Help with £15,000 Debt

joeroddie

In 2009 I graduated and instead of going into the real world, I was naive and started a business. The business was OK to begin with but I didn’t have enough cash, so I started to use credit cards and got a personal loan to pay employees to keep it going. In 2010 I had no choice but to close it down.

I was left with around £20,000 in debt, so I set up £1 agreements to repay all my creditors at the end of of 2010 - and I have been making those payments ever since. The debts are no longer on my credit file.

I am living with parents and in 2017 we moved to a new house. A few weeks ago a collection agency sold my debt to another agency called Robinson Way, who have discovered where I live. All my post is redirected, but this letter was sent to my new address. The total sum they are asking for is £15,000 (bank loan debt).

I can afford to make £200 - £250 per month payments to repay this debt. And I am lucky that my parents have offered me £5,000 to help pay it off. Is it a good idea for me to make a full and final settlement offer to the collection agents? If so, will the £5,000 be enough to be accepted? The letter says that they are going to come to my home if I don’t contact them, I really don’t want this to happen and upset my family.

Key questions I have:

1. How likely is it that they would accept £5,000 to clear the debt? And should this be split into instalments or cleared in one go?

2. If I make £250 payments will show on my credit history and stop me from buying a house?

3. If they accept the £5,000, will it show on my credit file?

4. Can they give me a CCJ?

What is the best way to proceed? I am worried that if I don’t respond they will give me a CCJ and I won’t be able to buy a home next year like I had planned.

sourcrates

Hi,


Making offers to creditors always needs to be backed up with a copy of your budget, to show that what you are offering, is the best deal they can hope to get, otherwise why would they accept it ?


If this debt was from 2010 i would assume all trace of it has gone from your credit file by now ?


If that is the case, nothing you do will bring it back again, unless, they take you to court and obtain judgement against you, in which case the CCJ will show for a further 6 years, so as you are looking to buy a house in the near future, you really want to wrap this one up quickly, and in your favor.


But before you do anything else, send Robinson way a CCA request, see if they have the correct paperwork to collect on this debt, after 8 years it may be a little hard for them to comply.

joeroddie

Thank you for replying. Yes, the debt is completely gone from my credit file. I will look into what a CCA request is. Do you have any links you could share? I've seen people talking about it, but still haven't worked out what it is and how to send off for one!

The loan was with Natwest and they wrote to me to tell me that Robinson Way would be collecting the debt, I'm guessing Natwest would have shared all the loan agreements with them?

sourcrates

joeroddie wrote: »

Thank you for replying. Yes, the debt is completely gone from my credit file. I will look into what a CCA request is. Do you have any links you could share? I've seen people talking about it, but still haven't worked out what it is and how to send off for one!

The loan was with Natwest and they wrote to me to tell me that Robinson Way would be collecting the debt, I'm guessing Natwest would have shared all the loan agreements with them?

Link here :


https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx


Some info there as well, compliant paperwork MUST be produced when asked for, if it can`t be produced for whatever reason, then the debt may be unenforceable in court.


Do your research first.
Good luck, come back if you need further help.

sourcrates

joeroddie wrote: »

I'm guessing Natwest would have shared all the loan agreements with them?

Oh no, not how it works at all my friend.


Debts get sold on without any formal paperwork been exchanged at all, the original creditor is always presumed to hold on to the original credit agreements.


That is why when a debt collector/purchaser contacts you about a debt, it is so important to get them to prove they have the legal right to demand payment for it.


Creditors are only obliged to keep records for 6 years you see.

joeroddie

Sourcrates, thank you for all your help! I am going to send off the CCA request in the morning.