DMP or IVA

Krasnoludek

Hi everyone

Just wanted a bit of advice really. I posted on here a few days ago having been offered an IVA through Baines & Ernst. I was encouraged not to go with them and to contact CCCS which I did and I have to say they were lovely .

They went through our incomings/outgoings and said we would not be able to do an IVA anyway as we were in deficit, and just to make token payments for now until we were in a better position.

I actually rang our mortgage company this afternoon and they have agreed to put us on interest only for as long as we want to sort ourselves out , this will leave us with a surplus of around 180 which could go toward our debt which is 19,100K - all unsecured on 3 cards a catalogue and a big energy bill.

I rang back CCCS but they cant give me an appointment till the beginning of May which is understandable but what do I do in the meantime until they can advise me ?

We are only 2 weeks behind on one of the credit cards, the rest are up to date, our mortgage, bills etc are all up to date.

Is a DMP or an IVA the best option for us ?

Also, Baines & Ernst sent us forms and we had a few conversations with them regarding an IVA, I wont go into it but we arranged to set up payments and I gave them a card number to take their fee at the end of the month, we rang them today and told them we are not going ahead , they put the hard sell on my husband though. We dont owe them any money do we since we did not proceed and what if they take the money from my bank card anyway in error ? Shall I just cancel the card ?

Thanks for your help everyone

Krasnoludek xxx

RAS

Hi

I think that you need to talk to your bank about the possible payment from the card. they can advise.

With respect to the other debts, are you in a position to pay the other priority bills (utilities, council tax etc) this month? Put any extra into the energy bill as this is a prority debt, bar £1 for each of the other creditors. That shows willing.

Can you contact the council and pay over 12 months rather than 10 months to help you budget?

Have you asked for the Consumer Credit Agreements on the other debts?

They have 12+2 days to respond and can do nothing whilst the debt is in dispute. Some might be up to it but the others could take the best part of that time to get it together and it would buy you time.

Krasnoludek

Hi

On the advice of Baines & Ernst I switched my gas&electric to another supplier so the large bill can be added to our debt and we can set us a new payment plan with the new supplier.

I have not asked for signed credit agreements - what difference would this make ??

Our Next catalogue was set up in 2003, the others are credit cards, an overdraft and an Argos storecard which we bought some Christmas stuff with

Thanks again

Krasnoludek xx

Krasnoludek

Hi

We are up to date with all our household bills, I meant to add (sorry)

Krasnoludek x

RAS

Krasnoludek wrote: »

Hi

On the advice of Baines & Ernst I switched my gas&electric to another supplier so the large bill can be added to our debt and we can set us a new payment plan with the new supplier.

OK, so put aside some money towards that this month. About two months worth?

I have not asked for signed credit agreements - what difference would this make ??

lots

Our Next catalogue was set up in 2003,
this is before the on-line rules came in so may well not be documented.

the others are credit cards, if they are reputable, then the CCA probably exists but MBNA and a few others were lax at one stage.

an overdraft - not covered by the CC Act.

and an Argos storecard which we bought some Christmas stuff with

if this was an on-line applicant, then it is probably covered by the 2004 amendment. If it was paper, I would hope that they would have all their paperwork legal by now but..

Ok All except the OD are covered by the CC Act. if the creditor is unable to provide the proper documentation for the debt, then they cannot recover the money, chase you through the courts etc. After some hassle, they will have to write it off.

Some people object to the use of CCA requests to reduce debt, others think it is a great get out.

My own view is that these rules came in back in 1974, and a creditor who is unable to collect legally enforceable paperwork thirty years later deserves a drubbing.

Will post up, the letter in a mo.

In the mean-time

Think you seriously need to consider moving your bank account ASAP, particularly if any of your cards are with your bank. Have you been in credit for at least a few days each month? If you credit rating is half decent, see if you can move the account and the OD to the Alliance and Leicester. They offer a free OD for one year. then set up a small DD to pay into the old account to reduce the OD.

that way the bank cannot take money that you have coming in to cover your OD.

Have you incurred any charges on any of the CCs or store cards? If so, then start re-claiming. Ditto the bank charges once you have shifted the account.

RAS

CCA letter below, print your name, do not sign it and send it recorded delivery, so you can track it.


The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.
With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully
Mr A N Other

You can also have a look here http://www.consumeractiongroup.co.uk...templates.html


The creditor has 12 days plus two in which to return the CCA. If they do not, you can stop paying them until they produce the CCA. If they have still not done so after another 30 calendar days, then you write another letter, advising them that they have no right to collect the debt and you report them.

If nothing else, once they receive the letter, they cannot mark your credit checks etc until they produce the paperwork.

Most of your creditors are reputable but one or two may get a bit twitched, so come back for help if necessary.

Krasnoludek

Hi again,

Our bank account with OD is with Halifax and we have switched acc to Abbey basic bank account with electron, we haved moved DD and salary payments into this acc.

Argos card was over internet in December 07 - 283 outstanding
Next was applied for over internet in 2003
Lloyds TSB/MBNA credit card @ 5300 from 2007
Virgin credit card @ 6472 from 2006
Citi card @ 2261 from 2008
Powergen 1210 been accumulating because DD was too low (payments up to date prior to transfer this week though)

Would not writing these letters aggravate them which isnt going to help if I want to set up a DMP possibly though ??

All credit is up to date except Lloyds

Thanks so much for your help

Krasnoludek

RAS

Hope this helps

Krasnoludek wrote: »

Hi again,


Argos card was over internet in December 07 - 283 outstanding

No point in doing a CCA for this one. You will have been asked to tick a box.

Next was applied for over internet in 2003 - good chance that this is not documented.


See fermi's response to another query

Have a read through this factsheet.

Link: Factsheet | Catalogue debts

If your catalogue agreements are close to being less than 12 month old, then be aware of this part:

Quote:
The rules affecting catalogue debts have changed under the Consumer Credit Act 2006. If you take out your catalogue on or after 6 April 2007 the court can no longer automatically declare your agreement to be unenforceable, for example if there is no signed agreement. It is now up to the court to decide whether to allow the creditor to enforce the credit agreement or not. This will depend on a number of factors.
It is the law that they must provide you with your agreements if you request them using the example letter.

Lloyds TSB/MBNA credit card @ 5300 from 2007
Virgin credit card @ 6472 from 2006
Citi card @ 2261 from 2008

had not realised that they were so recent. There is no harm in asking.

Powergen 1210 been accumulating because DD was too low (payments up to date prior to transfer this week though)

Would not writing these letters aggravate them which isnt going to help if I want to set up a DMP possibly though ??

Not likely. Generally they kick off for a while, then hand it over to their in-house DCA, who stop charging interest.



Krasnoludek

jmhgibson123

hi i would avoid iva like the plague you have to pay a lot of money every month and miss one payment and its a nightmare plus if you own a house they can refuse the iva and make you re-mortgage instead best of on dmp and so long as creditors are recieving a token payment they stay off your back c c c s are brilliant and most helpful and best of all free
good luck and stay positive there is always light at the end of a tunnel

Krasnoludek

Ok. I am going to write to Next tomorrow and ask them for a copy of the signed credit agreement - is that right ? Should it have been signed ??

Krasnoludek
x

RAS

Hi

It need the debtors signature and it needs to have certain components specified by law, for example, credit limit and repayment terms and the T&cs.

A lot of catalogue companies only got people to complete an application form which does not meet the requirements, so the contract is void.

Come back if they send you anything.