Struggling with debt? Ask a debt advisor a question

StepChange_James

anniecalamity wrote: »

A friend has been billed £120,000 for court costs. Does this debt have a limitations period? She was charged and found guilty of a crime she didn't commit and then to top it all, she gets charged for the privilege!!!

Hi there,

Thanks for posting.

As this is a court judgment I wouldn't expect it to be covered by any limitations period. Obviously I'm not familiar with all the ins and outs of the case, so I can't say for certain but it sounds like this will be a debt that will eventually need to be repaid.

It would be best for your friend to discuss the debt with her solicitor first and they'll know more about the specifics and the possibilities of appealing against this decision.

Kind regards

James

rubyinthesky

Hi, wondered if you could answer a question, save me phoning StepChange?

I have a DMP that started last month. Three of my creditors have all accepted and frozen interest and charges. Still waiting on three more I think - only I got a letter from SC this morning saying that Halifax have rejected the payment that SC have offered. The letter says not to worry, but why would Halifax do this and what happens now? They are one of my lower amounts that I owe to creditors at around £2k.

Thanks in advance.

rubyinthesky

Oh, and what happens to the payments that are meant to go to Halifax? SC says they continue sending them?

System

rubyinthesky wrote: »

Hi, wondered if you could answer a question, save me phoning StepChange?

I have a DMP that started last month. Three of my creditors have all accepted and frozen interest and charges. Still waiting on three more I think - only I got a letter from SC this morning saying that Halifax have rejected the payment that SC have offered. The letter says not to worry, but why would Halifax do this and what happens now? They are one of my lower amounts that I owe to creditors at around £2k.

Thanks in advance.

Hi rubyinthesky,

It would be best for you to call in – I can’t give definite answers here as I can’t go into the details of your situation, but one of our advisors can.

In general terms though I can tell you that when a creditor refuses a payment we tend to send it anyway. If they have returned it we would try to make it again. You’ve had impartial debt advice and the amount that has been offered to Halifax is as much as you can afford at this time.

As it’s a new plan Halifax may need to review your budget which we have sent to them. A creditor cannot be forced to accept a reduced payment and freeze interest but they are most likely to do that once you’ve had debt advice and they see your budget.

You’re doing everything you need to at this time. If you’re still concerned give us a call.

Take care,

Jess

jasonwba

I have been paying my old credit card off, by the way of a third party (dm pay) or better known as debt management limited? Ive never missed a payment, or if i needed to vary our agreement, i would/ring them, i would pay them every month on-line, the only problem i had was the amount outstanding was sometimes wrong, but would correct it, in January 2014, i requested a settlement figure, they stated £490 was outstanding, & also said i could have a 15% reduction if i paid the total outstanding, i couldnt afford this so carried on paying monthly, they have not disputed my payments that i have made since, but the figure was wrong again, when i disputed this i was told my origanal card holder had contacted them to increase my debt by £250, i have not been notified of this, is this legal? They now do not reply to any of my emails, your help will be greatly appreciated

StepChange_Pavan

jasonwba wrote: »

I have been paying my old credit card off, by the way of a third party (dm pay) or better known as debt management limited? Ive never missed a payment, or if i needed to vary our agreement, i would/ring them, i would pay them every month on-line, the only problem i had was the amount outstanding was sometimes wrong, but would correct it, in January 2014, i requested a settlement figure, they stated £490 was outstanding, & also said i could have a 15% reduction if i paid the total outstanding, i couldnt afford this so carried on paying monthly, they have not disputed my payments that i have made since, but the figure was wrong again, when i disputed this i was told my origanal card holder had contacted them to increase my debt by £250, i have not been notified of this, is this legal? They now do not reply to any of my emails, your help will be greatly appreciated

Hi jasonwba and welcome to the forum.

It’s not clear from what you’ve said whether it was the debt management company that won’t reply to you or your creditor. I’d recommend that you write to the credit card company for an up to date balance and a written breakdown of the amount that you owe.

You can use this template letter to help you get this information: http://moneyaware.co.uk/wp-content/uploads/StepChange-Debt-Charity-Right-to-information-request.pdf.

If you don’t get a response, you can chase them up using this right for information reminder letter and you can read more about your rights on the Information Commissioner’s Office website.

It seems strange that your creditor would contact the DMP company to increase the amount you owe rather than contacting you. Also, if you’re paying for the debt management service, you could be using a charity like ourselves free of charge. Once you resolve this problem, I’d recommend that you switch to a free provider so that you can clear your debts quicker. http://moneyaware.co.uk/2012/01/can-i-switch-my-dmp/.

I hope this helps,
Pavan

picket_fence

Hi,
I've just started a new thread, but perhaps I should have posted here instead... I should point out that the debt is not mine, I am just trying to get some advice

A disputed debt went to court, judgement in favour of the collection agency and consequently a repayment plan was set up and has been adhered to. Another company has now come along, claiming that the debt is theirs to collect and will take it to court in 2 weeks if not immediately settled (they have been informed of original ccj and payment plan, but are ignoring this). So what is the best way of proceeding? As obviously nobody wants to be saddled with two ccjs for the same debt, which they are in the process of paying off...
all help greatly appeciated

Geno2217

Hello all.

I have a large amount of credit card debt across 3 different cards. The debt combines to a total of £15,000.

At the moment I am making minimum payments 90% of the time due to the amount owed and the fact that there is not an awful lot spare. I am fully aware of how bad this is and am extremely frustrated at how little progress I am making to to get this cleared.

My ideal scenario would be to get a loan (unless you advise differently) so that I am making steps towards paying off my debts whilst effectively spending the same per month as I do currently.

I am the Co-Director of a Limited company with my girlfriend which I gather can make borrowing complicated. The company has just filed it's 2nd year of accounts (Although the first year was only 6months as it formed in October).

I currently rent, so do not own a house.

My questions are:

* Given my personal circumstances with the business, is gaining a loan likely to be possible?
* If I get refused for the full amount, will that prevent me from being able to make applications for less?
* Are there other options you can suggest?
* What kind of earnings would a lender like to see per year for the amount I'd require?

NB I imagine my credit rating is actually good, in the sense that I always make my payments and last year completed my 3years finance on my car without issue.

Former_StepChange_Rachel

picket_fence wrote: »

Hi,
I've just started a new thread, but perhaps I should have posted here instead... I should point out that the debt is not mine, I am just trying to get some advice

A disputed debt went to court, judgement in favour of the collection agency and consequently a repayment plan was set up and has been adhered to. Another company has now come along, claiming that the debt is theirs to collect and will take it to court in 2 weeks if not immediately settled (they have been informed of original ccj and payment plan, but are ignoring this). So what is the best way of proceeding? As obviously nobody wants to be saddled with two ccjs for the same debt, which they are in the process of paying off...
all help greatly appeciated

Hi there, thanks for getting in touch.

This second collection agency that's claiming to be pursuing the debt will need to send proof that they've actually taken ownership of it. It's common for debts to be passed from one collection agency to another. It's possible that this debt was sold on to another agency as the CCJ was in the process of being applied for.

It would be a good idea to request proof from the second collelction agency such as a copy of the credit agreement. Also, talk to the court and make them aware of what's going on, just in case there has been a change of hands. There won't be two CCJs for just one debt so please don't worry about that.

Kind regards

Rachel

Former_StepChange_Rachel

Geno2217 wrote: »

Hello all.

I have a large amount of credit card debt across 3 different cards. The debt combines to a total of £15,000.

At the moment I am making minimum payments 90% of the time due to the amount owed and the fact that there is not an awful lot spare. I am fully aware of how bad this is and am extremely frustrated at how little progress I am making to to get this cleared.

My ideal scenario would be to get a loan (unless you advise differently) so that I am making steps towards paying off my debts whilst effectively spending the same per month as I do currently.

I am the Co-Director of a Limited company with my girlfriend which I gather can make borrowing complicated. The company has just filed it's 2nd year of accounts (Although the first year was only 6months as it formed in October).

I currently rent, so do not own a house.

My questions are:

* Given my personal circumstances with the business, is gaining a loan likely to be possible?
* If I get refused for the full amount, will that prevent me from being able to make applications for less?
* Are there other options you can suggest?
* What kind of earnings would a lender like to see per year for the amount I'd require?

NB I imagine my credit rating is actually good, in the sense that I always make my payments and last year completed my 3years finance on my car without issue.

Hi there, thanks for getting in touch.

We would not usually recommend taking out further credit like a loan in order to pay the debt you owe at the moment. This can often make your situation worse, as you may be tempted to borrow from the credit cards again once the debt is cleared, but you’ll still have this loan to cover too.

The other thing to consider is that your creditors have to adhere to responsible lending guidelines. You’re only able to make minimum payments at the moment. This is prolonging your debt and may suggest to potential new lenders that you wouldn’t be in a position to take out further credit. Creditors only lend to you if they can determine that you can realistically pay it back without falling behind on important living costs such as rent, council tax, utilities and general living costs such as food and travel to and from work.

As far as what criteria lenders are looking for when considering an application for credit, that is always at their discretion. We ourselves would not be able to advise on this, but it might be worth your while getting in touch with Experian who can talk you through who might be suitable.

Business Debtline can provide you with some great advice on how to manage things along with the limited company you and your partner own. You can visit their website here: http://www.bdl.org.uk/

Before you take out any further credit, I would recommend that you get in touch with us. We can give you free and confidential debt advice on what you can do to keep these debts under control.

Our online advice tool Debt Remedy can provide you with a debt solution in just 20 minutes: http://www.stepchange.org/msehelp

We also have a helpline that’sfree to call (inc. from mobiles) on 0800 138 1111 Mon – Fai 8am to 8pm and Sat 8am to 4pm

Kind regards

Rachel