Vulnerable registration

[Xhaka91]

Hi everyone, first time poster here, hoping to get some advice.

I have struggled with my finances for the past few years, but I am now starting to address my problems. I had a period of unemployment due to mental health issues and a gambling problem I had hidden from my partner and family.

Luckily, I am now seeking professional help for my personal issues and have informed the majority of my creditors of my current circumstances, and what led to the dire situation that I have found myself in.

I owe around 5 different payday lenders various amounts and have maxed out 3 different credit cards. I am just at the start of my journey in resolving my debt problem and have recently received a flyer and recommendation from a debt collection agency suggesting that I sign up to the vulnerability registration service. On the face of it this seems like it could be useful in combating some of my problems. Has anyone on here signed up or used the facility? It mentions that they are a new organisation, does anyone know how many lenders and debt collection agencies use the register ?

Hopefully I can begin to rebuild a normal life in the New Year, and I will begin to post some of the specific debts I am having difficulty with, any support and advice would be appreciated.

All the best, Paul

[2222]

Hi Paul

is it worth looking at options to reduce the debts, such as a DRO or even bankruptcy, rather than struggling for years to pay them off?

[ULA]

I have not used it personally but I am aware of the Vulnerability Registration Service (VRS). The service is still developing so just a couple of things to point out when using the service.

Only those credit companies that have signed up to the VRS service will actually be able to check the register to see you have registered. Not all lenders have registered for this service so if you did have a relapse and took out finance with a company not registered with VRS then there would be no check done on your status.

I know that VRS are actively trying to reach out to more financial institutions to sign up for access to the register and thereby check an individual's vulnerability status so over time there should be an increase in lending providers who will make use of this service before lending. The VRS website does have a good FAQ section if there is anything else you need to know.

[Xhaka91]

Thank you for the responses. Yes I am aware that a debt relief order may be the best course of action for me in regards to bringing my debt issues to a close and am going to explore insolvency options with the citizens advice bureau. However I do feel an obligation to repay some of the debts I have ammassed and keep my pride intact.

I will sign up to the VRS and inform my creditors of the same, perhaps they will be able to offer me some form of alternative arrangements or even help reduce the amounts I owe. Fingers crossed. Hopefully more Lenders will use the register if it has the capability to protect other people who find themselves in similar situations to myself. I will come back and let you know how I get on.

Thanks again

[ULA]

Best of luck and do pop back and let us know how you get on

[Xhaka91]

Just a short update today as I feel I am making some headway.

I have been granted some time by most of my creditors whilst I gather my paperwork and finish my income and expenditure.
Although my repayments may be minimal for a few months I am finally starting to see a path to being debt free.

Some of my creditors have also offered me reduced settlement amounts, 50% off seems to be the going rate and I am about to start putting plans in place next week.

I signed up to the VRS and chose to be automatically declined for any further credit, I believe I can change this after 3 months.

The debt collection agency that originally informed me about the VRS has, to my delight, written off the account ! This is a big relief as it was one of the larger debts I had.

I Will let you know how I get on in the coming months.

All the best

[ULA]

Thank you for coming back and so pleased to hear that you are making some headway. Best of luck in getting yourself to being debt free and look forward to hearing how you get on