Default and ccj

Gewakefie

Hi guys hope you’re all well. I’m in a bit of a panick. Have unsecured debts of about 26k have stopped paying it all and only one credit card with Vanquis has defaulted. I stopped paying everything around June/july

im going to do a dmp with step change but I’m trying to save an emergency fund as advised here but haven’t been able to this yet as car had an issue of course it did so I was hoping I didn’t have to set this dmp up till about February to give me about 4 more months

but I’m panicking now could sleep last night as I thought because only one account has defaulted and I have about 10 creditors. Would it be a good idea to set up a payment plan with just Vanquis now and do it separately till the new year and set up a small payment for each one as it defaults till I set up dmp with step change if that makes sense? 

I’m just worried and confused about if it will be too late like what if I get a letter about them taking it to court would that mean I can’t do anything or will I still be able to offer payment plan before they do or are they likely to decline it and go ccj route anyway? In my job which is sales and insurance I don’t think we are allowed ccj so I’m worried about getting sacked if it does happen. 

And a separate question I have a debt with lowel I have been paying for years, well 2 debts one has only £85 left the other one is 2100. Asked them for cca documents which they provided for the £85 credit card but the 2100 was an overdraft with Lloyds years ago and they replied saying they can’t find information atm. I did the request by email but they sent a letter back and an email as well to confirm they can’t provide at this time.

my question is I read somewhere here cca doesn’t count for overdrafts is that right? Does that mean they can still take court action without it? As I’m not sure what to do about that one do I need to tell them it’s unenforceable I’ve stopped paying at for the moment but I was going to include it in dmp next year 

sorry for the long post and thank you in advance x

Grumpelstiltskin

OK Stop panicking, it can take up to 18 months for a default to appear, so you are only 3  months down the line.

You are correct  they will be no CCA for an overdraft. The chance of them taking court action for the overdraft is minute, so don't worry unless you get a letter before action.

Whatever you do do not rush into paying, don't pay before defaults.

Concentrate on saving an emergency fund, that is the most important thing to do now and remember nothing moves fast in debt collecting, nothing terrible is going to happen.

Gewakefie

Grumpelstiltskin said:

OK Stop panicking, it can take up to 18 months for a default to appear, so you are only 3  months down the line.

You are correct  they will be no CCA for an overdraft. The chance of them taking court action for the overdraft is minute, so don't worry unless you get a letter before action.

Whatever you do do not rush into paying, don't pay before defaults.

Concentrate on saving an emergency fund, that is the most important thing to do now and remember nothing moves fast in debt collecting, nothing terrible is going to happen.

Ok thank you and what does this letter look like just so I know. 

So does that mean I have to keep paying the Lowell debt in other words it is enforceable that one because it’s an overdraft x

Rob5342

Stepchange have their uses but they often make a simple situation far more complicated than it needs to be. If you manage it yourself you can make start making small payments to each debt as they default and then increase the payments once you have enough of am emergency fund built up. 

Grumpelstiltskin

The only way the overdraft will become unenforceable is if you don't pay it for 6 years but it should still default, so don't pay anything yet.

The letter has the name and address oof the court on it usually Northampton, don't worry about anything that says something like if you don't pay X in the next Y days we will consider court action,  they are just threats.

fatbelly

Before anyone sends a court claim, they must send a formal Letter Before Claim. Comes with a standard form and 30-day window. If you ever get one, post here.

Until then, don't worry.

ManyWays

A Letter Before Action comes from the creditor, or their solicitors,

This is NOT a court form. The contects are mandated by the court's CPR procedures, but this is not a court form and it does not look like one.

It is a letter with a heading often something like Letter Before Action or Letter Before Claim. It has attached several documents, one of which has to be headed Reply Form. 

Gewakefie

ManyWays said:

A Letter Before Action comes from the creditor, or their solicitors,

This is NOT a court form. The contects are mandated by the court's CPR procedures, but this is not a court form and it does not look like one.

It is a letter with a heading often something like Letter Before Action or Letter Before Claim. It has attached several documents, one of which has to be headed Reply Form. 

So at this point will it be too late to offer a repayment plan?

I think I’m spiralling cos I’ve just had a google about defaults to ccj time and someone said they were issued a before ccj letter so they called them to offer a lump sum as a settlement and the creditor refused and issued ccj anyway I think that’s what I’m worried about really 

Gewakefie

I’m assuming they offered them less than what was owed but still 

Grumpelstiltskin

Please, please, stop all this worrying.

If you do get a letter before action, as we have said unlikely, you fill in the I & E form and make an offer, but not more than you can a) afford and b) what is the due amount ( ie. the total amount you can afford split between all debts,) but please don't think about this at the moment, concentrate on building up your emergency fund.

Stop Googling this.

sourcrates

You asked Lowell to provide evidence of liability for the overdraft debt, so they will likely be trying to obtain statements from the bank concerned, there won`t be a credit agreement, but they must provide evidence the debt is yours.

See what they come up with, or not, if they can`t prove liability, then you won`t have to pay it, its just not covered by sec 77 CCA, but can still become unenforceable if no evidence is forthcoming.