Debt Collector and CCJ

cb85

Hi all, 

I have received an email from a creditor to advise that they have passed the debt to a collection agency.

They don't have my current address, so I assume they will be sending letters to an old address. I don't know if they will email me if there is no response to any letters. 

I am wondering, is there a given length of time that collection agencies will try to contact before getting a CCJ? I of course don't want to end up in that position, but I am hoping I can hang on until after Christmas to contact them and start repayments.

I am also wondering how much say I have in the matter regarding monthly repayment amounts - can I specify what I can afford monthly and they will accept that? Or will I be forced into whatever repayments they want me to make?

Thanks in advance for any information 

retiredbanker1

They will have up to 6 years to find you. A CCJ will kill your credit files for that length of time.
Is there a reason why you do not want them to have your current address?

If you contacted the lender or went to a free debt charity you may be able to come to a payment plan avoiding a CCJ?

They cannot make you pay what you cannot afford.

fatbelly

They could probably find your address if they wanted to. 

They have six years from the date of default to start a court claim.

Is this your only debt?

cb85

I understand that they have 6 years (starting from when the loan was taken out right?) But I'm wondering how long is usual before they decide to go down the CCJ route. Months, years? 

I have basically been avoiding the debt for awhile which is why I haven't given my new address. But I know I now need to face it, which is what I plan to do. I am just wondering if I can avoid it just another month or so, to let Christmas pass before I start repayments. 

This is my only debt, but it's sizeable, about 3k.

Affordability of repayments - how is it determined? Do I need to give proof of wages, rent, bills etc? Or will they just accept what I say is affordable? 

fatbelly

A debt collector could not start a court claim of their own initiative. It would have to be the original creditor or a debt buyer who had legitimately bought the debt.

The six year window starts with the date of default and is restarted each time you acknowledge the debt by payment or in writing.

A ccj is only registered if a claim is not successfully defended AND not paid within a month

Most debts never see court action. They just get sold on for decreasing amounts.

If you are minded to offer payment it is good form to give a statement of affairs showing your surplus income and how this is being distributed across your creditors

If you want help with this, the debt free wannabee board is the place

Brie

Likely the debt collection company will get a copy of your credit history and your current address is almost certainly noted on that.  And then they will start writing. 

If/when this happens I suggest you always reply by post, not by email and not by texting or phoning them.  Don't give them any easy way to harass you.  

I also suggest that you take your time before admitting that you owe anything so that the clock can be ticking on the debt.  You might decide to send a prove it letter (see the debt free wannabee forum stickies).  They might not be able to easily prove anything and that might, if nothing else, buy you more time.

With the time you gain you can organise your finances, talk to the gang on the debt free forum, take to Stepchange, nationaldebtline, Community Money Advice, CAP, CAB - any of the free services that can help you sort this out.

Should you reach the point where you decide you can/will pay the debt then you (or the charity you are working with) can make an offer.  It might be to go for a reduced full and final settlement (maybe 30% or 50% discount) or it might be for a monthly amount (£1 or more).  Whatever you do think it through and ensure it's sustainable.  And if it's a monthly payment ensure that it's you setting up a standing order not them setting up a direct debit.  This means you remain in control.

cb85

Thank you everyone for your comments so far. 

I didn't realise a debt collection agency and a buyer were different things! The email from the original creditor states it "has assigned all of its rights, title, interest and benefits in and to the Loan Agreement to Perch Capital Limited. So I'm assuming Perch have bought the debt and therefore could start a court claim. Please correct me if I'm wrong.

I'll head over to debt free wanabe too, thank you!