Statutory Legal Audit Plan (Debt solutions)

RAS

And please don't consolidate again and avoid any company offering IVAs.

They do work for a very small number of people, but there's lots of companies who earn money referring people to IVA providers who earn £4-9k managing them. Mean-time the clients live in strict budgets and at least a third fail.

There are several debt charities who advise on the range of services for free, if you need help. This place isn't bad either, and if you are in for a long haul, the diaries section offers a lot of support. This section may be better for setting up.

sourcrates

michaelyallop said:

Has anyone heard of or had any experience with these as a debt solution? 

Thanks in advance. 

Avoid such companies like the plague, they are simply utilising existing legislation that is available to all, yet charging you a hefty ongoing fee for their "trouble".

The links to the template letters have already been posted, for a £1 statutory fee (each) you can request the paperwork from all of your credit agreements, failure to comply would result in the debt becoming unenforceable blah blah blah.

In all honesty this firm is out to scam you, you don`t require any 3rd party help to send out CCA requests.

But it may not be the best time to make such requests anyway, if a debt is fairly recent it will have been agreed online, and digital data is easy to store.

This has the most benefit with older debts, that have probably been sold at least once, and where you physically signed a paper agreement.

You need to fill in an SOA then we can recommend a real debt solution for you that (A) won`t scam you, and (B) not cost you anything.

michaelyallop

Here are my filled in results as accurate as I can think. I may have missed some monthly’s. 

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2500

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2500[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 500

Management charge (leasehold property).. 0

Council tax............................. 102

Electricity............................. 80

Gas..................................... 0

Oil..................................... 0

Water rates............................. 23

Telephone (land line)................... 0

Mobile phone............................ 25

TV Licence.............................. 0

Satellite/Cable TV...................... 25

Internet Services....................... 29

Groceries etc. ......................... 120

Clothing................................ 0

Petrol/diesel........................... 300

Road tax................................ 30

Car Insurance........................... 50

Car maintenance (including MOT)......... 60

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 52

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 35

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 1451[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

MBNA...........................24740.....488.......7

Clydesdale.....................184.......25........0

HSBC OD........................759.......0.........0

Family/Friends loan............500.......450.......0

PayPal CC......................506.......20........23.9

NatWest CC.....................1800......20........0

Virgin Media CC................2467......40........0[b]

Total unsecured debts..........30956.....1043......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,500

Expenses (including HP & secured debts). 1,451

Available for debt repayments........... 1,049

Monthly UNsecured debt repayments....... 1,043[b]

Amount left after debt repayments....... 6[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -30,956[b]

Net Assets.............................. -30,956[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Thanks in advance. 

stu12345_2

something not right, you said you are £55000 in debt, but  your SAO adds up to £30956 and you have £500.loan to family with only £450 left to pay, that don't add up right.

is that £25000 loan to family you mean

you are living frugally, probably  too frugally,except for petrol, why life insurance if you have no children or wife.

you also need an emergency fund, who cuts your hair, do you never buy presents or clothes 

why no contents insurance or TV licence 

your salary is still too low to own so much debt imo.

what did you do with the loans, credit  cards( maybe you bought things that you can now sell)
,do you have any assets you can sell with the £55000 you borrowed 

you have no car repayments, but you state in assets your car has £0 value?

even on an interest stopped debt management plan , you are looking at  5 years to clear it. which is acceptable 

lots of questions , sorry, please answer if you can, to Clear things up

RAS

michaelyallop said:

Here are my filled in results as accurate as I can think. I may have missed some monthly’s. 

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2500

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2500[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 500

Management charge (leasehold property).. 0

Council tax............................. 102 - over 12 months or 10?

Electricity............................. 80 - read your meter and check this is enough

Gas..................................... 0

Oil..................................... 0

Water rates............................. 23

Telephone (land line)................... 0

Mobile phone............................ 25

TV Licence.............................. 0

Satellite/Cable TV...................... 25

Internet Services....................... 29

Groceries etc. ......................... 120 - this is low even if doable. But if you are spending £30pw, it is £130 per month

Clothing................................ 0 - at the very least you need a socks and knickers fund even if you wear what you own and top up from chazzers

Petrol/diesel........................... 300 - this is the biggie, can you reduce travel, lift share, reclaim anything from work?

Road tax................................ 30

Car Insurance........................... 50

Car maintenance (including MOT)......... 60 - your previous comment suggests this may not be adequate

Car parking............................. 0 - never?

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0 - you need this, perhaps a tenner

Life assurance ......................... 52 - you don't need this. Check work and see if you get any death in service benefits. If you are worried about leaving debts, a small term insurance around a tenner would be adequate

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0 -  do you shave, if not you need this

Entertainment........................... 35

Holiday................................. 0

Emergency fund.......................... 0[b] - you'd be better putting most of that life insurance money into a savings account you can access for real emergencies. 

Total monthly expenses.................. 1451[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0 - if you aren't paying finance and are paying repairs, this has value

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

MBNA...........................24740.....488.......7

Clydesdale.....................184.......25........0

HSBC OD........................759.......0.........0 - check this as most are now 40% APR

Family/Friends loan............500.......450.......0

PayPal CC......................506.......20........23.9

NatWest CC.....................1800......20........0

Virgin Media CC................2467......40........0[b]

Total unsecured debts..........30956.....1043......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,500

Expenses (including HP & secured debts). 1,451

Available for debt repayments........... 1,049

Monthly UNsecured debt repayments....... 1,043[b]

Amount left after debt repayments....... 6[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -30,956[b]

Net Assets.............................. -30,956[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Thanks in advance. 

I'm glad you didn't pay that company for CCA letters. Looking at your post 6 and your SOA, I don't think they'd work for you. CCA letters are for debt that has been through the mill of debt collectors and maybe sold on. Typically defaulted by someone who been paying a pittance for a decade, or taken out with companies that no longer exist.

I'd guess any that might have been eligible have been subsumed into the more recent consolidation loan.

You are living frugally but have obviously spent quite a lot on something in the past. You don't need to tell us but you need to understand how this happened. If it was a divorce settlement, that isn't likely to recur soon, if it was expensive travel, then you need to accept this will have to stop for a few years.

It looks as if the SOA is based on estimates? Your finances appear so finely balanced that those odd pounds and pence matter. So get out the last few months statement and work out if it is £28.45 or £32.06 rather than £30? And is the family and friends loan really only £500? 

Your anxiety isn't a bad thing per see. Your finances are getting out of control, not least as those cards and the OD are probably increasing a bit each month. So the warning that you need to do something is timely, but you'd be better putting £5k into clearing your debt.

There are ways of managing this but you need to clarify the amount of debt. If it's £30k and you have some assets, it may be possible keeping your credit record intact. If it's £50k, then it will entail trashing your credit record for a few years. If you've got a large family loan, you may need to self manage rather than use a debt charity. They would insist that all creditors are paid pro rata.

michaelyallop

I think I may have must have been catastrifiying when I initially said 50k. I assumed it was around that at the time of writing. Or at least it seemed that way. 

To answer some of your questions, the cc debt is historic due to a number of factors, divorce, and going back to university to better my career and also, 2 cars later due to various problems that developed on them (I think I have had a run of bad luck with cars recently).

As for assets. Yes, I do own a car that is essential to get 40 miles to work. 

I do feel as though I already live frugally, I don’t go on holiday or buy nice things. 

I will do this SOA again, it was completed at pace using my banking app whilst looking after my niece. 

But thank you guys for your help. Much appreciated so far. 

Floss

Look back over 12 months to get the actual spend on things like groceries - you may only spend £30 a week, but you may fill your freezer every 3 months to subsidise that £30...

stu12345_2

one of the biggest outgoings is this £450 a month to family, does it only have £500 left to pay

if so , you will have a lot more free income left over to work with once it's cleared if you only have one more payment to make

I also assume you never took on any low rate interest student loans, but funding university via credit cards


if you can clarify this family debt,it will be a big help.

yes divorce is tough, I've been divorced myself 

fatbelly

I agree with the other posters. Certainly in your situation the last thing you need is another organisation to pay money to.

You have around 1k per month to pay towards your debts, and around 30k of debt. That points to a debt management plan. I would stop the payments going out and in month one you can clear the overdraft and nearly clear the family loan.

Moving forward you seem ok to stay with the hsbc account as you have no other debt to them. You need an emergency fund.

DisabledDan

michaelyallop said:

Has anyone heard of or had any experience with these as a debt solution? 

Thanks in advance. 

michaelyallop said:

stu12345_2 said:

do you need debt help, care to share your situation?
many thanks 

I’m almost 55k in debt. Various loans and credit cards. I’m switching between 0% cards to try and keep the debt down, and have had a consolidation loan to put all other loans into one. 

But it’s still does not seem to have been manageable. 

I am not exactly poor. I earn a decent wage, but nothing I do seems to be affecting the debt. I have attempted the snowball effect too. 

But then there are life events that happen that cause me to enter further debt.  Ie car troubles!!! 

Maybe, I’m just not giving it enough time?? 

I’m just getting financial anxiety because of it and feel overwhelmed by it all. 

I am sorry to hear you are struggling, we have all been there and often for far larger amounts.

First let's deal with your original post..

Only reference to it online is by one 

FNK Legal Limited

A company incorporated in 2018 with one Director, one Mrs Farah Nazia Khan who owns more than 75%

https://find-and-update.company-information.service.gov.uk/company/11740963/officers

The filings page does not show a First Gazette notice for compulsory strike-off was issued on March 15th 2022                      

This is never a good sign, apparently A first Gazette notice for Compulsory strike off is when an application has been made to forcibly close a company, often due to a failure to comply with its accounting and filing obligations. Compulsory strike off is most commonly initiated by Companies House themselves.

Draw whatever conclusions you like from 

She also is a Director of a company she incorporated in 2014 called FNK LEGAL SERVICES LIMITED

Sometimes people setup different companies for different activities

According to Companies House the nature of business of FNK LEGAL SERVICES LIMITED

• 74909 - Other professional, scientific and technical activities not elsewhere classified                  

Which is unusual for a firm of Solicitors, FNK LEGAL SERVICES LIMITED does not appear to have a website but has advertised for Debt Valuation Advisors.


The SRA shows FNK Legal Limited as Recognised body since 05/04/2019, authorised for all legal services, the FNK LEGAL SERVICES LIMITED  website suggests they offer services in 

Debt (Consumer Law)
Immigration
Litigation
Personal Injury
Residential Conveyancing 

Yet almost all of their website is focused on Debt including fees page.

They do say 

" it’s our mission is to enhance the legal journey for our clients. We achieve this by blending innovation with a deep commitment to providing exceptional service. Our goal is to empower our clients with effective legal solutions while ensuring their peace of mind throughout the process.” emphasise we are a local firm with community values."

It does sound innovative to take a phrase that even Google has not got much on and turn it into a proposed service.

As others have said they don't appear to offer anything that one can't do for oneself without fees.

Consider calling the debt charities like National Debtline or just use this site, the most common solution seems to be a self managed DMP

but the starting point is to turn off the debt tap and to help you do that you need to post an SOA

https://www.stoozing.com/soa.php

Paste your reply here or start a new thread for debt advice