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

[Deleted User]

HollieDollie wrote: »

Presuming it is five years old, what is my next step?

That's a tricky one to answer.

You could try to stick it out, until the 6 years is up, then make a (low) F&F settlement offer.

Of course, there's no guarantee they won't go for a CCJ, during that year or so.

You could make them a F&F offer now, but there's no guarantee they will accept it and, of course, writing to them restarts the 6 year SB clock.

Or, you could come to an arrangement, to pay the debt off in manageable payments.

There's always a DMP, but I'm not sure if you can have a DMP, while in a DRO.

HollieDollie

What happens if they get a CCJ? And when you say a low settlement, how low, as they want £1800 for a £100 debt so any more than say £200 is going to be to much... :-/

[Deleted User]

HollieDollie wrote: »

What happens if they get a CCJ?

The debt no longer becomes SB after 6 years.

And when you say a low settlement, how low, as they want £1800 for a £100 debt so any more than say £200 is going to be to much... :-/

How low depends on when you offer it.

They will likely accept a lot less, once the debt is SB, than while it is still enforceable.

fatbelly

For the moment, you have told them (verbally) that it is in a debt relief order. Let them work out that it isn't.

When they do, the letters will start again. They are unlikely to send anyone around or take court action.

Your conversation does not count as acknowledgement and you have not acknowledged this for five years. If you can get to the 6-year point, great, you can send the SB letter and tell them where to go. If you did get a court claim you acknowledge service and have 28 days in which to get advice. Cross that bridge if you get to it.

This is not an unknown situation. Getting an Experian report is part of the DRO process and it often tie addresses together and an old debt comes out of the woodwork.

National_Debtline

Hi Hollie

Very sound advice from fatbelly above. The odds are that this company will keep sending you letters for a while - but taking court action is a very different matter as the court costs would be a lot more expensive for them than a stamp and an envelope. They would want to be sure of getting a good return on their outlay - not very likely if the person they're chasing has qualified for a Debt Relief Order!

I think you just have to sit tight for now and seek advice on any further developments.

Kind regards

Dennis
Twitter: @natdebtline

bargainbetty

Bedsit_Bob wrote: »

That's a tricky one to answer.

You could make them a F&F offer now, but there's no guarantee they will accept it and, of course, writing to them restarts the 6 year SB clock.

.

This is not true. Writing to them does not acknowledge anything or restart the debt. Making a payment resets the clock. Conversation or a written request for evidence of the debt does not.

I'd write, noting that you do not acknowledge any debt to their company, asking for evidence of the debt, a copy of the original agreement and full breakdown of charges. Use the 'prove it' letter template on here or on the National Debt helpline page.

Add that you are under a DRO for good measure. As others note, it might make them realise they are wasting their time.

[Deleted User]

bargainbetty wrote: »

Making a payment resets the clock. Conversation or a written request for evidence of the debt does not.

Offering a F&F payment, in writing, is acknowledging the debt, which resets the clock.

A written offer of payment, is an acknowledgement of the debt.

fatbelly

bargainbetty wrote: »

Writing to them does not acknowledge anything or restart the debt. Making a payment resets the clock. Conversation or a written request for evidence of the debt does not.

Bedsit_Bob wrote: »

Offering a F&F payment, in writing, is acknowledging the debt, which resets the clock.

A written offer of payment, is an acknowledgement of the debt.

Hmm. You could both be right.

If you offered a settlement using the National Debtline standard letter it starts 'Without prejudice'. This means that it cannot be used in court as evidence of anything.

Not everything marked 'Without prejudice' is necessarily 'Without prejudice' but where there is an element of negotiation it should be safe.

Not that I would advocate this for the OP at this stage. I'm with Dennis - sit tight for now and seek advice on any further developments