The order things happen????????????

spurs501_2

Okay, so you're struggling to make the minimum credit card payments, so you start sending a "nominal" amount. Letters arrive saying you are in arrears etc etc. They issue a default notice and / or a debt collection agency contacts you etc etc.

But my question is this "what happens next....."

Will they seek court action?
Will they try to force bankruptcy?

If you show a willingness to pay something will a court be more sympathetic?

I would be interested to hear real experiences of what has happened to people.

mrsspendalot

I went into default about 5.5 years ago and then came to a payment arrangement with my creditors. Once a satisfactory payment arrangement was made, there were no threats of court or bankruptcy. I am nearly out of my default period but am still paying off those debts. I have had no trouble since. Hope that helps.

spurs501_2

mrsspendalot wrote: »

I went into default about 5.5 years ago and then came to a payment arrangement with my creditors. Once a satisfactory payment arrangement was made, there were no threats of court or bankruptcy. I am nearly out of my default period but am still paying off those debts. I have had no trouble since. Hope that helps.

Hi.

Yes, that does help thanks.

One more question if I may, once they have made payment arrangements with you, do those payments stay at a fixed amount? i.e If you arranged to pay say £50 per month 5 years ago are you still paying that amount now? Also do they add interest to your account or is that written off?

Sorry if I'm asking too much!!

mrsspendalot

spurs501 wrote: »

Hi.

Yes, that does help thanks.

One more question if I may, once they have made payment arrangements with you, do those payments stay at a fixed amount? i.e If you arranged to pay say £50 per month 5 years ago are you still paying that amount now? Also do they add interest to your account or is that written off?

Sorry if I'm asking too much!!

All I can comment on is my own case obviously, but my payments have remained the same ever since. No one has contacted me back asking for them to increase or asking for a revised SoA in case I have had a change of circumstances. They are quite happy to let me pay them off at so much a month. I am, luckily, almost in a position to start paying more off my old debts as I have now cleared the ones from more recent times. At the point of default all interest was stopped so I have not paid an extra penny since.

spurs501_2

Thanks again!

Would be interested to hear other peoples experiences too.

Thanks.

fc123

Hi, we were struggling to keep up with card debt of £56k
(my husband was shafted on last month of a contract...used them to pay staff as only for 3 wks...then co. liquidated whilst he sued them..and he won but too late......had to say why as I didn't spend it on shoes...I wish!)

That was in 2004.

We muddled along paying on time but interest was £1000 per month.

Then our circumstances changed and it got v.tight (hubby ill had op)...then the penalties hit and increased the debt.

Jan 2005; got a 0% from Egg for 9 mnths...moved Abbey balance to it (intending to shift them all onto 0% in a carousel.) Abbey reduced the limit to £800 so coun't.

Mastercard; 'phoned to explain hubbys op etc...v.nice lady said "send in incoming / outgoing list..didn't ask for doctors note though i offered one.
Agreed 0% IS reviewed Every 6 months, pay £100 pm but can pay more if able.

Mastercard; hubby 'phoned to do his and they said NO! wrote twice, 'phoned and begged..sent SOA and they agreed 0% as above.

MBNA; nightmare...took several phone calls and they would only offer a secured loan deal....i wrote saying that i felt a secured loan on a £10k debt was not neccessary plus we were unable to keep up..a secured loan seemd like bad avice...they then agreed and he has 0% for life of card if repayments are made on time.

Barclaycard; no deal despite letters SOA sent twice and going 3 mnths behind..got up to date this year but interest was INCREASED...'phoned today and looks like I am going to get a low or 0 rate next week...i have to miss this months payment but the "nice man" said they would be sympathetic as i hinted that i had been advised to do an IVA.

My son (when 18!!) worked all summer doing debt collection for a card company...he was given quite a lot of authority over whether to pass someone through to a superior or not...or whether to push for an instant debit card paymnt over the ' phone (he had daily targets)........all the staff there followed a script but were more helpful to callers that were polite, explained the change in circumstances, acknowledeged the debt and said they really wanted to pay it off...he also had the authority to refund late payment charges...always did if someone paid the arrears.

Don't be scared of the person on the end of the 'phone...it is usually someone just trying to earn their £6 per hour......if you call at end of day they may have made their daily target....i know this happened to us...am calls got no joy, 4pm calls did??

Hopw this is helpful

fc123

Sorry..another thing......if you co-operate and offer an ammount you can afford (after interest has been frozen or substantially reduced) they won't take you to court...they don't want to do CCJ's as it costs them...you also don't want them to sell your card debt on to a debt collection agency as they will load up the debt with charges.

What you are doing is your own DMP...it can be done but you get to listen to a lot of tinkly music on 'phones.......

spurs501_2

Hi Everyone.

Just to let you all know what has beenn happening!!

Basically most of my creditors have accepted my proposals of reduced payments and frozen the interest. :T

MBNA have not agreed yet (two cards with them :rolleyes:) but have written again today being a bit more forceful and saying I can only pay money I have)

Now for American Express :eek::eek::eek: They are being a real nightmare :eek::eek::eek: and have passed my account to AIC (Allied) in Glasgow who are the nastiest, most aggressive bunch of bullies you will ever speak to!! The guy phoned me saying "sell your car" "Get the money from your family" and the best line yet "contact the council about alternative housing as we are going to be repossing your home"!!!!!!!!!!!!!!!!!!!

Would be really greatful if anyone could share any experiences they have had if they've been / are in similar circumstances!!

In_Search_Of_Me

aww huge hug fr you. Have you rings CCCS or one of the other free debt coun agencies? They may be able to offer advice even if you do your own DMP..

chevalier

spurs501 wrote: »

Now for American Express :eek::eek::eek: They are being a real nightmare :eek::eek::eek: and have passed my account to AIC (Allied) in Glasgow who are the nastiest, most aggressive bunch of bullies you will ever speak to!! The guy phoned me saying "sell your car" "Get the money from your family" and the best line yet "contact the council about alternative housing as we are going to be repossing your home"!!!!!!!!!!!!!!!!!!!

Would be really greatful if anyone could share any experiences they have had if they've been / are in similar circumstances!!

Next time they phone, ask them to wait a second whilst you switch the tape recorder on (you don't have to have one of course), you will be amazed how polite they are when they think that their words can come back to haunt them.

However I would also complain in writing to the chief executive, also put in writing that you only want to be contacted via mail, not the phone.

chev

spurs501_2

Has anyone else had a BAD experience with American Express?