Struggling with debt? Ask a debt advisor a question

Former_StepChange_Matthew

Thank you, it was verbally unfortunately, one day I will learn my lesson!
If I put in a formal complaint stating the data protection act and sections 77 - 79 of the consumer credit act after I have made a verbal request will the 8 week/40 day time limit come into force?
I have never spent or paid any money into or from this account or made any contact at all, just worried that it is coming to the 6 year point and I already have a previous CCJ and don't want to get any more!
Many thanks!

Thanks for getting back in touch.

If you request ion writing information from your creditor under ss77-79 of the consumer credit act, the credit will have 12 days to respond to your request otherwise the debt will be unenforceable until this request is made. You will need to make this request in writing and include a £1 fee for this.

If you request this information under the data protection act, you will need to make this by writing and include a £10 fee for this. The creditor then has 40 days to comply with this request.

If you have made a complaint to your creditor already and 8 weeks have passed and you have not had a resolution that you're happy with, then you can escalate it to the financial ombudsman. This would apply regardless of any other requests for information you had made since then.

I hope this helps.
Matthew

dhearts88

Hi Advisors,

I was wondering if you could give me some advice. I recently bought my first home and along with kitting out a home from scratch my house is a new build which was built several months earlier than expected resulting in me having less time than I originally planned to save. As a result I have racked up debt to the tune of approximately £8k and I am starting to feel that I am losing control of my finances.

Ideally what I would like to do is get a loan to consolidate my debt and pay interest at a reasonable rate (the majority of my debt is on my credit card which is now at a fairly high interest rate) However I am hesitant about applying for loans as my rating is deemed as "fair" (378 at equifax to be exact) and I don't want to further damage my credit score by randomly applying for loans. Could you possibly advise of reputable companies which target people round about my credit rating?

Thanks for your time.

David.

StepChange_Rachael

Hi David

Welcome to the forum and thanks for posting.

It’s good to be proactive about your debt and make sure you’re getting the best deals for you to remain in control of your finances. However, as debt advisors we don’t advise on taking out further debt as a solution.

If you’re managing to keep up with the payments to your creditors and it’s the interest and charges that you’d like to reduce then please follow this link. There’s some really useful information and advice on cutting existing debt costs from the moneysavingexpert.com.

If you’re struggling to keep up with the minimum payments then we’d suggest getting some expert debt advice. So you can consider what the best options are to deal with the debt in a manageable way. In my experience relying on further borrowing rarely helps to become debt free.

For free and impartial advice you can contact StepChange debt charity here or you can use our anonymous Debt Remedy tool on our website which once completed you’ll be able to access our tailored advice and recommendations. You can access Debt Remedy here.

Thanks
Rachael

dhearts88 wrote: »

Hi Advisors,

I was wondering if you could give me some advice. I recently bought my first home and along with kitting out a home from scratch my house is a new build which was built several months earlier than expected resulting in me having less time than I originally planned to save. As a result I have racked up debt to the tune of approximately £8k and I am starting to feel that I am losing control of my finances.

Ideally what I would like to do is get a loan to consolidate my debt and pay interest at a reasonable rate (the majority of my debt is on my credit card which is now at a fairly high interest rate) However I am hesitant about applying for loans as my rating is deemed as "fair" (378 at equifax to be exact) and I don't want to further damage my credit score by randomly applying for loans. Could you possibly advise of reputable companies which target people round about my credit rating?

Thanks for your time.

David.

dhearts88

Hi Rachel thanks very much for your response. I am able to maintain repayments however, the problem I have now is that I am barely making a dent on reducing the principal sum borrowed and feel like i am only paying interest each month, the interest rate is approximately 30%. I thought (maybe wishful thinking) that I would be able to obtain a loan at a lower rate of interest and save some money on interest, despite having a "fair" credit score.

Regards,
David.

StepChange_Rachael

Hi David

Thanks for getting back in contact.

I can see how it would be frustrating when you’re paying the debt back but the balance doesn’t seem to be reducing.

Due to the amount of interest being your concern I’d suggest looking further on moneysavingexpert.com. After taking a look at moneysavingexpert.com myself I’ve found this page on the site that helps you work out the chances of successfully applying for better deals to lower the interest you’re paying.

As you’ve mentioned your credit file is fair you might be eligible for balance transferring your debt to 0% interest credit as a best option for lowing the interest and paying the debt back sooner. The more you’re able to pay towards the debts the quicker the repayment period will reduce.

I hope this has been helpful.

Thanks
Rachael

dhearts88 wrote: »

Hi Rachel thanks very much for your response. I am able to maintain repayments however, the problem I have now is that I am barely making a dent on reducing the principal sum borrowed and feel like i am only paying interest each month, the interest rate is approximately 30%. I thought (maybe wishful thinking) that I would be able to obtain a loan at a lower rate of interest and save some money on interest, despite having a "fair" credit score.

Regards,
David.

beccaspex

Thanks for the advice. I do have the letter agreeing the settlement terms so I can send that with my complaint.

They wanted the settlement in 4 payments and I missed the date for the third but paid it with the final payment before the date for the final payment was due.

barclaysbabe

Hi i have 2 questions. The first is I was with a DMP in 2006 (one that charged a management fee) until approx. 2008/9. I was in a desperate state and paid the initial fee and management fee. I have paid all but one creditor who has sold the debt onto a collection agency. Do I have to continue paying of this debt or will they be willing to negotiate a settlement?
The second question is I understand the is a case going on at the moment going on with certain DMP. Is there an update on what the company names are? and if so has anyone has anyone been successful?

StepChange_Rachael

Hi

Thanks for getting back in contact.

I’ve read the previous post and as Matthew mentioned certainly send a copy of the agreement and if you have a letter stating that the full amount was paid by you then a copy of that can be sent as well.

If you don’t have a letter stating the debt has been settled then any evidence that shows you sent the payments could be forwarded to the creditor. For example if you paid the debt by bank transfer then you should be able to find a copy of the statement from your bank to send to the creditor that shows the payment was made.

Thanks
Rachael

beccaspex wrote: »

Thanks for the advice. I do have the letter agreeing the settlement terms so I can send that with my complaint.

They wanted the settlement in 4 payments and I missed the date for the third but paid it with the final payment before the date for the final payment was due.

StepChange_Rachael

Hi

Thanks for posting.

Firstly when a creditor sells a debt to a collections agency they’ll start collecting for the debt and have the same rights as the original lender. They have the right to take further action to collect for the debt if they can’t agree on a repayment plan.

As with many creditors they might accept a settlement if you’ve a lump sum available and want to pay the debt off. In this case you’d need to approach the creditor with the amount to see if they’ll accept it. If they do then I’d suggest getting written confirmation so you have a record of the agreement.

The debt might show as partially settled on your credit file if the full amount isn’t paid.

I’m not sure I fully understand your second question. If it’s in relation to debt management plan companies (DMP companies) then I wouldn’t be able to advise you on this as I don’t have any information on them. You can find more information on debt management companies on the financial conduct authority (FCA’s) website if you follow this link.

If you’d like help and advice regarding the debt you have you can contact StepChange debt charity here for free and impartial advice.
We’ll take into account your full situation and if a settlement is a possibility then we’ll discuss this with you in more detail.

Thanks
Rachael

barclaysbabe wrote: »

Hi i have 2 questions. The first is I was with a DMP in 2006 (one that charged a management fee) until approx. 2008/9. I was in a desperate state and paid the initial fee and management fee. I have paid all but one creditor who has sold the debt onto a collection agency. Do I have to continue paying of this debt or will they be willing to negotiate a settlement?
The second question is I understand the is a case going on at the moment going on with certain DMP. Is there an update on what the company names are? and if so has anyone has anyone been successful?

Glitterygoods

Hi. I am trying to sort out my debts. I have buried my head in the sand and not paid anything off of my debts which are now an embarrassing £8000. I am currently on IS after having my baby 10 months ago. I am looking at going back to work at the end of the year as due to being a single mum (not my choice) and the benefit cap I will not be able to afford my rent and to stay at home with my son. So a DRO is not an option.
The question I have is I have been offered is and I know it sounds really cheeky but a few of my debts have offered 40/50% off and the option of paying by instalments (I guess because they haven't had any money and will be over the 6 years next year) but could I offer them say 60/70% off and pay by instalments? One of them should hopefully be wiped as it was a pay day loan that was unaffordable and although I have paid back a lot more than I borrowed they have offered to wipe it from £816 to £120. (I have a complaint they are dealing with at the moment and have asked for it to be wiped) I have been looking at a DMP but surely I would end up paying more as the money I have been offered off won't be included in that, nor the nearly £700 off of the PDL one. Also as they will all become SB in the next 2 years will it 'reset' the timer by sending them a letter? Sorry for the long message. Thank you for your time.