Financial Abuse...Unpaid Debt

[CAJ1]

I came out of a domestic violence relationship 2 1/2 years ago. My ex financially abused me amongst other things by making me take out loans, credit cards etc and then taking the money off me. I now have 2 letters one telling me to pay �428 by the end of the month and the other for �328 saying I have to pay it in 10 days. Both are threatening court action unless its paid. I will pay them because they are in my name. I can only just afford to pay the �428 by next week but I can't pay the �328 as well. I don't have family or anyone to borrow the money off. What do I do? I don't think they'll give me extra time as its outstanding for so long. Any advice is much appreciated, I'm so worried and so annoyed he's still getting to me after I thought I had my life together again.

TIA

[Buenchico]

Stop worrying.

If you can't pay a debt, just tell the lender exactly that. Offer to make small monthly payments. They can either accept or refuse. If they refuse, all that will happen (at worst) is that they'll seek a County Court Judgement against you. The courts accept that people can't pay what they haven't got, so the CCJ will simply order you to pay a small amount each month (which will probably be the same, or possibly even much less, than what you offered the lender in the first place).

'Court action' might sound very ominous but many people find that CCJs make their life much easier, because (as long as the small regular payments are kept up) the lender is effectively barred from doing anything more drastic (such as using the services of bailiffs).

If you're still worried, speak to the Consumer Credit Counselling Service. (They're an independent charity so, unlike many so-called 'debt helplines', they won't be trying to sell you anything. They just want to help):
http://www.cccs.co.uk/

Chris

[CAJ1]

Thank you so much for replying Chris.

It is so worrying, I was sat in tears earlier. Will I not end up paying the court costs too? I'll try speaking to them tomorrow and if I get no where I'll try CCCS for advice. I wish these people would give a little leeway for people like me, it seems so unfair. I have debts and bills to pay because of him and he gets away with it. If it went to court would I have to be there?

[CAJ1]

By the way the letter for �328 lists the following things that can happen if I don't pay:

Warrant of Execution
High Court Enforcement Officer (CCJ)
Charging Order
Attachment of Earnings Order
Third Pary Order
Examination of Debtor
Insolvency Act 1986

Have they just listed all this to scare me into paying?

[Buenchico]

Despite having had loads of letters like the ones you've got (and with debts of over �10,000) I've so far managed to avoid actually going down the CCJ route (simply by persuading lenders to accept small monthly payments), so I'm not an expert when it comes to the court procedures.

However a bit of Googling suggests that you only need to attend court if you're challenging the debt. If you accept that you owe the money, you can do everything by post. See here:
http://www.cccs.co.uk/faqs/Legal.aspx#BM3
and here
http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/ManagingDebt/CourtClaimsAndBankruptcy/DG_100 13083

You might find the �45 court fee added on to your debt but, given that interest will be suspended on the debt, that could well be a lot cheaper in the long run than, say, borrowing �328 on a credit card.

Chris

[CAJ1]

Sorry to keep asking you questions but I've found a lot of times that I have offered an amount to pay they say no and it needs to be paid in full within a certain time because it has been ignored for so long. Do the debt recovery companies normally relent and agree to a small amount in the end?

Thanks for your help

[themas]

Yes - they do list all these things to frighten you into paying. Don't let them!

Some of them don't apply anyway - the Insolvency Act 1986 relates to bankruptcy & they can't make you bankrupt as you owe them less than �750. If you don't own a house, a charging order is irrelevant.

Take Chris's advice - talk to CCCS before you talk to these people.

[Buenchico]

Sorry, I was typing while you were posting.

Debt collectors love to try out all sorts of vague threats to get people to pay them. In practice most of the things on that list either can't be done initially or can't be done at all.

For example, a court wouldn't consider an attachment of earnings order unless they'd already issued a CCJ and you'd failed to pay it.

The same applies to a charging order (which wouldn't apply anyway if you don't own your home).

A warrant of execution refers to sending the bailiffs in but, once again, you can't get to that stage unless you fail to keep up the payments on a CCJ.

'Examination of debtor' means being called before the courts to explain why you've not complied with a CCJ. (Yet again, it's irrelevant if you keep up the payments ordered by a CCJ).

The reference to the insolvency Act is a threat to send you bankrupt. They can't do that if you owe less than �750. (Even if you did, it would cost them �500 to send you bankrupt and they'd risk not getting a penny back, so they wouldn't do it).

You can safely ignore all of those threats, other than the one about a CCJ which, as I've stated, might actually help you anyway.

Chris

[Buenchico]

Once again, I was typing while you were posting.

As Themas states, whether they like it or not, debt collectors know that you can't pay what you haven't got. If they won't accept your offer as reasonable, just tell them that you'll be happy to let the county court decide how much you should pay each month. (The lenders know that the court might set a figure lower than the one you're offering, so they might suddenly become interested in your offer).

Chris

[CAJ1]

I am so grateful for your help. Thank you so much Chris and themas. I may not pay the �428 in full but instead divide it between the 2 bills and then thats a big chunk paid out of both and then they can't say I haven't tried. I will speak to CCCS tomorrow and hopefully they can help and advise me further. I really appreciate you taking the time to explain, I feel a bit more at ease now.

[SMP]

Have only just seen this but CAJ1 if you haven't already done so please contact the CCCS. They have helped me enormously. They are there to help not judge and will put your mind at ease.

[maggs1703]

cccs are really good and have helped me immensly so please do not be threatend or frightened by these people cccs will do all they can to help all the best and do not worry

[CAJ1]

I've managed to sort out an affordable repayment with the people I owe �328 to. They were really nice and understanding. I am just waiting to hear back from the ones that are owed �428, I don't think they'll be so nice somehow (they're Mackenzie Hall) but sure I'll wait and see. It would be great if they agree to the offered repayment as it would be a big load off my mind.

[themas]

MacKenzie Hall have something of a reputation - Google them & see. But don't let them bully you. Pay what you offer even if they say it is not acceptable. Make sure you pay it in a way which means you have evidence of having paid. Never give them your bank account or debit/credit card details.

[CAJ1]

I've seen that they are a bit nasty themas. They sounded it the first time I phoned. They wouldn't give me details of the debt and said it was for me to look back through my records even though I explained the situation of only having my clothes I was stood in when I left my ex and therefore no paperwork, they didn't care.

How should I pay them - by cheque? They were to phone tomorrow night to collect the payment by debit card details but I can't pay it in full so I've offered them �200 this month from what I've managed to scrape together and the rest in installments of �75 but as of yet they've not replied to my email.

[CAJ1]

I have just managed to get Mackenzie Hall to agree to �200 down payment and �75 per mth after. I'll be skint all this month but happy as it stops any further action. Thanks everyone for all you advice, CCCS were also great.

[themas]

Payment method is difficult. If they have a cheque they have your sort code & a/c no. They shouldn't mis-use it (& I've no knowledge that they ever have) but the adage "take a long spoon when you sup with the devil" comes to mind.

You could use postal orders, but will have to pay the extra cost to buy them. If you do, make sure you complete each one with the firm's name, & keep photocopies.

Copy everything you send them, & send it recorded delivery.