DMP mutual support thread part 13 !!

DebtFreeWannabe27

sourcrates said:

DebtFreeWannabe27 said:

Looking for advice please. My zopa loans have defaulted and been sold to Cabot. They've sent letters to say they've taken on the debt, and I've just received more today saying "we need to talk to you". They've been trying to call me and i've blocked their numbers. Should I be engaging with Cabot to set up a payment plan? Or should I continue to ignore them? I'm wondering if at the very least I should make contact to request correspondence through letter only. TIA

Defaulted and sold to Cabot who are a major player in the debt purchasing game.

Now would be a good time to engage if your strategy is to repay your debts once defaulted.

OK. I had thought that and I want to avoid escalation towards a CCJ. If I contact them to start making payments, can I still expect full and final offers down the line? These debts aren't that old so I don't see how I can submit a CCA or proof of liability request. I would however like to leave the door open for reduced offers of settlement as the total debts are large and would take me such a long time to repay. 

sourcrates

DebtFreeWannabe27 said:

sourcrates said:

DebtFreeWannabe27 said:

Looking for advice please. My zopa loans have defaulted and been sold to Cabot. They've sent letters to say they've taken on the debt, and I've just received more today saying "we need to talk to you". They've been trying to call me and i've blocked their numbers. Should I be engaging with Cabot to set up a payment plan? Or should I continue to ignore them? I'm wondering if at the very least I should make contact to request correspondence through letter only. TIA

Defaulted and sold to Cabot who are a major player in the debt purchasing game.

Now would be a good time to engage if your strategy is to repay your debts once defaulted.

OK. I had thought that and I want to avoid escalation towards a CCJ. If I contact them to start making payments, can I still expect full and final offers down the line? These debts aren't that old so I don't see how I can submit a CCA or proof of liability request. I would however like to leave the door open for reduced offers of settlement as the total debts are large and would take me such a long time to repay. 

The criteria used for making settlement offers differs between companies, but making payments towards the debt should not stop such offers being made, you can always ask them to prove liability, just to make sure they have followed the rules, you would be surprised how many companies flout such legislation, and it won`t be picked up on unless you ask.

If nothing else it keeps Cabot quiet for a few months whilst obtaining the necessary paperwork, copy of credit agreement, copy of default notice, copy of notice of assignment, Just a way of making them aware you are not a walkover and you value your statutory rights.

agentblackcat

sourcrates said:

DebtFreeWannabe27 said:

sourcrates said:

DebtFreeWannabe27 said:

Looking for advice please. My zopa loans have defaulted and been sold to Cabot. They've sent letters to say they've taken on the debt, and I've just received more today saying "we need to talk to you". They've been trying to call me and i've blocked their numbers. Should I be engaging with Cabot to set up a payment plan? Or should I continue to ignore them? I'm wondering if at the very least I should make contact to request correspondence through letter only. TIA

Defaulted and sold to Cabot who are a major player in the debt purchasing game.

Now would be a good time to engage if your strategy is to repay your debts once defaulted.

OK. I had thought that and I want to avoid escalation towards a CCJ. If I contact them to start making payments, can I still expect full and final offers down the line? These debts aren't that old so I don't see how I can submit a CCA or proof of liability request. I would however like to leave the door open for reduced offers of settlement as the total debts are large and would take me such a long time to repay. 

The criteria used for making settlement offers differs between companies, but making payments towards the debt should not stop such offers being made, you can always ask them to prove liability, just to make sure they have followed the rules, you would be surprised how many companies flout such legislation, and it won`t be picked up on unless you ask.

If nothing else it keeps Cabot quiet for a few months whilst obtaining the necessary paperwork, copy of credit agreement, copy of default notice, copy of notice of assignment, Just a way of making them aware you are not a walkover and you value your statutory rights.

Sourcrates, when you send a prove it letter what are we looking to receive back. I know on my post about Cabot you said to send the letter in your signature rather than a CCA request. I have read the other post about this, but just wondered what you would expect back from debt buyer like CABOT? Also do you recommend this approach for any debt that is sold on..regardless if it's relatively new and you do know you own it. Sorry again for all the questions. Thanks

sourcrates

agentblackcat said:

Sourcrates, when you send a prove it letter what are we looking to receive back. I know on my post about Cabot you said to send the letter in your signature rather than a CCA request. I have read the other post about this, but just wondered what you would expect back from debt buyer like CABOT? Also do you recommend this approach for any debt that is sold on..regardless if it's relatively new and you do know you own it. Sorry again for all the questions. Thanks

The sale of debts to third parties is primarily governed by Section 136 of the Law of Property Act 1925 and Section 82A of the Consumer Credit Act 1974 (CCA). Section 136 of the Law of Property Act 1925 requires that the debtor be notified in writing of the assignment of the debt.

Basically debt purchasing companies don`t always provide the legal paperwork to debtors that they should.

Technically without such paperwork they have no legal right to collect the debt from you.

I would never take at face value what these companies tell you, if it were me, I would always ask for a copy of the default notice, a copy of the notice of assignment, and a copy of the credit agreement pertaining to the debt, all of which the debt buyer will not have.

The original creditor should have all of these, but rarely keep copies of everything, the debt buyer must go back to the original creditor to obtain these documents for you.

No matter if you recognise the debt or not, or how old/recent it may be, its more about due diligence and making the debt buyer conform to regulations than anything else, but there is always the chance these documents won`t be available, no credit agreement means you can just walk away, copies of the other documents do not render your account unenforceable per say, but acknowledges a lack of due diligence on the buyers part and should the matter ever proceed to court that may aid your defence.

intheblack_sheep

sourcrates said:

agentblackcat said:

Sourcrates, when you send a prove it letter what are we looking to receive back. I know on my post about Cabot you said to send the letter in your signature rather than a CCA request. I have read the other post about this, but just wondered what you would expect back from debt buyer like CABOT? Also do you recommend this approach for any debt that is sold on..regardless if it's relatively new and you do know you own it. Sorry again for all the questions. Thanks

The sale of debts to third parties is primarily governed by Section 136 of the Law of Property Act 1925 and Section 82A of the Consumer Credit Act 1974 (CCA). Section 136 of the Law of Property Act 1925 requires that the debtor be notified in writing of the assignment of the debt.

Basically debt purchasing companies don`t always provide the legal paperwork to debtors that they should.

Technically without such paperwork they have no legal right to collect the debt from you.

I would never take at face value what these companies tell you, if it were me, I would always ask for a copy of the default notice, a copy of the notice of assignment, and a copy of the credit agreement pertaining to the debt, all of which the debt buyer will not have.

The original creditor should have all of these, but rarely keep copies of everything, the debt buyer must go back to the original creditor to obtain these documents for you.

No matter if you recognise the debt or not, or how old/recent it may be, its more about due diligence and making the debt buyer conform to regulations than anything else, but there is always the chance these documents won`t be available, no credit agreement means you can just walk away, copies of the other documents do not render your account unenforceable per say, but acknowledges a lack of due diligence on the buyers part and should the matter ever proceed to court that may aid your defence.

Sorry, jumping in here! Hi sourcrates 😁 It's a long way down the the road for me, but would it be wise to do a CCA request whenever a new company contacts me to say they're now in charge of my debt?

WilliamMcBeard

sourcrates said:

WilliamMcBeard said:

Hi All,

So, I've taken the step of arranging a DMP with Pay Plan 2 days ago and am a little confused and worried. Could I ask for opinions/advice/experience if that's OK?

So debts are c.£55k and all unsecured. We do have a mortgage with one of the same lenders that a £23k loan debt is with. First up, can they touch my mortgage if my debt is with the same lender? mortgage is 100% up to date.

Secondly, have I done the right thing going with Pay Plan? As they are free to use I had read here that they were sometimes looked on more favourably by lenders.

I was under the impression I had to wait until my creditors had agreed before the plan would start. Is that not right? Reading here it seems I cancel everything with creditors in terms of payment and Pay Plan then make the payments I can afford regardless. 

This seems a risky strategy to me, but I assume is the way it has to be done? Do I not risk being defaulted and eventually taken to court? Can they not demand my money back instantly?

Apologies for the very newbie questions, and thanks to anyone who reads or has time to reply.

Apologies for the late response, this thread doesn't get much footfall.

As long as mortgage payments are up to date, there will be no issues, don`t bank where you have debts though.

You appear to have jumped straight in without much preparation, we don`t normally advise this, as its far too soon, everything should be allowed to default first, this helps in a few ways, first all interest is stopped, second, you have a clear 6 year window till your credit file clears, and third, it allows you time to save an emergency fund.

Anyway what`s done is done, PayPlan are non fee charging, so no issues there, they are no better or worse than any other free provider.

It`s immaterial whether your creditors agree to the plan or not, if they don`t agree, they will either sell your debt or assign it to a debt collector, things that are quite likely to happen anyway, so it doesn't matter what they think.

Legal action by original creditors is rare, they much prefer to use debt collectors instead, due mainly to the massive amounts of defaulted debt out there, if they all went legal, the courts would grind to a halt within hours.

Debts are either sold or assigned to debt collection companies, this is why the debt collection business is so big here.

Thanks for the reply. I thought I was doing the right thing by getting set up but I guess as you say, what's done is done.

I'm worried about what happens when debt collectors get involved. Can they turn up at my home or cause me other issues? How does it work as I thought this would stop debt collection agencies. If they don't agree to my payments what are their powers? I had hoped taking out a DMP would stop all the worry about these things but perhaps I'm wrong and this isn't quite what I thought it was.

Thanks for any advice.

WilliamMcBeard

I realise how the above sounds, I just have spent so much time stressed and anxious about money, I thought doing a DMP straight away would be the best way to stop the cycle.

I am now worrying that it won't actually stop the worry, it'll just mean I get debt collectors enforcing the debt which is what I hoped to avoid in the first instance. Am I worrying about something that isn't likely or is this the route that a DMP takes? As in, I will be answering letters and calls from debt collectors threatening action against me? I thought that Pay Plan took all that away from me?

Sorry for the nonsenes, I'm just very very anxious about it all.

sourcrates

WilliamMcBeard said:

I realise how the above sounds, I just have spent so much time stressed and anxious about money, I thought doing a DMP straight away would be the best way to stop the cycle.

I am now worrying that it won't actually stop the worry, it'll just mean I get debt collectors enforcing the debt which is what I hoped to avoid in the first instance. Am I worrying about something that isn't likely or is this the route that a DMP takes? As in, I will be answering letters and calls from debt collectors threatening action against me? I thought that Pay Plan took all that away from me?

Sorry for the nonsenes, I'm just very very anxious about it all.

OK, deep breath........having debts passed to debt collectors is very normal, it happens all the time, they have zero power to do anything, if your in a DMP all your worries are over anyway, if a debt gets sold or assigned, you will be written too, you simply pass that letter to Payplan, and they deal with it, they just direct payments to them instead, don`t panic, its only money, and it doesn't really matter that much in the long run, your health and essential payments are what matters..

WilliamMcBeard

Thank you SourCrates. I really appreciate you taking the time to help me. I guess I jumped into this before reading the preparing threads. I think, if I've read correctly, that the biggest issue is that I'll have negative effects on my credit file for longer? I'm OK with that as I NEVER want credit again. Just out of interest, can I ask PayPlan to ask for a default or not?

sourcrates

As long as what you are doing works for you, that`s all that matter`s.

Defaults are issued by the lender, usually when you have missed between 3/6 contractual repayments, its not something PayPlan can help you with, its down to the individual lender.

As long as interest has all been stopped then no problem, if it hasn't you might want to complain to whoever is still charging you interest, aside form that your all good.