New Year- Action Plan to get out of debt.

MCBIRNIE25

Hi all, as my computer is knackered, I don't get on a lot presently.Although I am keeping an eye on you all muahahahahaha. Anyway, as this is the period that people make fresh resolves to get out of debt and also face the most challenging time, here is my action plan for eliminating debt in 2007. This may be over 2 posts due to length.

1) After the initial shock, stop panicking.Prepare your S.O.A there is a thread on this site over this. It is important to know exactly what is what financially. Once the bleak reality hits, we move on to the next stage.

2) Add up all your debts. If you don't know how much you owe or who to, action is required NOW. This applies if you have debt collectors chasing you to. Write to each creditor enclsing £1 and a copy of this letter :

1 High Street,
Newtown,
Kent
R21 4RH


June 28, 2006


The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.
We look forward to hearing from you.

Yours faithfully

Mr A N Other

This achieves 2 aims. 1) They have 12 days to supply the Credit Agreement, if they don't, then to enforce this debt they then have to go to court and seek permission.
2) Most don't bother and simply return you account. However, although they may not try and collect the debt, it does not mean you do not owe it. However, INSIST on the credit agreement. Without it, refuse to pay as is a legal right until it is produced. This should buy some breathing space. Also. Any debts that are 6 years or older, and contact has not been made within that period become statute barred. I have a template to send for that to, will post as an attachment on the thread.

3) Harrassing calls. Letter time again. Any creditor who rings you send the letter below amend accordingly :-
By Recorded Delivery

Dear Sir,

Ref. XXXXX

Despite my letters regarding ANY communication from your company, which stated that I require ALL communications in writing, your telephone calls continue.

This behaviour constitutes harassment; the letters stated quite clearly to you that I require ALL communications in writing for future Court use. Do not telephone me again - remove any telephone numbers you hold for me from your systems.

Your telephone calls are in breach of the Office of Fair Trading guidelines. If you continue with them after the receipt of this letter an official complaint, together with a log recording the times and frequency of the calls will be passed both to that office and to the Trading Standards office. For your information note that ALL telephone calls are taped.

This type of debt collection method is contrary to the ‘Administration of Justice Act 1970’ in that it is intended to cause alarm and distress to the recipient. Your methods will not be tolerated. A formal complaint, containing copies of all correspondence including yours, has now been submitted to the relevant authorities. This will be relevant to questions of your fitness to hold a licence under the Consumer Credit Act, whether or not it results in a prosecution.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

Communicate in writing and ONLY in writing, your telephone calls will NOT be answered.

HOWEVER, CALLS WILL TRIGGER COMPLAINTS TO THE REGULATORY BODIES.

I trust that I have made myself understood on this matter,

Yours faithfully,

This works without doubt.

4) Ok, so now you have stock of your situation and some breathing space, some debts may not be enforced as no agreement is provided etc, providing extra income to snowball. Use the snowball calculator to work out how to quickly repay your remaining debts, or use 1 of the debt charities listed.
Also ebay, amazon. car boot and raise as much extra cash as possible during this period.

5) Whilst doing the above, go through all the credit agreements and statements from creditors. Reclaim Bank charges where applicable, however, if there are any charges added by debt collection agencies, we now reclaim these. You will need to send a subject access request to the relevant agency for all documentation as per bank charges. The process is the same and just as easy.( I did get a perverse pleasure reclaiming from welcome finance;- )Sorry. Had to share that.) These charges can amount to several thousand pounds in some cases. Especially if you have been missold PPI etc. Go to the debt and bailiffs thread on https://www.consumeractiongroup.co.uk for more info on this.
6) I am so annoyed that people have benefit payments taken by the banks, this is ILLEGAL. I work in the Jobcentre, it's a fact. If the bank are swallowing your benefit/tax credits send the following :-

your address]

[bank name & address]

[date]

RIGHT OF APPROPRIATION

Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx

I am writing to inform you that I am due to have a Tax Credit payment of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes;

Rent £xx
Utilities bills £xx
Housekeeping money £xx

I will withdraw the money on the day that it is deposited for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

Yours faithfully,

[signature]

[print name]

The jobcentre/DWP can also follow this up for you. Ask them.

6) Ok, what have we achieved to date? We have stock of our financial situation, with hopefully no threatening calls or letters, all charges are being reclaimed and you are fighting debt on your terms. While fighting debt is important, so is living your lives. You only get 1 shot at it. Hope the above helps, i will attach some letters also so everything is in 1 place.
MERRY CHRISTMAS AND A JOYFUL PROSPEROUS AND HOPEFULLY DRUNKEN NEW YEAR WITH YOU ALL ACHIEVING YOUR GOALS.

MCBIRNIE25

Letter requesting copy of credit agreement and deed of assignment if passed to a Debt Collection Agency
High Street,
Newtown,
Kent
R21 4RH


June 28, 2006


The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully

MCBIRNIE25

A copy of the letter to use if you believe the 'debt' is barred under the Limitations Act

Name of Creditor
Address of Creditor

WITHOUT PREJUDICE

Dear Sir/Madam

Re: Account No/Reference No:

No debt is acknowledged to you. You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”.

The last correspondence/payment/acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to your reply.

Yours faithfully

(Your signature)

Kazonline

Wow - what an amazing post!
Can I just check what it means if they don't send the credit agreement thing within 12 days?
Also, PPI - is that payment protection incsurance? I had this for my mortgage and although I had told them that I suffered with depression when I took out the policy they didn't put any clauses on it, but then refused to pay out when I needed it (said it was because it was pre- existing even though I'd been free of it for a while) Can you point me in the right direction if I can claim this please?
Thanks
Kaz x

MCBIRNIE25

Hello Kaz.
if your credit agreement is not provided after 12 days. The debt cannot then be enforced until they seek permission from a judge.
After an extra 30 days on top of this, they have actually then committed an offence.
What it means basically is that they cannot collect, and you do not have to pay the debt until documentation is provided that the debt is yours.

PPI yes, recalim it back. Many have. Go to the https://www.consumeractiongroup.co.uk there is a forum on there specifically for those reclaiming PPI. It is very good.

lynsayjane

you have pm

Molanole

This is really useful, particularly for newbies. Do you think it could be made a sticky?

emmaBZ

hi just need to ask if the bank can take your income support ....my dads just had nearly all his taken for charges all he gets in there is his income support ive been trying to contact social to find out but cant get through all day !!! they have been doing this for the past year if not longer ....can he tell the bank to repay the charges taken and can he have it backdated ...? under social security administration act 1992 ?

MCBIRNIE25

Just updating my threads as i haven't been around forever. Wanted to bump this uncase any newbies can benefit from the advice.