Struggling with debt? Ask a debt adviser a question

Hi Ted

Thanks for your post.

I can see sourcrates recommended you use our Debt Remedy tool on Saturday to find a better way to manage your debts. If you haven’t had chance to do this yet here's the link.

If you have used the online tool you should’ve been able to download a personal action plan at the end. This contains your tailored advice and recommended debt solution.

Should you have any questions about this advice or any questions about the Debt Remedy tool you can contact us directly. You can find our contact details by clicking the ‘Need Help’ button at the bottom of each page in Debt Remedy. Our number is also in the personal action plan.

I also want to reassure you that the advice we provide is free, impartial and most importantly non-judgemental. We’re here to help you get back on track and find the right debt solution for you.

All the best,

Linsi

tedblight wrote: »

Please don't judge me....

I have a lot of debt, £12,500 in total.
3 Credit Cards, Maxed out & 1 Over Draft (about £330 per month in total out goings)
Current Credit Score is 702 out of 999 on Experian.(Poor) Never a late payer just a minimum payer. No CCJ or anything like that, but just always on the bread line. I'm normally about £150 short each month on meeting my outgoings. I don't live a life of luxury. I don't drink, smoke or gamble, No sky TV lol etc. I have to rely on my partner to stop any direct debits bouncing etc.

Anyway, Now that Lloyds are moving the goal posts on overdraft fees. It will now increase from £50 per to about £135 per month.
This would finish me off.

The APR's are quite high on the credit cards but I can't get a consolidation loan at a lower rate due to my credit score.

In 2012 my Equifax score was 448 (Good - Above Average) but the cost of living rockets and wages have frozen.
I've changed utilities suppliers recently and I'm always trying to get the best deals on essential services. Even if I saved a few quid here and there. The short fall means I can't use the saved money to pay of existing debt quicker.

I know it's all of my own doing, so please be kind to me.... I guess my case is typical around the country.

Life sucks!

Hi Cath

Welcome to the forum and thanks for your post.

Before a creditor can pass or sell a debt to a collection agency you have to have defaulted on your account and a default has to be registered on your credit file.

A default stays on your credit file for 6 years. The record of the debt will be removed from your credit file 6 years after the default was registered, even if you’re still repaying the debt.

I understand from your second post that this debt is quite old. If First Trust defaulted your account more than 6 years ago the debt will have already been removed from your credit file. Assuming the default was registered over 6 years ago, it can’t be added to your credit file again just because a new company is collecting it.

The exception to this would be if the collection agency decided to take further action such as applying for a CCJ (you can find more information about this on our website). For this reason it’s really important that you don’t ignore this debt.

As you don’t agree with the outstanding balance I’d recommend you contact First Trust and ask them to clarify the discrepancies. If you still disagree with the outstanding balance or feel you’ve been treated unfairly you can then make a complaint to First Trust.

You can contact First Trust in writing or call them. Whichever you decide to do, it’s best to keep a record of who you’ve spoken to and the dates you’ve corresponded. If you do make a complaint but you’re not happy with the response from First Trust, you can escalate your complaint to the Financial Ombudsman.

While you’re doing this it’s also a good idea to contact the collection agency to let them know what’s happening and come to an arrangement to repay the amount you do admit to owing.

I hope this helps,

Linsi

cath3070 wrote: »

12th Aug 17, 9:27 PM
CATH3070
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Hi all. Can someone please help me. I was paying off an old first trust bank overdraft now with a balance of 300. Today I got a letter from the bank to say they sold the debt to asset link capital at a value of 919. Why have they sold it at the wrong amount? it's not on my credit report. I'm scared to ring them incase it ends up showing on my credit file as I'm getting ready to apply for a mortgage. Should I just ignore this altogether. If I rING it might alert them that my last payment was on in June 17 and they add it to my file then it'll ruin my score and show for 6 years. I'm so stressed worrying about this. I thought all was ok as I was paying it off, but looks like they haven't even taken in to consideration the 600 quid I've already cleared . Please help

Hi


I don’t think this is something we come across on a regular basis but I’ll certainly mention it to our Social Policy team.



My understanding is that a debt regulated under the Consumer Credit Act can only be sold or assigned to a collection agency after a default has been registered.



If a default wasn't registered but then passed on the debtor would be best speaking to the original creditor first and if needs be escalate the issue to the Financial Ombudsman.



All the best,



Linsi

sourcrates wrote: »

Hi Linsi,

This has always been my understanding also, i hope you dont mind me butting in here, but an increasing number of posters are telling us their accounts are been sold on without the issue of a default notice, or a default been registered on there credit file by the original creditor.

I just wondered how widespread this might be, and what actions (if any) can the debtor take in this situation.