Where do I start.......

[LCM]

Hi,

 

Have been reading lots of invaluable info on the site, however, I'm at the start of what seems to be a very scary pit of 'unknown territory' and want to make sure I'm doing things in the right way.

 

Okay, so I have huge debts, which is why I'm here!! Credit cards over 10 years or so, which have been with Payplan on a debt management plan for 2 years. I've been made aware that these may, or may not, have signed credit agreements which I clearly need to confirm.

 

• So, my first question is should I send Letter N to all the creditors in the first instance?
  
• Second question, should I inform Payplan that I am doing this?
  
• Third question, some of the creditors have passed (sold) on the debt to Debt Collection Agencies, (MBNA over to Link being one).
  

I'm struggling to take in anything past this first point though and am also slightly daunted by court action etc etc. I've also picked up that if there are no signed CCAs, the debt could be unenforceable but that means the debt remains outstanding. So they can't make me pay it but I am left with a bad credit rating forever? Is that right?

 

Any help is very much appreciated.

LCM

[fedup74]

1-yes letter N

2-No need to inform them, they will only try and put you off anyway!!

3-Send CCA request to whoever is chasing you for money.

If the debt IS unenforceable, then it won't disappear and if they don't come up with an agreement it won't disappear but they will be unable to collect on it. If however they find the agreement and it is enforceable (could be months or years down the line) then they can enforce it then (unless it is more than 6 years). It will drop off your credit report after 6 years so, no, you won't have a bad credit report forever, just 6 years!!

[LCM]

Thank you very much Fed Up.

 

I have been issued Default Notices on some (if not all) accounts and have read some info on this which has confused me slightly. I have around £30k debt split between 5 credit cards and 1 loan all taken out 6-8 years ago. For the first 4-6 years I was paying the required amounts each month, until it all escalated beyond my control and I had to look at other options.

 

For the last 2 years I have been paying off tiny amounts to each through Payplan (see above). However I know some of the creditors are still applying interest and I know the balance on some of the cards has increased massively since I informed them I was struggling. Payplan's above estimated balances are very much smaller than the amounts stated from the creditor's in their correspondence.................therefore is a CCA letter the best course of action in the first instance?

 

I just want to get the debt paid/illegal charges returned/cleared as quickly as possible and repair my credit file. At the moment I am looking at more than a life sentence and I feel a bit naive. Whilst trying to read as much as possible, everybody's individual circumstances are slightly different to mine.

 

Please help.

LCM

Edited December 11, 2008 by LCM