What happens when I cant pay?

Iwanttobefree

I received a letter from a new debt collection agency saying they had bought the debt 2 weeks AFTER I sent the previous one the letter saying I couldn't afford to pay them anything.

One creditor I have 3 accounts with, asked for proof of my benefits, so they can set up an affordable repayment plan (this creditor has always been a problem, I suspect it was just half read by someone and a general reply sent out) , haven't had a response about the other two accounts.

Likewise, only a couple of other creditors have got back to me.

I put in my initial letter that it was due to my health and one company replied very sympathetically asking for a GP report and offering to pay for it.

My GP happily did this, stating all my current (and health problems leading up to my current) health problems in detail, and ending with the following statement

I attach a copy of his current medication and due to the complexity of his problem, I believe that he is not able to work for the foreseeable future

I then sent another letter to all my creditor enclosing the GP letter and adding that while nothing would please me more to be able to work and repay the debt, the reality is, I haven't been able to work for a number of years and the pain is getting worse, not better.

I also explained that if in say 3 years time, I did miraculously get well enough to work say 15 hrs a week, that would mean I could resume my original DMP plan and it would take me until two years after I am due to retire to pay it off, and bearing in mind the number of years I've been unable to work, it's very unlikely this would happen.

Note: I said it in a much more polite, thought out way, trying to keep my posts short.

Today I received one response from a creditor saying they have accepted my request and have written off £2416, which is fantastic news.

Hoping my other creditors reply soon.

Thanks for all your help, will keep you all informed.

fatbelly

Iwanttobefree wrote: »

Today I received one response from a creditor saying they have accepted my request and have written off £2416, which is fantastic news..

That's excellent.

I have recently seen a few cases of Lowell doing this where repayment is just not possible.

Iwanttobefree

Argos have refused to write it off, and have suspended the account for 30 days while we come to some arrangement, even though the supplied SOA showed them we couldn't afford a penny.

So far only Argos and Capital One have responded to our latest letter.

Capital one wrote the £2400 debt off, Argos wont budge on £442

And even though we stressed we will only deal in writing, again Argos have asked my wife to phone them urgently on ....

fatbelly

Iwanttobefree wrote: »

Argos have refused to write it off, and have suspended the account for 30 days while we come to some arrangement, even though the supplied SOA showed them we couldn't afford a penny.

So far only Argos and Capital One have responded to our latest letter.

Capital one wrote the £2400 debt off, Argos wont budge on £442

Sometimes the smaller debts cause the most problems.

Well done on the Capital One debt though...

Iwanttobefree

Thanks.

Wrote to our 3 creation accounts enclosing GP letter and explaining we couldn't pay. All sent recorded (hence costing money).

Today received 3 letters from them and Lowell, Creation saying they've been sold to Lowell, Lowell asking for us to phone them to discuss how we are going to repay this balance.

So another 3 letters have now got to be sent to Lowell at a further cost when I'm broke.

And while you would think you could send one letter regarding all accounts, it sadly doesn't work like that

fatbelly

If Lowell have just bought 3 creation accounts, of course you can send one letter to Lowell.

I saw a letter last week from Lowell writing off 4 accounts to one person. That was on medical evidence/unaffordability grounds.

zippygeorgeandben

It is good that the OP keeps in contact, makes you feel that you aren't alone!

Iwanttobefree

fatbelly wrote: »

If Lowell have just bought 3 creation accounts, of course you can send one letter to Lowell.

I saw a letter last week from Lowell writing off 4 accounts to one person. That was on medical evidence/unaffordability grounds.

I sent them 3 letters in 3 envelopes inside one big envelope just in case..

This is because of all the problems I initially had with Creation.

When I started my DMP sending one letter to Creation about all 3 accounts, it was as though someone read the first line and nothing else.

I suspect (pure assumption) that someone picks up a letter there and works on one account, and only that one account, and they don't seem to have things in place for them to then go onto the next one if a letter refers to more than one account number..

Creation have caused 1000 times more hassle than all the rest put together, so I'm glad I'm not dealing with them anymore.

After involving the financial ombudsman (which was a complete waste of time)_ Creation asked me to only refer to one account in any one communication to avoid any confusion.

Hence my comment about needing to send 3 letters to Lowell.

It seems weird they would buy the debts after I have said (and supplied medical evidence) to Creation that I can no longer afford to pay anything. I wonder it the letter you saw was for someone who had had the debt quite a while with them rather than new debts they've just decided to buy?

Anyway, nothing would please me more than for them to be written off. They wont be getting any money as I've none to give them..

sourcrates

Iwanttobefree wrote: »

It seems weird they would buy the debts after I have said (and supplied medical evidence) to Creation that I can no longer afford to pay anything. I wonder it the letter you saw was for someone who had had the debt quite a while with them rather than new debts they've just decided to buy?

Anyway, nothing would please me more than for them to be written off. They wont be getting any money as I've none to give them..

Debts are bought and sold in bulk lots, not individually, so they buy a portfolio of bad debt, some are enforceable, some not, they won’t know until clients start asking for proof, only then, when they go back to the original creditor for evidence do they know which accounts they will make money on, and which ones have been sold as pups.

Iwanttobefree

Vanquis have just emailed me to let me know they've written off my £2,262 debt and are sending me a cheque to for £20 to cover the medical report.

Which helps my stress levels immensely. Hopefully they will reply along similar lines with regards to my wife's account with them (as both were sent identical information with the exception that mine also had the invoice for the medical report they requested).