Support with intrum.

[Roddaz77]

Hey guys ... I'm working with someone at the moment who has a big debt issue and has come to me saying they owe around 3.5k to a credit card company... they have not made any payments and the account defaulted in November 2014.

I know its 6 years until it is statue barred but that's 12month away and the letter have been coming in by all accounts once a month. About September he was offered a settlement figure of around 700

what I would like to ask is

what's the likely good of them now coming in with a letter of claim and taking him to court... do we keep our heads in the sand as he has avoided it for 5 years now without any action..

or

would the best thing be to send a cca request saying we don't knowledge the debt but would be willing to offer a lower amount? Paid at a fixed rate ?

The person is on JSA so can't afford a lump sum... but I'm sure could afford to pay off bits...

Thanks in advance

[Amethyst]

If it default in November 2014 then it won't be statute barred until November 2020 ( so 24 months away not 12 ). If they have sent a settlement figure then the debt is on their radar and yes they are likely, probably within the next 6 - 12 months to come back with a court claim.

Do you have any idea what credit card it was, who the Debt company is, and when the credit card account was first opened ?

Is this £3.5k their only debt that you are aware of ?

A £700 settlement is a pretty good deal. Might be worth seeing if they would accept a similar settlement amount ( like £1000 ) payable over 2/3 years IF that would be affordable. A CCA request can work both ways, it can push them into court action quicker ( as they have a confirmed contact ) or it can put them off ( if they can't get the agreement )… so worth figuring out what the maximum offer could be ( so full Income and Expenditure sheet and ensure all priority debts are sorted ) On JSA it's unlikely they could afford to pay very much at all in the way of instalments thought - do you know if they own their own home ?

[Roddaz77]

Hi thanks for the speedy reply..

oh god yes it's 24 months to 6 years haha my maths !!!

it was barclays who the card was with.

the debt company is intrum

card opened around August 2014
payments made a few months then got into trouble financially after being made redundant from work.
has been unable to secure work since.

He has another debt he thinks for 1.2k but that is not on the radar as no letters in a while.

no they rent their home through the council.

he says he can lend 500 off his sister in law who would be willing to put that upfront.

Obviously he can't pay 3.5k but would an offer of 500 be enough for them to accept do you think? Rather than go through court.. I'm guessing they would have bought the debt around 350 so would be a bit of cash for them or do they normally want the full? Seen as if they Took him to court for the full amount and got a ccj pursuing him for a regular a amount could take 15 years to pay off roughly ...

what would you suggest the next action be?

ignore hoping they forget him?
or
make the dreaded contact with an offer for 500 without predujice or acknowledgement and ask for the documents hoping they don't have them?

thanks so far for your support

[Amethyst]

You're probably about right on the amount paid for the debt, but they have profit margins lol.... so think £700 was likely the lowest offer.

Opened August 2014 , made payments for a few months and defaulted November 14 ?? hmmmm think some dates need looking at there... definitely request documents. I think a SAR to the original creditor (Barclaycard) is the first step - to get to what the actual situation is.

Subject Access Request Letter

And a CCA request to Intrum

CCA Request
Though I might wait a little bit - say in 3 weeks time, so that the SAR comes back about the same time the CCA response is due.

While that's all in progress you could get him to investigate more 'formal' options through Citizens Advice or Stepchange. On JSA his income will be quite limited - and if he's under £10k and not too fussed about his credit file and just wants to draw a line under the debt issues he could consider a Debt Relief Order or something like that. It depends really what his goal is... there doesn't seem to be an immediate threat from these debts ? and last he heard was an offer to settle for a third of the amount owed? so he's thinking of trying to take advantage of that - without upsetting the apple cart and just ending up with a court action ? And then considering once the Barclaycard is settled off the otherone might pop it's head up, and then he's back to square one facing a CCJ anyway.

( Just rambling out loud there really but do the SAR and CCA requests )

[Roddaz77]

Sorry that should have read it was opened 2013

so he needs to send off a sar to barclays
wait three weeks and cca intrum? Have I got that right?

so if he can pay or they did accept his offer do these companies talk.. I know gdpr they can't actually bit what we don't need is paying this one and then out of the blue they hear he's got money (even though he does not) and come calling...

In the likelihood they accept the offer would that leave that account on his credit file until 2020? He is looking to improve his credit as much as he can so really doesn't want a ccj or court but say once the income and exp forms done and he can afford 20 a month would they accept a lower amount do you think spread over a year 2 years.... otherwise it's a long payment plan for them to get paid....

also after this amount of time what's the likelyhood they can provide 'evidence'of the debt? Say he opts for court would it be right if they can not provide a cca and sar then they don't have much of a case against?

[MIKE770]

if it ever came to it a Tomlin Order would if agreed stop ant CCJ as long as kept to, BUT long way off if ever needed, as far as as a CCA then if they produce one ( that late 2013 well likelihood they have one (enforceable or not) as far as credit record forget it for a few years , nothing changes as long as facts are recorded correctly, , low pay is another issue here , so many things, but that is for a later date?

Also some companies take advantage of peeps who show that they are worried and insist on full repayment knowing a peep is on the hook, so tread carefully.

[Roddaz77]

So a tomlin order is that just available to people on benefits and is it agreed with all parties?

the account was opened mid 2013 .. I'm sure it has been transferred twice now from.what he says.

would you see an agreement being available for this? Or is he best at the moment just burying his head and seeing if it goes away or calling a bluff and asking for it... hoping that they can't produce.

what if they can't provide one? Can they take it to court? Or do they do that anyway hoping you will crumble and pay or hope the judge will seen in their favour

thanks

[MIKE770]

tomlin order can if agreed be anybody, (last resort use) if necessary way down the line, so many things can happen in between? Amethyst