Debt collection

I have a debt outstanding with Direct line which has gone onto the list of debts to be dealt with by CCCS. I have received a letter from Direct line saying that they have terminated the agreement and want full payment of the loan less an amount of interest by 12 may. This i cant pay or it will go to a solicitor/debt collection agency and they will take steps to recover the whole amount. I have sent letters out to them asking them to deal with CCCS but they are saying that because this was a reletively new loan that they wont even consider a DMP from them and will definitely be passing it onto a debt collection agaency. Does this mean that they are going to take me court over this so they can have all their money back in one go or what? they say they will not even discuss this with me or anyone else unless the arrears of £272 are paid which i havent got. When i phoned to discuss this with them i was grilled as to what i spent the money on and why i couldnt pay it back and basically told they are not interested in helping or accepting a DMP all they will accept is full payment or legal proceedings and debt collection . Does anyone have any advise on this as i am really very worried about this. I'm even trying to think of someone who i can borrow the money off to pay the arrears to stop it going any further if i can. Thanks


  • Iona_Penny
    Iona_Penny Posts: 697 Forumite
    First Anniversary Combo Breaker
    I am not one of the people out there will all the facts but these are just a few thoughts: talk to the CAB and the CCCS and see what they say. Perhaps a letter form the CCCS will have more impact on them than a phone call from you.
    Don't borrow money just to get them to talk to you-can't help but feel they are saying this to put the frighteners on you ; also if you baorrow it adds to your debt and won't help if you are still not going to be able to keep up the repayments.
    And what does the age of the loan have to do with it? Has anyone heard that before?
    I hope that others will have more specific advice for you - is declaring yourself bancrupt an option if you have other debts to?-there are other threads with information about that.
  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    borrowing money will not fix the problem. What DL are saying is that if you cant keep up the payments they will pass to a debt collection company this is standard practice and you should not be worried. If you made this payment and then cant afford the next one then it will still go to a collector.

    There are generally two types of collector, those who do the collecting on behalf of the company and those who buy the debt, the reason the debt is sold is because the origional creditor doesnt want to pay the time and resources to collect the debt therefore a debt collector will buy the debt for so many £ in the pound (or collect for so many pence in the £) and the origional creditor gets a quick return on their money.

    The debt collector will co-operate with CCCS as should DL, if for any reason they do not CCCS will still help you to sort this out, you should inform CCCS what they have said but most importantly do not feel pressurised into borrowing more money.
    Ready to Go Go!
  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    just re-read your thread, there are alot of questions there maybe you should get the self help guide done by National Debline, it is free and is very good, even if you are going though debt managament like CCCS this is an information source that will explain the process to you, you can use it as a reference guide too when creditors are pressurising you.

    Iona_penny right, this is just a pressurising tactic - do not be forced to do something that will make your situaiton worse, you ahve already gone to CCCS stick with it it will come out ok
    Ready to Go Go!
  • fast_track
    fast_track Posts: 78 Forumite
    Point out to them that they are in breach of OFT guidelines on debt collections by refusing to speak to a third party eg CSSS. They know this already - take all the details of these people and then pass them and your complaint to the OFT
  • Dont phone them anymore - let the DMP company write to them and put your offer to them - they can say no - if its a low offer its more cost effective to pass it onto a debt collection company to let them recover small amounts - if they write back and say offer refused and you get a letter from a debt collection comapny all you have to do is let your DMP company know and they will send offer to them. Telephone collectors are out to get as much money as possible - pressurise you into accepting more than you can afford - their targets are high - im speaking from experience. Things turned bad for me but knowing how they worked helped me with my own DMP - put everything in writing and keep copies. Dont worry about the first letter from the debt collection company - its designed to scare you with threats - just let the DMP company do their job - its the law they have to deal with them. Northern Rock refused to accept my DMP but persistence has meant they have eventually accepted - GOOD LUCK
  • Xbigman
    Xbigman Posts: 3,884 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I can sort of understand them. You take out a loan and then very quickly default on it. They are as suspicious as hell that you have ripped them off. Thats why they asked what you spent the money on. You have the same rights under the law either way and they must deal with CCCS but I think you are going to have a hard time with them. It might be worth phoning them up and explaining why you took out a loan you couldn't afford, or tell them what changed in your circumstances to stop you being able to afford it.
    I'm not judging you as I've had bad luck with money in the past and I've done some pretty stupid things too. But I can see their point.

    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • thanks for all your replys. :A When i posted i wasn't thinking straight and didn't even think to contact CCCS :eek: . Anyway i sent an email to my debt counsellor at CCCS and scanned the letter and attached it to the mail. Anyway she mailed me straight back and said that on the face of it the letter is worrying but if they don't accept the DMP and send it to a collection agency that its not going to be a problem as she said they are far easier to deal with and the chances are that they will accept the offer of payment. So basically not to worry and that the DMP was actually set up and the letters were being sent out yesterday to the creditors so I'm feeling a bit better. I do tend to worry terrible about money, my counsellor actually said i worry more than anyone else she has dealt with, and i am rather apt to panic too :eek: . But thank you again for all your repies you all certainly calmed me down and XBigman I have no problem with your reply as i can also see both side to the situation too :o :A :beer:
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