Debts Being Passed to DCA's

[daveymck]

Have been reading the forums for a while and using the advice posted to others in the past, but want to put down my situation as things getting to the point of being passed to DCA's and want an idea I guess of where if anywhere i can go now.


Current Situation

I have a number of credit cards, unsecured loans and overdrafts totalling around £47,000 as well as a secured loan and mortgage. The property has small equity and possibly negative equity at the moment, but with partner 3 kids and a multitude of pets bankrupcy and losing the house is somthing we want to try and avoid.

There is currently zero arrears on the secured loans although from this month I have agreed a reduced payment on the loan which will start to generate arrears.

I am a contractor and out of work since May, this came after a 6 month lack of work last year as well so the money in my company dried up in July and I am now on Jobseekers. As I run a LTD company bakrupcy would have an affect there too.


I have worked with payplan and done a I&E budget which has a £800 deficit so there is basically no spare money to pay the unsecured debt and on most of them I am two months behind.

I have written to the unsecured creditors offering £1 payment until I get back into work and can go back to regular payments likely working through payplan.


So far I have had three responses to my offer

Capital 1 - happy to put me on long term plan so accept current payment

Cahoot - rejecting offer as is a self help one if I offer again through CAB they are likely to accept.

First Direct - have withdrawn banking and will be sending a final demand for full amount outstanding if I dont pay it will be passed to a DCA. This is for a current account and credit card that they have merged together when they withdrew banking.

I am awaiting responses from Lloyds TSB, Barclays and Barclaycard x 2


Bank and Credit Card Charge Reclaims

I wrote as well las week requesting repayments of credit charges

Credit Cards

Barclaycard - have repaid £500
First Direct - repaid £456
Lloyds TSB - Awaiting response


Banks

I applied under the hardship citeria.

First Direct - no response
Cahoot Bank account - no response
Cahoot Flexi loan account - no response


I am also awaiting the outcome of my claim against picture for misold ppi which if approved I am guessing will be around £20k


Last year I handed my car back to the company who sold the debt to a DCA, they offered to close the account with a hugely reduced lump sum payment which I did so that debt is cleared.


So guess looking for advice on anything else I can do and also what is likely to happen once the DCA's get involved as presently I still have no disposable income.

[Curlyben]

Re: Debts Being Passed to DCA's

This is typical of the OC's I'm afraid.

Have a read through this as it will help alot: ~~~ Consumer Credit Agreements - A Guide ~~~~ inc. Letters - Legal Beagles

[Mochamoo]

Re: Debts Being Passed to DCA's

Banks

I applied under the hardship citeria.

First Direct - no response
Cahoot Bank account - no response
Cahoot Flexi loan account - no response

When did you write to them? I found out from Amethyst the other day that they have to at least acknowledge your claim within 5 days of writing to them- saying that Natwest have just ignored my letter for the second time lol x Did you send them all the relevant info like copies of demand letters, arrears letters and and IE sheet? xxxx

[Curlyben]

Re: Debts Being Passed to DCA's

Oooops Db error on posting

[daveymck]

Re: Debts Being Passed to DCA's

Quick update and question.

I have now had rebates from all my credit card companies for the charges. However they all rejected my offer of £1, barclays are passing my account to Mercers, as yet havent had any contact from them.

First Direct have replied asking for evidence of hardship so I will get that sent off, as yet havent had the final demand from them.

Cahoot havent had any response on the charge refund, so looking for advice on what I should do next, can I try and use this to get a hold on the interest and action on my accounts?

Spoke to the CCCS to get advice and on the unsecured credit they said the worst that can happen is that they get a ccj against me which on my budget would be a £1, and as long as I kept up the ccj payment no further action could be taken. Is this defintaley the case?

[Amethyst]

Re: Debts Being Passed to DCA's

Yes. They could also get a charging order against your property if they get a ccj although most judges do not like CO applications unless a payment arrangement has been defaulted.

Keep paying your £1 as offered monthly.