Advice on 2 debts please.

[Thinksalot]

Hi all. First post here and I am not sure if this is the way to go.

Basically I have got myself into financial difficulty.

I do not work nor do I qualify for JSA although I am looking hard for any kind of work. I can't even bag an interview with McDonalds despite many tries.

Now I defaulted on my credit card with Lloyds. It was one of those things where I spent (my husbands wages) on paying the credit card then using the credit card to live of, then the cut my limit from £11,000 to 9,200, which threw the spanner in the works.

I accept full responsibility BTW.

Last year I was contacted by Moorcroft. I explained the situation & offered £10 a month for now until things improve (which they may well do soon if we get lucky with a war pension claim) and set up as standing order which I agreed to pay on the 4th of the month (although I set it up to the 1st of the month & have been paying this since last year right up to this month. I have the agreement from Moorcroft saying I would pay £10 a month for the next 700 months (or similar)

However in December I got 2 letters, one from Lloyds saying as we can not reach an agreement etc, they have transfered my credit card to Robinson Way, from whom the second letter was from.

Moorcroft have continued to take payments and have not informed me they are no longer handling this debt.

So why do I have to pay 2 DCA's ?

What should I put in writing to them to tell them this debt is already being recovered by mutual agreement with another company ?

I do intend to pay the debt off ASAP as finances allow as I will not pass this debt onto my children when I die.

My second worry is a debt I have with Lowell. In December 2011 I bought a food mixer as a present for my daughter from Kays. I defaulted on payments because of certain events we were totally broke for months. I went with out food for days just so i could feed my children. They had holes in their shoes but walk to school, we were dire and in February, we even closed old accounts from years ago with £4-8 in just to put food on the table.

By then they kept adding late payment charges etc and demanding the full amout that I could not pay. I did pay £20 at some point, so i still owe £15 for the item. However, my debt with them is £119, that is 300% interest in 12 months, and I am sure this can't be right or fair.

Is there anything I can do about it. I will of course pay back the £15 and I am willing to add a small admin charge as I was late paying them, but I don't want to put anything in writing until I know these added charges are fair or even legal.

Any advice will be appreciated and thank you in advance.

Thinksalot.

[Thinksalot]

Re: Advice on 2 debts please.

Hi again all.

I wrote to LLoyds who just sent me identical photo copied letters saying Robinson way were now dealing with the account, although Moorcroft still continue to accept my monthly payments.

They completely ignored my request for them to explain to me why this was so & why Moorcroft were apparently unaware they were no longer working this account.

I eventually sent Lloyds and Robinson way a copy of my agreement with Moorcroft.

I explained (nicely to Robinson Way ) That is was considered harassment to send multiple agencies to chase the same debt.

I also told LLoyds that it was considered harrasment to employ 2 DCA's for the debt and that Moorcroft were continuing to collect my payments and have not advised me to stop. I also told Lloyds that the new amount was only £1 less than the original debt, despite having made 12 monthly payments.

So Low an behold, I get another letter from Lloyds, almost identical to all the others only saying they had now passed on the debt to Wescott DCA, ( although RW have since contaced me to say they have passed the debt back) but that was 3 DCA's involved at the same time & still no mention about the money I have and am paying moorcroft.

Now The hastle has started with Wescot. A red letter etc saying I must act now & today the automomated phone calls started.

As Lloyds have ignored my request for an explanation ( I bank with Lloyds so they know the money is being paid)should I just go ahead and report them, or make a formal complaint etc.

I am fed up with using expensive ink to print off all these letters, then paying over 60p a stamp to sent all this communication off.

As I told Moorcroft etc when all this started, I DO intend to pay the debt off in full just as soon as my circumstances change & I can get a job and is it advisable to send yet another letter, this time to Wescot telling them I am already paying another company & Lloyds are aware of this ?

Thanks in advance.

Thinksalot

[labman]

Re: Advice on 2 debts please.

If you are struggling to afford what you have agreed, you need to renegotiate. You need to do this over both debts in any case, as both should have stopped charges and interest the moment they discovered you were in financial difficulties.

If you want to mange this by yourself, I would go to this site and follow their advice, it's very good:

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

If you would rather someone negotiate on your behalf, I would go to one of the other FREE charities such as Stepchange, Payplan, National Debtline, CAB etc..... Just esure they do get interest and charges frozen as they won't always fight for you.

The final alternative is to ask around to see if there is a small charity who would take this on for you. Sometimes they have more time to fight personal battles on your behalf than the bigger charities. I think if you were to approach Site Admin, they may know of a suitable charity if that is the path you'd prefer to take.