Urgent help - debt collection letter

RubySewSew

Hi,

I have 6 creditors and have been making token payments of £1pm for several months now. Out of the blue Santander have cancelled my arrangement and started legal action. I have just got a letter from Moorcroft Debt Recovery notifying me of their intention to litigate unless I settle in full by 03/09/11.

The plan I am on was set up by CCCS but at the moment it is a budget rather than a debt management plan as I do not have any disposable income.

I understand that they are applying for a CCJ but don't really understand what this means. What action do I need to take now? I would like to avoid court action but don't have any means of settling the debt.

Anybody who has more experience of this please advise...

pure_dead_dopey

Have you actually received court papers or is this just a scary letter from Moorcroft? Santander may well have passed it to Moorcroft for collection in which case CCCS will contact them for you and start to pay them your £1, if its court papers, that's different. Moorcroft are very good at throwing nasty threats around but if it has a lot of may/possible/etc its just a DCA letter not a court summons.

fatbelly

If the letter was from Moorcroft it will be an empty threat. They send letters from their 'pre-court division'. It's just a letterhead. I see them all the time.

If Santander do start court action they would do it themselves and you would get a blue court claim form from (probably) Northampton court. I don't see many of them!

Just make sure CCCS know Moorcroft are involved as your payments should be going through them.

RubySewSew

CCCS aren't actually handling my payments as they are only token payments not a debt management plan. My monthly payment to Santander was returned this month.

The letter is notice of their intention to litigate rather than a summons.

immoral_angeluk

RubySewSew wrote: »

CCCS aren't actually handling my payments as they are only token payments not a debt management plan. My monthly payment to Santander was returned this month.

The letter is notice of their intention to litigate rather than a summons.

Think of it as a template letter. Which is basically what it is. Moorcroft will have the letter saved on their computers, and will just click a button which will send the same letter to you and 1,000's of others. It means nothing in reality, it's a tool designed to scare and intimidate you in to paying.
Unless you receive anything from a court, then all the letters are basically the same thing with different wording "You're not paying us what we want, and so we're going to try and scare you in to paying.".
Ignore it. Keep paying your £1's and seek further advice if you get any court papers.

RubySewSew

Ok. My £1 was returned from Santander so presumably I need to contact Moorcroft to set up a new payment?

Eager_Elephant

Hi Ruby

Yes contact Moorcroft for the same arrangement - they are fine with token payments.

Unfortunately when a debt is passed on the previous arrangement is null and void so this letter (as the people above me said) is just standard but it is designed to scare you.

Maybe in with your letter of £1 pm you can enclose the payment Santander sent back, just to show willing.

EE

RubySewSew

I would be very happy to do that Eager but don't have a cheque book! I could pop a pound coin in :rotfl::rotfl:

vax2002

You write back and show concern that they have rejected your offer to make repayments to the debt and as a result the amount you were paying will now be allocated to another creditor, give them 7 days to respond.

DVardysShadow

RubySewSew wrote: »

I would be very happy to do that Eager but don't have a cheque book! I could pop a pound coin in :rotfl::rotfl:

No, too easily nicked even if it arrives. Crossed postal orders it has to be I think.

RubySewSew

Thank you everybody! I am very happy to say that I have spoken to Moorcroft who have accepted a £1 token offer. And the best bit is that I don't have to deal with Santander any more who are the worst company I have ever had to deal with. I have made a complaint about them to the banking ombudsman. Fingers crossed for a big fat refund of charges!