CCCS no longer communicating with my creditors

[shezbo40]

Hi

We have been paying via the consumer credit counsel for a fair few years. We lost our business and resorted to seeking advice. We have never missed a payment and have increased our monthly payment (albeit very slightly) each year.

 

We have now started to receive letters from our creditors asking for full payment or increased payments and having just spoken to one they advised that although they are still receiving the payments from CCCS they have had no communication with regards our renewal etc. We were advised by the CCCS that they may not be able to allow us to continue with our debt management plan when our renewal is due in April this year as they see it taking too long to pay the debt off.

 

I am now extremely worried as I do not know what to do..... I have e-mailed the CCCS and hopefully will received a reply tomorrow but if they cannot represent us then what do we do next? I have re looked at our budget and to be fair certain things have increased such as gas, electric and food.

 

Could anyone give us some advice where we could turn if the CCCS say they won't represent us... They will still distribute our money but that is all apparently ?

 

thank you x

[silverfox1961]

Hi and welcome to CAG

 

While I cannot comment on why CCCS are refusing to represent you, it may be just as easy for you to do it yourself. The only issue is having the time.

 

We have a selection of template letters in the library HERE to help you negotiate with your creditors

 

If we have some idea of the sort of debt you are in, more advice should be forthcoming. Also, if you own your own home or not?

[shezbo40]

Hi, firstly we don't own our own home... We sold due to non equity and are now in rented accomodation. Their e-mail last year said that due to the fact that it would take us a further 18 years to pay off the debts it wasn't feesable and would need to look at other options.. They did tell me not to worry however it seems that they have indeed stop talkiing to our creditors.. We have had this plan for 8 years and have like we said never ever missed a payment and increased where we could....

 

THank you for your reply.. any help and advice we receive is greatly appreciated

 

THanks

Sherryl

[silverfox1961]

Well if CCCS will still distribute the money around, all you need to do is get agreement from the creditors to accept your payment figure.

At the bottom of this LINK there is a budget planner to help you work out how much you have to play with. You have to be fair with all creditors to make sure that you don't pay one more than another (on a pro-rata basis)

If you give NationalDebline a ring, they may be able to help with pro-rata calculations.

 

Don't let any creditor bully you into paying more than you can afford. Stay off the phone and do everything in writing, getting proofs of postage and keep all letters (and envelopes) from them. Make a file for each creditor so that you can keep track of where you are.

 

Do you know of any charges/late payment fees added to your accounts (loans/credit card/HP debts-NOT bank accounts)? Did you have PPI added to any account?

[coledog]

I fully sympathise, have been in this situation myself and the problem is with organisations like CCCS and CAB is that their help is limited and geared towards the small payment option.

 

The problem is you may never be debt free unless you go for a bankrupcy option however it is possible to take control of the situation and deal with each creditor individually.

 

Golden rules are NEVER ever speak to a creditor on the phone unless you can record it, keep everything 'in writing only' and refuse all calls from them.

NEVER send an Income and Expenditure to a creditor even if they ask for it, use it yourself to work out what you can comfortably afford and never pay more. Only a court can order an I&E.

Keep a file for each account and retain all correspondence and envelopes.

 

It sounds like your debts are pretty old so you need to get all the information on each one from the Debt Collection Agency and original creditor, if this has been sold on. This would be obtaining credit agreements, statements of everything you have paid and all documentation. This will tell you if the DCA has the right to enforce this debt at all and you can challenge the amount owed so it is possible to agree to repay less than they claim

 

DCAs will harass you even if you are making payments but you can deal with this.

 

Start a thread on Debt Collection Industry for each debt to get individual advice and don't worry about this as I am sure you can handle it

[sequenci]

Golden rules are NEVER ever speak to a creditor on the phone unless you can record it, keep everything 'in writing only' and refuse all calls from them.

NEVER send an Income and Expenditure to a creditor even if they ask for it, use it yourself to work out what you can comfortably afford and never pay more. Only a court can order an I&E.

Keep a file for each account and retain all correspondence and envelopes.

 

Is the OP wanting to pay their debts back or embark on a potentially long and drawn out legal battle with all of their creditors? I guess this is a question that we really need to find the answer to.

 

*if* they are keen to continue making reasonable and affordable offers to their creditors then negotiating affordable payments via an I&E form is the tried and tested and correct way of doing things.

 

Not everyone wants to enter into these challenges, especially since it is becoming more and more difficult to actually win them.

[coledog]

I agree with you and am not suggesting avoidance of payments in any way BUT unfortunately the battle is often started by the creditor who become greedy and threatening.

 

The poster MUST take a look at each debt, obtain statements and documents to understand exactly what they have been paying and what they owe. It is the only way of taking control of this as CCCS have indicated that they are reducing their help.

[sequenci]

I agree there. I'm a little surprised that CCCS are stopping their help to be honest as they are usually happy to continue DMP's for many years, sometimes as long as 25.

 

You made an excellent point in that perhaps repaying the debt isn't the most effective way in moving this forward, perhaps one of the insolvency measures could be more suitable, especially if there isn't a property.

 

How much do you think you still owe Shez, and how many creditors are there?

[coledog]

Also you say that you had a business/self employed, is there PPI on any of these debts as this could have been mis-sold?

 

As DM charities tend to take the amount claimed as gospel, it is worth finding out as this may not be the actual case. You also need to find out how much has been paid in 8 years and if interest/charges have been frozen.

[emma.d]

Well I know exactly how you feel as I have been paying through them for over 4 years and after loosing my job and not being able to make my payments for 3½ months they send me a 5 lines email informing me they were closing my plan and I should be dealing with my debtors direct .. they only there to "milk you" I have searched the internet at the time and it appears they would be , in fact , paid by the bank (I put that info with a pitch of salt) to keep you paying

Since I have dealt direct with my creditors , CCA requested them and out of the £16000 still owned 2 had dropped out and I only owed £1400 to 2 creditors so instead of being bedts free in 5 years through them I was within 10 months !!!

[AJ2012]

This is really interesting Emma.D... How did you know if your CCA was enforceable? And would you not recommed CCCS? I am on a Debt Management Plan with Gregory Pennington, but am obviously paying them a fee!!!

 

Any advise appreciated

 

AJ 2012 xx

[silverfox1961]

This is really interesting Emma.D... How did you know if your CCA was enforceable? And would you not recommed CCCS? I am on a Debt Management Plan with Gregory Pennington, but am obviously paying them a fee!!!

 

Any advise appreciated

 

AJ 2012 xx

 

Stop paying fees. DMPs are easy to do yourself or CCCS and Payplan will help you. So long as you have enough disposable income, they will take you on. If all you can offer is token £1 payments, they will give advice.

You have to remember, we tend only to see the failings, not the successes. As we don't see many complaints about CCCS or Payplan, this suggests they are getting it right (most of the time)

[AJ2012]

Thanks Silverfox..

 

I have about £350 max disposable income at the moment..

 

I just don't want to leave my Debt Managment for my balances etc to double and get a load of hassle in the process (which I've just managed to get rid of!)

 

AJ2012 x

[silverfox1961]

Most creditors would prefer you use CCCS or Payplan (CCCS for preference) as they know more money is going to them, not some debt management firm that charges you to do the same thing

[emma.d]

when CCCS dropped me in , I contacted my creditors direct ( not the solicitors or collecting agent ) with a request of proof of the debt (they have to send it within 12 working days) one try to send me a proof I have opened an account with them , i wrote to them pointing that was not the proof of debt after that, they wrote back saying that as my file was "lost" they were dropping the debt and I sent a copy to the collecting people

and yes it is scary to write these letters at first and having to argue with the collecting agent people who are not trying to help you of course and threat you of God knows what .. on one occasion I have spent 12 minutes saying again and again "I have contacted the creditor direct and i am waiting for the proof of debt until then I will not give you a penny " now I repay £12 a month with the only creditor I have (direct to them by direct debit which they were happy to accept) and I do not get any calls or letters any-more .. and believe me that changes your life to a point which is difficult to imagine when you jump every time the phone ring or the postman turn up . So I am glad I had that moment of bravery ( or madness) at the end I am grateful that CCCS let me down as I am so much better off !

[sequenci]

they only there to "milk you" I

That really isn't true at all. They are, however, only able to offer individuals a DMP where there is sufficient surplus to do so, this is usually £100 per month although they do, on occasion, allow a lower payment on a temporary basis.

have searched the internet at the time and it appears they would be , in fact , paid by the bank (I put that info with a pitch of salt) to keep you paying

They receive a contribution from the various lenders so that they don't have to charge people for their DMPs - This does not mean that they work on behalf of the banks.

 

All that said, the best way to ensure full control over debts is to self-negotiate.

[AJ2012]

Thanks Emma..

 

So would you suggest I write to my creditors myself offering payment? I have about 14 creditors and it's all getting a bit out of control!

 

I have just managed to get most of the calls to stop after going into debt management, and im worried if a leave, they will all start again!

 

Thanks for your advise! Nice speaking to someone who know what I'm up against!

 

Xx

[emma.d]

well i think you should first request a proof of the debt as without it they can not ask you to pay it

there is on here very usefull letter you just need to fill in .. I know it is a bit of money if you do it 14 time but I would suggest you send them recorded ( just ordenary recorded even 2nd class) as long as you have a proof of the day they have been signed for as after that your creditors have 12 working days to give you a valid proof of the debt so you might be able after that period to drop the number of your creditor .. very inportant do not sign the letter you send as they might use it to " make up " a document do not do anything over the phone

and state in every letter you do not wish to have any phone calls as is it part of the database protection act to stick to client choice of communication

hope this help ..be brave it worth it

with warm regards

Emma

[AJ2012]

Thanks Emma, that is SO helpful!

 

Do you know where I can find the letter?

 

xx

[AJ2012]

Also, if I get replies, how do I know if they are enforceabloe or not??

 

xx

[emma.d]

the letter I have used is

 

The Loan Company

Company House,

Church Street,

Newtown,

Kent,

R1 7HG

 

Account No: 4563210025897412

 

Dear Sir/Madam

 

With reference to the above agreement, we would be grateful if you would send us a copy of this credit

agreement and a full breakdown of the account including any interest or charges applied. We understand that

under the Consumer Credit Act 1974 [sections 77-79], we are entitled to receive a copy of any credit

agreement and a statement of account on request.

We understand a copy of any credit agreement along with a statement of account should be supplied within 12

working days.

We understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they

fail to comply with the request for a copy of the agreement and statement of account under these sections of

the Act.

We look forward to hearing from you.

Yours faithfully

 

 

Mr A N Other

 

now I am afraid I have no answer as par is it enforceable my suggestion ( except if someone here knows) would be to book an appointment with the Citizen Advise Bureau specialist

 

xx

[AJ2012]

Thank you xx

[victoria_siempre]

That really isn't true at all. They are, however, only able to offer individuals a DMP where there is sufficient surplus to do so, this is usually £100 per month although they do, on occasion, allow a lower payment on a temporary basis.

 

They receive a contribution from the various lenders so that they don't have to charge people for their DMPs - This does not mean that they work on behalf of the banks.

 

All that said, the best way to ensure full control over debts is to self-negotiate.

 

Hi Seq

 

CCCs will now do a DMP at a min of £5 per creditor and Payplan have lowered their min to £50; or so I am told.

 

x

 

v

[silverfox1961]

This is a government paper with reference to CCCS

 

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/writev/1649/dm16.htm

[sequenci]

Hi Seq

 

CCCs will now do a DMP at a min of £5 per creditor and Payplan have lowered their min to £50; or so I am told.

 

x

 

v

 

Hi Vic - are they both not with a view to increase the minimum to £100 within a 'reasonable period of time'?

 

That was always my understanding unless their policies have changed (which could be likely!)