Token Payments

[BonMants]

Hi there, thank you for accepting me on the forum. I have been making token payments of £1 to various debt collectors for over 10 years now. These debts mounted up to around 20k near on 20 years ago. They were overdrafts, bank loans and store cards. I wasn't working at that time and always declared I was only in receipt of benefits and sadly these debts occurred when I was often in a mania phase of my then undiagnosed Bipolar Disorder. I was living alone and the debt I believe all defaulted and was sold on. After taking advice many years ago I set up 8 standing orders to the debtors of a token payment which they accepted. When letters arrived to review this I always responded by phone. However, I am starting to feel a little overwhelmed with their constant advice to contact debt advice. I am now married but my financial situation isn't good due to my illness and not being able to work. I have explained the situation to everyone and just want to carry on with my standing orders of this payment. I would hate to have to go down the insolvency route and know my husband would not be happy either. Can I just continue with my standing orders? And would you advise me to only contact these companies in writing as the conversations do exasperate my illness. They do not have any phone numbers for me despite trying to obtain them. I have particularly felt a little from Drysdensfairfax wanting to know my husbands income. I told them that is none of their business as these debts are mine which they did agree on. Could you advise me please? Thank you.

[MIKE770]

Celestine

[Celestine]

Hi and welcome to LegalBeagles.

I am not surprised you are finding this situation unbearable. The danger of token payments is that they can prolong the misery of dealing with debts and the accounts will never become time barred.

If your financial situation has not improved since the agreement was set up, I am not sure what they are expecting you to do. You pay your creditors direct? If so, you could consider re-doing your debt management plan via Stepchange or Payplan. They will then act as a buffer between you and your creditors. They may also recommend a different route like DRO or IVA. With DRO the debts could be wiped within 1 year and with IVA - 5 years. I suspect your creditors may prefer to deal with a debt management charity because then they will understand more formally that there is little you can do. These may not be possible if you own a home or car worth over 2k, but still worth a chat with the debt charities. Do NOT speak to any companies which charge you to 'wipe/manage debts' even if it seems free, it will not be and could result in far worse issues.

Depending on how old the debts are you could send off CCA requests to explore whether they are enforceable, but this is not always an easy route and you would need to research the possibility of ceasing the token payments (if the CCA's are not complied with) and seeing how the creditors react.

Keep us posted on what you want to do and try not to let this wear you down, we're all here to support you and you're in very good company.

[BonMants]

Thank you so much for your reply. Yes I pay by standing order. I only rent my home and my husband owns our second hand car. To be fair it is mainly Drysden Fairfax stressing me out as the others are really understanding and have placed my case with their sensitive support team. I am going to speak with CAB as I am wondering if these debts could be written off as I was given the original credit at a time when I was in and out of sections in the hospital. I declared I was on DLA and on reflection wonder how I was allowed to accrue such debt! Obviously it was my mania state that caused my erratic spending. I wasn't aware I had Bipolar Disorder until 2002 after the debts were taken on. (They are over 20 years old. The token payments started in 2012 I have not had any debt since and my priority bills are all in credit thanks to my husband overseeing my spending. I just get so exasperated when they start asking about the household income. My husband should be retired but works part time to keep our heads above the water. These are my debts and all prior to meeting him in 2003. It's so overwhelming but I will get some help. Thank you.