Australian Credit Card debt / Living in the UK

[bojangles1066]

Ive just received a letter from Commonwealth Bank serving me with a default notice Section 88 National Credit Code, I owe about $8700, and make payments each month via Travelex of about $185, well below the minimum payments, but a token gesture. I have been doing this since 2006 when I entered into a Debt Management Plan in the UK. I explained my financial situation to the Commonwealth Bank and despite refusing to freeze interest, agreed to the $185 pcm. In the default notice they have given me 38 days from the date of the notice to pay $1,124, the letter was sent on 21st Dec and only got to me on Jan 18th, giving me about 10 days to pay which I can't. I have emailed them stateing once again my situation, but await a response. I feel I have reached an impasse with Commonwealth now, and in a quandry as to see what happens if I stop paying $185pcm, will they/can they sell the debt to a UK debt firm, to which would be easier to pay (no international money transfer fees) would it effect my credit rating (which has improved) would they need to obtain a CCJ to enforce the debt. Or given the relatively small amount of debt, and from what Ive read on other threads re the cost for Commonwealth Bank to commence legal proceedings, would they be bothered to chase it.? Any opinions gratefully received.

[cerberusalert]

They have to issue you with a default notice giving you the opportunity to remedy before they can mark your OZ credit file, sell the debt on & claim tax relief on the debt.

 

They periodically sell portfolios of these types of debts on to debt collection companies to clear their books of toxic debts. They cannot mark your UK credit file as it's not a UK debt, but if they do obtain a CCJ here in the UK it will show on your credit file as it's a UK judgment. Having said that it is unlikely that they'll try for a CCJ.

 

When the debt is sold on interest will stop unless it is explicitly mentioned in the original agreement.... which is rare. A UK DCA will more than likely be in touch within a few weeks.

 

As for stopping payments, that's entirely your choice. They will have great difficulty in obtaining a judgment against you in Oz are you are no longer a resident & if they tried in the UK you could challenge jurisdiction, although they would be unlikely to apply because of the costs involved.

[bojangles1066]

I've just written also to the Financial Ombdusman in Australia, hopefully that may delay things. Also I don't know, as a non resident, if I am eligible for a Debt Management Plan with an Australian body, or IVA. As things stand, with the the added interest to the account, I will never pay this debt off. Thanks for your prompt response.

[krios]

I believe you can set up a debt agreement as a non resident and details can be found here. http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Debt+Agreements-%3EPart+IX+Debt+Agreements

 

It might be an option for you?

[krios]

but if they do obtain a CCJ here in the UK it will show on your credit file as it's a UK judgment

 

Do you know of any from an overseas debt?

[cerberusalert]

Do you know of any from an overseas debt?

 

If a judgment is obtained in the UK it is automatically registered on a credit file.

 

I do know of some overseas debts where a CCJ has been obtained, but they were usually by default because they were undefended.

[krios]

If a judgment is obtained in the UK it is automatically registered on a credit file.

 

I was just wondering if you or anyone else knows of a judgment actually being obtained in the UK for an overseas debt outside of the EU, other than perhaps a default judgment?

Cheers