DCA not taking money?

LL30

I've been helping my mate who's in a bit of a pickle! She was working and had some debts (around 20K) which she was bumbling along with. She then lost her job and has been claiming JSA (with her rather useless boyfriend - sorry but he is). Due to contraceptive error, she became pregnant and during this time (gleeming info from you guys, thank you!) she decided to set up her own DMP as she wants to pay the money back and hopes to start working again in the New Year (beautiful baby girl already here ) I had wondered whether bankruptcy might have been a better option, but she was worried about her car. It's worth 5K, and her parents paid half, so she really didn't want it to go (I was unsure about what would happen with this, but anyway, she was adamant she wanted to control her own DMP).

So roll on a few months, and most creditors have been obliging. Some have not responded to her letters demanding a CCA - should she write again? Or does this mean the debt is now not enforceable (sorry, still learning). One DCA accepted her token offer, but has only taken the amount once via direct debit and not bothered again - how she should approach this? I'm trying my best to help her, and so far it's not been too bad (surprisingly!) but I don't want to give her the wrong advice.

Have to say, you lot on here are phenomenal :T

fermi

She can write again regarding the requests.

See: http://forums.moneysavingexpert.com/showpost.php?p=11660785&postcount=7

The one not taking payment, it's possible that the debt has been passed on again, and that is why it's stopped?

Would perhaps be best to talk to the original creditor to find out who should be collecting, or if sold on make enquiies as to who owns the account now.

Then make sure any payments are set up via standing order and not DD. Cancelling the current DD if that is done, so they don't take things twice.

LL30

I did say about doing SOs instead of DDs, but she said they sent out a DD form so she just filled it in. I'll pass on the info, thank you!

Just out of interest, if she had considered bankruptcy, would she have lost her car? I presumed she wouldn't have been allowed to keep it, but I'd hate to presume and then be wrong! It also discounts her from a DRO. I think it's admirable that she wants to pay everything, but I fear that unless she loses the 11 stone of man flesh, she's not going to manage it!

fermi

Regards bankruptcy - Depends upon the value of the car, whether the relatives could legitimately claim they still own a half share of it, and whether she could argue that the use of a car is essential for her domestic/work needs rather than it being just convenient.

If she could prove a car was essential, then the OR is usually only going to want to sell a vehicle if there there is value above about £2,000 in it. Which there might not be if shared ownership could be proved. Or if a bit over someone could offre to pay the extra rather than give up the car.

If she can't show it's essential or there is there is money in excess of £2K, then they would insist on having that money from the car one way or another.

There is not just a simple yes or no answer. It would be looked at on a case by case basis by the examiner.

fermi

lol. Not sure I explained that very well.

---> What will happen to my car?

LL30

fermi wrote: »

Regards bankruptcy - Depends upon the value of the car, whether the relatives could legitimately claim they still own a half share of it, and whether she could argue that the use of a car is essential for her domestic/work needs rather than it being just convenient.

If she could prove a car was essential, then the OR is usually only going to want to sell a vehicle if there there is value above about £2,000 in it. Which there might not be if shared ownership could be proved. Or if a bit over someone could offre to pay the extra rather than give up the car.

If she can't show it's essential or there is there is money in excess of £2K, then they would insist on having that money from the car one way or another.

There is not just a simple yes or no answer. It would be looked at on a case by case basis by the examiner.

Interesting, thank you. The car was 4700, she paid 2K and her parents paid the rest - she has the transaction details that shows what she paid and what they paid. She lives in a village near me, middle of no where with nearly no public transport (4 buses a day), no shop or doctors, so the car really is essential. It's incredibly hard in these areas to function without one, and she certainly couldn't get a job without it. I'll explain what you've said, obviously it's not cut and dry with these things but it might help her to make an informed decision.

LL30

fermi wrote: »

lol. Not sure I explained that very well.

---> What will happen to my car?

Cheers my lovely - looks like it's the usual concern

fermi

It is. And one of the hardest to say what the outcome might be unfortunately.

LL30

fermi wrote: »

It is. And one of the hardest to say what the outcome might be unfortunately.

What a shame you can't test the waters and find out first. It's one of the factors that's made her not want to go down that route. Her parents have no idea what's been going on (well, they know her oh isn't fab) and they helped with the car because of the lo. She'd have a hard time explaining where it had gone! Gosh, I think I know her finances better than my own at the moment Thanks once again x