dealing with old debt

twogloves_2

I recently returned to the UK after living overseas for 8 years following separation and family health issues.
Before leaving I 'did the right thing' I contacted my 3 credit card and 1 loan company and after long fought battles and many letters and phone calls they all agreed to stop interest and charges and accept £1 per month.
After a period of time the loan company wrote off the remaining debt with them due to circumstances and my mental/emotional health at the time. The credit card companies however refused to write off and also have refused 2 separate offers of full and final settlement.
Being so far away, genuinely not working and unable to pay and no intention of returning to the UK in the future I was able to continue paying £1 per month and nievely hope that eventually they would accept an offer or write the debt off.
Now I am worried that when I tell them I am back in the UK they wont accept my circumstances.
I have checked my credit report and all 3 are shown as default.
I'm worried what a future employer may not give me a job because of my credit score/search. I have an interview soon.
Based on expected salary I have done a budget planner and with very careful management I will just about be able to afford a place in the town where I will work but am worried they will refuse to rent to me and that the cc companies will not accept £1 now and demand more, making it impossible for me to live where I work or even have a place of my own.
I'm worried I will never be able to pay this debt off and that they will take action against me making my situation worse. I can see no way forward, I will be fighting them and paying this til the end of my days.......

happy_bunny_2

Are the default dates accurate?

It sounds like they should have defaulted years ago.

They stay on your credit file for 6 years from the default date.

Who owns the debts?

Who were the original cards taken out with and when? As sometimes the paperwork was shoddy on older accounts and prevents them getting a CCJ (worst case).

Twogloves

Thank you so much for replying

I've gone back and checked the credit report and yes the default dates are wrong and I think they sent default letters more than once.
I can't access all the old letters and paperwork that I've kept from the beginning at the moment so not 100% on dates and I'm not sure if I kept the default ones because I was told they would be sent but to ignore them as I had the £1 agreement or they were sent whilst I had the agreement so I can't prove what date they should have been registered from.
I know I wrote and called all 3 at the same time and had replies within a couple of months of each other, credit report shows one in arrears July 2007 and default feb 2011 the other 2 as ok until July 2010, defaults Oct 2010 and feb 2011.
All debts are in my name and still with the credit card company.
I still get a monthly statement from Mint but have had nothing from Barclaycard or Halifax for years. (Halifax has been the most troublesome where they've sent it to a debt collection agent twice now, I then complain and prove I've made my payments and it goes back to Halifax again)

1. Mint, Default date shown Oct 2010, taken 2004
2. Barclaycard, default date shown Feb 2011, taken 1998
3. Halifax, default date shown Feb 2011, taken 2005

They've always had a balance on them and for years I could only afford to pay the minimum, I dread to think how much interest I've paid.

sourcrates

Twogloves wrote: »

1. Mint, Default date shown Oct 2010, taken 2004
2. Barclaycard, default date shown Feb 2011, taken 1998
3. Halifax, default date shown Feb 2011, taken 2005

They've always had a balance on them and for years I could only afford to pay the minimum, I dread to think how much interest I've paid.

Hi,
As all the accounts are pre- April 2007, the first thing you should do is send each one a CCA request.


That is a request for a copy of the original agreement, if the creditor does not hold the correct paperwork, then, in a nutshell, they cant obtain a CCJ against you in court.


If this paperwork is not in order, then it puts you in a much better position to either cease payment altogether, or to offer a low full and final settlement to rid you of the debt.


Template letter here :

(Your home address)
Date:

To:

Dear Sir/Madam

Account/Ref No:

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully



Your name.

twogloves_2

Thanks, I have printed off the letters and am sending them today!
If they don't reply in 12 working days what is my next step?
I did read another thread about credit cards and doing this but the persons situation was a little different.
I would rather come to a settlement.
As I understand it I could stop paying but the debt would remain on my record? If I manage to get a lower amount agreed and pay it I would only have the defaults on record until 6 years have passed?
How much do I offer? the other post said start at 10% and if they don't respond or decline the offer, then offer 15% as a final offer?

double_mummy

hey

i personally would follow my advice on the other thread it seems to be the same situation

do the CCA request

if you get the default dates corrected then they will come off 6 years after that date whether they are paid or not

are they with debt collectors or the original creditors?

Twogloves

All with the original creditors

double_mummy

yup go along as planned

they are less likely to settle for so low - you dont say how much the debts are or how much you have to offer in settlement but i would still go in at the 10% a couple of months after they cant produce the paperwork

Twogloves

Halifax 8500, Barclaycard 9000, Mint 6300
I received an inheritance of £1500 and I could raise the extra.

Twogloves

Received a reply from Mint today, stating under section 78 (1) they are obliged to provide a 'true' copy of the agreement which they say can be a copy agreement at the date the card agreement was made, a copy of the current terms and statement of financial information which only gives the state of the account, amount currently due, with amounts and dates of future payments still required to be made.

Is this correct? Or do they HAVE to send me a copy of the agreement I signed and a full breakdown of interest and charges applied as it states in the first letter I sent?

Is there a letter I can send in response to this?

Also they are asking for copy bank statements for the last 3 months or a utility bill (neither of which I can give as I haven't been at the address 3 months and I don't pay the utilities, plus a copy of my driving licence or passport to confirm my address change.
They've changed my address before without the above are they requesting it now to get leverage and or evidence for a later date?

happy_bunny_2

They can send a copy that they have reconstructed, as long as they are accurate. Only reason they normally do this is cos they don't have the original.

One way to tell if its a true copy is to look at the default charges for late payment. Until 2006, most were £25 or £30, then they went to a flat across the board £12. If its got the £12, its unlikely to be a proper reconstituted copy.

As for the address change...tricky one. Tell them that presumably if you refuse to send it, they will stop writing to you and asking you to pay...think not.

I think they only need to send a basic statement with a CCA request, if you want more, write and ask specifically or spend a tenner on a SAR, that will get eveything they have on you.
I wouldn't send them anything, especially bank statements, they can verify your address from your credit file.