Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collections

[bailboy]

My boyfriend needs some help with a Lloyds Credit Card which has a negotiated arrangement. He is being chased by 1st Credit and Connaught Collections.

I will detail below what has happened. We need advise as we are concerned that he is being harassed by these companies and we are worried what further action they will take. They seem quite aggressive.

I have tried to give as much detail as possible to help assist whoever can help us. Please ask if anything else is needed.

The Lloyds Bank credit card debt went into default when he was on benefits due to anxiety stress and depression.

The benefits were then stopped, he had no income. He had to abandon the property due to antisocial behaviour of local youths. He lived off the good nature of friends.

He moved back into the property in April 2011. He went to the CAB who said he had to have an income before they could assist him. He then tried to claim benefit which was originally granted and increased. No payments were ever received and the benefit claim was cancelled by the benefits agency.

April 2013 he started work for 13 hours per week at minimum wage. He then went back to the CAB for them to assist with dealing with the debt collectors.

Priority Debtors
Council Tax £4884.69 arrangement accepted 25 Sept 2013 for £20 per month plus the outstanding for the current year at £15.42 a week.
Water Rates this had already been sorted, £12.97 per month.

Non Priority Debtors
Lloyds Bank Credit Card £7320.60 arrangement accepted 30 Sept 2013 £1 per month to be reviewed in 12 months
Lloyds Bank Account £1066.36 arrangement accepted 25 Sept 2013 £1 per month
Barclay Card £486.65 arrangement accepted 25 sept 2013 £1 per month

The payments for the non priority debts are being made by standing order and the first payments went out beginning October 2013. No payments have been missed or late. They go out 3rd monthly.

The first council tax payments were made at the beginning of November, double payments were made to catch up as he had some funds in bank account. He has cleared last years council tax, is up to date on this years and ahead on the arrears.

He then received a notice of assignment from Lloyds Bank, dated 5 Dec 2013 in favour of 1st Credit (finance) Ltd effective 18 Nov 2013. States 1st Credit Ltd has been appointed by 1st Credit (Finance) Ltd to manage your account.

He also received a letter from 1st Credit, titled account assignment, dated 5th December 2013. Stating " they are the legal owners of the outstanding debt". It states "that the full outstanding balance is now due". They also state " if we don't hear from you or receive payment shortly then you will be contacted by one of our collection agents about repayment of your account"

Further letters 12 Dec 2013, 19 Dec 2013, 26 Dec 2013 & 2 Jan 2014. On the 3rd January he wrote saying he was making the payments regularly and as agreed. He also advised his personal circumstances had not changed. He asked were they aware of an arrangement that had been agreed. Also asked for a copy of complaints policy and procedure.

Further letter 9 Jan 2014 chasing for payment. 16 January 2014 copy of complaints procedure received.

24 Mar 2014 letter from 1st Credit accepting arrangement but requesting payments be sent to them. Enclosed a financial statement form for completion. Said arrangement would need to be reviewed in next 6-12 months.

Continued making payments to Lloyds.

28 Mar letter requesting contact to agree repayment terms. 4 April 2014 letter offering discount for partial settlement. 30% discount for 7 days, 20% discount for 8-30 days and 10% discount for 60 days. 11 April letter requesting payment or would send doorstep agent. 18 April 2014 letter requesting payment or would "consider passing your account to a doorstep cash collector" . 2 May Letter stating they notice they had not been able to assist you in resolving the debt. There are two options, offer affordable repayments or see a non fee charging debt management company. 9 May 2014 Letter saying "intend to pass your account to connaught collections for them to pursue the balance outstanding".

23 May Connaught Collections letter saying they are instructed to recover the overdue account and that he is aware of the full details of our clients claim. Contact us to arrange repayment terms. 30 May 2014 letter saying according to credit bureau information we have been advised that you are still residing at the above address. Offering "partial settlement", " of payments by instalments" or inform us of the reason you are not prepared to make a payment". 6 June letter to advise returning account to 1st Credit Ltd with a recommendation for further action, which may include a doorstep visit.

We have checked his credit file with noddle and there are no court judgements etc.

The accounts above all appear there. I can answer any questions on which companies appear as the creditor. I am confused with the barclaycard as that says settled but there is account with debt agency instead.

Our main concern is with the Lloyds credit card and 1st Credit and Connaught Collections. They appear to be ignoring an agreed arrangement and trying to pressurise him onto paying when he cannot afford it. We are worried about what to do next.

Can the debt be set aside in any way. Can they be made to stop harassing him. He also has not made a claim for the PPI which he believes he was missold. More details can be given. We have asked for copies of consumer credit agreement.

Documents can be scanned and uploaded monday or tuesday.

We really need help as it causing him a lot of anxiety.

[FlamingParrot]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

The benefits were then stopped, he had no income. He had to abandon the property due to antisocial behaviour of local youths. He lived off the good nature of friends.

He moved back into the property in April 2011. He went to the CAB who said he had to have an income before they could assist him.

Talk about giving you an umbrella as long as no rain is forecast for the near future... :rant: :rant: :rant:

He then tried to claim benefit which was originally granted and increased. No payments were ever received and the benefit claim was cancelled by the benefits agency.

What happened there? Why were no payments received? Did he claim council tax benefit? This benefit wouldn't have been paid to him but credited towards his CT account.

April 2013 he started work for 13 hours per week at minimum wage. He then went back to the CAB for them to assist with dealing with the debt collectors.

Priority Debtors
Council Tax £4884.69 arrangement accepted 25 Sept 2013 for £20 per month plus the outstanding for the current year at £15.42 a week.

That sounds like an awful lot of council tax, :scared: how did it get that high? Does he own the property in question or does he rent it?

[FlamingParrot]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

He then received a notice of assignment from Lloyds Bank, dated 5 Dec 2013 in favour of 1st Credit (finance) Ltd effective 18 Nov 2013. States 1st Credit Ltd has been appointed by 1st Credit (Finance) Ltd to manage your account.

He also received a letter from 1st Credit, titled account assignment, dated 5th December 2013. Stating " they are the legal owners of the outstanding debt". It states "that the full outstanding balance is now due". They also state " if we don't hear from you or receive payment shortly then you will be contacted by one of our collection agents about repayment of your account"

Further letters 12 Dec 2013, 19 Dec 2013, 26 Dec 2013 & 2 Jan 2014. On the 3rd January he wrote saying he was making the payments regularly and as agreed. He also advised his personal circumstances had not changed. He asked were they aware of an arrangement that had been agreed. Also asked for a copy of complaints policy and procedure.

Further letter 9 Jan 2014 chasing for payment. 16 January 2014 copy of complaints procedure received.

24 Mar 2014 letter from 1st Credit accepting arrangement but requesting payments be sent to them. Enclosed a financial statement form for completion. Said arrangement would need to be reviewed in next 6-12 months.

Continued making payments to Lloyds.

Once the account was assigned to 1st Crud as per the letters above, Lloyds would no longer own it, and any payments should have been made to 1st Crud, not Lloyds.

28 Mar letter requesting contact to agree repayment terms. 4 April 2014 letter offering discount for partial settlement. 30% discount for 7 days, 20% discount for 8-30 days and 10% discount for 60 days. 11 April letter requesting payment or would send doorstep agent. 18 April 2014 letter requesting payment or would "consider passing your account to a doorstep cash collector" .

The majority of such threats of doorstep agents and collectors are just empty threats, as it's a lot cheaper to send letters than actual collectors. In the unlikely event they sent one round, there's no obligation to open the door to them or talk to them, they have no rights whatsoever. :beagle:

2 May Letter stating they notice they had not been able to assist you in resolving the debt. There are two options, offer affordable repayments or see a non fee charging debt management company. 9 May 2014 Letter saying "intend to pass your account to connaught collections for them to pursue the balance outstanding".

They are an in-house DCA for 1st Crud so not really passing it very far.

[FlamingParrot]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

Our main concern is with the Lloyds credit card and 1st Credit and Connaught Collections. They appear to be ignoring an agreed arrangement and trying to pressurise him onto paying when he cannot afford it. We are worried about what to do next.

Is he now making payments to 1st credit? Has he written to them explaining the circumstances and the fact that his other creditors all have accepted £1/pcm tokens?

Can the debt be set aside in any way.

No, only judgments can be set aside.

Can they be made to stop harassing him.

As above, the first step would be writing to them and explaining the situation. :thumb:

He also has not made a claim for the PPI which he believes he was missold.

The PPI would have to be reclaimed from Lloyds as it would be nothing to do with 1st Crud since they didn't sell it to him in the first place. With defaulted accounts, any redress will normally be applied to the debt and will go towards reducing the balance, however, in some cases, when the account has been assigned, a refund has been paid directly to the debtor. There are no guarantees but it's certainly worth a try, even if it only reduces the balance. :thumb: The first step should be a SAR to Lloyds to obtain statements showing how much PPI was applied to the account over the years. You may want to start a new thread in the PPI section. :ranger:

More details can be given. We have asked for copies of consumer credit agreement.

Documents can be scanned and uploaded monday or tuesday.

Do post up! :typing:

[bailboy]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

With regard to the council tax, it got behind when his mother died, had his niece to look after but no help.

The council tax has been sorted and we are not too concerned with the actual amount. Although we will be asking exactly how the debt is made up.

Yes he is the owner of the property, inherited when his mother died. This is mortgage free and there are no debtors secured on it.

We went through the whole not letting in bailiffs and all doors and windows locked, even if just putting rubbish out before with the council tax. They tried taking possession of vehicles were not even his.

It concerns me that they could now turn up at the property and with the new laws take a car, even if it is not his. Although not worth more than a £1,000.

Both the 1st Credit and Connaught know about the payments as the balance reduces on there letters.

He has a negotiated agreement how can they ignore that. Should I ignore it. should I ask for proof of the consumer credit regulated debt, ask for a subject access request as they are the data controller, what good would it do? Or claim PPI form lloyds.

What I don't quite understand is the barclaycard which is with lowells, has lowells as the creditor on my credit file and barclaycard as satisfied. With the 1st credit one they appear as creditor and there is no mention of lloyds either as open or closed.

Why is it different with the lloyds/1stCredit/Connaught.

do I continue with lloyds or change my payments to them thereby saying I owe them the money. They do not appear to want to accept what I can afford and press for full payment.

[Wombats]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

Can I ask about the situation prior to this. You say he had anxiety, stress and depression. Did he see the doctor about this? Does he still suffer? Is he on any medication? Does he see anyone (GP, Psychiatric department etc...) ?

How did the initial level of debt come about - a high balance on a credit card while having no job (how did he have the card with that type of balance allowable?), the Council Tax Flaming Parrot has asked about above - it would appear to be 4-5 years worth of CT not paid. Why?

The CAB staff were wrong - of course they could have helped! Not a lot we can do about that except whinge about CAB.

CAB were then helpful - has he been back to the CAB to see what they say as they've already a relationship with the creditors? If not, it might be a good idea.

Must say your summary is excellent - I wish everyone was so diligent in keeping records.

[Wombats]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

With regard to the council tax, it got behind when his mother died, had his niece to look after but no help.

The council tax has been sorted and we are not too concerned with the actual amount. Although we will be asking exactly how the debt is made up.

This needs doing - it's a lot of CTax (4-5 years worth)

Yes he is the owner of the property, inherited when his mother died. This is mortgage free and there are no debtors secured on it.

We went through the whole not letting in bailiffs and all doors and windows locked, even if just putting rubbish out before with the council tax. They tried taking possession of vehicles were not even his.

It concerns me that they could now turn up at the property and with the new laws take a car, even if it is not his. Although not worth more than a £1,000.

Don't let them in, don't keep any of your vehicles outside or nearby.

Both the 1st Credit and Connaught know about the payments as the balance reduces on there letters.

He has a negotiated agreement how can they ignore that.

Was this agreement negotiated before or after he inherited the house?

Should I ignore it. should I ask for proof of the consumer credit regulated debt, ask for a subject access request as they are the data controller, what good would it do? Or claim PPI form lloyds.

Reclaim from Lloyds - likely to be used to offset the debt, but occasionally paid direct to you. Start new thread in ppi section for this.

What I don't quite understand is the barclaycard which is with lowells, has lowells as the creditor on my credit file and barclaycard as satisfied.

It sounds like B'card have assigned (sold) the debt to Lowells. It would have been sold as one of several hundred. Lowells then assume the rights and responsibilities B'card had previously, just as 1st Credit has with the Lloyds debt.

With the 1st credit one they appear as creditor and there is no mention of lloyds either as open or closed.

Why is it different with the lloyds/1stCredit/Connaught. Why is what different? The debt is owned by a different company, and different companies act in different ways.

do I continue with lloyds or change my payments to them thereby saying I owe them the money. They do not appear to want to accept what I can afford and press for full payment.

Keep paying your £1 per month to 1st Credit (NOT Lloyds).

I'd go back to CAB and get an up to date review.

[bailboy]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

The debts on the credit were built up whilst off work and on benefit. He had just returned from sick with a heart condition and had been in work for about six weeks. Then he had to give up work to care for a terminally ill mother and his two nieces.

One of the nieces was troublesome and created a slander campaign. During this period he was signed off with the anxiety and depression. The bank were aware of the benefits he was on and why. They kept upping the limit. On one occasion they instructed him to withdraw cash on his credit card, to put in his bank account to cover his standing orders.

he had no careers allowance for his mother. The niece that remained in his care after his mothers death (2007) he received no support for her care even though he was housing, clothing and feeding her she was 15. Originally the benefits were paid to his mother upon her death the case worker said they would get them transferred over but they never did.

This is where the falling behind with the CT started.

With regard to the CAB they are not that great. It took four visits taking 20 hours including queuing time over 2 weeks just to get the bailiffs for the council tax to be called off for 4 weeks by which time 2 of those weeks had elapsed.

He finds it very hard to even cope with talking about me with this let only spending hours at the CAB to re do what had already been done.

[Wombats]

Re: Help needed with LLoyds Credit Card , chased by 1st Credit & Connaught Collection

The debts on the credit were built up whilst off work and on benefit. He had just returned from sick with a heart condition and had been in work for about six weeks. Then he had to give up work to care for a terminally ill mother and his two nieces.

Is this an ongoing heart condition which prevents him working full time or has any other effect on his ability to work?

Were Social Services not involved with helping care for his mother?

One of the nieces was troublesome and created a slander campaign. During this period he was signed off with the anxiety and depression. The bank were aware of the benefits he was on and why. They kept upping the limit. On one occasion they instructed him to withdraw cash on his credit card, to put in his bank account to cover his standing orders.

That is disgusting advice and worthy of a complaint if you have proof.

he had no careers allowance for his mother. The niece that remained in his care after his mothers death (2007) he received no support for her care even though he was housing, clothing and feeding her she was 15. Originally the benefits were paid to his mother upon her death the case worker said they would get them transferred over but they never did.

Why? Why did he not try to pursue the transfer? The case worker said they'd do it, they should have done it.

This is where the falling behind with the CT started.

With regard to the CAB they are not that great. It took four visits taking 20 hours including queuing time over 2 weeks just to get the bailiffs for the council tax to be called off for 4 weeks by which time 2 of those weeks had elapsed.

Sadly the demand for their services outstrips their ability to supply the service. It is common and advice varies enormously from one bureau to the next. You could try National Debtline - they're pretty good.

He finds it very hard to even cope with talking about me with this let only spending hours at the CAB to re do what had already been done.

Is this due to the depression / anxiety? Is he on medication for this and under a GP / consultant? It is relevant to the debt.

Wombats