What happened to my debt!?

maximg

I joined this site about six months ago and had some really helpful advice, including making contact with StepChange about 13k of debt I've owed.

I followed the advice of StepChange and notified the banks of my finances and have since been paying £1p/m to them until circumstances improve to setup a debt management plan.

A couple of week's ago I logged onto my Halifax online banking account - whom I owe £2,700 on my Current Account and £2,550 on my Credit Card. The balance of my Current Account displayed N/A and today I've received a letter from Lloyds Bank (whom I've setup the £1 p/m standing order from) stating that my payment is being returned due to my Current Account being closed.

Does anyone know what's going on!?

Thanks

ALIBOBSY

It may be that they have closed the account and sold what was left of the debt to a debt collector. You could ring Halifax direct and check if you like.

The debt collector will likely bombard any phone number held for you with a load of calls, but you don't have to speak to them on the phone. Keep insisting you want everything in writing as they are well known to lie and threaten over the phone. Pretty much all debt forums, sites and charities advise not to talk to debt collectors over the phone.

Once they write and confirm the debt you can write back and confirm the payment as already arranged-I assume step change would assist with this if required. DO NOT give them any card or account details, insist on them providing details so you can pay via direct banking or standing order so you keep control of the payments yourself.

Ali x

sourcrates

Unfortunately creditors sometimes get fed up with receiving £1 a month, so cut there losses, and sell the debt on.
Sounds like that's what's happened here


Good advice above, they will call and write to you, best to deal in writing only, or, dependant on the DCA, you can communicate and arrange payment plans online, through there websites, which avoids the need to speak to anyone.
Best advice is not to give any card or bank details away, as advised above, pay either via online banking, or a standing order.

iolanthe07

creditors sometimes get fed up with receiving £1 a month

And you can't blame them. It would take over 437 years to pay back £5750 at £1 a month. It's just taking the pi$$.

sourcrates

iolanthe07 wrote: »

creditors sometimes get fed up with receiving £1 a month

And you can't blame them. It would take over 437 years to pay back £5750 at £1 a month. It's just taking the pi$$.

I agree, its actually 480 years to repay £5760 @ £1 a month !!!!!!!


This sort of arrangement is normally a temporary "token" amount, until the debtors situation improves, they cant have what they aint got !!!

maximg

Thanks ALIBOBSY and sourcrates. Really helpful advice. I've phoned Halifax Customer Services who explained that the debt is still held by them and isn't building interest whilst I'm paying the £1 p/m. They're sending me some info on payment options and they mentioned that I can make a partial settlement offer if and when I can afford to. I've been given new details to set-up another standing order for my token payment for the account that's been closed.