Please help - uk debt advice while in Australia

[Pommie]

Hi Everyone, I really need some sound advice so please If anyone can help ! I feel helpless, embarrassed and ashamed that I have moved to Australia leaving debts behind in the uk. I have buried my head in the sand hoping they will go away but im at a loss what to do know.

I have been in oz nearly 12 months, I have just received a phone call from a company who track people down debts. I put the phone down on them when they asked for me, and I have since pulled the cord out. I feel sick with worry, the questions that keep buzzing around my head are :-

 

 

1. Can I forced to pay my UK debts whilst im in Australia ?

2. if I am not in the uk can I be issued with a CCJ ?

(I have read that this is illegal)

3. how can I stop being issued with a CCJ while im in Australia ?

4. What can happen to me if they have my address in Australia ?

5. I don't know if the debt has been sold on from the uk bank/ cc company so can they or a dca still legally make me pay ?

6. What will happen if I don't answer any calls, letters or deny all knowledge to any door knockers ?

I am on my backside financially, it cost me so much to get here to try and start a new better life for my family, and this country is so expensive, any advice would be greatly appreciated.

[citizenB]

Hi pommie and welcome to CAG,

 

I have moved your thread to the correct forum that deals with issues similar to yours.

 

Could you provide a little more information regarding the debt you left in the UK - what type of debt.. credit card/loans (secured or unsecured debt)

 

Do you own property in the UK ?

[unclebulgaria67]

National Debtline can provide advice by email and I think they may have some online chat facility.

 

https://www.nationaldebtline.org/EW/Pages/default.aspx

 

If you don't have assets in the UK, it is pretty unlikley that they will try to enforce a UK debt in Australia, but they may just get debt collectors to hassle you.

 

You should advise creditors that you are no longer resident in the UK and moved to Australia from x date. Give them your Australian address and deal with correspondence. You don't have to live in fear. Read the letters and most will just be threats that they may take this action or that action. The key word is 'may', as if you are not in the UK and they know this, then they should not try to get a CCJ in your absence. Under an arrangement between Commonwealth countries they can apply to Australian courts, but this does not happen very often, as I don't think they like hearing foreign debt cases.

 

UK and Australia are totally separate in terms of credit records. If they want to legally enforce a debt in Australia, they would have to apply to an Australian court, but I don't think this happens. Enough people pay when they get hassled, that they don't bother. Why spend money on legal costs, when you might not get it back.

 

Being that you have been traced to Australia, it may be that UK creditors already know you have left the UK. What happens is that debts are sold to debt buyers for a fraction of the debt amount and they use collectors who chase debts worldwide. There is a US debt collector who make a few phone calls and send emails for a few months before giving up.

 

Don't live in fear. Reconnect your phone and if you get a phone call asking you to confirm identity, don't answer any questions. Just say, "look here mate, I don't know who you are and as such I don't give out any personal information or answer any questions. If you have my address, then write to me". Then put the phone down.

[Pommie]

Hi citizenB, Thank you for doing that (I am a bit forum illiterate!) I had 2 cc's, 1 for 8K, 1 for 5k and about 2k on interest free payments to currys. I don't own a property or any assets in the UK.

 

 

unclebulgaria67, thanks a million, your wisdom is greatly appreciated as is your time. I googled about this company and it says they are a tracking agent, if this is true and they are not an actual dca would they be working for the cc companies ? Can I then be forced to make payments legally, surely I would only be able to pay what I could afford ? Can I be forced legally to start to pay these debts back if they are sold to a dca ? I am so ashamed I have done this to my family, I have lived an honest life until this lot, I have no criminal record, I have only been done for speeding once. I had a good job in the uk with a lot of overtime and the plan was to pay all these debts off until I became poorly and was off work for 5 months !!! I feel like if these debts accumulate crazy interest and I just cant afford to pay them back I will not be able to leave anything for my children in the future, which upsets me the most.

Again thanks for your time, I appreciate it.

[citizenB]

Being in debt is not a criminal offence, although I am sure that some creditors and DCAs would welcome the return of Debtors prisons !!

 

It frustrates the hell out of me that credit was virtually forced down many people's throats - the Finance industry brought countries to their knees and yet they offer no forbearance when someone hits a financial hiccup.

 

Follow Uncle B's advice - you cannot be forced to make payments that are unaffordable.. if you can only afford £1.00 per month, then that is all you should be offering.

[unclebulgaria67]

Hi citizenB, Thank you for doing that (I am a bit forum illiterate!) I had 2 cc's, 1 for 8K, 1 for 5k and about 2k on interest free payments to currys. I don't own a property or any assets in the UK.

 

 

unclebulgaria67, thanks a million, your wisdom is greatly appreciated as is your time. I googled about this company and it says they are a tracking agent, if this is true and they are not an actual dca would they be working for the cc companies ? Can I then be forced to make payments legally, surely I would only be able to pay what I could afford ? Can I be forced legally to start to pay these debts back if they are sold to a dca ? I am so ashamed I have done this to my family, I have lived an honest life until this lot, I have no criminal record, I have only been done for speeding once. I had a good job in the uk with a lot of overtime and the plan was to pay all these debts off until I became poorly and was off work for 5 months !!! I feel like if these debts accumulate crazy interest and I just cant afford to pay them back I will not be able to leave anything for my children in the future, which upsets me the most.

Again thanks for your time, I appreciate it.

 

Don't admit to owing the debts in writing. Don't offer any payment.

 

The reason being is that under statute of limitations, these debts will become unenforceable 6 years from the default date, if you make no payments, do not admit to the debt in writing and they don't obtain a CCJ. By unenforceble I mean they cannot go to court after the 6 years is up.

 

What you could do for peace of mind is to check the CCJ registry to see if one has been obtained. You can use the following link, but they charge a small fee for the search.

 

http://www.trustonline.org.uk/

 

If you then find that no creditor has obtained any CCJ, you could then write to them saying that you have been resident in Australia since x date, are in financial difficulty and have suffered from ill health. Ask them to note their records and say that you will contact them when you are in a better position. But as I say, don't admit to the debt or mention anything about paying the debt back.

 

On the otherhand should you find that there are CCJ's, you might decide not to contact creditors at all, just in case they do try to transfer to an Aussie court. Just never identify yourself to any debt collectors if they call, don't respond to any letters or emails, unless they are court papers from an Aussie court.

[Pommie]

Hi Guys, thank you again for your response, I really cant thank you enough. If I may could I just ask a couple more questions of you ? I have checked on the site you suggested and thus far no CCJ's against me. I Know that citizenB said that being in debt is not a crime but to my knowledge fraud is, can these creditors or dca's accuse me of fraud by making out I had no intention of paying back my credit card debt by moving to the other side of the world ?.....can I be sent to prison ? would I get the chance to pay off the debts before I got imprisoned, I have a family to provide for. I cant sleep for fear of being jailed. Im sorry to keep bothering you, but thanks again.

[unclebulgaria67]

Hi Guys, thank you again for your response, I really cant thank you enough. If I may could I just ask a couple more questions of you ? I have checked on the site you suggested and thus far no CCJ's against me. I Know that citizenB said that being in debt is not a crime but to my knowledge fraud is, can these creditors or dca's accuse me of fraud by making out I had no intention of paying back my credit card debt by moving to the other side of the world ?.....can I be sent to prison ? would I get the chance to pay off the debts before I got imprisoned, I have a family to provide for. I cant sleep for fear of being jailed. Im sorry to keep bothering you, but thanks again.

 

It would never be a criminal issue, certainly not fraud, otherwise there would be many people who would fear being reported. It does not happen, because the contract you sign is a civil contract and you are bound by the terms/conditions which are in line with the Consumer Credit Act.

 

I don't think banks often report people who have given false information on credit applications, because there could be bad publicity about the banks quality procedures and there could be actions by regulators. The banks are supposed to carry out checks on people who apply for credit accounts, to make sure they are an acceptable risk, their indentity is checked etc.

 

Nothing is going to happen. You don't need to live in fear. As there are no current CCJ's you should write to UK creditors to advise them you are permanently resident in Australia, are currently experiencing financial difficulties after a period of ill health and will be back in contact when in a better position. Ask them to confirm in writing that they have noted their records. Don't mention the debt or any payment. What you want them to be aware of is that you are outside of the UK, with financial and health issues. If you can get confirmation from them that they have received your letter, it would be very useful.

 

Nb. What you need to be aware of, is that banks are fully aware that a percentage of what they lend in credit will never be repaid. It is part of their risk assessment, when they create the money electronically. But they never really lose, because they have insurance to cover part of such losses and they also write off debts against tax liabilities. Two UK banks have just been fined £1.1 billion by regulators for manipulating currency markets and no bankers are facing prosecution. So your few credit accounts which are in default, are small fry in comparison to the massive scale of wrong doing by banks.

[Pommie]

Uncle B, I have received a letter from a UK bank telling me they think this is my address where I am staying and they are asking me to get in touch with them. What I want to ask you is could I offer them a lump sum downpayment if I can scrape some money together and then agree a final balance to pay monthly to bring the debt down or do you think they will charge me the earth in interest ? I really just want this to go away now so I can get on with my life ?

Thanks for your help, and your time once again.

P

[unclebulgaria67]

Uncle B, I have received a letter from a UK bank telling me they think this is my address where I am staying and they are asking me to get in touch with them. What I want to ask you is could I offer them a lump sum downpayment if I can scrape some money together and then agree a final balance to pay monthly to bring the debt down or do you think they will charge me the earth in interest ? I really just want this to go away now so I can get on with my life ?

Thanks for your help, and your time once again.

P

 

If you start paying them, they will continue adding interest and charges. You will be paying them for many years to come. They won't keep the debts on their books for very long, as banks tend to pass them on to debt collection agencies to maintain the payments. You will then probably be hassled for increased regular payments. Also remember that due to currency transaction costs, creditors won't get the full amount of each payment you make.

 

You are going through anxiety everytime a letter is receiving and worrying about it. You think by making payments it will remove some of this anxiety and you will morally be doing the right thing. However, given the amount of the debt, unless you make significant payments, you may not even cover the interest and charges that have and are still being added.

 

What you do, much depends on whether you are likely to come back to the Uk. If you make any payments, it resets the clock in terms of statute of limitations, so they have longer to enforce debts in a court. As you are currently in Australia and they don't have a CCJ, it is very difficult for them to enforce the debt at the moment.

 

If you don't have much in way of assets in Australia, I wonder whether you could go bankrupt in the UK, without it affecting you in Australia. You can apply for bankruptcy from abroad in the UK up to 3 years after leaving the UK. If you search online for bankruptcy from abroad, there is a company who specialise in this and they may be able to advise whether this would be suitable for you.

 

Don't rush into anything, as there is no need to do this. If you are going to start making payments, make the offer in writing 'without prejudice' and advise that this in on condition that no further interest or charges will be added.

[Pommie]

Thanks again Uncle B. What do you think is the worst that can happen if I just bury my head and hope one day it will all go away. (given they have my address, i could move when the rent agreement is up and they would have to find me all over again ?) or I could get an Australian po box address ? I have no intention of returning to the UK, all being well with family/fingers crossed. Would going bankrupt in the UK cost me a lot of money ? I think if I just left it until maybe just maybe I got an Australian court summons I would have no choice but to pay it but at a cost I could afford and that would be the beginning of the end, so to speak. I wish there was someway I could repay you for your time and help...... I think I owe you a pint....... or 20 !!

Thank you so much.

[unclebulgaria67]

Thanks again Uncle B. What do you think is the worst that can happen if I just bury my head and hope one day it will all go away. (given they have my address, i could move when the rent agreement is up and they would have to find me all over again ?) or I could get an Australian po box address ? I have no intention of returning to the UK, all being well with family/fingers crossed. Would going bankrupt in the UK cost me a lot of money ? I think if I just left it until maybe just maybe I got an Australian court summons I would have no choice but to pay it but at a cost I could afford and that would be the beginning of the end, so to speak. I wish there was someway I could repay you for your time and help...... I think I owe you a pint....... or 20 !!

Thank you so much.

 

As far as I know, they cannot enforce a UK debt in Australia, without a court judgement having already being obtained in the UK. In the UK it is VERY difficult to obtain a judgement in the debtors absence from the country, unless the creditor deliberately did not tell the court you were abroad and used an old UK address for the court claim.

 

So in other words. If you did not pay anything, there is not much they can do. All that is likely to happen is that the debt is sold for pennies to a debt collection agency and they just hassle you, trying to make you think they have magical powers, but knowing they can't do anything.

 

Because you are not in the UK to do the bankruptcy yourself, you would have to use someone in the UK who deals with bankruptcy to apply for you. It will be more expensive, but probably a lot less than the court fees, plus flight tickets back to the UK etc. I seem to remember someone saying that it was between £2k to £3k. If you contact 'bankruptcy from abroad' specialists, they are usually quite helpful and will find out whether this is right for you, plus explain the process, costs etc. If this option is available to you and you can afford it, then it might be one way to remove the hassle of having debts being chased for years.