information sheet on default. (There is no info sheet enclosed!)

You will also be held liable for legal expenses incurred and would strongly advise you contact the undersigned immediately with your intentions.

What scares me is the attachment to earnings, taking more than I can afford, my employers knowing my personal business etc.

fermi

we may apply

May being the important word.

They may do a lot of things.

All there staff may magically turn into small green baby elephants tomorrow.

I may win the lottery tonight.

May is not WILL.

ou are hereby served under Section 87 (1) of the credit Consumer Act with the attached default notice. We intend to exercise our rights to enforce collection unless you clear the arrears within fourteen (14) days or alternatively contact us with you proposals for settlement.

That is a standard default notice as set out in law.

You have 14 days to bring instalments back up to date or settle the account.

If you don't then all it means is that you have breached the credit agreement, and the creditor is entitled to ask for the whole amount back immediately.

That may or may not involve taking it to court.

Most often, not.

Honestly, don't get hung up on the attachment of earnings bit.

It's highly unlikely that they would ever be able to get one of those.

Culex

Tell them that you may get the OFT to close them down.

Culex

fermi wrote: »

All there staff may magically turn into small green baby elephants tomorrow.

And you may need a new profo reader.

mandyl

Culex wrote: »

Tell them that you may get the OFT to close them down.

brilliant!:rotfl:

fermi

Culex wrote: »

And you may need a new profo reader.

I nearly typed attachment of earrings.

:rotfl: