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heavenlyharry01

Hello
I wondered if I could call by for some advice.

The short story is my husband and I were trying to remortgage but with all our defaults and terrible credit, it’s a no go.

We have a Northern Rock together mortgage and are in a self managed Debt Management Plan.

My question relates to the unsuccured loan side the NRAM together mortgage. I have an arrangement to pay with NRAM, with the interest frozen and no fees being added, and they are marking the account as arrears. I’ve written a number of times asking if they will default and they have said it’s not their policy, and clearly because lm making payments towards the debt, although less than the contractual payments.

I’ve managed to get all the other credit accounts we have defaulted by not making any payments or very minimal payments and are now making small payments towards them. We had 11 creditors when I started our DMP and we are down to 5 having made partial settlements on the others.

I really would like this NRAM account defaulted as this would help us to remortgage in the future as this is what is holding us back.

I’ve been scared to stop paying it due to the large balance (over £25,000) and it’s links to the mortgage. (Although we’ve never missed a mortgage payment)
Should I stop paying, write again and ask for a default to be applied (again) or start the contractual payments in an attempt to improve our credit.
Many thanks in this somewhat unusual question.

DoomDebt

Hi,
I really need some help. I live with my partner in a house we bought together 11 years ago. I manage all the household finances as well as my own bank account, and it's all in rude health. However, last night I found out my partner has been taking out tons of loans from banks and what I presume are pay-day lenders. She had no reason to do so, but she has and now we have outstanding loans totalling around £20k. I'm in absolute shock, and after several hours research I still haven't got a full handle on the problem. The loans are from the following companies (about half still active, and half completed):

• Peachy (x2)
• Santander
• My Jar (x2)
• Uncle Buck (x2)
• Hitachi
• Ratesetter
• Wonga
• Savvy
• Sunny
• Wage Day Advance

My initial thoughts were to kill the high-APR pay-day loans first obviously. The Santander loan has an outstanding balance of £16k so I can't pay off that.

My second thoughts were to claim. Claim misselling of every loan, and claim PPI on every loan. Is this realistic? I haven't got enough information to hand yet to make informed decisions, but I know that some of these must have been unaffordable or barely-affordable at the time they were issued. Do I need to submit a PPI for each individual loan, and a misselling claim separately on each individual loan? Or should I not do this?

I haven't looked at her current account balance or fees on that yet

Any advice would be gratefully received!

Thanks,
DoomDebt

SK55607

I have posted this in the main forum but saw this thread and have posted here as well. In the U.K. a personal guarantee expires 5 years from becoming enforceable. Do you know what the time limit is in Spain if there is one ? (In this case it was personal guarantees to Spanish banks to obtain loans for a business in Spain.)

Many thanks

Soomuchdebt

StepChange_Allen wrote: »

Hi there

Thanks for posting.

In short, if your credit agreement specifies a minimum payment percentage, then this is what needs to be paid (as a minimum) each month to maintain the agreement. You can contact the companies to see if there's anything they can do to temporarily reduce them if it's a short term problem. However, if there's no expected improvement soon after, there's little point in them doing this as you'd still end up breaking the agreements.

I'd always advise caution when considering taking out further credit to pay other credit off, as it often increases the debt and often doesn't solve the problem. I speak to people every day that have borrowed more money to pay off other debt and it's just made things worse. Often this is because the interest rates can be higher if you're struggling with debt.

If you're keen on this idea, there's information on 'cheap loans' on the main MSE site, so you could have a look there.

Breaking your credit agreements certainly could make it more difficult to get a private tenancy, but it doesn't necessarily make it impossible. It depends what checks each landlord/estate agent do.

If you'd like some advice on sorting out your debts, please get in touch with us as we provide free debt advice and help. Details can be found here: www.stepchange.org/Contactus

I hope this is helpful.

Allen

Thanks for replying!

Yes, more debt to pay off previous debt was part of what got me into this problem.

Although just day to day living costs were part of it too.

I feel like I've hit rock bottom as I can't get any more credit, so now its about earning more and spending less, instead of borrowing more. So that's a positive I guess.

But I'm worried the increase in minimum payments are going to make me default.

The current estate agent for the place I'm in now used tenantref. Not sure what they looked for? Anyone know? Thanks!

Also, would I be considered self-employed by StepChange, if I have a LTD company and am the director and get a salary and dividends from the LTD company?

Former_StepChange_Joe

[FONT=&quot]Hello[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Thanks for your message. Sorry to hear this situation is worrying you, I appreciate that being in arrears is stressful. You’ve done the right thing by getting in touch and I’ll do everything I can to help.[/FONT]

[FONT=&quot]Unfortunately, the original lender and Arrow Global are within their rights to issue a default notice against you. By your own admission, the loan itself was unaffordable and as a result you fell into arrears. After 3 – 6 months of missed or reduced payments, a creditor can and will issue you with a default notice. This is a letter that explains you’ve broken your credit agreement. It allows the creditor to take further action (such as passing the debt onto a collection company like Arrow Global), and stays on your credit file for 6 years. This can impact your ability to take out further credit, such as a mortgage.
[/FONT]
[FONT=&quot]However, if you feel like the initial arrears have now grown as a result of bad communication from Arrow Global, you can of course follow their internal complaints procedure (see the heading ‘making a complaint on their website http://www.arrowglobal.net/contactus/default.aspx )[/FONT]

[FONT=&quot]If you’re not happy with their response to the complaint, or they don’t resolve it in 8 weeks, you can escalate the complaint to the Financial Ombudsman Service (FOS).[/FONT]

• [FONT=&quot]Phone - 0300 123 9123 or 0800 023 4567 (Monday to Friday 8am to 8pm or Saturday 8am to 1pm)[/FONT]
• [FONT=&quot]Email – [EMAIL="complaint.info@financial-ombudsman.org.uk"]complaint.info@financial-ombudsman.org.uk[/EMAIL] [/FONT]

[FONT=&quot]The FOS are an impartial service so there’s no guarantee they’d resolve the complaint in your favour, and they may find that Arrow Global have acted fairly. However, if they resolve it in your favour, they can order Arrow Global to reverse any unfair decisions and put them right.[/FONT]

[FONT=&quot]If you need more advice and support, please don’t hesitate to get in touch with us and build a budget. A good place to start is our online Debt Remedy tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.[/FONT]

[FONT=&quot]I hope you've found this helpful, please don't hesitate to get in touch if you have any further questions.[/FONT]

[FONT=&quot]Thanks[/FONT]


[FONT=&quot]Joe[/FONT]



[FONT=&quot]

OMS7892 wrote: »

Hello.

[/FONT]

OMS7892 wrote: »

[FONT=&quot]I took out a professional studies loan and could not afford the repayments at almost £300 a month. Stupidly I buried my head in the sand for 4 months before I tried to make contact to lower my repayments and get back on track. I spoke with an advisor on the phone, set up a plan but lost the account details. I called and emailed over the next few months to ask for account details to begin making payments. On the phone they could never find my account and I received no response to my emails/[/FONT]
[FONT=&quot]After much chasing, I finally found out they sold all professional studies loans to Arrow Global. I contacted them to ask to set up a payment plan and they said it was fine but they have to make me aware that they 'may' issue a default notice. I had to keep pressing them and it turns out they issued one last week but I have yet to be provided with a copy. I gave them my new address and when I spoke with my original loan provider, I asked for all correspondence to be via email, to which he agreed.[/FONT]
[FONT=&quot]I've been emailing Arrow Global every day since I was told a Default Notice has been issued but have not yet received a copy. I don't think I should be issued with the default because i've been trying to pay but noone could tell me where my loan was or how to pay it. Therefore it's now almost £4000 in arrears which I can't afford to pay in one go. I am arguing that I wouldn't be so far into arrears in terms of the sum or the time if they had adequately corresponded with me.[/FONT]
[FONT=&quot]Am I correct? I will be looking to secure a mortgage in the next two years so I really need to avoid this if possible.[/FONT]
[FONT=&quot]It's keeping me up at night worrying. Thanks in advance.[/FONT]

Former_StepChange_Joe

[FONT=&quot]Hello[/FONT]

[FONT=&quot]Thanks for your message. Please be assured I’ll do everything I can to advise you.[/FONT]

[FONT=&quot]First of all, I strongly encourage you to review the terms and conditions of your NRAM loan. If it is indeed unsecured, then stopping the payments won’t impact your mortgage. For obvious reasons, however, you need to be sure that it isn’t secured.[/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]Secondly, even if you’re eventually able to safely default on the NRAM loan, I’m struggling to see how doing sound would improve your chances of remortgaging. Perhaps I’m misunderstanding you, but at best an additional default wouldn’t make remortgaging any more difficult, and at worst it would make remortgaging harder alongside your previous defaults.[/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]In either case, it’s clear from what you’ve said that the debts as a whole are unaffordable at the moment. We can provide you with some free, impartial debt advice to help you manage your debts. [/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]A debt solution won’t improve your credit score right away: while it’s not impossible to successfully remortage with a poor credit score, going ahead with debt advice may mean postponing your remortgaging plans for now. However, you’ll be in a better position to start rebuilding your credit score and applying for a remortgage once you’re debt free.
[/FONT]
[FONT=&quot]A good place to start is our online Debt Remedy self-help tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]We look forward to hearing from you soon.[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Joe
[/FONT][FONT=&quot]
[/FONT]

heavenlyharry01 wrote: »

[FONT=&quot]I wondered if I could call by for some advice.[/FONT]
[FONT=&quot]The short story is my husband and I were trying to remortgage but with all our defaults and terrible credit, it’s a no go.[/FONT]
[FONT=&quot]We have a Northern Rock together mortgage and are in a self managed Debt Management Plan.[/FONT]
[FONT=&quot]My question relates to the unsuccured loan side the NRAM together mortgage. I have an arrangement to pay with NRAM, with the interest frozen and no fees being added, and they are marking the account as arrears. I’ve written a number of times asking if they will default and they have said it’s not their policy, and clearly because lm making payments towards the debt, although less than the contractual payments.[/FONT]
[FONT=&quot]I’ve managed to get all the other credit accounts we have defaulted by not making any payments or very minimal payments and are now making small payments towards them. We had 11 creditors when I started our DMP and we are down to 5 having made partial settlements on the others.[/FONT]
[FONT=&quot]I really would like this NRAM account defaulted as this would help us to remortgage in the future as this is what is holding us back.[/FONT]
[FONT=&quot]I’ve been scared to stop paying it due to the large balance (over £25,000) and it’s links to the mortgage. (Although we’ve never missed a mortgage payment)[/FONT]
[FONT=&quot]Should I stop paying, write again and ask for a default to be applied (again) or start the contractual payments in an attempt to improve our credit.[/FONT]
[FONT=&quot]Many thanks in this somewhat unusual question.[/FONT]

Former_StepChange_Joe

[FONT=&quot]Hello[/FONT]

[FONT=&quot]Thanks for posting and welcome to the forum. I appreciate this must have come as a total shock to you. Don’t panic: you’ve done the right thing by getting in touch, and I’ll do everything I can to help you.[/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]If you feel this is a case of irresponsible lending, your partner will need to follow their internal complaints procedures. The Money Saving Expert website have partnered with Resolver.co.uk to streamline the complaints procedure: you can find out more on their website. It’s worth bearing in mind that paying towards a debt while disputing it can harm your claim.[/FONT]

[FONT=&quot]In terms of mis-sold PPI, there’s some really useful information about looking into this on the StepChange MoneyAware blog: https://moneyaware.co.uk/2017/03/reclaim-ppi-for-free/ [/FONT]

[FONT=&quot]In any case, StepChange can provide your partner with free, impartial debt advice, and help her find the best way to tackle these debts. A good place to start is our free online Debt Remedy self-help tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.[/FONT]

[FONT=&quot]We look forward to hearing from you soon.[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Joe [/FONT]

DoomDebt wrote: »

[FONT=&quot]I really need some help. I live with my partner in a house we bought together 11 years ago. I manage all the household finances as well as my own bank account, and it's all in rude health. However, last night I found out my partner has been taking out tons of loans from banks and what I presume are pay-day lenders. She had no reason to do so, but she has and now we have outstanding loans totalling around £20k. I'm in absolute shock, and after several hours research I still haven't got a full handle on the problem. The loans are from the following companies (about half still active, and half completed):[/FONT]
[FONT=&quot] Peachy (x2)[/FONT]
[FONT=&quot] Santander[/FONT]
[FONT=&quot] My Jar (x2)[/FONT]
[FONT=&quot] Uncle Buck (x2)[/FONT]
[FONT=&quot] Hitachi[/FONT]
[FONT=&quot] Ratesetter[/FONT]
[FONT=&quot] Wonga[/FONT]
[FONT=&quot] Savvy[/FONT]
[FONT=&quot] Sunny[/FONT]
[FONT=&quot] Wage Day Advance[/FONT]
[FONT=&quot]My initial thoughts were to kill the high-APR pay-day loans first obviously. The Santander loan has an outstanding balance of £16k so I can't pay off that.[/FONT]
[FONT=&quot]My second thoughts were to claim. Claim misselling of every loan, and claim PPI on every loan. Is this realistic? I haven't got enough information to hand yet to make informed decisions, but I know that some of these must have been unaffordable or barely-affordable at the time they were issued. Do I need to submit a PPI for each individual loan, and a misselling claim separately on each individual loan? Or should I not do this?[/FONT]
[FONT=&quot]I haven't looked at her current account balance or fees on that yet[/FONT]
[FONT=&quot]Any advice would be gratefully received![/FONT]
[FONT=&quot]Thanks,[/FONT]
[FONT=&quot]DoomDebt[/FONT]

DoomDebt

Hi StepChange_Joe,

For info, the final figure of debt is £26k.... I've got a plan to tackle this, but obviously this is going to cost a lot of money over a long time. I was hoping to reclaim some money from these debts to help pay it back. You mentioned in your previous reply "It’s worth bearing in mind that paying towards a debt while disputing it can harm your claim." Can you explain how so? As I was hoping to reduce the settlement figures for two loans as a result of a complaint so that I could then afford to settle them. I might need to revisit that.

Regarding complaining about mis-selling of loans and reclaiming any PPI... well I've just about got to the bottom of the problem now, and there were 75 payments from 15 different companies. This is quite a lot to get my head around, and I don't have the resources to be able to look into every agreement in detail to try and figure out what is going on. Could you please advise on:
1. What constitute as mis-selling so that I can claim that. My partner clearly hasn't been able to afford some of the loan she's been given, but the information she supplied regarding incoming and expenditure may have been wrong.
2. If I'm to claim mis-selling on multiple loans by one company, can I just whack a list of loan reference numbers on one complaint, or would they need to be filed separately.
3. Can I complain about mis-selling of a loan AND reclaim possible PPI in the same complaint, or should I do one MIS-SELL and one PPI per company?

Regarding PPI - I think all of the loans here were obtained after 2012, does this mean they are not likely to have any PPI on them at all?

Sorry for all the questions, I'm just trying to get my head around the logistics of it!

Thanks so much for you help so far :beer:
Thanks,
DoomDebt

StepChange_Kirsty

Hello,

Thanks for your post.

I’m sorry but we’re unable to advise you on debts outside of the UK. We would recommend seeking independent legal advice from a specialist in Spain.

Apologies we have not been able to help you further.

Kirsty

SK55607 wrote: »

I have posted this in the main forum but saw this thread and have posted here as well. In the U.K. a personal guarantee expires 5 years from becoming enforceable. Do you know what the time limit is in Spain if there is one ? (In this case it was personal guarantees to Spanish banks to obtain loans for a business in Spain.)

Many thanks

SK55607

O.K. thank's for the advice Kirsty and I am going to find someone in Spain. Regards