MKDP - Barclays Credit Card Debt

Housing_Benefit_Officer

I have been helping a friend and his messy finances. Managed to make arrangements with everything else he owes, stopped his home being repossessed and stopped the bailiffs who were after his Council Tax arrears.

He doesn't want to get a debt relief order or declare himself bankrupt.

He had a 14k debt with Barclaycard he ran up and he used it to live on for 2 years while out of work (he withdrew cash using his Barclaycard to pay his mortgage and other debt). He stopped making any sort of payments 2 years ago and the debt was passed to Mercers and now onto MKDP.

Completely stumped on what advice to give him - doing some basic searches I can see that Barclays has sold his debt on. Should he ignore them or should he acknowledge the debt with MKDP.

Morally he knows he owes the money and was going to pay off his debts when the value of his property increases as at the moment it is in negative equity. He works - but only earns £15k a year.

He is getting an avalanche of letters and phone calls but has refused to speak to them or reply to the letters.

What should he do and what action have MKDP been known to take?

Any advice appreciated.

happy_bunny_2

When did he take out the debt?

If before April 2007, I would be sending a CCA request.

No original agreement, unenforceable in court and can ask to pay but can't legally make them.

double_mummy

Housing_Benefit_Officer wrote: »

I have been helping a friend and his messy finances. Managed to make arrangements with everything else he owes, stopped his home being repossessed and stopped the bailiffs who were after his Council Tax arrears.

He doesn't want to get a debt relief order or declare himself bankrupt.

He had a 14k debt with Barclaycard he ran up and he used it to live on for 2 years while out of work (he withdrew cash using his Barclaycard to pay his mortgage and other debt). He stopped making any sort of payments 2 years ago and the debt was passed to Mercers and now onto MKDP. so its not stat barred

Completely stumped on what advice to give him - doing some basic searches I can see that Barclays has sold his debt on. Should he ignore them or should he acknowledge the debt with MKDP.

Morally he knows he owes the money and was going to pay off his debts when the value of his property increases as at the moment it is in negative equity. He works - but only earns £15k a year.

He is getting an avalanche of letters and phone calls but has refused to speak to them or reply to the letters.

What should he do and what action have MKDP been known to take?

Any advice appreciated.

MKDP are a debt purchaser so they now legally own the debt. the account is not stat barred so they can take him to court for a ccj. my advice would be to ring them and talk to them about his situation. get him to write out an income and expenditure and give that to them. http://mkdp.co.uk/pages/downloads.html they have one here on their website he can download and fill in.

if he doesnt want a DRO etc i presume its because of his credit rating so he most likely wouldnt want a ccj

you may be able to get an authorization if you ring them and get them to talk directly to you if that is what he would prefer

Housing_Benefit_Officer

He has had the card for years probably 15 or so. He always maxed it out then paid the lot off in one go sometimes several times a year so at the beginning of 2010 he owed nothing but by the beginning of 2011 he had maxed it out.

happy_bunny_2

Send the debt collectors the prove it letter:
http://forums.moneysavingexpert.com/showpost.php?p=34910935&postcount=1

Then, if they respond with something that proves the debt is his, send them a CCA request:
http://forums.moneysavingexpert.com/showpost.php?p=11636295&postcount=5

No CCA or an incorrectly reconstituted one and they are stuffed.

fatbelly

Follow happy bunny - remember everything in writing. If he phones they will use the opportunity to get information from him and make threats that they will later deny.

He can't have a DRO as a property owner (and bankruptcy probably too heavy duty here, at least at this stage).

I've not noticed MKDP take court action - they usually appear on these boards chasing fictitious catalogue debts.

After paying mortgage, council tax and all essential expenditure, does he have anything left over at all? If so, how much?

Just looked at that mkdp I/e form - it appears to have been designed to show them how they could enforce a ccj. A better one is on http://www.nationaldebtline.co.uk/personal-budget-sheet/income.php but I still wouldn't give them that until they can prove this is enforceable and there is a realistic offer able to be made.

Housing_Benefit_Officer

fatbelly wrote: »

Follow happy bunny - remember everything in writing. If he phones they will use the opportunity to get information from him and make threats that they will later deny.

He can't have a DRO as a property owner (and bankruptcy probably too heavy duty here, at least at this stage).

I've not noticed MKDP take court action - they usually appear on these boards chasing fictitious catalogue debts.

After paying mortgage, council tax and all essential expenditure, does he have anything left over at all? If so, how much?

Just looked at that mkdp I/e form - it appears to have been designed to show them how they could enforce a ccj. A better one is on http://www.nationaldebtline.co.uk/personal-budget-sheet/income.php but I still wouldn't give them that until they can prove this is enforceable and there is a realistic offer able to be made.

After paying all his debts he has about £20 per month. He is currently paying about £350 per month to bailiffs for his council ta and £200 to other credit cards.

fatbelly

Housing_Benefit_Officer wrote: »

After paying all his debts he has about £20 per month. He is currently paying about £350 per month to bailiffs for his council ta and £200 to other credit cards.

The credit cards are contractual minimum payments?

£20 per month isn't going to make much of a dent in 14k, and the council tax arrears are priority. So I would get that cleared - check that the bailiff fees are legit (£42.50 unless they have a valid levy).

Then, and assuming that MKDP have proved what you asked, you could use £370 per month against that debt.

Or, if the credit cards are already defaulted, then use £570 pro-rata across all the debts.