DMP, IVA, DCA??? HELP!

bootneckshuffle

Thanks for the advice.

Do you really think they'd dip into the JA which would then mean I couldn't afford to pay other direct debits attached to it like utilities, mortgage, phones, insurance, broadband? Does that not totally defeat the point of a DMP do you think?

The same amount goes into the JA every month, its not used for income or anything like that, we just move the same set amount at the end of each month transferred from our Lloyds business account into our Lloyds JA.

bootneckshuffle

There's another thought, surely they can just start taking money from the business account either? 

bootneckshuffle

My thinking here is (please bear with me):

If the bills money is transferred each month from the business account to the joint account, how could the bank possibly touch any of that as they would surely have to prove that some or all of the transferred funds were actually mine to begin with? If they started taking money willy nilly from the joint account, surely they would have to prove that the funds they were taking, to offset against my debts, were my funds to begin with?

sourcrates

No, standard banking terms and conditions (you know the small print no one ever reads) gives them (within certain parameters) the absolute right to take money that is owed to them from any account held in the debtors name, within the same banking group.

They would take the money first, then argue about it later, which is why I`m trying to impress on you the need to never bank where you have debts, as although rare, this is a possibility.

bootneckshuffle

Thank you, totally get what you're saying.

bootneckshuffle

sourcrates said:

That can work very well yes, let the creditors go through their standard collection activity, then wait until the debts are sold, and take advantage of the fact they will have likely bought your debt for around 12p in the £, so can afford to settle for less than is owed.

Just one word of caution, it does depend on the purchasing company as to when and how much discount, if any, is offered.

PRA for example, will not go much over 10%, were as Lowell and Cabot, have been known to go a lot higher, each debt purchasing company have their own policy on this, but overall its a decent strategy.

Hi Sourcrates,

I've not had all my credit accounts defaulted on me and the first debt to be sold on is the Barclaycard. The debt has been sold onto PRA Group (you mentioned them in a previous post).

What would you think is the best course off action now with the above debt and any further ones I will no doubt receive from others like PRA?

Is it best course of action to let StepChange do a DMP, or do one myself? Do I just pay as little as humanly possible to the likes of PRA and then weigh in with a full and final offer further down the line?

When is the right time to start requesting credit agreements from my creditors and affordability claims?

Any advice is once again greatly appreciated.

sourcrates

Affordability claims should be done now.

CCA requests much later on.

I would prefer self managed, start to deal as each account defaults, or whenever you feel you are ready.

bootneckshuffle

Perfect, thanks.

Is there templates available on any of the threads on the forum for CCA and AFF claims?

sourcrates

Debt camel covers most of your issues -

Debt Camel · Answers to questions about debts and credit ratings - in plain English!