Struggling with debt? Ask a debt advisor a question

System

nothappy2013 wrote: »

Hi,

I have recently set up to repay payments to a debt recovery agency after threat of a CCJ.

When I called them to set up an arrangement I offered x amount a month and was told I had to pay by debit card and gave them card details over the phone and agreed that they could take the money out on the 28th of each month. I have never had any letter or further correspondence after this call.

They have taken money out in Jan on the 29th and then Feb on the 28th as agreed, but this month they have requested the payment on the 22nd, leaving me with no money this weekend as I don't get paid until 25th.

Where do I stand as to complaining, I have now been left with no money all weekend. I have just been on their website where it says you can pay by all different means such as standing orders etc. which was never explained to me?

I have no problem with repaying the debt but what can I do about them taking money off me on a date that was not agreed? Would really appreciate some advice?

Hi and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

I’d recommend that you complain and set up a new arrangement to pay the debt. You should also ask them to remove your card details from their system.

I’d recommend that you set up a standing order with this company set at a level you can afford. With a standing order you retain control over when and how much money is taken.

I hope this helps.

Kind regards,

Mat

System

marcos_londres wrote: »

hi everyone,
I'm in a big problem because I have not payed my VAT tax for 2011/2012 and they are chasing me to do so.Question is...is there any way of repaying my debts monthly with them and not being taken to hight court?people from the Inland Revenue and the police have been in my house to grab my furniture and something else with value to them.Is there a way to repay?????.will be happy if there's any help.thanks

Hi and welcome to the forum,

It sounds like you would benefit from some free and impartial advice.

I’d recommend that you gather details of your income, expenditure and debts and give Business Debtline a call on 0800 197 6026 regards the VAT debt.

We might be able to help you regards personal debts but you should speak to Business Debtline in the first instance.

I hope this helps.

Kind regards,

Mat

What_A_Mess_2

Over the last three years, I've run up large (£10,000+) debts on my father's credit cards, got behind on the payments, gave up trying to pay anything over a year ago, ignored all letters from the credit card company, and now they've sent a solicitors' letter threatening court action by the end of the week if debt isn't paid in full.

My question is; is it possible to contact the credit card company/debt collection agency/solicitors and get them to transfer the debt into my name, since I'm the idiot who caused the problem?

twinklestar73

Hi,

Not sure if this is the right place to post so apologies if not!!

I took out a loan in 2006 with HFC Bank for £3000 to learn to drive and buy a car. Being young & stupid I failed to keep up the payments and defaulted on the loan. I originally started a voluntary agreement with HFC to repay the loan (after it had defaulted) but failed to stick to this too. I buried my head in the sand about it for a long time.
The loan had obviosuly been on my credit report as a default for some time but dropped out towards the end of last year as it had been 6 years since the default. I'm trying to get my credit file cleaned up as I'm saving for a deposit, to get a mortgage with my partner. Having just checked my file online the default is back on there - this time from Lowell debt collections. It has always said HFC even though I have received letters from Lowell in the past.

My main issue is that the default date on my credit file is now showing as November 2011 with the debt being named as Lowell. I know I was wrong to default in the first place & to not clear the debt but can a debt collection agency change the default date after the 6 years is up?? My report is much better these days with healthy accounts and payments always made on time. I'm worried that Lowell can re-add old debts onto my credit file as this will prevent me from getting a mortgage.
Thanks for any advice you can give,
Twinkle

missymr

Hi there, hope you can help.

I am currently overdrawn by £1500, my overdraft limit being £1700, so I need to act pretty quickly.
I don't normally need the overdraft and am good at budgeting but I had to use it as an emergency.

I cannot seem to get out of this mess because of cost of living etc, but am paying like £20 per month interest.

Would it be better to get a credit card to pay this off, and just not use the card, so I can pay it off without interest?

I could probably pay this back within like 20months, so would need to go for a card that has a longer 0% with a small transfer fee.

I assume you can use a credit card to pay off an overdraft?

Thanks to anyone who helps me

System

PandyTudor wrote: »

Thanks Matt, I'll do that,

Do you think there would be any possibility that they would remove the defaults that seem to be showing (as a new default) each and every month? I understand and accept one default for this debt, but it looks as though I have around 100 defaults as it's been that many months since I last paid.

Many thanks,
Andy

Hi Andy and thanks for your reply.

I’d give them a ring in regards this, it’s also worth checking all three credit reference agencies to see what’s showing. They are Callcredit, Equifax and Experian.

I hope this helps.

Kind regards,

Mat

System

What_A_Mess wrote: »

Over the last three years, I've run up large (£10,000+) debts on my father's credit cards, got behind on the payments, gave up trying to pay anything over a year ago, ignored all letters from the credit card company, and now they've sent a solicitors' letter threatening court action by the end of the week if debt isn't paid in full.

My question is; is it possible to contact the credit card company/debt collection agency/solicitors and get them to transfer the debt into my name, since I'm the idiot who caused the problem?

Hi and welcome to the forum.

I’m afraid your father is fully liable for these debts and it’s unlikely that the credit card companies will transfer the debt to your name.

I’d recommend that your father takes some free and impartial advice regards the debts.

The first thing for him to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help find a solution to the debt problem quickly.

Debt Remedy will assist him in completing a financial statement with information on his household, employment, income, expenditure and debts. From this the service will automatically determine his options.

If he’s not confident with computers or would like to speak to an advisor then he’s welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

I hope this helps.

Kind regards,

Mat

System

twinklestar73 wrote: »

Hi,

Not sure if this is the right place to post so apologies if not!!

I took out a loan in 2006 with HFC Bank for £3000 to learn to drive and buy a car. Being young & stupid I failed to keep up the payments and defaulted on the loan. I originally started a voluntary agreement with HFC to repay the loan (after it had defaulted) but failed to stick to this too. I buried my head in the sand about it for a long time.
The loan had obviosuly been on my credit report as a default for some time but dropped out towards the end of last year as it had been 6 years since the default. I'm trying to get my credit file cleaned up as I'm saving for a deposit, to get a mortgage with my partner. Having just checked my file online the default is back on there - this time from Lowell debt collections. It has always said HFC even though I have received letters from Lowell in the past.

My main issue is that the default date on my credit file is now showing as November 2011 with the debt being named as Lowell. I know I was wrong to default in the first place & to not clear the debt but can a debt collection agency change the default date after the 6 years is up?? My report is much better these days with healthy accounts and payments always made on time. I'm worried that Lowell can re-add old debts onto my credit file as this will prevent me from getting a mortgage.
Thanks for any advice you can give,
Twinkle

Hi Twinkle and welcome to the forum.

Without seeing your credit file it’s tough for us to give advice. It may be that HFC didn’t actually default you until the debt was sold on.

If you believe the debt was statute barred it’s worth reading the below and possibly sending the letter to Lowell. Otherwise with the default currently standing where it is I’d recommend that you contact Lowell and put an arrangement to pay the debt in place.

It’s also worth checking all three credit reference agencies, Callcredit, Equifax and Experian.

Creditors are unable to legally pursue you for the debt if, after six years;

• The creditor has not already obtained a county court judgment (CCJ)

• You or any one else owing the money (on a debt in joint names) have not made a payment

• You have not written to the creditor admitting you owe the debt

This is known as statute barred and refers to the Limitation Act.

If you believe that the creditor is timed out to collect the debt, you may wish to use the template letter below.

From:
Name:
Address:
Postcode:
Date:
To:
Creditor‘s Name:
Account/Agreement No:
Without Prejudice
Dear Sir / Madam
You have contacted me regarding the above account.
The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act 1980, then you will no longer be able to take any court action against me to recover the alleged amount claimed.
Any court claim will be defended on this basis.
In addition section 2.14 of The Office of Fair Trading Collection Guidance states that it is unfair to pursue such claims where, as here, the creditor has made no contact during the relevant limitation period.
If you have evidence that your claim is not statute barred then please supply it to me within 21 days. If you are unable to provide such evidence please confirm that no further action will be taken against me.
Yours faithfully
(Print Name)
I hope this helps.

Kind regards,

Mat

System

missymr wrote: »

Hi there, hope you can help.

I am currently overdrawn by £1500, my overdraft limit being £1700, so I need to act pretty quickly.
I don't normally need the overdraft and am good at budgeting but I had to use it as an emergency.

I cannot seem to get out of this mess because of cost of living etc, but am paying like £20 per month interest.

Would it be better to get a credit card to pay this off, and just not use the card, so I can pay it off without interest?

I could probably pay this back within like 20months, so would need to go for a card that has a longer 0% with a small transfer fee.

I assume you can use a credit card to pay off an overdraft?

Thanks to anyone who helps me

Hi missymr and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

We wouldn’t normally recommend taking out further credit, but if you could get a 0% card and pay the overdraft off this may work.

It’s important to look at what interest rate the card reverts to after the 0% deal ends and it’s important to stick to a realistic budget to make sure you would clear the debt without incurring interest. Also, if you do get the credit card make sure that you cancel and remove the overdraft.

What we’d normally recommend is putting together a budget ensuring that you can repay the debt in a reasonable time frame. You could even transfer to a new basic bank account and repay the overdrawn account at a rate that you can realistically afford while no longer using the account.

It’s worth noting that a good budget always includes an emergency fund to cover unexpected costs.

If you want assistance putting together a budget you could use our online debt advice tool Debt Remedy (http://www.stepchange.org/msehelp).

I hope this helps.

Kind regards,

Mat

missymr

StepChange_Mat wrote: »

Hi missymr and welcome to the forum.

It sounds like you would benefit from some free and impartial advice.

We wouldn’t normally recommend taking out further credit, but if you could get a 0% card and pay the overdraft off this may work.

It’s important to look at what interest rate the card reverts to after the 0% deal ends and it’s important to stick to a realistic budget to make sure you would clear the debt without incurring interest. Also, if you do get the credit card make sure that you cancel and remove the overdraft.

What we’d normally recommend is putting together a budget ensuring that you can repay the debt in a reasonable time frame. You could even transfer to a new basic bank account and repay the overdrawn account at a rate that you can realistically afford while no longer using the account.

It’s worth noting that a good budget always includes an emergency fund to cover unexpected costs.

If you want assistance putting together a budget you could use our online debt advice tool Debt Remedy
I hope this helps.

Kind regards,

Mat

Thank you Mat, I really appreciate the advice