DMP & Mutual Support Thread - Part 11

January2015

sourcrates wrote: »

Full and final offers work best when accounts have been long defaulted, and sold on.
To "encourage" a creditor to sell on a debt, you usually have to stop paying them, there are ways and means of doing things, they will keep accepting your token payments until they become tired of servicing the account, then hopefully get rid of it.

Hi Sourcrates

Will original creditors always sell on rather than take legal action themselves?

As you know we are now self-managing and as we have a nice windfall coming soon we are keen to move to F&Fs as soon as we can. Some of our debts are defaulted but still with original creditors - if we drop payments to £1 per month are they more likely to sell on - or is there the possibility they may take legal action themselves? We want to avoid that.

We want to clear our debts and do whatever we can to minimise the amount we have to pay (legally ) but not at the risk of legal action.

zenshi

How would I know if it's been sold rather than an In House so to speak. Obviously I know H ...haven't but unsure of my others. Is it a case of asking them directly?

sourcrates

January2015 wrote: »

Hi Sourcrates

Will original creditors always sell on rather than take legal action themselves?

As you know we are now self-managing and as we have a nice windfall coming soon we are keen to move to F&Fs as soon as we can. Some of our debts are defaulted but still with original creditors - if we drop payments to £1 per month are they more likely to sell on - or is there the possibility they may take legal action themselves? We want to avoid that.

We want to clear our debts and do whatever we can to minimise the amount we have to pay (legally ) but not at the risk of legal action.

Original creditors almost never take legal action for a normal consumer debt, unless you owe a large amount of money, or it's a mortgage.
Usual senario is it first goes to Inhouse collections, then may be passed around numerous DCA's to attempt collection.

Eventually, if no payment has been agreed, they sell them on to firms such as Cabot and Lowell, who again will spend a year or more trying to get you to pay, then if you don't pay, or you ignore them, then they may get legal on you.

You guys are still at the beginning of your debt journey to be honest, if you stopped paying today, it would be anywhere between one year and four years before any serious mention of court action.

And some accounts get ignored completely, they get bought and it's then decided not worth trying to collect on, this sometimes happens if you have a lot of debt.
There is no rhyme or reason to any of it !!

sourcrates

zenshi wrote: »

How would I know if it's been sold rather than an In House so to speak. Obviously I know H ...haven't but unsure of my others. Is it a case of asking them directly?

You should be informed in writing who owns your account !!

If you are unsure, write and ask.

January2015

sourcrates wrote: »

Original creditors almost never take legal action for a normal consumer debt, unless you owe a large amount of money, or it's a mortgage.
Usual senario is it first goes to Inhouse collections, then may be passed around numerous DCA's to attempt collection.

Eventually, if no payment has been agreed, they sell them on to firms such as Cabot and Lowell, who again will spend a year or more trying to get you to pay, then if you don't pay, or you ignore them, then they may get legal on you.

You guys are still at the beginning of your debt journey to be honest, if you stopped paying today, it would be anywhere between one year and four years before any serious mention of court action.

And some accounts get ignored completely, they get bought and it's then decided not worth trying to collect on, this sometimes happens if you have a lot of debt.
There is no rhyme or reason to any of it !!

Interesting - thanks for coming back to answer. I may have to start playing the game a bit more then

sourcrates

January2015 wrote: »

Interesting - thanks for coming back to answer. I may have to start playing the game a bit more then

I had legal action threatened by DCA's all the time, never ever by an original creditor.
It's not how they work, they just cut there losses and let the hyenas fight it out, some of my debts went round 20 odd DCA's over a period of 4 years or so, none ever went to court, that's not to say a DCA won't do that, but it's usually debt purchasers such as Lowell and Cabot that get legal.
It is indeed a game, and you need to know how to play that game, knowledge is power.

Little_Miss_Sunshine

sourcrates wrote: »

I had legal action threatened by DCA's all the time, never ever by an original creditor.
It's not how they work, they just cut there losses and let the hyenas fight it out, some of my debts went round 20 odd DCA's over a period of 4 years or so, none ever went to court, that's not to say a DCA won't do that, but it's usually debt purchasers such as Lowell and Cabot that get legal.
It is indeed a game, and you need to know how to play that game, knowledge is power.

Thanks for this. Knowledge is indeed power!

Scottishmummy

sourcrates wrote: »

but it's usually debt purchasers such as Lowell and Cabot that get legal.

Hmm. Three of our debts have been bought by scabot.

Sazzie23

Rbs have written to me saying my I&E needs reviewing and I must contact them ASAP....nah don't fancy it this week, it'll wait.

Brogden

Scottishmummy wrote: »

Hmm. Three of our debts have been bought by scabot.

I have had two debts with Scabot. Do not worry.....they are no trouble at all and they settled at 40% (discount 60%.)

Remember the golden rules which I have said so many times......keep in contact (letter or telephone) and pay them 'something' with an agreed payment arrangement in place and that works for any and all of them nowadays and legals will not ensue !!

I am sure January and Sourcrates will think I am a right 'goody two shoes' but I know those two are fearless warriors !!