CCCS debt plan - one Creditor playing hard to get -Advice/opinion appreciated

bernieuk

Hello all

Money thanks to all in the past that has given me advice.

My CCCS debt plan kicked off last month and I am now paying a total of £221.00 per month which makes life a lost easier.

I have a total of 5 creditors - one of them, Post Office Mastercard, are refusing to accept the lower payment of £30.85 as suggested by the CCCS. The Post Office are demanding that I pay the required minimum amount of £72.00 per month on the total debt of £2877.00. If I do that they will freeze the interest apparently as well as not add any late payment charges.

CCCS has told me that I should not allow the Post Office to "bully me" and on no account agree to pay anything but the £30.85. The Post Office are now demanding I pay 2 months payment - a total of £144.00. If I do not they will pass the matter to their "Debt Recovery Department and this will be registered with a Credit Agency".

I suppose this is not to be unexpected but it is a worry all the same. Does anyone know what a Debt Recovery Department may do? Am I likely to get someone calling to my door? I am probably just freaking out a little.:o

If anyone could offer any advice or an opinion it would certainly be appreciated.

Eager_Elephant

Hi bernieuk,

Do not give in to these bullies, everyone who rings you is on commission to get payments. They will say anything they want to get money.

If you give them the amount they want they will know they can bully you each month into giving them more money and then that is not fair on your other creditors.

I think it is a blessing if your account goes to the DR department, they can accept lower payments than the banks can and they are far more flexible.

By entering into a DMP you are basically saying you cannot pay the previously agreed payments so therefore you are ind efault of this. It is to be expected that they will regsiter this with the credit reference agencys - what harm will this do?
You are not allowed to take out further credit while on a DMP so that's not a problem. If your DMP is going to take 4 - 5 years to pay then a few years later the default will have dropped off your file and you can start afresh.

The quicker you get the defaults the quicker they will fall off your file.

DM depaaprtments will write letters and threaten all sorts but as soon as they receive 2 consecutive payments they should be fine.

They may threaten to send someone round but it is highly unlikely as the cost is not worth it, only very few companies have debt collectors.

One thing to remember is that a debt collector can only ask for payment, he has no right to take any property of yours.

A bailiff on the other hand can force entry and has the right to take property. A bailiff can only call for commercial debts if it has been to court first. (However a Council Tax bailiff can call after a liability order has been granted in court)

HTH

EE

earthmother

In my experience (had the same issue with Natwest a few years back) the Debt Recovery Firm will initially write you a letter stating they now have the debt, and asking for payment.

You (or CCCS) then reply with the same offer you've made to the Post Office, and 99% of the time, the debt recovery firm will accept it - job done.

A bonus I've often found of debts being passed on is that as soon as the debt is passed on to one of these firms, the interest etc stops anyway, so that issue is usually no longer a problem.



The only time it will really affect your credit rating is if for some reason you don't make payments and the debt recovery firm end up taking you to court - other than that it's a default at worst (which you can get even if you stay with the original creditor but on reduced payments).