Advice on CCA now debts have been sold

CardiffGirl88

Hello - you lovely people on this Forum have been helping me with some useful advice since earlier this year with my debt problem (£80k over 6 credit cards).  I stopped paying the cards as I could not afford to do this and pay my rent/living expenses as well, and have subsequently ignored all the calls and letters from the credit card companies.  

Two of my cards (both defaulted) are currently with Westcot/F2 who I know are a collector for the CC companies and so can’t enforce.

Last week, I had two separate letters on the same day from Halifax and MBNA (both cards defaulted) saying they had sold my debt, including in the same envelope a ‘welcome’ letter from Cabot.  I have now started to receive daily calls and voice messages from Cabot, as well as a text message with a link to a letter they claim to have sent me but I have not received yet (though the post).  I have ignored both the calls and text message (assume if I click the link to the letter they will be able to track that?). 

I also received a letter from Virgin this week (card not defaulted yet), saying they had sold this debt to Lowell.  Over the last few days, I’m getting daily calls, text message and emails, and today a letter from Lowell has just arrived asking me to contact them.  

I’ve been looking on the Forum here and I have a couple of questions about what to do next:

Looking on the Forum threads, should I ask for the CCA now for the three credit card debts that have been sold to Cabot and Lowell?  Halifax/MBNA cards were opened many years ago, but Virgin was more recent(ish) so would assume that could be produced?

If I ask for the CCA and they can produce it, does that mean they are likely to go to court more quickly?

Is there a process that Cabot/Lowell have to follow before they instigate court proceedings?  Or could I just receive a Letter Before Action with 30 days notice to go to court? (I am really worried about this). 

I have found a letter on the National Debtline website for a CCA request letter, and know I need to send with a £1 postal order made out to Cabot/Lowell, and send recorded delivery.  Please can I also just check - Cabot have kept the same account number between them and Halifax/MBNA (all good), but Lowell have changed the Virgin reference to a new one, so which one do I use on the letter?

Sorry for so many questions, and I know other people are asking similar questions, I’m just feeling extremely stressed out about it all and desperately want to avoid being taken to court. 

Thank you in advance for your advice. 

sourcrates

Lowell and Cabot are, as you know, multinational debt purchasing companies.

Both will go though there standard range of letters with you, if you continue to ignore them, then the chance of legal action increases, they will attempt to work out why you are ignoring them, if you are a "can`t pay" or a "wont pay".

A commercial decision would be made as to whether legal action would be appropriate, or they may decide to cease collection activity entirely, or any one of half a dozen other ploys, but you cannot predict the outcome.

A "LBA" gives you 30 days to come to an arrangement, not 30 days to go to court, its your chance to make a payment plan with them, if you don`t then after 30 days a claim pack will likely follow.

Court is nothing to worry about, you don`t actually go to court, its all done by post and online, and in the end its just an official rubber stamp on an affordable payment plan, nothing more.

Making CCA requests now is probably a good idea, its your statutory right and has no down side to it, just reference the debt they are asking you to pay, see what they come back to you with, but keep in mind some kind of strategy will be required sooner or later.

fatbelly

I was going to post but wanted to check your earlier thread

https://forums.moneysavingexpert.com/discussion/6502618/urgent-advice-needed-please-large-credit-card-debt/p1

Now I see sourcrates has answered your questions and made the important point about your overall strategy

In the earlier thread I suggested bankruptcy might be needed. What do you think?

CardiffGirl88

Many thanks @fatbelly - I know bankruptcy is still an option, but for me would be a last resort, but do appreciate the advice in this and my previous post.  I think that I’m not in the right space mentally at the moment to consider it.  

@sourcrates - many thanks for your advice also.  Re: CCA - if I e.g. got a LBA letter tomorrow, would that still give me time to apply for the CCA or is it too late to do that once an LBA is received?  Also, should I ask Lowell to default my Virgin account, as I know that if I reach an ‘agreement to pay’ without the account being defaulted, that it would stay on my credit file for 6 years after paying the debt off, rather than come off as a default after 6 years?  Do you know if Lowell have agreed to do that with anyone before?

As always, really appreciate the advice and support from the members on this Forum. 

sourcrates

Lowell usually only buy defaulted debts, and if your debt has not defaulted, it certainly should have by now.

You may want to clarify that accounts status.

As part of the court process you have the option to ask for proof of liability for the debt, there is a box to tick on the LBA form to obtain information, its essentially similar to a CCA request but in a slightly different format, and not under the provision of the consumer credit act.

CardiffGirl88

Hi @sourcrates - I’ve gone into my credit score account today and the Virgin credit card account has been removed and is not showing? Is this because Virgin will have removed it when they sold it, but Lowell will add it back on at some point soon?  All the others are still on there?  Thanks 

Rob5342

That sounds likely, my Virgin one disappeared for a few months when they sold it to Intrum.