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Former_StepChange_Patience

Hi there

Thanks for posting and welcome to the forum.

I’m sorry to hear about the overdraft and can imagine how much of a shock this must have been.
It sounds like you’re doing what you can and waiting for an outcome from the Financial Ombudsman Service (FOS).

They’re there to provide you with an impartial outcome, so hopefully as the bank have admitted liability they may rule in your favour and request the bank remove the default.

In the meantime, our website explains a little more about what is required on a default notice when they’re sent: https://moneyaware.co.uk/2011/09/default-notices-what-are-they-and-what-do-they-mean/

If the account had previously been defaulted, the creditor can only issue one of these per debt so while completely understand the difficulty it’s caused for you to get the new mortgage, it should only show on there for 6 years from the date it was issued.

If that was a while ago, hopefully it won’t be on there for much longer for you.

I hope this helps.

Patience

ReadyfortheHills wrote: »

Hi there,
I am in need of urgent help!
Following the breakdown of my marriage my bank failed to freeze a joint current account which enabled my ex to empty the overdraft. This incurred charges etc. The bank have admitted liability for this, however, they will not remove a default they put against the account and therefore both of us! Due to further failures by the bank they did not send me any correspondence about the account, only him, they failed to update their records for both parties as well. Only through a credit check did I become aware of the default notice. Through a formal complaint the bank have admitted fault, but will not remove default as they say I should have known and should have been paying back the overdraft. I dispute this as I was never notified, never given the opportunity to address the overdraft and never made aware of the consequence if I did not (plus the ex said he was paying it) I have not used the account nor have a debit card for it in approx. 5years! The bank continue to say default stays and have gone as far as reactivating this month on the grounds of no payment plan (their dept told me not to set one up until outcome of complaint!!) my credit score dropped 344 points this month due to the reactivation and I have been told I cannot get my new mortgage as a result!


Is there anything legally that obliges them to have informed me before default, that could make it invalid?? I can pay the debt but the default has floored me.
Iam waiting on the Financial Ombudsman getting back to me also


Thank you!

nighthawk2018

Hello Team,

I was unfortunate to be stopped at the airport back in 2016 and my goods were seized by Border Force. After 9 months I received a letter from HMRC with charges of £2.5k (tax and penalty).
I challenged the legality of the seizure but I did not win.

The debt is now due and I've tried to arrange instalments spread over 24 months but I was told they cannot do this and they can only spread it over a year as this is their standard procedure.
This option is not affordable for me. Though hey were not keen on exploring my income in detail.
They advised me to start paying whatever I can so at least the outstanding decreases. Therefore, I've paid just over £200 in the last two months.

I have a stable job but I will be leaving in the coming months back to my country as it's too expensive here and I am over-worked. I am not in debt (apart from the £2.5) however I will need to clean my insignificant savings in order to pay my employer for the study support they provided me with and the cost of move, etc. I cannot use this money to pay the debt off.

Is there a way to write the HMRC debt off since I am leaving UK?
If I was to come back in few years time, would they 're-instate' the debt and make it due again?
I want to make sure I won't have issues, e.g. getting jobs here in the future.

Many thanks for your help on this.

StepChange_Rachael

Hi

Welcome to the forum.

HMRC debt won’t be written off when someone leaves the country. Debt can be collected outside the UK and they could potentially consider this option.

Even if they don’t, they are very likely to start collection again on your return and it could potentially impact any future visa applications you decide to make. I can’t say for certain and I’d imagine each case would be based on individual circumstances, but I’d recommend getting legal advice for a more concrete answer.

There are ways to have debt legally written off through types of insolvency such as bankruptcy, however bankruptcy can impact future visa applications and not all types of debt are written off, there are some exceptions and based on the type of debt I feel this might be one. If you did decide to look into insolvency options, then I’d recommend getting professional debt advice and you’d probably also need to speak with the Insolvency Service or seek legal advice regarding this debt being included and written off in the application.

I hope this is of some help.

Thanks
Rachael

nighthawk2018 wrote: »

Hello Team,

I was unfortunate to be stopped at the airport back in 2016 and my goods were seized by Border Force. After 9 months I received a letter from HMRC with charges of £2.5k (tax and penalty).
I challenged the legality of the seizure but I did not win.

The debt is now due and I've tried to arrange instalments spread over 24 months but I was told they cannot do this and they can only spread it over a year as this is their standard procedure.
This option is not affordable for me. Though hey were not keen on exploring my income in detail.
They advised me to start paying whatever I can so at least the outstanding decreases. Therefore, I've paid just over £200 in the last two months.

I have a stable job but I will be leaving in the coming months back to my country as it's too expensive here and I am over-worked. I am not in debt (apart from the £2.5) however I will need to clean my insignificant savings in order to pay my employer for the study support they provided me with and the cost of move, etc. I cannot use this money to pay the debt off.

Is there a way to write the HMRC debt off since I am leaving UK?
If I was to come back in few years time, would they 're-instate' the debt and make it due again?
I want to make sure I won't have issues, e.g. getting jobs here in the future.

Many thanks for your help on this.

Sponge4444

Hello

I moved house in January and clearly missed all paperwork regarding to a CCJ that was sent to my previous address. (from researching) I have found out I missed the chance to fill in an n56?

Two days ago my employer pulled me in the office
To say they had received a request for earning statement from the court to help them with an application for attachment of earnings order.

I have researched tirelessly but can’t seem to find out if it means I have now missed my chance to request the AoE be suspended because they have now contacted my employers?

I start a new job next month and am mortified at the fact I may have to start there with an AoE in place!!

Thank you in advance for any help

Former_StepChange_Patience

Hi there

Thanks for posting.

Congratulations on the new job, but I’m sorry to hear that there might be an attachment of earnings (AOE) in place when you start.

When the courts send the request for an earning statement, they can do this at any time for further information. If your employer returns this information within the 7 days, the court may look at putting the AOE in place or may consider suspending it, depending on your situation.

There are still things you can do even if the order is put in place, but it would be best to seek impartial debt advice to discuss this further.

Here’s a little more information about AOE: https://www.stepchange.org/debt-info/debt-collection/attachment-of-earnings.aspx

If you would like us to have a look at your circumstances, you can start a budget with us either online or over the phone and see what options we can suggest. There's no obligation to go ahead with anything we recommend and details of how you can contact us can be found here: www.stepchange.org/Contactus

I hope this helps

Patience

Sponge4444 wrote: »

Hello

I moved house in January and clearly missed all paperwork regarding to a CCJ that was sent to my previous address. (from researching) I have found out I missed the chance to fill in an n56?

Two days ago my employer pulled me in the office
To say they had received a request for earning statement from the court to help them with an application for attachment of earnings order.

I have researched tirelessly but can’t seem to find out if it means I have now missed my chance to request the AoE be suspended because they have now contacted my employers?

I start a new job next month and am mortified at the fact I may have to start there with an AoE in place!!

Thank you in advance for any help

Sponge4444

Thank you for your reply.

The letter sent to my employer was dated on 03/05 however they did not respond to this until 14/05; so outside of the 7 day window. What are the implications of this?

How do I go about requesting it to be suspended?

Thank you

StepChange_Allen

Sponge4444 wrote: »

Thank you for your reply.

The letter sent to my employer was dated on 03/05 however they did not respond to this until 14/05; so outside of the 7 day window. What are the implications of this?

How do I go about requesting it to be suspended?

Thank you

Hi there

Thanks for posting.

There are two different angles to this; there's yourself and your employer.

If a debtor doesn't respond to the N56 and the following N61 and N63 forms, an N59 warrant of committal is issued ordering the debtor's arrest and imprisonment for up to 14 days. I'm not sure whereabouts you are in this process.

In regards to your employer, if they don't respond to the request in time, they'll be ordered to attend a hearing and could be fined up to £250. If they don't attend, they will be fined up to £250.

What are the reasons that you'd like the AoE suspending? This may be difficult unless there is good reason, but I can't say for sure. If the amount to be deducted put you into financial difficulty, you can apply to vary (change) the order, but there are no guarantees of success.

As Rachael mentioned, we can look at your situation and see whether we can help further, if you'd like. Please have a look on our website for how to get in touch, if so.

Best wishes

Allen

Dory2k

Hi

I have received a letter from Robinson's way about a debt which from an old credit report says was defaulted in 30/04/09 I've not made any payments to this however I cannot for the life of me remember if I've responded via letter or email Ive tried going back on emails and can't seem to find anything but i have a niggly feeling .. what would happen if I sent them the statued barred letter... If they responded with evidence that I have contacted them could they make me pay the full balance in once or would they then allow me to set up token payments as I couldn't afford to make big payments ... Every thing is such a mess.. the stress is awful .. please can you advise

lottie88

Hi,
I've been struggling with my mental health for the past couple of years and in the midst of all that I began to spend more on non essential things as a way of dealing with my low mood. I am now in £1k in debt in my main account and the only incoming I have is my benefits (ESA, Housing benefit and PIP - which I've been told I'm getting the highest rates of). I know ultimately the main thing I need to do is curb my spending and budget more wisely which I am aiming to do, but I am scared that with my overdraft being set at £1k and my benefits not always being set to go into my account on a specific date each month (sometimes I can get 3 benefits in 1 week, then the last 1 in the 4th week; then next month it might be 2 in the 1st week then 2 in the 3rd week) its just going to be easier to get into that spiral as I'll be gaining interest with the overdraft.
I've thought about moving my incomings into a new bank account, paying my essentials like rent, social care costs, gas/electric etc... from there and then slowly paying some of my incomings into my old account to pay off my overdraft as having a separate account is something some people (friends, social worker, free one off telephone consult with a financial advisor) have advised me might be worth doing, but then I've spoken to my Dad (who's always been pretty good with organising finances) and he thinks that idea wouldn't really get anywhere or help me much, so I'm not sure what to do.
Do you have any advice?

StepChange_Kirsty

Hello,

Thanks for your post.

I would recommend sending the statute barred letter and then if they provide you with evidence that the debt is not statute barred, you’ll know you need to arrange to pay. There is information on our website about statute barred debt and a template letter which you can find here.

In the event they do provide you evidence then you can make an arrangement to pay at a rate you can afford. I can see from another post that you’ve made arrangements with other creditors which is really good so you can do the same with Robinson Way. If you needed help and advice in dealing with this and other debts you have please get in touch with us at StepChange. You can find our contact details here.

I hope this helps.

Kirsty

Dory2k wrote: »

Hi

I have received a letter from Robinson's way about a debt which from an old credit report says was defaulted in 30/04/09 I've not made any payments to this however I cannot for the life of me remember if I've responded via letter or email Ive tried going back on emails and can't seem to find anything but i have a niggly feeling .. what would happen if I sent them the statued barred letter... If they responded with evidence that I have contacted them could they make me pay the full balance in once or would they then allow me to set up token payments as I couldn't afford to make big payments ... Every thing is such a mess.. the stress is awful .. please can you advise