Advice Please

marksandsparksgal

Cat,

The first thing to say is TALK TO A FREE CHARITY.

Sorry it's in capitals, but there are organizations like the CCCS who will offer the same service for free, and are often able to negotiate a freeze in interest / late payment fees etc. It's disgusting that a company is making money from you when you need everything to be going towards the debts.

With regards to the payments, I'm not sure how this would affect the statute barred approach, my gut feeling is that this probably isn't an option anymore, but someone more knowledgeable will be along soon.

x

GeorgeUK

Ver admirable wanting to pay all your debts, but if they are not enforcable you are risking allowing other debts that could affect your future and credit score to continue. Should your circumstances change - that debt will still be statute barred and unenforcable while the others could do serious financial damage. I'd get these paid off first, then allow your conscience loose.

If CAB say the company is ok, then fair enough. There are alot out there that take over 50% as their fee. I would look at each debt on its own merits. The time barred ones you can leave until later. The others that are with a DCA, request a CCA for if they are for loans or CreditCards. If they don't have a copy of the CCA then the debt is unenforcable without a court order. The need to prove the debt is yours before they can collect it. I would then save some money in a high interest account after all other debts are paid off and make a Full & Final settlement offer as each of these other debts comes along. The original creditor has sold these debts to the DCA's at a fraction of their worth. You could probably settle at 40%-60%. Just make sure that you get written confirmation of any agreement before sending payment and that the offer is for Full & Final settlement.

Alot of people in debt feel the same way. They spent it so they should pay for it. The the DCA's start getting heavy - 20 calls a day, threats of bankrupcy, telling you to get some cardboard boxes because your kids will be on the street by the end of the month. That tends to harden alot of people's attitudes and paying strictly what they are legally entitled to.

marksandsparksgal

I completely second George. It's all very well trying to pay everything off, but if half of that is over-inflated fees and charges it all becomes a little out of control. Have a word with the CAB/CCCS and then let us know what you want to do.

GeorgeUK

Note - a debt is statute barred if there is ANY period of 5/6 years of non payment towards the debt and no letter during that period acknowledging the debt.

eg
1/1/2002 last payment made
1/4/2008 payment made
1/5/2008 payment made
2/5/2008 - debt is still statute barred as there has been a period of 6 years where no payments were made. Weller went one step further in the thread i linked to and threatened the DCA's with court action if the didn't pay back the money already paid. I think she scared them more than there being any legal reason

123catj

Thanks everyone - I am away to do some more research and then speak to cab or cccs.

Night