Moorcroft Debt Recovery question - Increasing payments.

SeaThreePeeO

Recently we paid off an overpayment of Council Tax Benefit which had placed £20 a month extra on top of our usual monthly payment.

Moorcroft have written to us informaing us that since we have paid of that debt we're in a position to increase our monthly payment (no argument there). The only thing is they want the whole £20 and I have two other creditors to consider. So surely the £20 should be split between them.

Moorcroft now want an up to day Income and Expenditure form including the total amount owed to other creditors, so they can decide who gets what. I'm wondering if they're obviously going to decide in their favour.

How would you work out how to split the £20?

fermi

It's not up to Moorcroft to decide who gets what.

Cheeky barstewards.

The correct thing to do is pay creditors pro rata.

i.e. if a creditor is owed say 20% of your total debt, you pay them 20% of what you have available.

That is a fair share, and no creditor can have a valid objection to that.

SeaThreePeeO

Thanks so much Fermi. I knew it had to be split, but I wasn't sure on the way it worked out. I'm sure if I sent all the stuff to Moorcroft they would have decided they would have the lions share. Do I still send them the up date I&E for the £20 rise or do I simply write to them and offer an increased payment taking into account the pro rata increase?

Their offical I&E form is confusing to say the least as they want to know the amount of other creditors, but the TOTAL ammount owed to all creditors, no break down.

sickasachip13

They are basically trying it on mate. I totally agree with Fermi.

Personally, I'd write to them explaining about the other creditors and tell them what you're going to do - don't ask them, just tell them!

SeaThreePeeO

Thanks sickasachip. I'll do that

fatbelly

Yeah - as a general rule don't use creditor's income/expenditure forms.

I like to use vague headings such as 'rent/mortgage', 'food and housekeeping' and 'travel costs' so as to give away as little useful information as possible while appeaing open and honest, and justifying the offer

SeaThreePeeO

I noticed that Fatbelly. Even on their online form there wasn't anwhere to put the complete breakdown of expenditure. All you're able to put was your income, rent, houshold (including food etc), Children's expenses (including clothing and school dinners) and travel. That was it. They also asked for the number of other creditors, TOTAL owed to all creditors and TOTAL payment made to all creditors. So it would make it look like I was spending vast amounts in each section, when I'm not. They already have a complete breakdown of my I&E which I send them, but they want it on one of their offical forms, which is on the back of the letter they sent.

Anway, I shall take everyones advice and write offering an increased pro rata payment. If they don't like it, tough.

Gordon_Hose

They have no right to see your income and expenditure. Tell them to either like it, or lump it. They can't force you to pay more than you can afford.

SeaThreePeeO

Thanks everyone I don't disagree that I can now pay them more, what I didn't like was the fact they expected me to hand over the whole £20 to them when I have other creditors that have been exceedingly helpful throughout the difficulties we've found ourselves in. Doesn't seem fair that those who went out of their way to help get nothing and Moorcroft who have whinged and moaned throughout get everything.

They keep writting saying how they're going to put my payments up by the whole £20. But as I pay them via Standing Order, I think they'll find it rather difficult. Anyway, Monday I have to go to town, so I will increase the SO to the new amount ready for next month and write them a letter informing them of such.

Thanks again everyone. I just wanted to make sure of exactly what Moorcroft was able to do.

Horseunderwater

That's what they all try and do. I 've been there on 2 occasions and I got out of it simply by making token payments until I could remortgage it all under one banner. Took a year to get to that point with £1 paid to each one each month and them trying it on all the time. Threats to take me to court etc. Ignored all letters and calls and just carried on. If you pay a min you can afford, they cannot reasonably take you to court. The magistrate would more than likely laugh in their faces for time wasting. I then once I had the new mortgage worked out the percentage I could afford to pay them back. Sometimes getting as much as 50% off total debt with some companies. So they mostly got their capital back. And with one about 35% off. No court costs and debts marked paid up with a notation on file. That was in 2006, so is just coming upto disappearing from the files, if it has not alrady done so. I have remortgaged since then and kept up with all payments on a 5 year fixed which converts to SVR in 2013 and if interest rates are still low I will stay with that for a while. And look for another good deal during that year. Of course it may all go pear shaped, but that's life. I have also now got myself 2 credit cards again and I am paying them off weekly and hitting more than the minimum even on our reduced income, due to my being on SSP. One of the cards is interest free for 21 mnths on balances so I moved the debt from the other to that one. I now have the money so honed and tight that with all the tips that I get from this site I am in a good position to keep it going.

fatbelly

SeaThreePeeO wrote: »

Thanks everyone
They keep writing saying how they're going to put my payments up by the whole £20. But as I pay them via Standing Order, I think they'll find it rather difficult. Anyway, Monday I have to go to town, so I will increase the SO to the new amount ready for next month and write them a letter informing them of such..

That's exactly why we recommend that people pay by standing order not Direct Debit.


And never ever by continuous payment from a debit card!