Where do I begin?

[Stanley]

I've spent a few hours on the forums over the past couple of days and feel inspired by the work that you are doing. However, I am an absolute beginner when it comes to dealing with debt although i have plenty experience of not dealing with it. I'd like to change this, and would really appreciate any advice on how to get started. My total debt amounts to the following:

£3700 from an HBOS overdraft opened in 2007 (default 2010).
£700 from an RBS credit card taken in 2008 (default 2010).
£300 from Cheque Centre in 2010 (default 2010).
£1000 overdraft with RBS (this account is still operational).

At the beginning of 2010 I started to experience financial difficulties. The credit card payments were the first to drop off and then I made the stupid mistake of engaging with payday loans. It was my failure to pay back one of these that burst my HBOS account (the agreed limit was £3000 but they cleared a cheque for £600 on top of that). All three defaults were turned over to DCAs and I have never responded to any of their attempts to communicate with me.

In September 2010, I moved house and wasn't contacted at my new address by any creditors or DCAs for almost two years. Occasionally I would receive a spate of calls to my mobile from different DCAs but I ignored these. Then, last month, I started receiving letters from Wescot about the HBOS debt, the most recent of which offered a 50% discount (it was by googling "Nelson Guest" that I ended up on this forum). Wescot have also been very persistent with phone calls and texts over the past month or two, none which I have answered or replied to.

What Wescot have achieved, at least, is to make me sit up and take notice and I'm keen to start dealing with the debt. Like many other people who come here looking for help, I am anxious about the state of my credit rating and chances of getting a mortgage in the future. However, having read a few of the threads on here, it seems that I can forget about that until the defaults come off.

So, that's where I'm at, and I'd really like to know what to do next. Should I contact Wescot offering a 10% F&F using the templates on here and negotiate from there? Should I contact my other creditors at the same time even though it seems they still don't know my new address? How can I ensure that the default dates stay in 2010 so that my credit rating is repaired by 2016? I have no assets whatsoever - does this affect my approach?

[SaltnVinegar]

Re: Where do I begin?

Then, last month, I started receiving letters from Wescot about the HBOS debt, the most recent of which offered a 50% discount (it was by googling "Nelson Guest" that I ended up on this forum). Wescot have also been very persistent with phone calls and texts over the past month or two, none which I have answered or replied to.

What Wescot have achieved, at least, is to make me sit up and take notice and I'm keen to start dealing with the debt.

Getting you to sit up and take notice is the purpose of Wescots 50% 'discount'.

Would it shock you to know that Wescot have also made me the same offer on my alleged debts?

Would it also shock you to discover that it is likely that Wescot have absolutely no authorization from the original creditor to make such an offer?

Would it shock you further to discover that what would be likely to happen after you paid this 50% is that the balance of the debt would be sold to a new DCA and you would have to start the merri-go-round all over again?

Remember rule no 1 - NIL BY MOUTH! That is do not call them!

If you're two years with no contact you are already a third of a way towards being statute barred. Theres still a long way to go, but you need to be careful about acknowledging the debt and resetting the SB clock.

Best
SnV

[Stanley]

Re: Where do I begin?

Thanks for the replies.

Flowerpot: I can't be much more specific on the nature of the debts as I haven't kept any mail from that time but all accounts were certainly opened after April 2007. They were defaults in the hands of DCA's as of summer 2010 and I haven't payed or communicated with any of them since then.

SaltnVinegar: I'm not too shocked - they don't do much to hide the fact that they are total shysters. Hence I googled them straight away rather than engaging with them in any way.

You both seem to be suggesting that holding out for statute barred is the best course of action. I don't know enough to tell if that's a good idea or not. Is there any chance that they can get to my wages? What about court? I got the impression from other threads that making even a token offer would help in the event of court action.

[SaltnVinegar]

Re: Where do I begin?

Thanks for the replies.

Flowerpot: I can't be much more specific on the nature of the debts as I haven't kept any mail from that time but all accounts were certainly opened after April 2007. They were defaults in the hands of DCA's as of summer 2010 and I haven't payed or communicated with any of them since then.

SaltnVinegar: I'm not too shocked - they don't do much to hide the fact that they are total shysters. Hence I googled them straight away rather than engaging with them in any way.

You both seem to be suggesting that holding out for statute barred is the best course of action. I don't know enough to tell if that's a good idea or not. Is there any chance that they can get to my wages? What about court? I got the impression from other threads that making even a token offer would help in the event of court action.

No they cannot get to your wages.

They would have to go to court, obtain a judgement against you, and then apply for an attachment of earnings.

Thats suuuuuuch a loooooong way away yet that you shouldn't be worrying about it.

This is what these scumbags rely on - letting you worry and stress so that you make agreements you wouldn't do under normal circumstances.

Would a token payment make a difference in the event of court action?

Simple answer is - it depends on what your objective is should it get to court. Defend as unenforceable, or look to make an arrangement to pay.

In my experience when DW got a CCJ it made not a diddly squat bit of difference as all she did was submit I/E and made an offer to the court which was accepted.

But again you are probably a long way off that yet (especially if Wescot are involved).

[Stanley]

Re: Where do I begin?

Ok, I'm chilled. The young lady sitting next to me, however, is not. The idea of sitting it out for four years and dealing with it in court if it comes to that doesn't really bother me, but she feels I should deal with it once and for all. It hasn't really sunk in with her that I won't be going near a mortgage broker for the next 4 years at least. While we're on the subject of my good lady, how does all this affect her credit rating, and indeed, her ability to get a mortgage in her own name only?

[SaltnVinegar]

Re: Where do I begin?

Ok, I'm chilled. The young lady sitting next to me, however, is not. The idea of sitting it out for four years and dealing with it in court if it comes to that doesn't really bother me, but she feels I should deal with it once and for all. It hasn't really sunk in with her that I won't be going near a mortgage broker for the next 4 years at least. While we're on the subject of my good lady, how does all this affect her credit rating, and indeed, her ability to get a mortgage in her own name only?

I totally understand your young lady's concerns but unfortunately (or fortunately depending on your point of view), she is a little naive when it comes to how creditors 'play ball'.

You could set up a payment arrangement with your creditors.

This would then show as an 'arrangement to pay' on your credit file, which would not be great in itself.

But, there would still be nothing to stop your creditors going to court in say 3 years time and go for a CCJ and screw you up for a further 6 years.

You could make a F&F offer, which could be 'accepted' only for another DCA to crawl out the woodwork in 3 years time and screw you again where you may have to go to court (unless you make sure the F&F is absolutely water tight).

Best thing to do is let the worst happen to you now, then they can't do anything worse to you.

If you have defaults on your credit file in the last 3 years (at a minimum) chances are you're not going to be able to get a mortgage anyway.

So you're better off putting the money aside and build up a huge deposit so then those defaults drop off then you can get that mortgage.

Or, alternatively, if your creditors do get heavy, you can pay them off.

In terms of your lady, there shouldn't be any impact on her credit rating as long as there are no financial associations between you.

Be careful checking your credit ratings though - it opens up a tin of worms and places markers with your creditors on your new address. (possibly how Wescot ended up tracing you).

Best
SnV

[Stanley]

Re: Where do I begin?

Well, I think I might've opened that very tin of worms this morning by requesting information from Experian - I was anxious to know exactly what the state of play was with the default dates before deciding how to proceed. I've never approached a CRA before and have no idea how Wescot got my address.

What's a CCJ? And what are the circumstances that would see me getting wound back to the start of the 6 year wait?

[SXGuy]

Re: Where do I begin?

If you or your partner is worried that you wont get a mortgage if you dont "sort out your debts now" then you should remind her that you already have defaults, which means you probably wont get a mortgage as it stands anyway.

Therefore if SB was your route to take, it changes nothing, the only difference being, when you do get to SB, you no longer owe that money.

If you dont try SB, you will be paying it back way past the 6 year mark.

[Stanley]

Re: Where do I begin?

5 in Scotland! Christ, I'm almost half way there!

[Stanley]

Re: Where do I begin?

I'm off to bed now and working all day tomorrow. Thanks to everyone for their help tonight. I'll pop in again late tomorrow night.

Stan