Debt Moved to Collection Agency

[OvertheRainbow]

Hi

I have been getting a lot of help from a delightful person who now is busier than he needs to be with personal issues, thus my reason for writing here.

A DMP has been arranged with my creditors, but some have now passed the debt to collection agencies who are demanding payment.

Does anyone have a template letter that I can use, please

Thanks in advance

OtR

[Pixie]

Re: Debt Moved to Collection Agency

Hi OtR

Have you looked at the template letter section on the banner at the top of the page.

I'm not sure if there's one there for creditors refusing to accept your DMP (which I assume is what you want.)

If there isn't then someone else may come along later to let you know where there is one (sorry, I don't know anything about DMPs but didn't want to read and run.)

[PriorityOne]

Re: Debt Moved to Collection Agency

Who is your DMP with?.... or are you handling things yourself?

Please can you let us know a bit more about the debts? The approx. amount of each one, what kind of debt each one is, who is currently chasing you for payment and, the dates they were taken out.

Thanks...

[OvertheRainbow]

Re: Debt Moved to Collection Agency

I got help via this site...............which has been invaluable

But due to a change in their circumstances, it's time for me to self manage.

All are enforceable, sadly

Thanks for taking the time to reply

OtR

[SXGuy]

Re: Debt Moved to Collection Agency

can you list which DCA's are refusing your DMP, and give us some info on what communication you have had with them, i.e what has been said, and their reason if any for refusal.

That way people will be in a better position to advise.

Best way would be to list it as a time line with dates so we can follow it easier, pretty similar to the way the diaries are written on here.

[BBoo]

Re: Debt Moved to Collection Agency

I'd write to the DCA saying this is what I was paying the OC, so this is what I'm going to pay you. Please send me your bank details so I can set up a Direct Debit.

I would totally ignore their demand for payment at this point in time.

Chances are it is only an Equitable Assignment anyway, not an Assignment in Absolute, so effectively if the OC was happy with that payment, they should be. At the end of the day, presumably you've got a CFS to back up the fact that what you're paying is all you can afford, so that's what they get.

If you have problems should you choose to try that, post up and I'm sure someone will be around to help.

[SaltnVinegar]

Re: Debt Moved to Collection Agency

Hi

I have been getting a lot of help from a delightful person who now is busier than he needs to be with personal issues, thus my reason for writing here.

A DMP has been arranged with my creditors, but some have now passed the debt to collection agencies who are demanding payment.

Does anyone have a template letter that I can use, please

Thanks in advance

OtR

Hi welcome to AAD!

First thing you need to do is put together an I/E sheet so you know what you can afford to pay each of your creditors. Then send them the template below (make sure you edit as per your circumstances).

Up to you if you include your I/E sheet. Some people take the approach that you give DCA's the least amount of information possible, which includes I/E.

Personally I have no problem providing an I/E sheet, as you can then argue you have been more than reasonable (should they reject your DMP).

However I would NEVER send things like payslips, bank statements etc, which some DCA's will ask for.

Start of template letter

Dear Sir/Madam

Thank you for your [email/letter] dated xx/xx/xxxx regarding my customer account number [xxxxxxxx], which I received on xx/xx/xxxx.

Since opening this account with you, my financial circumstances have changed and I am unable to afford to agreed monthly payments because of [enter reasons here or just say multiple accumulative reasons].

I have been in discussions with [enter debt charity of your choice here e.g. the debt charity CCCS] and with their guidance I enclose a Personal Budget sheet which shows my total income from all sources, and my outgoings.

As you can see I have only [£xxx] per month left for my creditors. The offers I have made to our creditors have worked out on a pro-rata basis, and I have written to all my creditors asking them to accept reduced payments.

In view of my circumstances, please would you agree to accept a reduced offer of [£x.xx] per month.

If interest or other charges are being added to the account I would be grateful if you would freeze these so that all payments made will reduce what I owe you and assist me in managing my debt liability responsibly.

Should my circumstances improve I will contact you again.

Thank you for your assistance and I look forward to hearing from you as soon as possible.

Yours faithfully

SIGN DIGITALLY

End of template letter

[BBoo]

Re: Debt Moved to Collection Agency

Hi S&V,

I think OTR will have a CFS completed if he has been with someone providing a DMP from this site.

If offers had been accepted by all OC's, then all they really need to do is ask for payment details from the DCA's so they can continue the same payment. The DCA can, if they want, get a copy of the CFS from the OC, or they can ask for one.

If they do the latter, they're quite likely to send their own version. Personally, if I were the OP, I'd just send the CFS and ignore their own version as these tend to be designed to favour themselves.

[SaltnVinegar]

Re: Debt Moved to Collection Agency

Hi S&V,

I think OTR will have a CFS completed if he has been with someone providing a DMP from this site.

If offers had been accepted by all OC's, then all they really need to do is ask for payment details from the DCA's so they can continue the same payment. The DCA can, if they want, get a copy of the CFS from the OC, or they can ask for one.

If they do the latter, they're quite likely to send their own version. Personally, if I were the OP, I'd just send the CFS and ignore their own version as these tend to be designed to favour themselves.

Yes agreed!

I will get round to posting the following here at some point but hope its ok to link to some advise I gave on LB:

A guide to self managed DMP's - going it alone

Best

Snv aka Crispybacon

[Undercover Elsa]

Re: Debt Moved to Collection Agency

Too right, Bboo. The amount of info the DCA's ask for goes waaaay beyond obtrusive.

As the DMP has already been professionally assessed then that assessment is what they should adhere too.

A simple letter asking for bank details so they can set up a Standing Order in order to maintain their existing DMP should suffice.

Shep x

[SaltnVinegar]

Re: Debt Moved to Collection Agency

Too right, Bboo. The amount of info the DCA's ask for goes waaaay beyond obtrusive.

Just to be clear, I would NEVER recommend that anyone completes an I/E sent to them by a creditor, I would always use the CFS format.

I have seen too many DCA I/E sheets obviously understating what should be considered outgoings!

Best
SnV

[Undercover Elsa]

Re: Debt Moved to Collection Agency

Good article on LB, SnV

We're all in agreement here, in house DCA I&E forms suck! (And what an earner for anyone who works for them who fancies making a bit on the side selling to ID thieves!)

I've never done one myself, always refused and negotiated around it...don't know what they'd make on the food bill for my ducks!
(Although I could always offer to give them an Egg Loan...)

[BBoo]

Re: Debt Moved to Collection Agency

Yes agreed!

I will get round to posting the following here at some point but hope its ok to link to some advise I gave on LB:

A guide to self managed DMP's - going it alone

Best

Snv aka Crispybacon

IMO it would be great to have it on here.

[PriorityOne]

Re: Debt Moved to Collection Agency

I'd write to the DCA saying this is what I was paying the OC, so this is what I'm going to pay you. Please send me your bank details so I can set up a Direct Debit.

Direct Debits put a company in control of adjusting payments to suit themselves. It has to be a Standing Order or an over-the-counter payment at a clearing bank because you are in control of what gets paid and when.

Re. the latter..... just say you have an account there even if you don't 'coz they never check. I did for years.....