Debt

[etrobbie]

I had bank loan credit card debts last payment March 2009 had numerous letters over the years latest threatening court action can anyone please advise

[factor-fiction]

Are you able to offer repayment, even if it's only a small regular amount?
If not then seek advice from CAB or an official debt advisory body. Be careful not to choose a rip off company pretending to offer advice

[factor-fiction]

http://www.moneysavingexpert.com/loans/debt-help-plan

[andy-hughes]

Credit Card companies and banks are always keen to get some repayments going - it's easier and cheaper than taking you to court.

Write to each of your creditors.

Grovel, apologise for not taking charge of your debts, and assure them that you are keen to start sorting things out.

Offer them a payment plan you can afford, and make sure you can stick to it.

They may ask for a list of your income and outgoings - be honest with them.

Keep all copies of your letters to them, and from them, in strict order in a file where you can find them easily.

That should start you off on the path to getting things sorted.

You are not alone - and financial institutions seeing you taking charge and being responsible are far more sympathetic than they are to people who ignore them.

[Prudie]

Good advice above. If you last made a payment over 5 years ago though I guess you are asking have they forgotten about it or will they have written it off? I can only speak from experience that a debt to Barclaycard that I thought was written off came back to haunt me at least 7 years later when I got a letter from them stating they were now aware that my current account (Barclays) showed I was perfectly capable of now clearing the debt and I had to pay it off.
It depends whether you want to risk and leave it or if you are in a position to offer a payment plan as above to get it off your worry list.

[Retrochic]

etrobbie, firstly what are you afraid of? If its that your credit rating will die then that's already happened, and will NOT get better even if you win the lottery and pay off all you owe tomorrow. I know this as i got a terrible debt due to a member of the family using my credit card while I was working abroad and intercepting letters. I tried to reason with Barclays but to no avail so I ignored all warnings and letters -three years after the initial debt they took £250 without my permission out of a Barclays savings account I had in my name but was for my then infant son. I took all my accounts elsewhere and ignored threats of court action etc. That was 6 years ago. What you have to worry about is that the Bank will write off your debt and sell it to a Loan company -this is done frequently. They may have already done this and if they have you will have to negotiate with the loan company and this is a different kettle of fish. I know this will rub a lot of people up the wrong way but if your debt has been sold on then the Bank have got their Insurance money and I would ignore any letters you get from a loan company that has maybe paid 1P to the pound to buy your debt.

[chrissa1]

Don't ignore letters from companies who have bought the debt. I totally disagree with Retrochick on this.

Here is my post from 2009.

http://www.theanswerbank.co.uk/Law/Question707275.html

Indeed, these companies are going to try harder to get their money back from you, having bought your debt from the bank.

[Retrochic]

chrissa -the thing you did wrong there was to pay off some of the money in the first place,thus confirming your debt. If you ignore letters, never ever contact them even to say you are not the person who owes the debt, they more often than not will do nothing. I worked with someone who had worked for a Collections Agency and they only go for debts they think will eventually get repaid. Even if you return the letter with 'not at this address' -to them its an indication you are at that address (weird i know but true). I'm not condoning not paying debts, just giving facts I know to be true from my experience. The worst thing you can do is contact them to offer to pay off a little bit - hooked -they've got you.

[scooping]

Do nothing.

[andy-hughes]

Retrochic - there is the small matter of a moral obligation to replay a debt you owe?

[factor-fiction]

Some people have pride and want peace of mind though, Retrochic

[Retrochic]

andy I was victim of fraud but the bank would not recognize it because I wouldn't 'grass' on the person as it was a member of my family. It was not my debt. I was 4000 miles away but apparently buying hundreds of pounds worth of booze from bargain booze in the UK...go figure

[Bazile]

Is Retrochic , the poster who does not pay his tv licence ( apologies if i'm incorrect )

[factor-fiction]

But chrissa's case was different, Retrochic, and yet you are still saying people like her should ignore requests for payment

[Retrochic]

factor I totally understand but knowing what may or may not happen is paramount and these companies rely on the fact most people think if they don't cough up the Bailiffs will automatically be sent in and its just not true.

[Retrochic]

factor re chrissa her debt was a business debt and very different from a personal debt. I am not in the position to suggest any course of action and never would, just giving an opinion and anecdotes of my personal experience.

[Svejk]

retro-I could swap my details with someone and we could run up debts in each others names. And as long as we didn't 'grass' each other up the banks should forgive the debt?

[factor-fiction]

You were recommending it as a general principle Retrochic- eg your advice was "The worst thing you can do is contact them to offer to pay off a little bit "

[Retrochic]

svjek however tantalizing that idea may be I doubt it would work as I believe things have changed since my 'incident'. Send me your private email addy though and maybe we could give it a try? ;-)

[factor-fiction]

You run a business too don't you Retrochic. Do you/would you let debtors off if they didn't respond to requests for payment?

[Svejk]

I would but sadly I'm the poorest person on AB so it wouldn't be very fair. ;)