Sunday, 1 January 2012


As I have mentioned I had a company, that company failed and I am now stuck with the debt as I was he director.
All but one of my creditors have come to an arrangement where I can pay them off with a monthly sum. Even my ex wife has come to an arrangement, and really, if she ever reads this, I thank her!

There is one creditor that has been a pain. I owe money to a bank (I will not name the bank), this bank has passed my debt onto a debt management company (I will not name this company at this time).

The last time the bank asked for a payment it was £171 a month. At the time I was not working, so all I could offer was £10 from my job seekers allowance. This was accepted. Well, I am now working.
As I am now working, I want to pay the debt off. While I was offshore the debt management company called me and were very agressive on the phone. I naturally told them to sod off, as I do not "do" agressive callers. They get hung up on.

They then wrote to me, again demanding full payment of the debt. Now, I have an agreement with the bank in question that last 6 months. This six months is not up. So, as far as I am concerned, the bank has therefore broken my arrangement. At least morally. And we know banks have no morals.

I offered to pay them £175 there and then as a monthly payment. I was told I had to pay the full amount.
Well, I don't have the full amount. So again I offer £175 a month. I am told I can only set up an arrangement if I give them a lot of financial information on my debt and identify my creditors to them. This I am not willing to do, as I do not know if I legally can identify my creditors to a third party without violating the Data Protection Act.

So, to prevent them from taking me to court, I start making payments to the bank of £175 a month. I am told I should not do this, and the financial details, including identifying my creditors is again demanded. I continue to pay the £175 a month.

Now. I still do not have the money to pay off the full amount, and even if I was taken to court, the court is only going to order me to pay what I can afford to pay (which according to the CCCS is only £132 a month). I want the debt cleared, and if I had been allowed to pay the £175 off when I first offered, the bank would have been getting the money back a good two to three months earlier than they are now.

Now, the question I want to pose is, are financial people really just dumb office workers, or have I miss understood the situation?

There is no way I can pay the full amount off. I have done a budget with the CCCS and I have estimated that I will continue to recieve the payments I am currently receiving, so according to their paperwork (CCCS) I can afford to pay £132 a month. I have calculated that I can afford a bit more and have offered £175 a month, to try and pay it off as early as I can. I have spoken to my solicitor, and to my old accountant, and they are both of the opinion that if it went to court I would be ordered to pay the £132 a week, as I clearly can not pay the full amount. So, why is this so hard for the debt recovery company to understand?

My solicitor also said that there is an outside chance that, as in effect, the debt recovery company was refusing to allow me to make payments initially, the court could order the debt written off. I think that is pretty unlikely, but not impossible.

So, I am going to put the budget page of my CCCS paperwork in an envelope and sent it to the debt recovery people and write to the bank and ask if I can revert to paying them. After all, they lent me the money to start with.

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