I defaulted on a credit card, need advice on what to do next.....

[Alacoque]

Hi,


Apologies if I'm posting in the wrong section!

My business (like many others) was badly hit during lockdown(s). I had one credit card and recently struggled to make payments. I stayed in touch with the creditor but, after 3 months of no payments, my card (with substantial balance) was cancelled and passed to a DCA who are aggressively pursuing me (calls, texts, letters, emails). They’ve offered to freeze the interest on the debt if I make payments in the identical amounts that would have kept the card active (?!).

My question is - should I send a CCA letter or a Subject Access Request to the DCA?

Except for a tiny pension, I have zero income at the moment, though hope this will change in the future. I also don’t have any assets - no property, no car. I really want to avoid going to court or being bankrupted. Is there a possibility of the DCA accepting a very small monthly payment?

I’ve refrained from mentioning the creditor or the DCA by name as I’m paranoid they might cruise consumer sites in the hope of identifying the debtor and their potential strategy.

Many thanks in advance for any advice!

A.

[Alacoque]

OK!! Thank you!! Again!

[echat11]

ECHAT11, huge thanks....will give it a try!! Am guessing you don't think i should make another CCA request or remind them they have yet to answer my original one and enclose a copy of it?

Wait to see what they come back with.

[Alacoque]

ECHAT11, huge thanks....will give it a try!! Am guessing you don't think i should make another CCA request or remind them they have yet to answer my original one and enclose a copy of it?

[echat11]

I know this is a long thread to go through so, just to recap……about four years ago, I defaulted on a credit card (post covid business difficulties). I made a CCA request to the creditor, never heard back. The account was passed to several DCAs in rapid succession. I sent a CCA request to one of the DCAs and was sent an unsigned template credit agreement. The account was passed back to the creditor, who made a few offers of reduced amounts to settle the account. I then heard nothing for several years until a few weeks ago - the creditor emailed me more reduced amounts to settle the account and the phone calls have started up again, several every day.

The reduced amount offers are: A one off payment of a little under a third of the balance or various monthly payments that total a little over a third to two thirds of the balance. While reassuring me they're here to help and reminding me that the default on my credit file will be marked 'partially settled' if I comply.

I have yet to engage with the creditor. Would love some advice. Should I consider the reduced settlement offer or is that some kind a trap? Should I send another CCA request to the creditor?

Grateful for any insight on this……thanks!

If you make any Offers, make sure you write 'Without Prejudice' on the offer letter.
Make your own Offer, personalize the offer letter, with you circumstances e.g. health etc
Start with 5% - 10%, they bought the debt for 'pennies'. Sounds like they are struggling
with the CCA request. Make sure you get Proof of Postage.

Remove the first line from the template below

https://nationaldebtline.org/get-inf...tlement-offer/

[Alacoque]

I know this is a long thread to go through so, just to recap……about four years ago, I defaulted on a credit card (post covid business difficulties). I made a CCA request to the creditor, never heard back. The account was passed to several DCAs in rapid succession. I sent a CCA request to one of the DCAs and was sent an unsigned template credit agreement. The account was passed back to the creditor, who made a few offers of reduced amounts to settle the account. I then heard nothing for several years until a few weeks ago - the creditor emailed me more reduced amounts to settle the account and the phone calls have started up again, several every day.

The reduced amount offers are: A one off payment of a little under a third of the balance or various monthly payments that total a little over a third to two thirds of the balance. While reassuring me they're here to help and reminding me that the default on my credit file will be marked 'partially settled' if I comply.

I have yet to engage with the creditor. Would love some advice. Should I consider the reduced settlement offer or is that some kind a trap? Should I send another CCA request to the creditor?

Grateful for any insight on this……thanks!

[Alacoque]

I’d be so grateful if anyone has any advice on whether to accept the reduced payment offer from the creditor or if it makes sense to send another CCA request letter to the creditor (years ago, I sent one to the creditor and never got a reply and also one to the DCA who sent me an unsigned, ‘template' agreement form). It’s been about 3 years since a payment has been made on the account. Many thanks in advance for any help…..

[Alacoque]

Huge thanks for the clarity on the statue barred issue Pallasathena. Much appreciated!

[PallasAthena]

Am in a quandary. Am aware if I contact the creditor it will ‘reset’ the clock on the 6 year statute of limitations.

Any advice gratefully received!! Thank you!!

Sorry, I don't have time to read back over the 5 pages of the thread so I don't know where you stand in relation to SB but just to say that having contact with the creditor does not automatically reset the SB clock. The SB clock is normally not reset unless

(1) you have written to the creditor admitting you owe the debt during the last six years, or
(2) you have made a payment towards the debt during the last six years

So contacting the creditor would only affect the SB date if you admitted in writing that you owe the debt.

I'm not suggesting you should contact them, I don't know enough about what has gone on, but just wanted to clarify the SB point.

[Alacoque]

So, after years of silence - from me to the creditor and from the creditor to me - I got an email out of the blue from the creditor with various options to resolve my account balance.
A one off payment of a little under a third of the balance or various monthly payments that total a little over a third to two thirds of the balance. While reassuring me they’re ‘here to help’ and reminding me that the default on my credit file will be marked ‘partially settled’ if I comply.

And the calls have started up again, though I’m not answering.

Just to recap….I requested a signed copy of my CCA from the first DCA. They sent me what looked like a template agreement, about 15 pages long, unsigned by me or by the credit card.
The account was passed to three different DCAs and bounced back and forth to the creditor. I subsequently requested a copy of my CCA from the creditor and never heard back from them.

Am in a quandary. Am aware if I contact the creditor it will ‘reset’ the clock on the 6 year statute of limitations.

Any advice gratefully received!! Thank you!!

[echat11]

After a pause in the flurry of almost half price ‘offers’ from the Third DCA, it seems the account has been passed back to the Creditor.

Or should I say to what seems to be a variation on a DCA - a foreign call centre that the Creditor has outsourced the collection of the debt to.

Only phone messages, no letters, so far. The callers are very aggressive and fast talking, you have to listen to the message about five times to get the info down (almost as though they don’t expect anyone to actually return the call). They claim to be calling from the Creditor though I researched the phone number they left and, by all accounts, it belongs to some kind of outsourced debt collection arm of the Creditor.

And no, no reply to my CCA request.

I sense things may start to get unpleasant…..

Update when you get anything meaningful.

The overseas call centers aren't professional, if you can't comprehend the message, what's the point. Imagine you were hard of hearing.

[Alacoque]

After a pause in the flurry of almost half price ‘offers’ from the Third DCA, it seems the account has been passed back to the Creditor.

Or should I say to what seems to be a variation on a DCA - a foreign call centre that the Creditor has outsourced the collection of the debt to.

Only phone messages, no letters, so far. The callers are very aggressive and fast talking, you have to listen to the message about five times to get the info down (almost as though they don’t expect anyone to actually return the call). They claim to be calling from the Creditor though I researched the phone number they left and, by all accounts, it belongs to some kind of outsourced debt collection arm of the Creditor.

And no, no reply to my CCA request.

I sense things may start to get unpleasant…..

[echat11]

You're so right....just received a 'limited time offer' from the Third DCA, cutting the debt in half if I pay right away.

And still no reply from the Creditor to my CCA request....

See what else they offer in the future.

[Alacoque]

They still haven't complied with your CCA request, no doubt further discounts will be offered, the big one in the January Sales.

You're so right....just received a 'limited time offer' from the Third DCA, cutting the debt in half if I pay right away.

And still no reply from the Creditor to my CCA request....

[Alacoque]

Haha!

Thank you ECHAT11 and EXC for sorting our my posting, much obliged.....