DMP for £60k worth of debt...ready to tackle this!

fatbelly

It is normally the default that takes both sides out of the contractual terms and conditions.

There would be no AP because of the default

Don't overthink this

sourcrates

Yea you`re going off on a tangent here, there are a myriad of possible scenarios, try not to think of every possible one.

Don`t engage until it has defaulted, at that point your question answers itself.

bravo4_5

Hello Community,

Ive had my first DCA try to ring me, they are called Westcot.

I haven’t picked up any calls nor have I got back into contact with them because 

1. I don’t know who they are acting for
2. I haven’t received anything in writing from them and none of my creditors have defaulted me yet.

Should I just keep playing the waiting game until a DCA writes to me? 

Also I am still confused…can a creditor NOT default me, pass my debt onto a DCA to take on this debt and then the DCA acting for this debt can default me? If correct, then it’s until this point in where I set up DMP payments to them?

Thank you 

fatbelly

Yes. Ignore calls/texts.

Important information comes by post

13thlegion

A DCA, debt collection agency, has no power to do anything.

A company may purchase debts and so become the new owner. In which case the original creditor has no power anymore. This makes very little difference to you.

Defaults will come before debt sales.

ManyWays

bravo4_5 said:

enthusiasticsaver said:

Is it worth exploring whether that Novuna loan is unaffordable lending? 

Sourcrates answers your questions but yes that recently taken out consolidation loan is a concern. The rest of your plan sounds good. 

What would I actually get out of going down the unaffordable lending route? Isn't this usually done to get a refund on interest paid, in this case so far its 0.

How would I even word a letter for unaffordable lending and if I was to do this would this be on the basis of fighting my case for if they weren't playing ball with not accepting my reduced payments or threatening with court action?

I am not sure anyone answered this, but I may have missed it in the long thread.

If you win an affordability complaint against a current loan, interest is removed from the balance so you only repay the amount you borrowed. Otherwise you may find the defaulted debt is the amount you borrowed plus all the interest as per the conditions of the loan.

You could consider this against Nouna and Updraf and any credit cards if they increased your limit while you were only making minimum payments.

Making an affordability complaint has nothing to do with whether a lender accepts reduced payments. A lender wont decide not to accept reduced payments because you have made an affordability complaint. They are a good way of speeding up repayments. the DebtCamel website has a template. 

RAS

To reply to your first questions.

Sometimes a creditor asks debt collector to act as their agent.
Sometimes a creditor sell a debt to a debt collector. If they do that they write and tell you, and the new owner introduces themselves in writing.

Letters referring to "our client" mean the debt collector is merely acting as an agent and the original creditor still owns the debt.

bravo4_5

ManyWays said:

bravo4_5 said:

enthusiasticsaver said:

Is it worth exploring whether that Novuna loan is unaffordable lending? 

Sourcrates answers your questions but yes that recently taken out consolidation loan is a concern. The rest of your plan sounds good. 

What would I actually get out of going down the unaffordable lending route? Isn't this usually done to get a refund on interest paid, in this case so far its 0.

How would I even word a letter for unaffordable lending and if I was to do this would this be on the basis of fighting my case for if they weren't playing ball with not accepting my reduced payments or threatening with court action?

I am not sure anyone answered this, but I may have missed it in the long thread.

If you win an affordability complaint against a current loan, interest is removed from the balance so you only repay the amount you borrowed. Otherwise you may find the defaulted debt is the amount you borrowed plus all the interest as per the conditions of the loan.

You could consider this against Nouna and Updraf and any credit cards if they increased your limit while you were only making minimum payments.

Making an affordability complaint has nothing to do with whether a lender accepts reduced payments. A lender wont decide not to accept reduced payments because you have made an affordability complaint. They are a good way of speeding up repayments. the DebtCamel website has a template. 

This is extremely helpful to know. As like you said interest is still racking up while I’m not paying and waiting for defaults. 

Is it worth doing this now before default stage and while the creditors are still chasing me?

bravo4_5

RAS said:

To reply to your first questions.

Sometimes a creditor asks debt collector to act as their agent.
Sometimes a creditor sell a debt to a debt collector. If they do that they write and tell you, and the new owner introduces themselves in writing.

Letters referring to "our client" mean the debt collector is merely acting as an agent and the original creditor still owns the debt.

Perfect, thank you for the response.

I shall wait for the DCA “takeover” letters.

As I’m going down the self managed route, it’s just a case only starting to pay the creditor once it defaults? For example let’s say only one of the creditors defaults tomorrow then I would arrange repayments for them only and whatever I’m not paying still put towards my emergency fund?

Rob5342

Yes that's a good approach. You may also consider paying them less than you can afford and putting the difference in a separate settlement offer fund. Once that gets big enough you could try making settlement offers.