Desperately seeking advice! Please!

Grumpelstiltskin

Do not ring your creditor, all they want is to get you to pay as much as possible to them.

Forget the CCJ route the chance of it happening is 0.01%.

Remember after the default you can send a CCA request to see if the debt is enforceable, if it is that is the time to think about possible payment, but you work out what you can afford and set up a standing order, no need to phone them.

collinsona

Thank you Grumpelstiltskin- so after the default occurs if I am self managing a DMP you don’t recommend I ring them to inform them how much I plan to pay them, should I write to them? How will I know the bank details to send the payment to? Im getting myself all confused again! Amy x

Grumpelstiltskin

Under no circumstances phone them.

You should be able to find the bank details online, you don't need to tell them what you are paying them, just make sure it is paid by standing order not direct debit then you are in control.

collinsona

thank you! One last question (for now)! What is a pre action letter? Saw it mentioned on here somewhere. Is that before default? Does the letter say pay us in full now or we will take you to court?! Thats what im scared will happen! Amy 

stu12345_2

after default, you could offer the credit card company a settlement in a discounted full and final offer, if you have a large amount of money up front to give 
best wait until it defaults then sold on though


if it's a payment offer, don't phone, just email your offer, and if you want to satisfy their noseyness, give them an income , expenses and asset sheet to show that's all you've got 
if you show proof to the creditor your income, expenses and assets then they will realise that's all you can afford to pay back, they can't get blood from a stone.
 and they will have to accept it

they would only take someone to court if they refused to acknowledge the debt, and the creditor thought you had assets and lots of spare income to repay it.

but how will they know this, if you never supplied any income and expenses and assets sheet to them 

thus they go after these folk for a ccj in order for the court to force the person, that's if they can find them, to provide an income expenses asset sheet to the court 

collinsona

Thank you! Are debts always sold on or can i offer the payment to the original credit card company? I think once they default i will write a letter with my payment offer and an income and expenditure sheet to prove thats all i can pay- would that be ok? Amy x

Grumpelstiltskin

A letter before action is what the creditor must send you by snail mail if they are thinking of going for a CCJ. As I have said it is unlikely but this is why we always tell you to open any letters you get by snail mail.

Ignore any threats you get by text / E Mail they are all empty threats to try and get you to pay them.

stu12345_2

once debt is defaulted it is usually dealt with by a private debt collection agency, the original creditor wants all communication via them, and they will tell you that if you try contacting the original creditor 

not all debts are sold on, but they are all likely to be dealt with via debt collection agency wether they have been sold on or not.

letters from your original creditor to you would have said , your debt is now being collected, dealt with xxx dca, please deal direct with them now.

and that's just what you do

Floss

@collinsona please don't let your imagination run away. The process is slow & tedious, and will run something like this:

You stop paying debt A, debt B & debt C. Do not contact the creditors.

You receive letters asking / pressuring / scaring you into paying debts A, B & C (will be over several months). Do not contact the creditors. File letters away.

You eventually (months later) receive a Notice of Default for debt A. You will also be asked to pay it all - don't panic, they have to do this bit. Wait until someone writes to you telling you they now own debt A / are collecting on behalf of creditor A. Now you look at your SOA, work out how much you can afford to pay, and begin making payments by standing order (bank details likely to be in / on back of letter).

Sometimes but not always: you receive a Letter Before Action for debt B. Then you need to respond within 30 days, and check in here with the experienced guys who can help.

Debt C behaves as debt A, but takes 6 months. You continue to receive letters asking / pressuring / scaring you into paying debt C. Do not contact the creditors. File letters away, and when you receive the Notice of Default, wait as per debt A.

Regularly check your credit reports (set up the alerts so you know when there are changes) to see when your defaults show.

Make sure you have an emergency fund as s*ds law dictates you will need car tyres / boiler repairs/ new washer shortly after starting your DMP!

collinsona

Thank you Floss- if I respond to the letter before action does that mean the action wont be taken?! You have really helped me to understand, thank you again x