Just stop paying an option?

[Just stop?]

Hi. I've read through various forum threads this evening with great interest. It does seem like many members are taking great strides toward tackling the anguish associated with uncontrolled debt. Great!

I have a couple of queries which I'm hoping y'all might have some expertise in. They centre on simply stopping payments to creditors.....

(1) with regards to UE, my understanding is that the advantage of a creditor failing to prove enforceability is that it "permits" the debtor to stop making payment to the creditor in the knowledge or hope that no court action can be taken against them, thereon that no CCJ could be obtained in relation to the debt. It is then assumed that the current UE status will be maintained for a period of 6 years until the debt becomes statute barred. Thereafter the creditor cannot pursue the debt any further and all records are wiped from the debtors credit files. Is this all correct? If so, my queries are.... (a) is it not possible that a creditor could find the required documentation to make the debt enforceable during the 6 year period and the debtor would become liable for the debt once more and potentially by this time the debt has risen through associated interest charges being applied to the account in the interim? (b) given all the court cases surrounding UE in recent months / years, is it not possible that further cases will be heard in future months / years that will relax obligations on creditors under the CCA further to the extent that current UE accounts become enforceable again?

(2) I read with some interest about a member that is going to stop payments to creditors in the hope that the accounts will be passed to DCA's, thereafter he intends to issue full and final settlement letters to each creditor. My question about this approach is...... I am currently paying off all my creditors on time each month and have no arrears. It seems (given the above rationale) that it is feasible for me to stop making payments to all creditors now, bank all the money I would be paying until they all get passed to DCA's, by which time I will have amassed a sizeable amount in my bank account, to then offer full and final settlements to each DCA. I would then potentially be free from all my debt within 6-9 months. Thoughts on the likelihood of this working?


Thanks in advance everyone and apologies if I have missed some key terms. I'm a newbie !

[Never-In-Doubt]

Re: Just stop paying an option?

Hi & Welcome

Ok, lots of questions but they can be narrowed down into one easy reply - as follows:

Unenforceability only applies whilst the lender/DCA cannot obtain the agreement, the moment they find it or create one (recon) then the account comes out of the UE status. Throughout the process though the creditor will hassle you to pay, regardless of the legal status - you are only protected by the CCA (1974) in cases whereby there are fatal flaws with the agreement - something we help with here (after you send the cca request off).

Yes, basically you're right with some of the theory, you technically avoid things for up to 6 years so that the debt becomes statute barred knowing the creditor cannot enforce (unless they have the agreement or get ballsy). In essence, you're aiming for statute (in your case, being in Scotland it's 5 years not 6). The default entry will also be removed after 6 years whether the debt is paid or left owing.

Regards to the F&F approach, what we suggest if you want to take that route is to send off for a CCA then stop payments, it makes the creditor sell the account to a DCA who then know you're looking to get them on a technicality (as some call it) - however the good thing is you can then negotiate better - if you pay the required amount what incentive is there for the DCA to lower or stop interest/debt balance? Thus you need to cease repayments then make a F&F offer of around 10% after 6 months and they'll be more prone to listen to offers....

make sense? If not fire away any other stuff you need help with, however all this is answered if you read the UE diaries......