100k debts - advice please

[migi]

I used to work for the CAB and Law Centre. I had a number of complaints re. CCCS and Pay Plan, which are both funded by creditors. Firstly, they NEVER challenge debts and you could find yourself paying the debts forever more. Secondly, they have far too many clients and are unable to give you the attention you deserve.

 

Specialist advice is a bit like accountants - they cost you money but in the long run you end up saving.

[sequenci]

I used to work for the CAB and Law Centre. I had a number of complaints re. CCCS and Pay Plan, which are both funded by creditors.

not strictly true for CCCS who receive government funding as well as funding from the private sector

Firstly, they NEVER challenge debts

er... i know for a fact that NDL advisers will, I also know that CCCS staff have very good training on The CCA too, I would imagine they will challenge debts if it's a valid reason to.

 

Specialist advice is a bit like accountants - they cost you money but in the long run you end up saving.

why pay for "specialist" advice when you can get "specialist" advice for free on this very forum.

[shane5408]

CCCS & Payplan are not useless. At the very least the merit of using them is that they're registered debt charity's and creditors have very little choice but to adhere to their wishes should they get involved. I would echo sequenci's adivice though, if you do decide to use them ensure you speak with a qualified money advisor, not a general advisor.

 

the National Debt Line are better qualified on the CCA, they also do some of the training for CCCS and Payplan employeees.

 

First thing I would advise you do is send of all the CCA requests to the creditors, depending on what comes back we can then advise whether it is possible to challenge the enforcability.

 

kind regards,

shane

[shane5408]

 

 

why pay for "specialist" advice when you can get "specialist" advice for free on this very forum.

 

 

Absolutely:D

[payingonlyencouragesthem]

Will have redundancy payment of about £50k in three months. Then only pension of about £10kpa. Would hope to have at least somethging to pay monthly. Hoping to achieve F&F settlement when capital realised - possibly 40-50% maybe?

 

Divorce just initiated by partner. Hope to come to informal arrangement but will have to split house sale proceeds. Say £70k to come each.

 

 

Don't waste this money on paying creditors with unenforceable debts - that would be sheer stupidity in your circumstances. Find out which debts are enforceable (my guess is around £10k, provided they were pre-2002) and try to set up token payment schemes with these creditors. Even if the whole lot is enforceable in most cases you will be able to get away with a fiver a month per creditor.

[Scribes]

Not had replies to last post? Any takers???

 

Have tried to set new bank account but owing to credit rating seems to be difficult. What's the best way to obtaon a suitable account to pay salary to and to then be able to write cheques or make payments, such as DDs for mortgage and rates etc.

 

Not sure if I will get any more readers as no response to last set of questions.

 

Any help available.

[Oh Boy!]

contact any bank, but i say Nationwide,

 

You need to ask for a basic bank account, this will give you cheque book, visa electron, and DD facilities.

 

DO NOT ASK FOR CREDIT FACILTIES

 

THERE ARE NO CREDIT CHECKS INVOLVED, SO AUTO ACCEPT

[The Phantom]

You should be able to get any bank account a bankrupt person can get

As my OH has just been discharged from bankruptcy I speak from own experience

You should be able to get a cashminder account with the Co-Op or the basic account with the Nationwide.

You won't have an overdraft or cheque book facility, but Co-Op will issue you with a debit card (Visa / electron) which can come in handy

[Scribes]

Thank you Phantom and Oh Boy!

 

Have tried Nationwide but because already have ISA they've done a credit cheque and no go. Will try Co-op but how do you make payments where cheque required?

 

Any other alternatives? Restricted because of number of credit cards and links to banks etc.

 

What should be asked for; just straight forward bank account with DD facilities?

 

What's the poilcy with regards to making contact with current bank which holds DD details for transfer to new one with bank to be found. Salary to be paid in here imminent and owe debts to Credit Card side of company.

[Oh Boy!]

Hold on a minute!

 

I opened a bank account with Barclays its as basic as you get, i did it for the fun of it.

 

I got CHEQUE BOOK- VISA ELECTRON -AND DD FACILITIES.

 

MY FRIEND WORKS IN BANKING THERE ARE NO CREDIT CHECKS.

 

Ask for a basic bank account, please google basic bank account, for quick and easy reference.

[fermi]

The FSA's booklet on 'basic bank accounts' is here:

 

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

 

It includes a table of the currently available ones (should be updated soon) and the facilities they offer.

[The Phantom]

You should have been able to get the NAtionwide one, as long as you asked for their basic cash account

You mustn't just ask for a current account, they will automatically assume you want the one that comes with switch card, cheque book, overdraft etc.

Those you are unlikely to get

But you should be able to get the same accounts a bankrupt can get and the Co-Op cashminder is one of them, so is the Nationwide one

However, I am from own expeirence pretty convinced none of these will give you a cheque book, they are simple in-and out accounts with DD facility.

The best they will do is a Visa Electron debit card...

You may have to learn to live without a chequebook for the time being unless you find a basic cash account that will offer you one, but we never found one that accepted us

[Oh Boy!]

I was supplied with a cheque book and electron (useless card)

[fermi]

The Barclay's basic account is here:

 

Cash Card Account - Current accounts from Barclays - Barclays Personal Banking

 

There is no debit card, cheque book or on-line banking. If you got more with no credit checks then you are very very lucky.

[The Phantom]

The Visa Electron card is of course not as good as a full Switch Maestro, (but has got good points as well if nobody else will give you a card apart from a cash card to get money out of a machine)

The Electron will let you pay in shops that take it (check before you head to the till !!)

Tesco for some strange reason won't take the Electron card, but we do our shopping at Lidl anyway, and they take it.

You can also use it to pay for a lot of things online, including paypal, ebay etc - something you can't do with a basic cash card

So before rejecting the Electron, think about what it can offer you if you can't get a Switch card

I am also pretty convinced the basic cash accounts banks offer to people with bad credit rating or who are bankrupt don't come with a cheque book

Well, we couldn't find one anyway

But most things these days you can pay via standing order / direct debit anyway

Those who insist on a cheque (who does nowadays ?) will usually settle for a postal order, too

So don't worry about the cheque book now - you can live without one

[PriorityOne]

The actual amount outstanding on Credit Cards is £130k.

Credit cards are with M&S, Tesco, Sainsburys, City Financial Europe, MBNA, Alliance & Leiscester, TSB, HSBC, Goldfish, Mint, Co-Op Bank, Bank of Scotland, Capital One. Some with two cards and some with one.

A loan with Morgan Stanley of £12k. Amounts ranging from £1k to £9k.

 

 

Scribes, are you still struggling to make monthly payments on any of these... , have you contacted them to say that you are experiencing financial difficulties (not on the 'phone) ?..., or have you just stopped paying ?

 

As they all appear to be still with the original creditor, I would contact each one in writing in order to explain the situation that you're in.... request that all interest on the account be frozen, enclose an income/expenditure breakdown and a token payment (between £1-£5). You can then send a CCA request separately in order to see if anyone has an Agreement.... this will cover you in case they decide to get heavy with you at some point and don't have an Agreement. If they don't have an enforceable Agreement, you can then consider a low F&F settlement in order to close the matter for good, or withhold any further payments on accounts that will forever remain in dispute.... but all that's a bit further down the track.

 

If any of them do produce an enforceable Agreement, you can look into re-claiming all/any of the unlawful charges that have been applied to each account over the years, which would bring the balance right down on each one.

 

Make sure that all correspondence is sent by rec. delivery and keep the receipts. It's also a good idea to invest (about £1.50) in cheap pocket files for each creditor, so that you know where you're at with each one at all times.

 

One last thing...

 

Don't stipulate whether you pay mortgage or rent.... just list it as "housing costs" in your income/outgoings.... and leave out buildings insurance altogether.

 

[itsamomentintime]

I vapourised £80k worth of credit card debts / overdrafts by simply asking for copies of the original agreements under CCA 1974. Since the creditors couldn't provide them the debts became nothing more than a nuisance on my credit file as this made them legally unenforceable

 

 

flippin' eck!!!!

[linz2011]

Hi scribes

 

I hope you are now feeling a little better - this site is fantastic at lifting your spirit - one thing noone has mentioned is this site is very addictive - need to think about setting up a CAG anonymous lol.

 

Seriously though if you visit National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000 there are templates on there which you can use to deal with your creditors however if I were you I would sent a CCA request to each creditor as this (like someone has already said) will buy you some time and stop the wolves beating at your door for a little while.

 

I hope things are looking a bit clearer but you know there is a lot of support here and you are certainly not alone.

 

Good luck with everything

 

Linz:)

[vandermerwe]

Hi Scribes

 

You've had a lot of advice here in a short time.

 

Having been down the route myself (and still continuing!) I'd just like to add that Priority One's summation and mantra just about says it all.

 

Listen, also, to Sequenci. He's always brief but knows what he's talking about.

 

This, of course, is in no way derogatory to any of the other comments you have received but I will, if I may, add two personal observations of my own.

 

CCCS (Consumer Credit Counselling Service) is excellent once they get their act into gear. Last year they were voted by the "Sunday Times" one of the best companies to work for. The best I can say is that creditors respect them; the worst that they can be a bit bureaucratic.

 

I would avoid the CAB but only because they seems so hit and miss as to whether you talk to an experienced debt counsellor or not.

 

The National Debtline seems excellent, but then I've chucked my lot in with the CCCS and I don't think you can, or should, try and use both.

 

In my opinion (IMHO, as I believe the saying goes) you also need a supportive GP - and there should be some around at £130,000 p.a. - who will listen to you and determine the root of your depression.

 

I am NOT medically qualified but would suggest a sympathetic practitioner could prescribe a SSRI anti-depressant but may need to try several. Prozac was useless for me but I have settled down on Efexor SR (slow release). The generic name is venlafaxine - but if you have the typical GP he/she could react in a bad way to "self-prescribing" though an empathetic one should give it a try.

 

Dear Scribes, I've been there, I am there (can beat you on debt level!) but still have my wife (though almost lost her last week after 45 years to NHS inadequacies) and I'll do my best to support you.

 

You should give Priority One a click on her scales and also Sequenci.

 

That's the blob between the green circle an red triangle at the bottom leftcorner.

 

If you feel I might also have helped you could also give mine a dab!

 

Please keep us posted - I've found there is a lot of genuine empathy and compassion on this forum.

 

Keep smiling and God Bless.

 

Vandermerwe

[moneydragon]

Tesco for some strange reason won't take the Electron card,

 

 

Hi

 

I have had a cashminder account with the co-op for three years now. 99% of outlets accept my visa electron even Tesco. So perhaps Phantom technology has yet to catch up in your area;)

 

The only draw back is I dont have a cheque book but, with so many ways of paying bills these days I dont miss it.

 

Good luck, there is light at the end of the tunnel:)

[empowered]

I have a cash card with Nat West - very simple to apply for online. Gives me SO/DD and online banking - never (so far!) had problems using it for payment. If you need a cheque, you can always get the bank to do one for you made out to the recipient. Good luck.

[The Phantom]

99% of outlets accept my visa electron even Tesco. So perhaps Phantom technology has yet to catch up in your area;)

 

Well, 99% of outlets certainly do not take the Electron card here (southwest of the UK) and Tesco doesn't take it here either. Maybe it is regional, but I would always check before you go to the till to be on the safe side if you have an Electron card

It is quite useful though if you can't get a Maestro Switch

[deborah1985]

Hi!

 

I myself got into a bit of trouble owing people money and i know how frustrating and stressfull the whole thing is so hearing people that are trying to help you, is wonderful!! i must admit that the debt i had wasnt as much as the amount you owe, but the process i went through could still help you, no matter how much you owe. I went on the internet and looked for debt companies that gave free advice. I checked out a few but found that goodbye2debt was the one for me. I gave them a call and they went through all my options with me and listened when i explained the situation i was in, they informed me of the best option for me.

i cant tell you how much of a weight it is off my mind, and if you give it a go you may get back to sleeping at nights?! its worth a go, theres no harm in trying!

 

wishing you luck *

[Scribes]

Update.....

 

Thanks to all for continued support and advice, especially to those offering quality information and detailed responses.

 

Have now written to 21 CCs under guidance from Payplan, although they seem to be leaving it up to me to take the suggested action. Thought that they may have become more involved in taking the action to help. Now await 21 replies!

 

Have been successful in obtaining basic bank account, along with cheque book, debit card and ability to set up DD and SOs.

 

Still suffering with worry and depression. Now on tablets from doctor and still off work. Redundancy now imminent.

 

Plan to offer F&F in a few months time. Not sure of the accepted % of debt though to offer.

 

Contacted CAB but unable to become involved owing to Payplans involvement. Thought that they may still have offered to see me to check validity and verfication of best practice approach.

 

Intend to send letters requesting original CCAs. Does this have implications if just requesting information, considering still awaiting first replies from CCCs.

 

Must reply to specific questions from quality responses on forum.

 

Will provide update in a couple of days for responses and update.

 

Many thanks again to all Forum friends.

[PriorityOne]

 

Intend to send letters requesting original CCAs. Does this have implications if just requesting information, considering still awaiting first replies from CCCs.

 

 

There are no negative implications for yourself at all.... you are making a legal request for information and are perfectly entitled to do that. The good thing about making a CCA request (by rec. delivery) is that if they can't comply with it, it protects you against a creditor/DCA bringing any legal action against you... so, from that point of view... is a useful tool, whatever you decide to do regarding a F&F.