Hello there! Can anyone help us deal with my daughter's debt collectors please?

[Ethel Fruitcake]

Hi everyone,
I joined your forum the other day to try and find out who CDUK were, as they keep leaving phone messages for my daughter.
I''m not that surprised to learn that they are a Debt Collection Agency, which along with Lowell Finance, are trying to get my daughter to repay money she owed to Ikano and very.co.uk respectively.
The trouble is, she's in her 3rd year at Uni, living away from home, and has no money to pay her creditors. She has managed to get bits of work when she's come home in the summers, but it's never been enough to enable her to clear any of the amounts outstanding. I don't know about the Ikano debt, which accrued through her use of a Newlook card, but the debt to very.co has increased rapidly due to them imposing financial penalties for missed payments on top of their already outrageous interest rates. I thought she'd explained her circumstances to them and that they'd agreed to shelve repayments until she finishes Uni but as we're now getting mail from Lowell, it seems the larger debt's been passed to them.
The Lowell debt is £1103 and the CDUK debt is £171, and of course she also owes the bank for her overdraft, which I think is about £2000, but they're not asking for that yet, thank god!
I know she's the one who should be sorting all this out, but she's up to her ears in Uni work to finish off her final year, and I'm the one getting the phone calls and nasty letters! She is applying for jobs as well to try and keep afloat but whatever she gets it will only be part-time so she's never going to have enough to pay off these amounts while she's studying, and the situation won't be much better after she's finished because then she'll also have the bank to pay back, plus rent, utilities and housekeeping to find, and if there's anything left over, she can pay me back all she's borrowed as well!
I just don't know what her best option is, and I'm worried that Lowell and CD will increase the amounts they want to recover if she doesn't contact them - CD say in their latest letter that 'Failure to pay this balance in full or contact us to set a plan within 7days will result in further and unnecessary communication.' Does 'unnecessary' mean they'll charge her for it?
I'd be very grateful for any advice on this.
And should you wish to keep up-to-date on their latest corporate chicanery, at the bottom of their last letter it says 'Collect Direct (UK) is a trading style of Teleperformance Limited, with a registered address in Bristol, whereas at the head of the letter they give their CD(UK) Leeds address. Errrmm... what the hell is a 'trading style' anyway???
Many thanks,
Ethel

[PAWS]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

Hello Ethel
First of all you don’t sound like a fruitcake!!!!! I am not very clever with this sort of palaver but I do think your daughter is going to have to address these issues. You need to get her on here. One of the clever chaps will help her to sort it out. I know she is busy and studying hard but this is one of the best educations you can get in ‘life skills’ and as you know yourself we all have to learn those. It will be ok.:okay:
I would also like to say you are a mother in a million. Now here is a big hug and try not to fret.:hug:

[MIKE770]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

And should you wish to keep up-to-date on their latest corporate chicanery, at the bottom of their last letter it says 'Collect Direct (UK) is a trading style of Teleperformance Limited, with a registered address in Bristol, whereas at the head of the letter they give their CD(UK) Leeds address. Errrmm... what the hell is a 'trading style' anyway???


Bristol is just mail forwarding/sorting address away from main offices of many organisations, ignore the address and stick to the main company one.

[Ethel Fruitcake]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

Thank you for your replies, Paws and Mike
You are quite right Paws, my daughter should be sorting this out herself. I did try to persuade her to look at declaring herself bankrupt last year, but I didn't push it too much as I wasn't sure it was the right option for the comparatively low debts she's got. She did contact a Debt Management service but wouldn't send the template letters to her creditors explaining her situation because she thinks she'll be able to pay it all back 'sometime' and anyway, 'nobody actually writes letters anymore, Mum!!' She doesn't seem to understand that nobody's going to wait indefinitely and without some explanation.
She definitely needs to get a grip and obviously won't if I keep sorting it all out for her, so I think I'm going to butt out and let things take their course.
A couple of questions though, if you don't mind. Do you think these Companies might send bailiffs here as this the address they've got for her, and would they be able to demand entry and take anything? She says she'll contact the 2 Companies and give them her Uni address but the letters are still coming here, so should I contact them myself and give them her new address and mobile number? I don't want to make things any worse than they are, but neither do I want to hassled by bailiffs when these are not my debts. Any advice would be very welcome.
And thank you very much Paws for your lovely comment! I wish my daughter saw it that way, lol!!
Ethel

[Kati]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

I did try to persuade her to look at declaring herself bankrupt last year, but I didn't push it too much as I wasn't sure it was the right option for the comparatively low debts she's got.

There are other options than your daughter declaring herself bankrupt Ethel ... a Debt relief Order (DRO) is another one she could look at
The GovUK site has a lot of info that you might find useful - https://www.gov.uk/options-for-payin...debts/overview

I'd personally suggest that your daughter gets advice from her local CAB (and that you send further letters from these dca's back with "no longer at this address" written on them).

Please don't worry too much about bailiffs coming round; they would not be able to enter the house or sieze goods that do not belong to your daughter (and there will be lots of help and advice for you from the knowledgeable Beagles before that happened anyway)!!

Finally, I would like to echo [MENTION=31453]PAWS[/MENTION] in saying that you are a mother in a million! - I wish I'd had a mom as caring and supportive as you while I was 'growing up'

K xx

[Ethel Fruitcake]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

Hi Kati,
Thank you for the link you gave me - I never even knew there was any such thing as a DRO!! I'll definitely be passing that info on to her as she fits the application criteria and it would at least stop her worrying about not being able to pay the debts off like the Collectors want.
I would send the letters back but I've already opened them despite not being the addressee. I'll send back any more that arrive though as you suggest.
And again, thank you for your lovely comments, they're greatly appreciated!!
x

[FlamingParrot]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

Please don't worry too much about bailiffs coming round; they would not be able to enter the house or sieze goods that do not belong to your daughter (and there will be lots of help and advice for you from the knowledgeable Beagles before that happened anyway)!!

A couple of questions though, if you don't mind. Do you think these Companies might send bailiffs here as this the address they've got for her, and would they be able to demand entry and take anything? She says she'll contact the 2 Companies and give them her Uni address but the letters are still coming here, so should I contact them myself and give them her new address and mobile number? I don't want to make things any worse than they are, but neither do I want to hassled by bailiffs when these are not my debts. Any advice would be very welcome.

No, they can't say bailiffs without first obtaining a CCJ. Even with a CCJ, bailiffs are very seldom used to collect this type of debt, most bailiff cases you'll find relate to council tax or unpaid court fines.

[FlamingParrot]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

Hi Kati,
Thank you for the link you gave me - I never even knew there was any such thing as a DRO!! I'll definitely be passing that info on to her as she fits the application criteria and it would at least stop her worrying about not being able to pay the debts off like the Collectors want.

Do bear in mind a DRO is also a form of insolvency which will stay on record for a year (usually) and then on her credit file for six years. As with BR, it could have an impact on her future work and housing prospects.

[FlamingParrot]

Re: Hello there! Can anyone help us deal with my daughter's debt collectors please?

You are quite right Paws, my daughter should be sorting this out herself. I did try to persuade her to look at declaring herself bankrupt last year, but I didn't push it too much as I wasn't sure it was the right option for the comparatively low debts she's got.

Bankruptcy is a drastic measure which should only be used as a last resort. It can have lasting consequences and, depending on her line of work, it can seriously damage her future employment prospects.

She did contact a Debt Management service but wouldn't send the template letters to her creditors explaining her situation because she thinks she'll be able to pay it all back 'sometime' and anyway, 'nobody actually writes letters anymore, Mum!!' She doesn't seem to understand that nobody's going to wait indefinitely and without some explanation.

Dealing with debt/DCAs is one area where EVERYONE should still write letters, it's no good dealing with these matters over the phone because you have no record of what was agreed or said, and those people are trained just to press for payment.

It is useful to communicate (in writing) with creditors and keep them in the loop, whether you do it to dispute the account, ask them to accept a reduced or token payment or for a payment holiday, merely ignoring them won't make them go away and some may be tempted to attract attention by issuing a claim. :scared: