Advice on defaulting

intheblack_sheep

RAS said:

OK, Moorcroft and PRA will write to OH and ask him to contact them to make payments. Ideally you want them to also provide the bank account details into which he needs to pay and the account reference. 

You'll need to do a proper calculation but roughly 10/45 is about 22%. So he sets up monthly payments equivalent to about 22% of the amount you can afford to pay towards your debts. Probably be wiser to go towards 20% as that ensures you maintain your emergency fund.

The new creditors might get in touch next week, or in several months. Meantime, keep saving that money into your emergency fund.

Yes, Moorcroft and PRA have written to OH with details of how to pay - I just wanted to check whether there was any point asking for them to provide the CCA before making payments (to give a bit more time).

We haven't used any credit since August/September, which feels amazing! However, due to various issues with our car amongst other things, we are almost starting from scratch again at the moment with building up an emergency fund.

RAS

Ah, good. At this stage there is little point in doing a CCA request at this stage. Wait until the debt has been sold on a few times.

intheblack_sheep

RAS said:

Ah, good. At this stage there is little point in doing a CCA request at this stage. Wait until the debt has been sold on a few times.

Thanks RAS, I didn't think there was much point. 

Is it best to start making payments on these now then? 

Any advice regarding the loans and overdrafts?

RAS

yes, set up payments for the defaulted debts now. Otherwise, it's just patience.

intheblack_sheep

I've registered with Moorcroft online now for my OH. Tried to set up a recurring payment, but it won't let me - apparently he has to fill in their request for repayment form thingy, which includes providing them with all his income/expenditure. 
Is there a way of just setting up a repayment with them without giving them all of that? Or would I just have to make manual payments each month?

Grumpelstiltskin

You don't have to give them I & E, if you can't find out how to set up a standing order just pay them monthly.

SPM87

OP, whilst some of this advice on here is useful for you, I am not sure why some insist on paying so much towards defaulted debt, my spidey senses go off in a big way tbh. With PRA you can set up £5 per month no stress and no issues what so ever, my advice would be do that, you pay these people minimum.. they paid minimum for your debts (like 10% of the value) nice system eh? that is assuming they are constantly sending you letters etc and just want them to shut up for a while whilst you get your plan in order. If you are not being chased (and sometimes this is the case) pay nothing and leave it well alone.. sometimes the debt just goes away and in 6 years time from date of default you are clear of the debt anyhow legally. You wont get told that from Stepchange that so kind "charity" 

Stepchange receive their funding from banks... so why would you listen to them? they will have you sending all your spare money to banks / DCAs hence why bank and DCAs love to fund stepchange. 

once a debt is defaulted its real value is 90% gone immediately roughly speaking so this idea of clearing this type of debt as fast as possible is ONLY giving DCAs a ton of profit off the back of your hard work and struggle.

SPM87

Moorcroft don't own the debt, so don't pay them anything, they cant go legal on you and the debt still sits with the original creditor who wont go legal anyhow as it is not their business model. Ignore this until it either gets sold or the noise goes away intheblack_sheep said:

I've registered with Moorcroft online now for my OH. Tried to set up a recurring payment, but it won't let me - apparently he has to fill in their request for repayment form thingy, which includes providing them with all his income/expenditure. 
Is there a way of just setting up a repayment with them without giving them all of that? Or would I just have to make manual payments each month?

sourcrates

Moorcroft and Wescott are simply collection agents that act on behalf of their clients.

Neither company owns the debts they manage, so neither can instigate legal action against you, if you ignore them they just return the accounts to their client.

Why bother with them at all?

intheblack_sheep

sourcrates said:

Moorcroft and Wescott are simply collection agents that act on behalf of their clients.

Neither company owns the debts they manage, so neither can instigate legal action against you, if you ignore them they just return the accounts to their client.

Why bother with them at all?

Yes I realised afterwards that they were agents, and hadn't bought the debts. I won't stress about those lol. 

I did set up a payment plan with PRA for my OH (for Barclaycard debt), and I can't believe how easy it was! I could choose what I wanted to pay, and didn't have to give them any info. It's just like you guys keep saying, they'll be happy to just take your money in the end. 
I'm so grateful that I found this page before entering into a managed DMP!!

@sourcrates, do you have any thoughts regarding the First Direct loans? Are they likely to ever default?

And the overdrafts, they're only £500 each (I say only as that's relatively small compared to our other debts!). My OH is still within the limit as they've not been charging him interest for the last few months - therefore I doubt anything will happen with it? 

Thank you!!