The social cost of problem debt | The £8.3 billion challenge

[Legal Beagles]

The social cost of problem debt | The £8.3 billion challenge. The social cost of problem debt in the UK Problem debt costs the UK £8.3bn through the damage it causes to family life, mental and physical health, productivity and employment prospects and costs to* the welfare state, the NHS, local government and other agencies. […]

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[PAWS]

Re: The social cost of problem debt | The £8.3 billion challenge

£229 million costs due to increased risk of Children being taken into care. £790 million relationship breakdown costs. £2.8 billion cost of losing a home. £960 million mental health costs. £19 million costs due to poorer physical health.

The saddest statistics are not just due to the existence of debt but are the result of the way debt collectors operate. I also believe that woolly advice doled out by ‘advisors’ who have never experienced threats from a DCA can exacerbate the situation. Some debt advice organisations do help but as we see from many if not most of the relevant posts on this site, the DCAs rarely listen to reason, hardship pleadings or even legal arguments. Often, despite proof and /or legislation being on the side of the debtor, the fight goes to court or right down to the wire. Despite wanting to believe we live in ‘Telly Tubby land’,the only way things are going to improve is if we fight and fight hard. Things have improved a little but mainly due to sites like LBs giving ordinary people the information and support they need to stand up to these bullies, win cases and set precedents that help change laws. There was a time when I believed the cardigan approach of ‘working withthe DCA’ was the only option. Working with them meant allowing them to push me very hard. When they pushed me on to the ground I didn’t break, I bounced. Big mistake!!!!

[FlamingParrot]

Re: The social cost of problem debt | The £8.3 billion challenge

The saddest statistics are not just due to the existence of debt but are the result of the way debt collectors operate. I also believe that woolly advice doled out by ‘advisors’ who have never experienced threats from a DCA can exacerbate the situation. Some debt advice organisations do help but as we see from many if not most of the relevant posts on this site, the DCAs rarely listen to reason, hardship pleadings or even legal arguments. Often, despite proof and /or legislation being on the side of the debtor, the fight goes to court or right down to the wire. Despite wanting to believe we live in ‘Telly Tubby land’,the only way things are going to improve is if we fight and fight hard. Things have improved a little but mainly due to sites like LBs giving ordinary people the information and support they need to stand up to these bullies, win cases and set precedents that help change laws. There was a time when I believed the cardigan approach of ‘working withthe DCA’ was the only option. Working with them meant allowing them to push me very hard. When they pushed me on to the ground I didn’t break, I bounced. Big mistake!!!!

The official organisations do help some people but their approach doesn't suit every situation. Once upon a time I made an appointment with a CAB that advertised debt clinics. I went all the way there only to be handed a form that had about 30 pages and went into detail about almost every aspect of my life. I was soooo put off by it I never went back! :bolt:

I was hoping to be able to talk to someone face to face about my options before moving on to fill in any forms, after all that's the whole idea of the CABs: face to face advice! I then saw the Panorama program "Can't Pay Won't Pay" where they discussed unenforceability and the rest is history

I have seen an official Stepchange representative on another forum telling a poster they could help their OH set up a repayment plan for a statute barred debt because "the debt still exists" :mad2: :scared:

If you receive a court claim and ask for advice from any of those places, they'd all tell you to make at least a part admission and make a repayment offer, unless that wasn't really your debt at all, leaving you with a CCJ. They wouldn't tell you to send a CCA request and I doubt they'd have heard about CPR part 31 or Part 18 requests, let alone Tomlin orders!

[PAWS]

Re: The social cost of problem debt | The £8.3 billion challenge

For any ‘guests’ reading this I would like to point out these are my views and based on my own experiences –they are not necessarily the views of the site owners or based on their opinions.
I do agree that there are some really good debt advice organisations with some excellent advisors but there are also some pretty rubbish ones. Facilities and abilities vary from town to town. It is not unusual to find volunteers whose qualifications, previous employment or relationships may raise questions of a conflict of interest. It is highly unlikely that the advisor will know what it is like to sit at a kitchen table at 4.00 am sobbing and fretting about debt, bailiffs or money. It is also highly unlikely that they will have any of the expert legal knowledge the genius Beagles have. They are more inclined to go down the filling out forms and appeasement route. That would be all fine and dandy if the lenders and debt collectors never fought dirty. They brought the fight into the courtroom and the dirt. We just got tooled up!