Just set up a DRO with CAB but an old debt has popped up and I can't add it Plz Help

HollieDollie

Hi guys and girls, i'm Hollie and i'm new here so be gentle

Sorry for the long post, I will underline key parts for those that would like to flick through

My situation is a difficult one. Around six years ago I took out around three thousand pounds worth of loans including pay day loans and a unsecured loan, I tried to keep up my payments for around a year before I lost my job and since then I have been on a very low income and most of the time without even a secure home, staying with friends etc. I managed to pay back around one thousand at the time and then I just had to ignore and walk away from my debts when my life fell apart!

Moving on to today, I now have nine month old twin boys and a nice new flat thanks to help from benefits and the boys dad. He payed for my deposit and first months rent on his card and I receive housing benefit towards my rent. I wanted to sort out all my old debts because I didn't want them catching up with me and threatening my now stable life so I went to the citizens advice bureau to find out my options on a very low income with two children to look after. A very nice woman arranged a DRO for me, went through all that I owe via my credit report and it was in excess of ten thousand, which I thought was very steep considering my original dept was around two thousand six years ago but hey.

Anyways the debt relief order was applied for and granted less than a month ago. Such a weight was lifted and I was happy for the first time in years, but then all of a sudden a years old debt that wasn't put on the DRO popped out of no where[/U. The lady from the CAB didn't know it existed and neither did I as it wasn't on my credit report! It was originally a £100 pay day loan from a company called Cash Genie (Ariste Holding), and now it is being pursued by a very aggressive debt collector called Motormile Finance (MMF) who are sending me letters saying i owe them over £1800. They are sending me letters saying the account is being passed to the Doorstep Collections Team and to contact them in the next five working days.

I called my advisor at the CAB but she said because the DRO had now been set up the debt from this company could not be added. So now I am on a Debt Relief Order and still in debt. My bubble has been burst so close to resolution I'm also worried as the boys dad has lent me a flat screen samsung tv and hung it on the wall for me and the boys to watch disney films etc! He purchased the tv only a few months ago on his card and I have asked him for the invoice that's in his name and shows the tv belongs to him and not me. I now have that here at the flat but not sure if it is sufficient to stop his goods being taken if they ever got in!


Any advice or next steps or helpful info would be much appreciated as I just can't pay this debt after paying rent and bills and feeding me and the boys it's such a struggle and I have very very little left over sometimes nothing at all! Also £1800 for a £100 debt, how is that even legal?

Please Help. Best Wishes. Hollie

sourcrates

Hi,
Unfortunately, as you say, MM are very aggressive in there tactics, but don't worry, its very unlikely any "doorstep collector" will call, its used mainly as a threat to get you to pay.
Even if they did, you do not have to speak to them, and certainly don't allow them access to your home, they are only debt collectors, not bailiffs, and have no powers whatsoever.
Only a court appointed bailiff with a warrant of execution from a court can enter your home and take goods, and only then under certain circumstances, and only after the matter has been to court, and a CCJ granted.


You are a long way off this yet.

To deal with MM, you need to write to them first of all, explain your situation, ask for proof of the debt, and a full statement of account. Tell them you will only deal with them in writing, and never, ever, phone them.
Head your letter "complaint" as otherwise MM will ignore it, they don't play by the rules, but pretend to everyone they do, just bear in mind that that you will most likely have to make them an offer of payment, even if its only £1 a month, you would be cooperating, and paying the most you could, so should it ever get to a court, you would be able to show you were doing your best, remember, no court would make you pay more than you could afford, even £1 a month, so they will gain no advantage by using this threat.

[Deleted User]

How long has it been, since you paid anything toward this PDL?

How long has it been, since you last acknowledged this PDL in writing?

HollieDollie

Thanks for the fast responses, I have never acknowledged this in writing and never paid any payments to MM or to the original company I borrowed from (Cash genie)

I did however call MM yesterday to say I was on a debt relief order which now I'm guessing was a bad move!

My citizens advisor told me never to write to them as it's been over six years but to call her back if I ever get anything through the post with info of a CCJ.

The thing is, this debt will never go away if I ignore it will it!? And I am willing to pay back £1 a month but I want to pay back a reasonable amount, £1800 for a £100 loan is not a reasonable amount, even loan sharks don't charge that lol surely it is illegal to charge nearly 300% a year interest for six years :-/ I thought if you offered to pay back the original debt or even an amount of it say 60% they would clear the debt but this company has added £1700 to a £100 debt :-/

[Deleted User]

HollieDollie wrote: »

I have never acknowledged this in writing and never paid any payments to MM or to the original company I borrowed from (Cash genie)

In your OP, you described the PDL as "a years old debt".

How many years old?

sourcrates

Bedsit_Bob wrote: »

In your OP, you described the PDL as "a years old debt".

How many years old?

Yea, I was under the impression it was only a year old, are you now saying its over 6 years old ?
because if so, you have to deal with it in a totally different way.


Please advise.

HollieDollie

The cash genie payday loan of £100 was taken out around five years ago (I'll have to try and find out exactly when) but at the time of the DRO being applied for it was not on my credit report, and MMF wasn't either! There was also no mention of any CCJs for those companies! That's why it wasn't added to the DRO, I had forgotten about it!

The letter I received from MMF on the 23rd of this month says that they are writing to inform me that they are now taking over the debt and I have five days to call them as they are sending a doorstop team!

[Deleted User]

HollieDollie wrote: »

The cash genie payday loan of £100 was taken out around five years ago (I'll have to try and find out exactly when)

You need to establish this before making contact with them in writing, or paying anything.

It sounds like it's approaching 6 years since the last payment/written acknowledgement, and they are trying to get you to make a payment/acknowledgement, before it becomes Statute Barred.

BTW. Are you in Scotland?

As for the "doorstop team", it's unlikely they will turn up, but if they do, tell them to go away, don't let them in, and above all, do not pay them anything, or sign anything.

HollieDollie

Bedsit_Bob wrote: »

It sounds like it's approaching 6 years since the last payment/written acknowledgement, and they are trying to get you to make a payment/acknowledgement, before it becomes Statute Barred.

BTW. Are you in Scotland?

What is Statute barred? Can't they take a CCJ out on me before the 6 years point? Also I called them a few days ago to tell them I was on a debt relief order and quoted the reference on the letter they sent, is that bad?

I'm pretty sure it was around five years ago and I'm located in England not Scotland!

Thanks so much for all your help.

[Deleted User]

HollieDollie wrote: »

What is Statute barred?

Statute barred means that, if there has been a continuous period of 6 years (5 in Scotland), in which you have neither made a payment nor acknowledged the dent in writing, it becomes unenforceable in court.

It doesn't mean the debt doesn't exist (except in Scotland). It just means it cannot be enforced.

Can't they take a CCJ out on me before the 6 years point?

Yes they can.

Also I called them a few days ago to tell them I was on a debt relief order and quoted the reference on the letter they sent, is that bad?

It's not good, but it's not fatal, so long as you didn't write to them, or make a payment, however small.

I'm pretty sure it was around five years ago and I'm located in England not Scotland!

In that case, you have about another year to wait, before it becomes Statute Barred.

You really do need to establish when you last paid to/acknowledged the debt.

Can you find any paperwork/emails, giving the date the loan was taken out?

How about bank statements, to show when the money was credited to your account?

HollieDollie

I'm trying to work out now when it was I got it, but I'm pretty useless as it was so long ago lol I don't have the same bank anymore and I can't remember who I banked with back then, I don't have any old statements so short of asking them when the debt was taken out I'm not sure how I'm going to work it out exactly but I'm pretty sure it's about five years and it's not more than six!

It has never been on my credit report and still isn't now, is that normal?

Presuming it is five years old, what is my next step? I have never written to them or made a payment!

Thanks again.