£57k debt - Stepchange or self?

LoneFrog

Hello All, Apologies, I have been away for a while! I basically stopped all my direct debits and ignored calls and post. I have had a few payments default now and had my first loans passed on to ACI from Updraft. I don't really know the next steps here. I would think I would look at doing an unaffordability claim with updraft, but in the meantime do I just set up a direct debit for a low amount? Or do I need to speak to them on the phone?

On the above we have done a joint SOA which I can share shortly! 

fatbelly

If you are going to do an affordability complaint, I would not start payment until the results are in

Grumpelstiltskin

Never speak to these people on the phone, if you do need to communicate with them do it in writing.

LoneFrog

fatbelly said:

If you are going to do an affordability complaint, I would not start payment until the results are in

So do I need to hurry up and do those? Would I now be against the clock to do them before ACI threaten any court action?

sourcrates

LoneFrog said:

fatbelly said:

If you are going to do an affordability complaint, I would not start payment until the results are in

So do I need to hurry up and do those? Would I now be against the clock to do them before ACI threaten any court action?

I will go out on a limb and assume that ACI are simply acting as collection agent in this instance, and have not bought this debt, do they refer to "their client" in letters?

If that is the case they cannot instigate legal action as they do not own the debt, it will have been assigned to them on an "equitable" basis, which means they can collect the outstanding balance, but nothing else.

On the off chance they have bought it, they will run through their standard letters first, which takes 6 months or longer, before they ramp up the threat of a court date, so I wouldn`t worry about what ifs, get your complaints sent in.

ManyWays

These things move slower than you might think! Complain to Updraft (and Novuna and Admiral?) and they shouldn't start court action until the complaint is resolved, including at the ombudsman.

But these debts are so large that its unlikely a refund will clear them all, so no harm I would say in starting to make some monthly payments now as well. It just means the balance at the end if the complaint is upheld will be a bit lower.  

tigergambit

LoneFrog said:

Hello All, Apologies, I have been away for a while! I basically stopped all my direct debits and ignored calls and post. I have had a few payments default now and had my first loans passed on to ACI from Updraft. I don't really know the next steps here. I would think I would look at doing an unaffordability claim with updraft, but in the meantime do I just set up a direct debit for a low amount? Or do I need to speak to them on the phone?

On the above we have done a joint SOA which I can share shortly! 

You don't need to do anything until you get a letter asking you to set up a payment on the defaulted amount.

It is important that you get your SOA perfected and strategy worked out before that point. Make sure your SOA reflects coming expenditure (e.g. 2026/7 council tax) and that you have plenty of wiggle room. Save anything left over at the end of the month into an emergency/settlement Fund. When you start making payments do so on a pro rata basis.

Sunbakedscobble

I am 5 months off paying back 36k on a DMP....best thing I ever did. I like you didn't want to bring my husbands finances into things...however I did on advice from my dmp provider (payplan). with hindsight this was completely the right thing to do. I just had to add on the bills that they cover. Whilst it meant that what I could afford to pay back each month dropped considerably, it meant that what I was paying back was truly affordable. I didn't worry about unexpected bills, we could still go on holidays, basically I could live me life, worry free. It would have been horrendous penny pinching in the weekly shop, not been able to go out and have holidays etc. I get you want the debt paying back asap...but I think you will find it hard. I started my DMP as the cost of living went through the roof. my first year review the budget changed dramatically due to how expensive everything had gotten. Good luck in your journey.

LoneFrog

Thank you all for the help here! I definitely feel a move in the right direction. I have had a message from one of my banks to say they reviewed themselves and shouldnt have given me an OD and therefore are cancelling it and refunding me all the interest I paid whilst having it open.

Would this be a good omen for raising cases with others? Also what is the backlash for not being successful? Would you not raise this with all of them in case?

Further to this, how would I go about raising an inaffordability claim?

Appreciate the constant wisdom here, this forum helps a lot

sourcrates

No downside to affordability complaints, get them in sooner rather than later.

Debt Camel covers the process here:

How to get refunds from catalogues and credit cards · Debt Camel