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Debt advice (ish!)
Ninehigh - 4/11/10 at 06:05 PM

With so many people losing their jobs, and debt in general being a problem amongst the general population I've seen a lot of the dabt advice that organisations (such as the CAB and proper advice people, whose names escape me) and I've now seen the other side of it from the companies you owe money to.

So here's what I've learned:
A debt advice company will tell you to contact the people you owe, explain the situation and together you can work out a plan that means they get some money and you can still afford to be alive.

However when you do this, a certain company (and I'll be happy to name them if anyone asks) will tell you to miss a payment. They can't do anything until you miss a payment. What they do however is send you a letter telling you that you've missed a payment and charge you £25 for taking their advice. Then you can pay them £1 a month, and let gracefully let you. Continue with this forever because the moment you tell them you can resume the normal payments they start harassing you. I've dealt with a good few debt collection agencies in my time and some of them have been abusive but this loan company have beaten them all. My gf recieved a letter today charging her £25 for missing her payment on the 16 November!

So the moral of the story is if you do find yourself unable to pay off loans and such, don't contact them, hang up as soon as they call and make them send it to debt collectors, who know that they have to accept any reasonable offer you make, and as long as you're paying them they generally leave you alone.

Hellfire - 4/11/10 at 08:17 PM

I'm not disputing what you've written above but I've also had to deal with a few debt collection agencies in my time. Not mine I hasten to add!

The most useful information I found was on the National Debtline website. The information is clear and concise and really useful and best of all, it's FREE.....

Phil

Ninehigh - 4/11/10 at 09:11 PM

Oh no the debt collection agencies, even the more, er, offensive tactically ones are more civil than this loan company.

My point is that agencies like that national debtline give advice to people, I'm thinking maybe they should give the same advice to creditors (if I have that the right way round) so that when you call them and try to discuss your financial problem they know how to behave too.

All debts of mine (all old ones) are being paid off, the real cutter is that my missus has never missed a single payment to anyone in about 14 years and now she has from the advice of the people she's paying.

Hellfire - 4/11/10 at 09:36 PM

Creditors do know how to behave, they have clear written guidelines. They just don't play within those guidelines until they've been advised to do so. It's in their interests to harass you and intimidate you to the point where you pay up in full.

Most loan companies would advise that whilst you are making regular monthly payments there wouldn't appear to be a problem. It's only by actually defaulting on a payment that you are able to highlight a potential problem to them.

You can't just decide to pay your creditors £1 per month after you've missed a payment and continue forever. It's all down to personal circumstance and what you can afford to pay. If the creditors decide to recover money from you through the courts, a personal budget sheet is required to demonstrate your income and outgoings and show what you can realistically afford to pay.

As you default on payments, the loan company cut their losses and sell your debt on to a debt recovery agency. Each time this happens the debt recovery company becomes more heavy handed in their approach but if you follow the guidelines on the National Debtline website, there is light at the end of the tunnel.

Phil

[Edited on 4-11-10 by Hellfire]

Ninehigh - 4/11/10 at 10:33 PM

Yeah but we haven't missed a payment.

We took their advice and now they're being offensive to us for it.

[Edited on 4/11/10 by Ninehigh]

Hellfire - 4/11/10 at 10:49 PM

Offensive in telephone conversations or by letter?

Ninehigh - 4/11/10 at 11:19 PM

Oh just on the phone, which they have been told several times not to contact her by.

Hellfire - 5/11/10 at 12:07 PM

Telling them is no good.... They need it in writing, officially. Once they receive it, the telephone calls will stop. Sample letters are available on the National Debtline link in one my previous post.

Phil

coozer - 5/11/10 at 12:57 PM

Debt, whats that?

Peteff - 6/11/10 at 05:03 PM

quote:
Originally posted by coozer
Debt, whats that?


It's when you buy stuff you didn't really need with money you haven't really got

Paul TigerB6 - 6/11/10 at 06:46 PM

quote:
Originally posted by coozer
Debt, whats that?


Its what happens when you get married (alegedly)!!

As above - telling them on the phone to stop the calls gets ignored. Everything should be put in writing both ways (to them and correspondence to you).

If you follow the moral of the story - dont expect to be getting credit again in the near future!! It's not in the loan company's best interests to send anything to a debt collection agency - for them it's a last resort to get back a proportion of what they're owed. Speak to the company and tell them you'd prefer everything in writing - i've not come across a company yet who wont come to an arrangement if the debtor is reasonable and genuine (I work for a Financial Advisers)

Ninehigh - 12/11/10 at 11:21 PM

Yeah done all that, they were kinda fine (until we actually acted on their advice and then it was wrong) and then they harassed us mercilessly when she told them I'd got a full time job. We still don't know what my average take home pay is (been here about 6 weeks) but that's not good enough.

Btw I got into this kind of trouble about 2002, they still won't touch me despite the only missed payments I have is when barclaycard cancelled my direct debit and then refused to set it up for 4 months...