Sold on debt - advice needed please

johnnybrando

Hi, I have been on a debt management plan for a number of years. A relative has offered to help me and and try and clear a couple of my low debt. 2 of my debts are with credit card companies. The first is Barclaycard. I wrote to them asking for a settlement amount, and they responded saying I owe £1881.46. The original debt was only £2000 and I have paid almost £1000 via stepchange. I queried this with Barclaycard and tbh they could not be more helpful. A number of charges had been applied to my account. I was on the phone for almost an hour he went through every charge, some of which were valid others should never have been applied to the account. He has revised the figures, and the amount owed is now just over £1000. They have now asked me to come back to them with a settlement figure for them to consider. The second credit card was with MBNA. The original debt was £1200, however I still owe £1186.63. Now I know this is not correct as I have paid £950 off towards the debt. So I can only assume they have (rightly or wrongly) applied a number of charges to the account. The problem is though, that MBNA sold my debt a couple of years ago to a firm called Britanica who subsequently sold it to a firm called Moorgate. The amount Moorgate expect me to repay is £1858.55p, of which £1186.63 is still outstanding. Again Moorgate have been great, but they cannot investigate the debt at is was sold at the amount above and that is all they know. My question is what do I do? I can speak with MBNA, but if they do a similar thing to Barclaycard and correct the account, how do they affect it? They no longer own the debt, Moorgate are expecting a settlement on the £1186.63 outstanding, and have suggested I offer half, when in reality I owe nearer £250. Any advice would be greatly received.
Thank you in advance
John

Marktheshark

Have you already done the obvious and CCA requested all of them ?

That is a request they produce the CCA agreement, if they can not the debt can not be collected.

tigerfeet2006

Hi,

This would probably be better off over on the Debt Free board

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

johnnybrando

Thanks both. I'll ask for CCA and have posted this on the debt free board. cheeers

chunx

I'm going to jump in a different angle to this as this is just my opinion.
Let's say you have 5 credit cards issuers and your combined debt is £10,000 fictitiously. Your family will help you out with £5,000.

Paying off two smaller credit cards debts leaving 3 other creditors with large debt values could be argued that you have treated 2 favourably and not the other 3. It's about being fair and equitable.

Yes, it means that you haven't possibly cleared any accounts completely by working this way but you have shared the reduction to all creditors.

If you know the amount your relatives are able to help you with, why not write to all 5 collection agencies advising that you have come into a small one off amount of money and you would like to offer them £xxx as a settlement figure and see if they accept or not. You'll need to work out the ratio of debt £ to amount £ and then put the amount you wish to offer in your letter.

Some creditors such are receptive to this, others aren't but this way you will have treated all creditors equally.

Like I say, some may disagree with what I have put, but whatever you decide to do, I wish you all the best and hope it works out for you!

Johnsmith2016

I wouldnt pay a penny until you have the CCA.
Then I would make them an offer based on what you owed and have paid off since via step change, show them your workings out - i would not offer any more than that as a start then just take it from there