Stepchange closed my account due to circumstances. What to do next :(

sourcrates

Carrera74 said:

Hi MovingForwards

The only suggestion was the write off which I hadn't heard of and didn't think possible and when I have looked at it it seems that you need to either have a severe MH condition or be out of work.  Whilst I suffer with anxiety and related conditions, I do work full time.

I also only spoke to StepChange a few days ago so the options that I believed were open to me (token repayment plan or a DMP) aren't available via them any longer hence coming back to ask for advice.

You stand a much better chance of write off`s if the debts have been sold on.

Here are a couple of examples of accounts I have recently been able to negotiate as uncollectable.

The first one is from Cabot -

"Thank you for your recent email.
We can confirm that your account has been reviewed and the decision has been made to deem this account as uncollectable. The balance will be written off and the account closed.
Please be reassured that we will no longer be pursuing you for the outstanding balance and there should be no further communication regarding this account.
We will update the relevant credit reference agencies to show that this account as a “nil” balance and has been partially settled with us".

The second one from Lowell -

"I would like to outline that your former Studio account was purchased with the understanding that the outstanding balance was valid, and the account belonged to you. We were not made aware of any disputes on the account when it was purchased. Nevertheless, taking into consideration the information that has now been provided, rather than investigate this matter further, I have decided to uphold your complaint and close this account. I would like to take this opportunity to apologise with regards to any distress or inconvenience this matter may have caused". 

So, it`s always worth sending a complaint to them, if your circumstances won`t allow any payment to be made, then tell them so, or you may just as well carry on with the token payments, you can do that yourself without any 3rd party help or approval.

Stepchange see token payments as a short-term arrangement, and won`t support you after 12 months, but there is no reason why you can`t carry on making these payments on your own initiative, if the shoe fits etc, and if that is your only option.

Basically, you don`t need stepchanges approval to carry on as you have been doing, you just do it off your own back, also you should send in those complaints, see if you can get a few of these debts written off.

No point winding yourself up about things just because the debt charity withdraws its so-called support, you said yourself your creditors were fine with the agreed terms, so just carry on as you are, and maintain the peace.

Good luck with it.

fatbelly

I agree. Try for write-offs. They won't all agree but if enough agree to bring your debt below 30k then that opens up another possibility

Carrera74

Thank you everyone for your comments. You've really helped clear things in my mind.  I am going to write to each creditor and enclose my budget that I have just completed with Stepchange and advise that my circumstances are not going to change in the foreseeable and highlight my circumstances including that potentially there will be a negative impact on my budget in the new year hence SC advising me as they did.  I am also going to offer the £1 token repayment to hopefully stop the calls, texts and emails

Just one more question please.  Should I be requesting a copy of my CCA before asking them to write my debt off? Or just ask and then go from there? Two of my debts have gone past the 6 year default date and they have ramped up the calls this past week.  I am going to include on my letter to just contact me in writing as the calls have started up again from everyone.  It's on silent but I get a feeling of dread everytime it lights up. The sooner I get the letters and the £1 token payment set up, the better. 

sourcrates

Have you paid anything to the 6 plus year old debts ?

Could they be statute barred ?

Don`t complicate the issue by sending CCA requests, save that one for a rainy day.

Carrera74

I have been paying the token payment to them so expect they aren't statute barred.

Will hold off on the CCAs. Thank you.

fatbelly

Carrera74 said:

Thank you everyone for your comments. You've really helped clear things in my mind.  I am going to write to each creditor and enclose my budget that I have just completed with Stepchange and advise that my circumstances are not going to change in the foreseeable and highlight my circumstances including that potentially there will be a negative impact on my budget in the new year hence SC advising me as they did.  I am also going to offer the £1 token repayment to hopefully stop the calls, texts and emails

Just one more question please.  Should I be requesting a copy of my CCA before asking them to write my debt off? Or just ask and then go from there? Two of my debts have gone past the 6 year default date and they have ramped up the calls this past week.  I am going to include on my letter to just contact me in writing as the calls have started up again from everyone.  It's on silent but I get a feeling of dread everytime it lights up. The sooner I get the letters and the £1 token payment set up, the better. 

I wouldn't offer £1 payment at this point.

Just show them your financial statement and point out the obvious - that you have no way of repaying these debts in a reasonable timescale. Also:

My financial circumstances will get worse with the increasing cost of living

I do not work and my only income is (benefits, whatever)

I have no assets (if true)

I do not own property

(obviously edit to suit)

That means that even if they were minded to take court action (they won't) there is no way of enforcing it. You can't get blood out of a stone.

There's a template letter here

https://nationaldebtline.org/sample-letters/write-off-debt/