Completely Ignoring Debts

southernstudent

A friend of mine borrowed £400 from Wonga and was due to pay them back over £500 around a week ago. She cancelled the CPA with her bank so Wonga did not take the debt and tells me she has no intention of paying them back because she cannot afford it and has to pay for other bills instead.

I told her she cannot just not pay back a debt but she insists nothing will happen to her because it is a civil matter.

I told her she can get a CCJ etc but she seems to think if she just ignores it nothing at all will happen.

My friend has family in Dubai and says she is moving there in 3 years anyway so she will be debt free.

I am worried about her. What will actually happen? Will Wonga send round the bailiffs?

Caz3121

Not sure what happens in the UAE visa application but some countries do not like debt so she may be going nowhere

by 3 years time she will owe Wonga £',000s, have debt collectors chasing, have CCJ, have no access to prime lenders (although if she went to Wonga in the first place I am assuming her credit rating is shot anyway) does she work?

Takeaway_Addict

3 years is a long time....it will prob be 10 years before she even contemplates moving.....big trouble ignoring debts

southernstudent

Caz3121 wrote: »

Not sure what happens in the UAE visa application but some countries do not like debt so she may be going nowhere

by 3 years time she will owe Wonga £',000s, have debt collectors chasing, have CCJ, have no access to prime lenders (although if she went to Wonga in the first place I am assuming her credit rating is shot anyway) does she work?

She's already a UAE citizen, I think she has dual nationality.

She studies at uni with me but she also works on a Saturday job and you're right, her credit rating already has a default on it from a phone bill that she decided not to pay back...so she has a habit of such behaviour.

The message I get from her is that she doesn't care about how much interest is accrued or how many CCJs they give her because she won't be paying it and she'll be in Dubai in three years.

It cannot be that easy to just not pay back debt surely?

worriedwilf

Hi

I think that your friend is heading for a fall. If she really can't pay then she needs to speak to wonga as there is a big difference between CAN'T pay and WONT pay.

A CCJ could serioulsy affect her ability to relocate to Dubai - A big price to pay for a relative small debt.

If it was that easy to run away from debts then everyone would be doing it!!

I might get shot down for my next comment but I will write it anyway.... I also think that there is a moral issue here. She borrowed money with an agreement to pay it back and ultimately someone has to pick up the tab. Regardless of my feeling towards pay day lenders ( not a fan) I do think that we are morally obliged to at least TRY to repay our debts. I hope this doesn't sound like me taking the moral high ground - Check out my posts and you will see how much I owe BUT I do want to pay my debts back.

I think your friend needs to take responsibility.

southernstudent

worriedwilf wrote: »

Hi

I think that your friend is heading for a fall. If she really can't pay then she needs to speak to wonga as there is a big difference between CAN'T pay and WONT pay.

A CCJ could serioulsy affect her ability to relocate to Dubai - A big price to pay for a relative small debt.

If it was that easy to run away from debts then everyone would be doing it!!

I might get shot down for my next comment but I will write it anyway.... I also think that there is a moral issue here. She borrowed money with an agreement to pay it back and ultimately someone has to pick up the tab. Regardless of my feeling towards pay day lenders ( not a fan) I do think that we are morally obliged to at least TRY to repay our debts. I hope this doesn't sound like me taking the moral high ground - Check out my posts and you will see how much I owe BUT I do want to pay my debts back.

I think your friend needs to take responsibility.

She already has citizenship so how would it?

worriedwilf

Hi

Sorry, I misunderstood that - That'll teach me to skim read!! In that case she probably won't have an issue getting into Dubai but I guess that she will always have it hanging over her if she decided to return to the UK at a later date.

Good_Goose

Your friend is a loser!! Dont ever lend it money!!

Weird_Nev

Don't worry about her, and don't lend her anything.

She is one of lifes 'takers'. Don't invest too much effort in her, she will no doubt treat her relationships like her finances.

Tixy

It is possible that the lender will commence court proceedings against her, and if she still doesn't pay that a CCJ will be granted.

If that happens then they will likely take enforcement action against her. Bailiffs are a common method of trying to enforce a CCJ. Does she have any assets in the UK? does she own a car or have plans to own one?
If a bailiff fails then they may move on to other enforcement options (possibly an attachment of earnings where money is taken straight from her wages - although she perhaps won't be earning enough, or possibly a third party debt order - where her bank account is frozen to repay the debt).

Alternatively she may 'get away' with not paying and just get letters chasing her for repayment for many years to come or until she leaves the country if she decides to do that.

If she is struggling to afford to repay in a lump sum then perhaps suggest to her she arranges a repayment plan for her debt. Even if she can only afford a small repayment a month she will reduce the chance of them taking further action against her.

Newgirl_2

Wilf, if you're going to get shot down then so am I. If you take out credit with terms to pay it back, you should endeavour to do so. Not just dodge it because you can't be bothered.

Some people genuinely end up in situations where the amount owed wouldn't be paid back in a lifetime and for those people there is a proper process.

OP, it sounds as though your friend might be heading for a future of spiralling debts. If you can talk any sense in to her at all, explain that it's better to approach the problem than run away. She's going to feel less inclined to pay when interest costs and other fees are added on top I'm sure. She would be advised to contact Wonga and agree a repayment plan.

And as has already been said, never lend her any money!

Newgirl