Debt sold to 1st credit finance- how to deal with this?

devonsdreamer

Hi all- Me again!

Posted this yesterday on DFW board and was adviced to post here:)

I went bankrupt on 10th Dec 2007. I had two joint accounts with Hubby which were overdrawn. My husband has tried to speak with both barclays and abbey to sort this out BUT
Barclays closed the account and have passed the debt to 1st credit finance.
Abbey as yet have just withdrawn the facility and are charging £50ish a month in charges.

I know husband is liable for the debt now BUT what is the best way forward to sort this out. We have not heard from 1st credit as yet but I did have a scilent call from 08701642049 which when I googled was the number for them. Had a letter today asking him to get in touch to arrange payment for the full balance!! :eek: We do not have the money to pay in full and also our budget is very tight

Please could anyone tell me which is the best way to approach all this to get things settled as quickly and as painfree as possible. It has been suggested on DFW that he sets up a dmp with CCCS but at this point he is resisting doing this he still has a bit of an issue with the fact I have gone bankrut and NOONE in his family have any idea how diificult our situation has been( and still is). It may be possible for him to borrow some money from a family member to offer Full and Final payment (if he swallows his pride and asks very nicely) but it would be less than half we owe to each do you think they may accept this? We wouldn't be able to afford to pay back the family member and make monthly payments on the debt if they wanted us to pay a lump sum and the rest.

Many thanks for reading

fermi

There's not any quick or pain free way to deal with this, other than for him to decide whether he is going to try and negotiate a F&F settlement or make a proposal of an affordable monthly payment.

General advice is to make sure that any negotiation is carried out in writing, and that you DO NOT discuss this with the DCA over the phone. As I'm sure you are aware DCAs love to bully and intimidate you over the phone, especially since it allows them to talk an absolute load of rubbish that they wouldn't dare put into writing.

If he should decide a F&FS is the way to go, then make sure that an offer and acceptance of it is confirmed IN WRITING by the creditor/DCA. In addition make sure that they agree in writing to mark the debt as "satisfied/settled" or "partially satisfied/settled" on the Credit reference Files.

There is some excellent info on negotiating a F&FS here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

If he is going to propose monthly payments, then again do it in writing and don't be bullied into more than you can afford.

devonsdreamer

Many thanks, I had suggested that he didnt speak to them if they called but was worried it was the wrong thingto do. They have called today and hubby wouldn't give personal details for the "security" check. He was worried it would make things worse.

devonsdreamer

An update- sent a letter to 1st credit by recorded delivey to confirm recipt of there first letter and asking for all corespondance to be in writing and also if they would hold all action on the account for 28 whilst he sought advice.

We received 2 calls after they had received letter which I answered and told the advisor that my hubby was not able to speak with them as it causes him stress (it does he hates to use the phone) and also that they had recived a letter asking for correspondence to be in writing they said they would remove number

Now a letter has arrived stating that as he has not been in touch (he has by recoreded delivery) and that they intend to start court proceedings.

SO what now? is this the normal way to proceed? hubby hasnt refused to pay nor has denied the debt just asked for time to try and sort a payment plan out!
Any words of wisdom??

Many thanks

rog2

devonsdreamer wrote: »

Now a letter has arrived stating that as he has not been in touch (he has by recoreded delivery) and that they intend to start court proceedings.

Personally, I would let them take him to Court. When the summons arrives, he should state, in his defence, that he has been in written contact with them, in an attempt to resolve the matter. He should make an offer, to the court, of payments that he can afford, backed up with his income/expenditure statement.
The Court is most unlikely to order him to pay at a rate that he can not afford. They, the Court, will also view 1st Credit's behaviour, in respect of their claim that your OH has NOT been in contact with them, very poorly and may choose to 'punish' them by not awarding costs or by decreasing the amount that your OH must pay every month.
Any Court Order (CCJ) to be 'issued' by the court, will be just as binding on 1st credit as it will be on your husband, and any further 'harassment' by 1st credit will e illegal.

AmIdone4?

Hi Devondreamer:),

I had dealings with 1st Credit (mine was 2 consolidation loans passed over from Lloyds TSB) ... and they tried similar strong arm tactics with me... including threatening to make me with BR via telephone (which I told them to do... and of course they didn't!).

Saying they haven't received your letter, to me sounds like classic bullsh*t tactics:mad::mad:, as you've said you sent a letter recorded delivery, easy for them to deny any communication from yourself, and then threaten with further action.

As you've said you haven't denied the debt, just need time so sit tight for now! I would say they are definitely using bullsh*t intimidatory tactics

edit: agreed if they take you to court (which I v.doubt) you're in the right!
ps. sorry for lack of technical/legal input, just made me angry, I remember 1st credit:mad:... @**%$&##'s!

devonsdreamer

many thanks, I shall calm my worries and go back to my easter eggs.

fiveyearplan

Amazing, the healing powers of chocolate!

AmIdone4?

fiveyearplan wrote: »

Amazing, the healing powers of chocolate!

Like it :D

devonsdreamer

The healing effects of chocolate are greatly underatred

rog2

devonsdreamer wrote: »

The healing effects of chocolate are greatly underatred

As are its 'laxative' qualities, if you eat too much. :eek: :eek: