crazy idea...........you tell me!

[baba484]

I had a kind of brainwave today! About Credit Card debt of which I have in spades. Currently I owe Virgin Credit approximately £4k and I have fallen behind in payments which has made them "irritable", poor them. Anyhoo I currently pay £130/month towards, well, nothing really, it's just thrown away in real terms it doesn't even touch the £4k it just minimises the interest on the £4k but not the core £4k itself. What a complete waste of time its proving to be, so, now the brainwave!!! Think about it in simple terms.

 

If I default on payments and let them take me to court I will naturally lose the case however, a judge shall find me in fault to the sum of £4k ONLY. He shall find me in default of £4k as a FIXED sum and therefore order me to pay that sum (and court costs of course) but then legally I shall only be liable for that sum and not years of interest on top of that, is this fantasy on my part or is this an actual way forward? I am sick and tired, probably like most on here, of paying interest on a sum of money that will never ever ever be paid off.

 

Thoughts please

 

PS I am a Scot living in Scotland so legal system may differ from the rest of the UK.

[Monty2007]

I had a kind of brainwave today! About Credit Card debt of which I have in spades. Currently I owe Virgin Credit approximately £4k and I have fallen behind in payments which has made them "irritable", poor them. Anyhoo I currently pay £130/month towards, well, nothing really, it's just thrown away in real terms it doesn't even touch the £4k it just minimises the interest on the £4k but not the core £4k itself. What a complete waste of time its proving to be, so, now the brainwave!!! Think about it in simple terms.

 

If I default on payments and let them take me to court I will naturally lose the case however, a judge shall find me in fault to the sum of £4k ONLY. He shall find me in default of £4k as a FIXED sum and therefore order me to pay that sum (and court costs of course) but then legally I shall only be liable for that sum and not years of interest on top of that, is this fantasy on my part or is this an actual way forward? I am sick and tired, probably like most on here, of paying interest on a sum of money that will never ever ever be paid off.

 

Thoughts please

 

PS I am a Scot living in Scotland so legal system may differ from the rest of the UK.

 

Well, if you follow through this scenario you will get a CCJ and if you default on that then they will enforce this through Bailiffs. It will also trach your credit record for at least 6 years.

 

Alternatively you may want to try to negotiate a full and final settlement.

 

You can always reclaim back the charges through the FOS or court action so this may bring down the total balance.

 

When was the card taken out? have you asked for a copy of your agreement using S78(1) of the CCA?

 

The law is very different in Scotland, but the same CCA and SI's are used, just the Civil Litigation process is different, also we don't have CPR in Scotland and disclosure is easier with respect to agreements and key documents.

[baba484]

Hi Monty,

 

So, my initial reading of your post is that it is indeed a carrrrrrrrrrrrrazy idea, ok no sweat. I actually don't care about the frills and spills of CCJ's and 6 years on being in the credit wilderness, so disalusioned with it all I could really care less about the fall out. Still, my point was that I would liquidate my owed £4k into some kind of mannagable FIXED sum and not this ever expanding national debt figure, that is/was the whole point of the exercise. Is there any other way to agree a fixed sum with the creditor or do they wish to play the role of Shylock ad nauseum?

 

Thanks for the reply, its appreciated!

[Monty2007]

Hi Monty,

 

So, my initial reading of your post is that it is indeed a carrrrrrrrrrrrrazy idea, ok no sweat. I actually don't care about the frills and spills of CCJ's and 6 years on being in the credit wilderness, so disalusioned with it all I could really care less about the fall out. Still, my point was that I would liquidate my owed £4k into some kind of mannagable FIXED sum and not this ever expanding national debt figure, that is/was the whole point of the exercise. Is there any other way to agree a fixed sum with the creditor or do they wish to play the role of Shylock ad nauseum?

 

Thanks for the reply, its appreciated!

 

Dear baba

 

I should also have mentioned that the bank may sell the debt to a DCA who may continue to add interest, so your plan may fail there. You should consider going onto a debt management plan and may be able to get zero or reduced interest that will allow you to pay off the capital.

 

I would not say that your suggestion is crazy, just that there are some alternatives that you should consider and potentially cheaper and less risky.

 

If it were me, and I just had that one debt then I would write to them and offer a repayment plan and request zero interest. If you don't ask......you don't get.

 

I would also suggest that you read the threads on Virgin Credit Cards, there may be some information that could be of use.

 

Good luck!

 

Monty

[debbbbsy]

Hi

I don't think your idea is so crazy. Aslong as the agreement doesn't contain a post judgment interest clause, then you are absolutely correct, the account will be frozen, apart from the court costs, no further interest will be charged, and the courts will decide how much you pay, based on what YOU can afford.

As for it being passed to a DCA, if it is simply passed to a DCA for collection, then interest will accrue as normal. If it is "Assigned", then the OC has terminated your account & sold it on (normally a fraction of its worth), then you can negotiate a settlement.

 

Aslong as you are aware of what will happen next.Understand the court procedures, & the consequences of a CCJ.

 

One point though,be careful, if you own your home, they may go for a forthwith judgment. A CCJ & then a charging order.

 

Debs

[middenmess]

Why not take it one step at a time.

 

If you have all of your statements then list all of the late charges etc and use Compound interest calculator!!! to work out what you can claim back.If properly presented and accounted this should be repaid without the need for court proceedings--this would be set off against the outstanding balance.

 

If you haven't all of your statements then a SAR at a cost of £10 will get you all the info they hold on you.

 

For a further £1 you can ask for a copy of your CCA.

 

In the alternative you could always ring them,explain your situation and ask if they will freeze the interest payments to enable you to reduce and pay off the debt--you might just catch them on a good day!

[middenmess]

Have a look at Bookworms thread

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/262064-bookie-burns-her-bridges.html

[Axiom99]

I have a friend who had a 10k credit card debt and could not afford to keep up the payments so stopped paying.

He endured all the fall out crap with phone calls letters threats etc and eventually he got a letter from the lender saying the lender could offer a discount for settlement.

He called them and told them he could not afford the payments and that if they took him to court they would be no better off as he would still not be able to pay(he does not own a property)

After long negotiations the lender accepted 2k as full and final settlement which he borrowed off a relative and is paying back on the drip.

just a thought!

[baba484]

Thank you all for your thoughts, they are very much appreciated! I am not seeking to "stick it to the man" as it were, I owe what I owe, the honey trap worked on me boo hoo, my monthly dues are a harsh reminder of my stupidity, such is life, it does go on, life that is (fingers crossed).

 

I was merely toying with the idea of some kind of capping mechanism that suited me, if left unchecked Credit Card "Schysters" basically own you and there's no light at the end of the tunnel. I am sick and tired of paying these organisations, Mr Branson (Virgin) is all smiles and the "perfect" family man to his own particular brood while I have to be embarrased with my own childrens needs..............was one of those heart pumping moments behind the wheel at traffic lights, my mind wandered.

 

Thanks again for your suggestions, I shall probably try and get it capped via Virgin themselves rather than my rash Court romance.