Hi everyone,

Just wondered if anyone had any advice for me as I am getting sooo stressed!

Ok so i have about £5,500 worth of debts I was paying £120 a month to a debt management plan but then i became unemployed and couldnt afford the payments so i stopped that and wrote to each creditor offering them a lowered payment each month, most weren't happy and only one agreed so I have been just paying the lowered amount to everyone.

I have just started a new job its part time, its only a 4 hour contract but I always work more than 4 hours a week so my wages vary the least i could get is £88 a month, so i was considering a DMP again as I am getting alot of letters etc demanding money for arrears.

I have 2 catalogues I am trying to pay and every letter doesn't seem to get a response ive sent them offers and my budget sheets but they just keep sending me letters saying i am in arrears, which i know and have tried to explain to them why. This morning one sent me a letter saying default notice asking for £194.05 by the 7th Nov which i wont have although i get paid this month i still need to pay my rent bills and other living expenses.

So baisically its kinda 2 bits of advice one what should i do about my debts should i find a DMP or simply offer them what i can afford and also what should i do about the dreditor sending me a default notice?

Thanks

Hi Kay84,

Have you considered sending CCA request to all your creditors - if they cannot supply you with the proper documentation it renders your debts unenforceable in a court of law. The debt doesn't go away unless they choose to write it off ( which doesn't happen very often, you won't be surprised to hear!), but it puts you in a much stronger bargaining position as they cannot take legal action without a signed copy of the original agreement bearing all the prescribed terms. NB, most catalogue companies have never had any CCA in place from day one!

Hiya, thanks 4 the reply, how would I go about this and what should i do if they send me or dont have a CCA?

Without sounding a muppet lol what is a CCA?

Thanks

You are not a muppet at all! Sorry I should have explained - a CCA (consumer credit agreement) request is a request to see a copy of the original agreement that existed between you and your creditor when you first took out any credit. There are lots of template letters available on the web; google something like 'CAG CCA request template letter'. Send it by recorded delivery (preferably to an address that doesn't contain a PO box no, so it can be signed for) with a £1 postal order left blank, so they can fill in the correct payee themselves. DON'T sign any letters to creditors; type your name - some creditors have been known to scan your signature and fake an agreement! The creditor has 12 working days, begining from the day after they receive your request. During these 12 days the account is in dispute and they are not supposed to take any further action until they supply the CCA copy. If they persist, inform them the account is in dispute and ask them to hold the account until they have complied with your request. If they fail to supply you with the required documentation within the 12 working days, they are in default and cannot enforce the debt (although that doesn't always stop them trying). If at any time following the 12 days they are able to supply a correct copy that contains all the prescribed terms then they cease to be in default and can collect on the debt again.

If they do send an agreement, scan it or photograph it with a digital camera, post it up on site (after removing your personal details) and ask people on the forum to have a look at it to see whether they think it is enforceable - don't take the creditors word for it being a correct agreement; they'll scribble on a chewing gum wrapper and tell you it's leaglly binding if they think you'll fall for it!

It is thought that 95% of agreements are unenforceable. Generally, the older the debt, the less likely they are to have a correctly prescribed agreement. Catalogues in particular usually never have an agreement. If they don't have an agreement you are in a much stronger bargaining position. In case law the money is regarded as a 'gift'. You can refuse to pay, offer low monthly payments of say £1 or offer a full and final settlement of around 10%: it's up to you!

Best of luck!

Kay84.......The best way forward for you is to go to Citizen's Advice Bureau or a goverment funded debt agency.....they are used to dealing with such matters on a daily basis.......they will also advocate on your behalf .....you dont have to worry about saying/writing anything, they will support you....good luck

CAB are a great organization, who do a lot of good, but please bear in mind that although they negotiate for you initially, experience has shown that people still get bombarded with letters and phone calls from creditors and DCAs. They are supposed to deal directly with CAB, but frequently do not. CAB themselves have complained about this. If the creditor does not accept the offer CAB puts forward, there is not much else they can do. All this is borne out by a friend's experience - after 6 months his file was closed and he was left to deal with the creditors on his own. I suppose that experience will vary from CAB office to CAB office and perhaps some people have had more luck with them than my friend.

In addition, I believe that CAB can only arrange a debt management plan for you if you are in receipt of certain benefits. I believe you said you were working, didn't you Kay84?

In my experience CCCS will only negotiate for you if you have a certain level of disposable income.

I'm not trying to put you off Kay84; both these organisations are excellent sources of information. But if you think you will never have to speak or write to a creditor ever again, you are likely to be disappointed. Please don't think I'm being negative - make the best use of all the free information you can get - I just want to give you a realistic appraisal of what assistance they can offer.

You can set up a debt management plan with your creditors yourself, but if the catalogue company don't have a CCA agreement they don't have any right to collect on the debt and there is a chance you can get it written off! It's entirely your decision - best of luck!

Thanks everyone I never knew any of this, its all so confusing!

I will do this, the thing is i am sure at least 2 of my creditors are PO box addresses, should I find another address or still send it 2 that one?

Thanks

You could send it to their head office address - their internal redirection should ensure it finds the right department. BTW mark it for the attention of the credit compliance manager, if requesting CCAs, SARs, etc

Hiya, I sent off the letters and £1 postal orders to my creditors and found the normal addresses not PO Box ones, i sent them on the 2nd Nove so they probably got them around the 4th but ive heard nothing back off any of them just had one letter from a catalogue saying i was in arrears again.

Anyone have any advice on what I should do now?

Thanks x

Did you send them special delivery or recorded first class?? If you send anything to your creditors or debt collectors then as a minimum it should be recorded first class so you can prove they have received it.

They have 12 days to send you a copy of the agreement otherwise the accounts are in dispute. Sit back and enjoy the peace!!

You didnt like my suggestion of CAB?

I went to my local CAB after trying to ring them several times and not getting through and I asked if I could make an appointment but I was told i had to ring them and make an appointment which is abit stupid really I dont know why i couldnt jst make an appointment there and then. I have tried ringing several times on every day that its open and not got through!

No i didnt do recorded delivery as I didnt have the money at the time... oops, should i send them again?

That's so sad about CAB, does yr local council have a debt/money advisory service

Not as far as i know, but i will find try find out. I caontacted some free debt advice online and they suggested what I am already doing as i do not have a income which is definately over £100 a month I cant start a free debt management.

If you sent £1 postal orders with each one and have the reference numbers then you could ring the Post Office on 01246 542091 and get them to tell you when and if they have been cashed. This would be proof they have received your request and then just start the 12 days from then. If you haven't kept the ref numbers then I would suggest that you resend them recorded first class