Help! £54K debt, DMP process and defaults.

On_a_mission_

iceandfire1 said:

RAS said:

Good that your both on board and have no shared accounts. 

When the debt defaults, generally wait for a letter telling you if they are keeping the debt in house, assigning it to a DCA or have sold it. Then pay the appropriate piper, you decide how much, on-line using the provided bank detail's  and your account number.

You not not need to wait, but do not raise expectations of the early defaulters by paying them than you will be able to afford when they are all in.

Do your debts include Amex or a credit union?

Hello, may I know the reason why you are asking about Amex and a credit union? Do they have a different process? Asking because I have debt with Amex. Thank you!

I’m also interested in this, realise the comment was from a few months ago. @RAS 

Ripcurl

sourcrates said:

Not unless they are asking for the full amount, are they?

I`m guessing the letter will say something along the lines of "we want to help you get your payments back on track"

Or something similar to that.

It reads this:

Balance outstanding £**** 

'Your account details have been passed to us by HSBC UK Bank PLC to act as a collection agent and we will now be dealing with your account'

So yes, Moorcroft are acting on their behalf and not purchased the debt. So I'll wait until they run out of patience and the default comes through.  

Ripcurl

RAS said:

Some debts are assigned to a debt collector in an attempt to get the debtor to cough up, some are defaulted quickly then assigned or sold on. Just depends. It's not necessarily going to be consistent.

Yes as Sourcrates said some banks don't want the hassle to keep chasing debts and pass it over to a collection agency before defaulting. I'll just have to get use to more persistent attempts to contact me now. 

Would you say the length of time before banks default is generally on the increase?

RAS

On_a_mission_ said:

iceandfire1 said:

RAS said:

Good that your both on board and have no shared accounts. 

When the debt defaults, generally wait for a letter telling you if they are keeping the debt in house, assigning it to a DCA or have sold it. Then pay the appropriate piper, you decide how much, on-line using the provided bank detail's  and your account number.

You not not need to wait, but do not raise expectations of the early defaulters by paying them than you will be able to afford when they are all in.

Do your debts include Amex or a credit union?

Hello, may I know the reason why you are asking about Amex and a credit union? Do they have a different process? Asking because I have debt with Amex. Thank you!

I’m also interested in this, realise the comment was from a few months ago. @RAS 

Based on experience here Amex and some credit unions are less tolerant of underpayment.
 
Credit unions don't report to CRAs, so don't default and are more inclined to go for a CCJ if you don't engage. Better talk to them directly, explain your situation in detail and make an arrangement to which you can adhere. Don't offer what you can't keep up with, better a sensible sum and let them know you'll bung a bit more on when you can.

Amex are also tricky, likely to default quickly and expect a prompt payment arrangement. If you don't engage they may actually go for a CCJ, which is otherwise very rare.

thewad

I went to Stepchange when it was called the CCCS before the defaults......credit record recovered in about 2 years....get it started straight away......decide what you want to pay and adjust the form to suit you.....there are no checks on what you actually earn or what you have saved or there wasn't when I did mine......as long as you make a reasonable offer to pay it off over a reasonable time they will be happy......CCCS/Stepchange where brilliant to talk to and deal with.

Ripcurl

An update my end.

Unfortunately, my Italian based employer stopped paying me from last September and I am in the process of taking them to an Industrial Tribunal. However, they continue to issue payslips but not paying me. I'm owed £30K in wages (before tax) but I suspect they will dissolve the legal entity, within the next few months and I will some money back through the insolvency service. That is capped to 8 weeks at £700 per week, plus any holiday pay. I won't lie but it's been a tough few months and any emergency fund I built up (as advised here) unfortunately was used up months ago trying to keep afloat.

That's aside, I'm starting a new role in next month and I can finally start putting settlement figures forward to each of the debt collection agencies. Does anyone have an idea where in percentage terms to go in with an opening offer with the following:

• Lowell (£11754)
• PRA Group (£22314 - combined)
• Moorcroft (£15998 - combined)

Still awaiting defaults from Shawbrook bank and Barclays some 11 months after I stopped payments.

Many thanks

ManyWays

how long ago were the defaults? how much have you been paying these debt collections companies a month so far?

Ripcurl

These defaults came in around 4-8 months ago. I've not paid anything towards them as I wasn't in a position to with my financial circumstances. But now I'm starting a new job, I can now start paying them off.

ManyWays

This is pretty recent to get large discounts.
And the moorcroft one are probably being collected on behalf of the original lender, who is less likely to accept a low offer.
Who was the original lender for the Lowell? And how does the PRA balance break down?

Ripcurl

An update and some advice please with my ongoing self managed debts. Unfortunately, things have gone sour on the job front. Only into my new role and after 3 months I was let go due to substantial increase in key raw material costs. Actively seeking new employment. Interview Thursday. Industrial Tribunal Date against a previous employer 16th November, much later than anticipated. Owed £30K in unpaid wages. Former employer not engaging in the process. Slight chance of an out of court settlement.

Below are all debts. All defaulted. PRA has recently written to say if they don't hear from me by mid August my 'account will be considered for the next stage, which would be putting you on notice that court proceedings may be brought against you'. I have engaged with PRA during the process explaining my circumstances.

Current Creditor	Original Lender	Balance	Ownership/Status
PRA Group	Lloyds	£10,676.55	Purchased
PRA Group	Halifax	£6,227.54	Purchased
PRA Group	Halifax	£5,227.98	Purchased
Lowell	Virgin Money	£11,075	Purchased
Promontoria Loki DAC	Shawbrook	£15,246	Purchased (no contact received)
Cabot Financial	Barclays	£1,609	Purchased
Moorcroft Debt Recovery	HSBC	£6,198	Collecting for HSBC
Moorcroft Debt Recovery	M&S Bank	£3,143	Collecting for M&S
Moorcroft Debt Recovery	Santander	£5,098	Collecting for Santander

My question is given my current circumstances, would offering a token amount (~£5 a month) be sufficient to buy me more time? How do they treat those out of work? How should I proceed going forward?

Also, I've received zero contact from Promontoria, which seems odd.