Struggling with debt? Ask a debt adviser a question

Lost1611

Hi there

I really hope you can help.

Back in 2010 I was made redundant and was unable to keep up my repayments with my Capital One credit card.we tried to resolve this but they sold the debt to Capquest.I immediately arranged with Capquest to pay £10 a month and have been doing this up until now.ive never missed a payment.

However I had a letter from Capquest the start of this month saying I didn't have an agreed payment plan in place and they wanted the outstanding balance paid which is £1100.i wrote a letter with a budget sheet showing that I am currently spending more than I earn so I said I couldn't afford to pay it off and I'd like to continue to pay £10 a month.

Capquest have now sent a letter saying they are putting my account on hold until 9th november until I explain my circumstances and why I'm able to offer £10 if I'm already spending more than I owe.the simple fact is I have amazing parents who help me out and that's how I am surviving.

I've heard nothing since and am worried I'm going to get debt collectors at my door if they will not accept my offer.

What can Capquest do? Can they take me to court? I'm so worried about this.

Thank you

sourcrates

Lost1611 wrote: »

(1) However I had a letter from Capquest the start of this month saying I didn't have an agreed payment plan in place and they wanted the outstanding balance paid which is £1100.

(2) Capquest have now sent a letter saying they are putting my account on hold until 9th november until I explain my circumstances and why I'm able to offer £10 if I'm already spending more than I owe.

(3) I've heard nothing since and am worried I'm going to get debt collectors at my door if they will not accept my offer.

(4) What can Capquest do? Can they take me to court? I'm so worried about this.

Thank you

Hi,

Stepchange Debt advisors wont be online again till Monday, so i hope you, and they, dont mind if i try to answer your questions.

(1) Cap-quest were incorrect, you did have a payment plan in place, you were paying £10 a month as agreed, in response you should send a written complaint, telling them they were incorrect, and that they should continue accepting your agreed payments.

(2) Your personal budget is nothing to do with anyone else, its sole purpose is to show them what you have available to repay that debt after all your other essential expenses are taken into account, unsecured debt repayments are non essential payments, remind them of this in your complaint.

(3) Debt collectors have no power whatsoever, some DCA`s still use doorstep collectors, i don't think Cap-quest do, its costly and ineffective to send people door to door, so its unlikely to happen, if they ever did turn up, just ignore them or report them to police, they are not bailiffs, and have no more power than you or i do.

(4) If you are already paying what you can afford, then there is no benefit to Cap-quest in taking legal action, a court would not make you pay anymore, they know this, you know this, its often used as a bargaining tool to obtain more money from you, just stand your ground, you tell them how much you can afford to pay, not the other way around.

Good luck.

Lost1611

Thank you so, so much for replying. I will write a complaint letter today and send that off. I was so worried about someone turning up at my door but at least now I know they dont have the power to do that.i really appreciate you taking the time to advise me.

Former_StepChange_Linsi

Good morning,

Thanks for your post and welcome to the forum.

Dealing with debts and collection agencies can be worrisome, but you’re taking all the right steps by letting Capquest know why you’re not able to repay the debt in full and offering an affordable payment instead.

If you don’t feel that you’re being treated fairly then you have the right to complain. This page on the Capquest website explains who to send your complaint to.

As sourcrates mentioned debt collectors are not enforcement agents/bailiffs, so have no rights to force entry into your home and take your belongings. You can find more information about the differences on our website.

There’s also more information about the collections process on our website, which will give you a better understanding about the actions Capquest can take.

Although court action is a possibility, it doesn’t mean Capquest will chase the debt in this way. Even if they did, you’ll receive a claim form first and be given a chance to make a formal offer of repayment.

Should you need further help with this debt or any others you can get free tailored debt advice online using our Debt Remedy tool. Here’s the link.

I hope this helps,

Linsi

Lost1611 wrote: »

Thank you so, so much for replying. I will write a complaint letter today and send that off. I was so worried about someone turning up at my door but at least now I know they dont have the power to do that.i really appreciate you taking the time to advise me.

Overdrafthelp

Hi, I’ve been very stupid & increased my overdraft to more than I get paid monthly and have currently almost maxed it. I’m really panicking I just can’t think how to go about paying it back. Obviously when my wages go in I will still be in my overdraft how do I go about gradually reducing it? Am I best taking some kind of loan to get at least a bit ahead & then pay a bit out of my wages every month? I really can’t believe I’ve been so stupid! My one saving grace is I’m taking on extra work for Christmas starting the end of this money but now all that will just go to paying this back

StepChange_Rachael

Hi

Thanks for getting in contact.

I wouldn’t suggest getting out another debt to cover your overdraft. If you’ve been using more than your income then it’s likely to be a struggle to meet a monthly payment to a loan. There’s also the interest to think about if you took out a loan.

You could speak with the bank and see if they’ll agree to reduce the overdraft slowly. This means each month they’d reduce the limit a bit so you can slowly get out of the overdraft. I’d suggest to budget going forward and stick to it so this is manageable and you don’t find yourself going over the overdraft and incurring charges.

It’s worth bearing in mind by keeping the overdraft and staying with the bank you run the risk of it being taken away by the bank at any time.

You could look at opening up a new account with another bank and banking from this and agreeing with the current bank to pay a little back each month to slowly get out of the overdraft. This means you wouldn’t run the risk of the bank closing your overdraft account and your income being used to cover this.

Another option is to complete a budget and get tailored debt advice using StepChanges online Debt Remedy tool.

Thanks
Rachael

Overdrafthelp wrote: »

Hi, I’ve been very stupid & increased my overdraft to more than I get paid monthly and have currently almost maxed it. I’m really panicking I just can’t think how to go about paying it back. Obviously when my wages go in I will still be in my overdraft how do I go about gradually reducing it? Am I best taking some kind of loan to get at least a bit ahead & then pay a bit out of my wages every month? I really can’t believe I’ve been so stupid! My one saving grace is I’m taking on extra work for Christmas starting the end of this money but now all that will just go to paying this back

Rosie86

Hello
I am new to the forums. I am unsure what to do with my credit card debts. I have £15k of debt over 3 credit cards, £12k of which I accumulated from renovating my house.
Initially when I took the credit cards, I thought I would add them on to my mortgage at the earliest opportunity as they were used to renovate and therefore didn't feel 'bad' for doing this. I had a meeting with Natwest who told me that because my credit cards are at 0% and are so for another 18 months, they cannot offer me debt consolidation as this is against their responsible lending.
I understand this, but my problem is that my repayments on the credit cards amount to £450 which impacts upon my money available and I am going overdrawn every month due to not having enough disposable income to cover food, petrol etc.
I am unsure what to do in the long term. I am not going to clear £15k anytime soon by paying the minimum (or low) repayments but equally not having enough money to see me through each month!
Any advice would be gratefully received.
Many thanks
Rosie

StepChange_Rachael

Hi Rosie

Thanks for your post and welcome to the forum.

I can see why NatWest may have not wanted to secure the debt due to you currently not having to pay interest, however I appreciate if you can’t maintain the minimum payments as well as your household bills and general living costs this decision would seem frustrating and you’d need to consider an alternative solution.

When you’re attempting to meet the minimum payments and this is causing further borrowing or causing you to fall into arrears, then it’s worth looking into the alternative options available to you.

As there are many different ways to deal with problem debt it’s important the advice is based on your finances and debt total.

I’d suggest getting free, impartial debt advice. For this you’d need details of your income, expenditure as well as the debts.

You can use Debt Remedy, StepChange's debt advice tool online to get a good idea of the routes available to you.

Take care
Rachael

Rosie86 wrote: »

Hello
I am new to the forums. I am unsure what to do with my credit card debts. I have £15k of debt over 3 credit cards, £12k of which I accumulated from renovating my house.
Initially when I took the credit cards, I thought I would add them on to my mortgage at the earliest opportunity as they were used to renovate and therefore didn't feel 'bad' for doing this. I had a meeting with Natwest who told me that because my credit cards are at 0% and are so for another 18 months, they cannot offer me debt consolidation as this is against their responsible lending.
I understand this, but my problem is that my repayments on the credit cards amount to £450 which impacts upon my money available and I am going overdrawn every month due to not having enough disposable income to cover food, petrol etc.
I am unsure what to do in the long term. I am not going to clear £15k anytime soon by paying the minimum (or low) repayments but equally not having enough money to see me through each month!
Any advice would be gratefully received.
Many thanks
Rosie

Rosie86

Thanks Rachael.

I'll give this a go and let you know how I get on.

mrsjolie

Hi, I have been in a DMP with Stepchange for many years and still have many years to go. I recently sent a CCA request to the company that holds my largest debt and I have discovered that this debt is unenforceable. It was an MBNA credit card which was taken in the 1990's at a concession stand in a shopping centre and they have written to me saying that they are unable to locate the original agreement. Would Stepchange remove this from my DMP? The balance is over 9k. Not having to pay it would make a considerable difference to the length of time it would take me to pay off my remaining debts.