Self managed DMP

fatbelly

RAS said:

 
The car is a secured debt, so he has to keep paying that in the short-term. But he needs to read the contract as often they can be returned once 50% is paid off and it might be cheaper to given it back and get a little run around.


He will get letters, which may reference legal action. Advise him to come here for help.

If this is HP or PCP then it is lending under the Consumer Credit Act and s99 gives you the right to terminate at any time and have liability limited to 50% of the credit figure.  If he's paid 50% then in theory he can hand it back and walk away if he follows the process in this factsheet

https://www.nationaldebtline.org/fact-sheet-library/hire-purchase-debt-ew/

It's a useful get out of jail clause

Dmptogo

Hi UPDATE.

One of the creditors has passed their account on to C&L Collections.
Direct Debit on the back of the letter and asking for a payment.With "Failure to address this issue may result in further action"

What should he do.I have told him to ignore it until the account has gone to default.

Any advice greatly appreciated.

fatbelly

Yes, that's good advice.

But has it been defaulted before being passed to the collector?

What does the credit report say?

Dmptogo

Doesnt say its gone to default and no access yet to his credit report.

sourcrates

Debt collectors do not own the debts they are assigned to collect, so any "further action" just means we will write to you and call you until you get sick of us, in a nutshell.

Only a debts owner can take legal action, and that is very unlikely, but there will be plenty of warning if it were to happen.

Defaults are taking longer due to mis-guided advice from the FCA to companies on how to best deal with customers in debt.

Dmptogo

Update 
Received letter today from Creation stating that if he doesnt pay his arrears off in full,then they will send his account to"Themis Recoveries".

Shall he wait for them to get intouch?

sourcrates

Be aware that "Themis Global" are just 3rd party collectors, the debt may not default whilst assigned to them.

As long as interest has been stopped, you can engage with them, best to clarify first as the delays caused by non default are currently causing confusion within the DMP community. 

If your credit file is of little importance to you then disregard this advice.

Dmptogo

Creation finance have sent a letter today stating if he doesn’t pay his arrears in full then they will issue a default notice in 28 days.So is this a good thing and what happens next?

sourcrates

It is what it is, to comply with the consumer credit act, a default notice must be sent to the debtor.

This will be an official looking document giving the debtor 14 days to remedy the breach to the terms and conditions by paying the arrears, failure to do so will result in the account defaulting, and a default being registered on his credit file.

All perfectly normal and nothing to be bothered by.

Sometime after this deadline has expired, the debt will likely be sold, or are Themis Global still on the scene?

Dmptogo

Not heard from  Themis Global for awhile?