Tweet
Background:
When I was young and stupid I applied for a credit card. When it dropped through the letter box, I felt so grown up. I was very sensible, and paid it off every month for a year. Then I decided to go on holiday. And applied for another credit card to pay for it - hey, it was interest free on purchases so why not. Well, here's why not - 11 years later and that card hasn't had a zero balance since. Although the actual card is long gone.
In the new world of rampant consumerism and easy credit, two cards with a balance of around 1k combined seemed like small fry. Which is when the car loan was added. My old one, which had always been a pain to drive (literally), got very poorly. I decided, in my 21 year old wisdom, that rather than keep paying the car hospital's bills, I'd get a new(er) car. And when I found a nice little fiesta at a great price, it seemed like fate. And another of those grown up moments followed - my bank trusted me enough to lend me 6k!
Then I moved away from home to uni.
I'd been diagnosed with bipolar disorder a few months before I went, and the psychiatrist waved me off with the cheery advice 'get help in Leeds if you need it'. I needed help, but didn't realise it. When I did realise it, I didn't think I deserved it. A big downward spiral with lots of problems with uni, friends, and landlord, followed, and coincidentally a big student overdraft built up. I moved into an unfurnished flat. I needed furniture. Which meant I needed money. And as I had another loan and two credit cards, it made sense to get another loan, buy the furniture, and consolidate my debts. And besides, years and years of repayments wouldn't matter, because I was going to kill myself long before then. I'd already tried it once in the middle of moving and sorting out furniture.
By this point I was no longer a student. Just on benefits. Mentally Ill. And applying for a 7k loan.
Clearly, insane people can easily find jobs - in the banking industry. Because someone approved my loan.
Off I trotted to Ikea, got good deals on the furniture, then onto Argos for white goods. Then online to pay off the Barclaycard, because it had the highest interest rate of all my debts. Then to ebay for manic spending on soft furnishings and 'original artwork' which is, frankly, hideous when looked at with a non manic brain.
Ooops, not enough to pay off my original loan. Nevermind, I could just pay off a big chunk of it, which would lower the repayments and I'd still be paying out less than before.
The rules had just changed. You pay all of the loan back, or carry on in installments. No in between.
Bugger.
Ok, don't panic, phone Egg. Hello, loan people, I've made a mistake, furniture cost more than I expected can I extend the term, or pay some back, or something, because I'm stuck with two loans, and the credit card I have with you, and can't afford it. No, said loan man. You don't work. You shouldn't have got the loan in the first place, someone made a mistake. We can't extend the length, or increase the value because you can't afford it. What about paying a chunk back? Noooo.
Fast forward a few years, during which I went through minor manic spending phases, had big benefits delays, and spent the rest of the loan amount, ironically much of it on the loan repayments. I realise I can't carry on like this when I move into a council flat, can't afford food after paying the £60 removal cowboy, and get clobbered with £120 of bank charges in one week because the £60 left me short for everything.
I call CCCS. 'We can't help you, because you have more than enough for your debts. In fact, according to your SOA you should be paying more than you are'. Erm, what about my care needs, surely I should use my DLA for that instead of for debts? I know, I'll try CAB instead. Sure, last time I went to them for help they got me sued, but maybe debt'll be different. CAB man 1: 'You owe council tax' Me: 'no I don't, it's a mistake, it's in dispute, it'll be sorted soon'. CAB man 1: You owe council tax. You could go to prison. I'll phone them and you'll agree to have it taken from your benefits each week'. I agreed. Then I found out I couldn't stop the deductions, only the Council Tax people. Then the dispute was settled and they realised I didn't owe anything. So I fought, got them to stop the deductions, and finally give me back my money.
CAB lady 1: following my query about irresponsible lending and getting the loan written off due to not being in sound mind (backed up by a doctor) and them making a mistake. 'yes, I'll write to them for you, but they'll probably say no'.
CAB lady 2: 'No record of CAB lady 1 writing to them. Just go bankrupt'.
Bankrupt, sounds a bit OTT for 8k. (As I'd become eligible for a motability car, I'd taken that, sold mine, and paid off the loan I took out to buy it). Call NDL 'Just make token payments, there's no need to waste money on bankruptcy, your circumstances aren't going to change'.
Mooch online, discover UE.
April 2007: Send CCA's to Egg card and Egg loan. Something came back for the Egg card, so I carried on with token payments, not feeling strong enough for a fight over whether or not it was properly executed. Deathly silence from the loan.
Since then, the Egg card has been passed on a few times. With the last DCA (Cabot) I tried to make a f&f but they wouldn't agree. I was supposed to start paying a couple of months ago, but for various reasons it didn't happen. So I'm going to try the CCA route again.
The loan's also been passed around, I just tell them to naff off as it's in dispute. To back up my case with that, I have a statement from Egg saying the balance is around £130, whereas I'm being chased for £4400.
Barclaycard keeps getting passed around, I've not done anything about it in ages, I'm going to do a CCA now on it.
So, now for the diary and log of events. I'm going to do it slightly different to Pixie, because I don't want to confuse myself with too many colours. So everything's going to be in colour to start with, and as updates come in anything previous will turn to black, so only the most recent info on anything will be in colour.
When I was young and stupid I applied for a credit card. When it dropped through the letter box, I felt so grown up. I was very sensible, and paid it off every month for a year. Then I decided to go on holiday. And applied for another credit card to pay for it - hey, it was interest free on purchases so why not. Well, here's why not - 11 years later and that card hasn't had a zero balance since. Although the actual card is long gone.
In the new world of rampant consumerism and easy credit, two cards with a balance of around 1k combined seemed like small fry. Which is when the car loan was added. My old one, which had always been a pain to drive (literally), got very poorly. I decided, in my 21 year old wisdom, that rather than keep paying the car hospital's bills, I'd get a new(er) car. And when I found a nice little fiesta at a great price, it seemed like fate. And another of those grown up moments followed - my bank trusted me enough to lend me 6k!
Then I moved away from home to uni.
I'd been diagnosed with bipolar disorder a few months before I went, and the psychiatrist waved me off with the cheery advice 'get help in Leeds if you need it'. I needed help, but didn't realise it. When I did realise it, I didn't think I deserved it. A big downward spiral with lots of problems with uni, friends, and landlord, followed, and coincidentally a big student overdraft built up. I moved into an unfurnished flat. I needed furniture. Which meant I needed money. And as I had another loan and two credit cards, it made sense to get another loan, buy the furniture, and consolidate my debts. And besides, years and years of repayments wouldn't matter, because I was going to kill myself long before then. I'd already tried it once in the middle of moving and sorting out furniture.
By this point I was no longer a student. Just on benefits. Mentally Ill. And applying for a 7k loan.
Clearly, insane people can easily find jobs - in the banking industry. Because someone approved my loan.
Off I trotted to Ikea, got good deals on the furniture, then onto Argos for white goods. Then online to pay off the Barclaycard, because it had the highest interest rate of all my debts. Then to ebay for manic spending on soft furnishings and 'original artwork' which is, frankly, hideous when looked at with a non manic brain.
Ooops, not enough to pay off my original loan. Nevermind, I could just pay off a big chunk of it, which would lower the repayments and I'd still be paying out less than before.
The rules had just changed. You pay all of the loan back, or carry on in installments. No in between.
Bugger.
Ok, don't panic, phone Egg. Hello, loan people, I've made a mistake, furniture cost more than I expected can I extend the term, or pay some back, or something, because I'm stuck with two loans, and the credit card I have with you, and can't afford it. No, said loan man. You don't work. You shouldn't have got the loan in the first place, someone made a mistake. We can't extend the length, or increase the value because you can't afford it. What about paying a chunk back? Noooo.
Fast forward a few years, during which I went through minor manic spending phases, had big benefits delays, and spent the rest of the loan amount, ironically much of it on the loan repayments. I realise I can't carry on like this when I move into a council flat, can't afford food after paying the £60 removal cowboy, and get clobbered with £120 of bank charges in one week because the £60 left me short for everything.
I call CCCS. 'We can't help you, because you have more than enough for your debts. In fact, according to your SOA you should be paying more than you are'. Erm, what about my care needs, surely I should use my DLA for that instead of for debts? I know, I'll try CAB instead. Sure, last time I went to them for help they got me sued, but maybe debt'll be different. CAB man 1: 'You owe council tax' Me: 'no I don't, it's a mistake, it's in dispute, it'll be sorted soon'. CAB man 1: You owe council tax. You could go to prison. I'll phone them and you'll agree to have it taken from your benefits each week'. I agreed. Then I found out I couldn't stop the deductions, only the Council Tax people. Then the dispute was settled and they realised I didn't owe anything. So I fought, got them to stop the deductions, and finally give me back my money.
CAB lady 1: following my query about irresponsible lending and getting the loan written off due to not being in sound mind (backed up by a doctor) and them making a mistake. 'yes, I'll write to them for you, but they'll probably say no'.
CAB lady 2: 'No record of CAB lady 1 writing to them. Just go bankrupt'.
Bankrupt, sounds a bit OTT for 8k. (As I'd become eligible for a motability car, I'd taken that, sold mine, and paid off the loan I took out to buy it). Call NDL 'Just make token payments, there's no need to waste money on bankruptcy, your circumstances aren't going to change'.
Mooch online, discover UE.
April 2007: Send CCA's to Egg card and Egg loan. Something came back for the Egg card, so I carried on with token payments, not feeling strong enough for a fight over whether or not it was properly executed. Deathly silence from the loan.
Since then, the Egg card has been passed on a few times. With the last DCA (Cabot) I tried to make a f&f but they wouldn't agree. I was supposed to start paying a couple of months ago, but for various reasons it didn't happen. So I'm going to try the CCA route again.
The loan's also been passed around, I just tell them to naff off as it's in dispute. To back up my case with that, I have a statement from Egg saying the balance is around £130, whereas I'm being chased for £4400.
Barclaycard keeps getting passed around, I've not done anything about it in ages, I'm going to do a CCA now on it.
So, now for the diary and log of events. I'm going to do it slightly different to Pixie, because I don't want to confuse myself with too many colours. So everything's going to be in colour to start with, and as updates come in anything previous will turn to black, so only the most recent info on anything will be in colour.
to the responses you got from banks, CCCS and CAB etc Can relate to starting with one loan and then the next etc for all sorts of reasons....and I wasn't even young!
Comment