On a debt plan with Step Change, 1 creditor giving me hassle.

cragger89

All,

I require some advice.

I almost fell into the trap of using Baines and Ernst, but a bit of research lead me here back in August, so I approached Step Change to sort out a debt management plan. I was made redundant a week before my Wife and I got married, so I voluntarily terminated the finance and handed back the car it was for, along with reducing my monthly outgoings through means of the debt management plan.

The only creditor which declined was Argos, or at least, whoever underwrites the finance for Argos Store Cards. Amusingly, this is actually only a £400 debt, whereas the others who agreed with no problems were for substantially more.

Step Change wrote to me and advised of them refusing to play ball, but that they would still pay £1.00 a month (I can only afford token payments until I am back at work and receiving a wage again) to Argos. We've had a couple of letters telling us they have not received payment and yesterday, we received one advising that if we do not pay the arrears within 14 days, action may be taken against us. In other words, debt collectors will be involved.

Now, I am going to write to both Argos and Step Change accordingly to update both parties on the situation as that is what Step Change said to do in the letter informing me that Argos had declined the offer, but I want some reassurance that nothing sinister is going to happen. If I had the money, I would pay it back in full to get them off my back, but I don't deal with stress especially well and it won't take much for me to fall into the sleepless nights again.

I don't really care what it does to my credit rating as I'm firmly in the camp of saving up cash and buying what I want now anyway, but I don't want to come home one day to debt collectors ransacking my wife's house!

Any advice is appreciated.

Regards,

Craig

seanavfc92

cragger89 wrote: »

I don't really care what it does to my credit rating as I'm firmly in the camp of saving up cash and buying what I want now anyway, but I don't want to come home one day to debt collectors ransacking my wife's house!

If I can say anything to put your mind at rest, it would be that debt collectors CANNOT enter your wife's property and remove goods. They have no more power than I would to come to your door and ask for payments to be made.

This sort of power is only given to court enforcement agents. To get to this stage, Argos would have to apply for a County Court Judgement and you would have to default on payments.

Those who shout loudest are normally those who are owed the least amount of money.

Argos will get £1 whether they like it or not. You can't afford anything more than that.

They COULD take further action, but if it did go to court, they would see that you could only afford £1 per month anyway. Waste of time and money for Argos!

cragger89

Thanks - I just needed someone else to say the same things as confirmation.

I'll write/send the letters and carry on in survivor mode!!

cragger89

Would it be worth my while looking for a letter template for this scenario? I want to write in a very patronising tone, but that isn't really the way to deal with it seeing as I AM in debt to them, whether I'm trying to manage it or not.

Monkeyballs

Nah, let SC make the payments and eventually Argos will get bored and just sell the debt on to someone more reasonable DCA's are actually ok to deal with if you're in a DMP especially (or so it seems) with SC managing it as they've got that added 'credibility'

Grin and bear it and all will come good!

MB

cragger89

OK: thanks again.

fermi

You can complain to Argos that they are not treating you sympathetically and with forbearance and they are required to do under FCA riules, and that they are unreasonably increasing your debt while refusing token payments and not suspending interest and charges.

In such a complaint you would highlight that you will be referring the complaint to the FOS and FCA if they do not correct this.

Quick Google brings up a few interesting decisions from the FOS against Argos/Home Retail Group.

e.g. -> http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=21784

In the end though, as said, they can't have what you don't have no matter how awkward they are or what they do.

patman99

I have a payment plan with StepChange and every month without fail I get a letter from Halifax telling me I need to contact them for a review of my payments as I am falling behind and building-up arrears. Every month, this letter goes in the shredder.

12 months on, and the Halifax have yet to start any legal action, so safe to say that as long as they are getting their £1 a month, your creditor will leave you alone.

sourcrates

Argos have a legal obligation to tell you that you are not making the required payments, however, they are just been belligerent in not accepting your token offer of payment, there is no need for them to be acting in the way they are.


The ombudsman's recent decisions look encouraging for the punters, I would simply go through Argos cards complaints procedure, and if your case ends up similar to this, Bingo !!!

cragger89

Thank you for the advice guys.

I may well write some letters seeing how the Financial Ombudsman services to seem to be sympathetic and understanding when presented with the facts.

It is likely I will be able to pay the Argos debt off quite quickly once working again, but I am looking at taking on minimum wage jobs just to not be in the market - I can't deal with the boredom of doing nothing all day long!

Sazzie23

Hi Cragger

Quite common that you get letters about underpayment whilst in DMP. Most times are just automated computer spew, wouldn't be worried by them. You are doing your best to pay and they will just have to wait.

Don't forget the DMP support thread likes company and has lots of helpful advice if you want to join us on their, usually we are on the front page as we post a lot !