1st Credit after debt included in bankruptcy?

[Enlighten]

Hi - May I begin by apologising if this is in the wrong place, or if the answers I seek are readily available. At the moment I am in a bit of a state and not thinking/having difficulty focusing...

 

After a period of illness, losing my job, and struggling to make minimum payments against considerable debts, it finally became apparent that due to physical/mental health issues I might never work again, so in 2005, when it got to the point where I was left with two likely outcomes - suicide or bankruptcy - I chose the latter...

 

My problem today is that I have received a letter from 1st Credit, regarding an Associates Credit Card I had that was part of the bankruptcy. The letter is an annual statement from 1/10/2008 - 30/09/2009 - shows no tranactions or additions to the account but does show a balance and asks me to contact them.

 

I did contact someone today and asked why they are contacting me saying I owe them money for a debt that was part of the bankruptcy in 2005, which they are aware of because at that time they were handling other debts from other companies. I was told it would have to be passed onto the Bankruptcy Department and 'just because you have a bankruptcy does not mean the debt just goes away' ? I was also asked if I had been discharged - which I was within six months (2005) as I had no assets and little likelehood of anything changing for the better, which it hasn't.

 

My problem is now, that being a manic depressive, I am now sat here in turmoil wondering what to do and panicking, it brings back the pain, the hurt, the struggle I had to keep paying, the bitterness over it been an Associates 'Advisor' who in 2000, following a mental breakdown, suggested I cancel my payment protection insurances to pay my debts off faster - which proved to be terrible 'advice' when two years later in 2002 I was diagnosed with cancer (clear now), and subsequently (now) when it transpires that the chemo drugs have caused problems with circulation which is causing the bones in my hips to die..., the bitterness over how Associates agreed back in 2000 to freeze interest and charges and accept £45 per month but when I then cleared another debt and started to send them £100 per month they simply started charging me about £40 a month interest, and a monthly late payment/letter charge of £25 per month - all when I was trying my best to do the right thing..

 

So what should I do now - I can't get into too much with these people as both I, my family and my doctors are all too aware that debt and letters like this are a significant threat to my mental stability - the watchword been trying to keep stress levels at a minimum, because letters like this can act as 'triggers' and I really don't want to end up sectioned again or.... dead....

 

What are 1st Credit up to? Have I done wrong by contacting them? I have refused to give them my current address (address on the letter is my parents address) - but i really can't cope with calls, letters and all that harrasment again. Sorry for my rambling on but I just can't find anything on DCA's sending letters like this and what I should do with them, any advice is greatly appreciated.

 

I have no asset to speak of, a car worth a few hundred pounds, I rent my home and live on benefits.

 

What should I do about 1st Credit? A few months ago I had a look at my credit file after been yet again rejected for a bank account and found that both Nat West and Barclaycard were showing accounts that were included in the bankruptcy as in default and outstanding, after the bankruptcy. The Nat West listened and ammended the file within two weeks, Barclaycard were much tougher, insisting that it was their procedure to register a default on bankrupt accounts - they did however mention that it was not them, but a company called 1st Credit that had logged the default? Which odd because its 1st Credit that are now apparently wanting payment of this Associates Account but Barclaycard did eventually delete the default accounts from my credit file.. Help...please..

[mlore]

382.— “Bankruptcy debt”, etc.

(1) “Bankruptcy debt”, in relation to a bankrupt, means (subject to the next subsection) any of the

following—

(a) any debt or liability to which he is subject at the commencement of the bankruptcy,

(b) any debt or liability to which he may become subject after the commencement of the

bankruptcy (including after his discharge from bankruptcy) by reason of any obligation

incurred before the commencement of the bankruptcy,

© any amount specified in pursuance of section 39(3)© of the Powers of Criminal Courts

Act 1973 in any criminal bankruptcy order made against him before the commencement of

the bankruptcy, and

(d) any interest provable as mentioned in section 322(2) in Chapter IV of Part IX

 

Hope that helps, this is from the insolvency act,1986

for you the debt goes away for them it doesn`t it makes no difference if they chose to keep the debt on file it is unenforcible but do contact debt line or one of the charities to confirm this.

[Dodgy Geezer]

Hello.

 

Im so sorry to read your story. I hope you are getting all the help that is available to you. Particularly with the health issues.

 

Personally, if i were you, i would email the Insolvency Service and demand they sort the situation.

Perhaps call them and ask what needs to be done.

 

Regards.

[joemay]

Hi Enlightened,

 

Firstly, welcome to CAG. So sorry to have read about your troubles, I'm very aware of what you have and are going through as my OH has suffered like yourself.

 

I agree with dodgy geezer contact the insolvency service get them to deal with it. May I also suggest that your Consultant/Health Worker write a strong letter on your behalf. No doubt the bank was originally told of your plight and the bankruptcy and this should have been passed onto the DCA.

 

I would then make a complaint to the OFT, stating all the facts and that what effect it has had on you, sending you back into a manic phase. You suffer with mental health issues,you stated there were 2 likely outcomes, suicide or bankruptcy and thankfully you chose the latter. These companies should not be making contact with you. Include a copy of the doctors letter with your complaint to the OFT.

 

I know its easy to say but, don't let these cretins get you down, they have no place in your life, you dealt with your debt and you should now just concentrate on what's good in life:) and your health.

 

You will get lots of support from this site, it has been a god send for myself & OH as I have been able to reassure OH, finding out your rights is so empowering.

 

Take care

Joemay

[phat256]

hi enlighten ihad the same issue with 1st credit ... i have received the same letter and same statement for the same periods as you.... i went Br in 2008 inform them of my Br by myself and OR. then few month after my discharge. they are just trying it on and my Or is not too happy about them too as they have ignored comunicatin from the insolvency .

for you mental heatlh problem do you have access to the crisis team home resolution service? if not when you dont feel well y g to A&e they have usually some one from their service to help you. If not you could alwasy ring your care co-ordiantor if you have one.

 

good luck for the future

[Enlighten]

Thankyou so much for your replies and support.

 

It's 11.45am, not been up long after a terrible weekend, couldn't even contemplate sleeping last night until 4am when I went to bed, back up at 5am, back to bed at 7am then woken up at 10am by a withheld number, which I didn't answer, just laid there wishing they would go away and dreading all the harrasing phone calls, all over again... When they phoned back at 11.15am I plucked up the courage to answer it - only to find it was the Hospital phoning to confirm a follow up appointment for results to some tests and x-rays I had last week ...

 

Am back to sleepless nights and worry all because of a lousy letter from these creeps - silly how back then I put up with endless harrasment and hassle from these and other people, the phone calls, the threats, the incinuation that I would end up homeless and on the streets, yet now just one letter can bring it all flooding back and knock me sideways. Sure these feelings are all too familiar to too many of you out there.

 

I contacted the OR's this morning, I didn't actually get past the receptionist though, I was put on hold while they tried to put me through, but then just told to write to them and they will deal with it. I hope they do, although when I contacted them a couple of months ago about Barclaycard, they took all the details and assured me they would ring back... but then didn't, so confidence is not so high, but I will do as they ask and pass on the letter.

[grizzlybb3]

You might want to contact the office of fair trading and explain the situation to them. below is what the oft have imposed on 1st credit

 

OFT imposes requirements on 1st Credit over debt collection practices

 

20/09 25 February 2009

The OFT has taken action against 1st Credit Ltd requiring the company to improve its debt collection practices.

The OFT has imposed 'requirements' on 1st Credit using consumer credit powers, after an investigation found that some of its business processes and procedures failed to meet satisfactory standards. As a result, 1st Credit Ltd and its associated companies must:

 

• refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated
  
• not discuss legal action with consumers unless it is likely that such action will be taken
  
• ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and
  
• ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.
  

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.

Failure to comply with the requirements could lead to a fine of up to £50,000 for each occurance and/or possible revocation of 1st Credit's consumer credit licence

[grizzlybb3]

sorry to add, this bit is very interesting!

 

4. If a single requirement is not complied with, the business concerned could be subject to a financial penalty of up to £50,000. The OFT may also refuse or revoke a licence if it decides that a trader is not fit to hold one

[anneemack]

Hi Enlighten, I am in the same position as you, I took dodgy geezers advice and got in touch with the insolvency service. They were great. They asked me to post the letter form the dreaded 1st credit to them and they would contact them on my behalf and give them a reminder of what their duties towards bankruptcy debts involve.

Hope this helps. I know what bankruptcy does to your self-esteem and you have ALL my sympathy

p.s. If you are worried about the phone calls and you are a BT customer, just ring them up and tell them you are recieving nuisance calls and they will change your number free of charge. This IS a hassle but also brings peace of mind and freedom from their phone calls

Edited October 18, 2009 by anneemack
adding extra info

[angel_1]

hello enlighten

 

so sorry to hear of your troubles, but i hope the fab advice given has somehow eased a little and given you a little bit of hope

 

keep positive and keep posting any other of your concers and we will all try and help

 

take care and have a sunny day everyone

 

laters angel x