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Here is another example of a debt collection letter:
“Central Debt Recovery Unit
CDRU REF No.
Dear
Re: Card Services, HSBC Bank
Your Debt £1052.15
Your debt has been referred to us for an immediate collection.
We specialise in the recovery of debt such as yours where normal method of recovery have proved ineffective.
Continue reading “Central Debt Recovery Unit — Collection Letter” »
Here is an example of how we were able to assist someone who was in desperate financial trouble.
Having reviewed their current situation and also having done an in-depth financial
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fact find by an associate company – it was found that a short term solution was to place the client into a debt management plan (DMP).
As you can see from the attached letter 1st Credit/Connaught Collections are willing to accept £3.00 per month.
“Connaught Collections
Re: 1st Credit Ltd – Lloyds TSB -v- Mr XXx
Outstanding Debt – £2450
we write a further to your recent correspondence with regards to the above stated outstanding debt, and your client Mr XXx
we are willing to accept your clients offer of £3.00 on a MONTHLY basis, however this is on the strict proviso that the instalment plan adhered to. Should your client default on the arrangement, further action may be taken to recover the outstanding monies owed to our client.
Please ensure that your clients first payment of £3.00 is received at this office no later than 30/11/2011, along with their preferred method of payment i.e. Standing Order/Payment Book or Cheque/Postal Order’s.
We reserve the right to review this plan periodically and confirm that we shall add no further interest or charges to your client account.”
In this particular case the client was an able to pay the full amount that was being demanded through the courts. With the assistance of an associate company they were able to achieve reduced payments £3.00 per month.
“Variation Order
The judgement made against the defendant in the Northampton (CCBC) County Court
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on 17 January 2011 for payment of £2162.75 and £155.00 four costs is hereby varied.
It is now ordered that the defendant pay the claimant the outstanding sum by instalments of £3.00 for every month the first payment to reach the claimant by 4 November 2011.
To the defendant
If you do not pay in accordance with this order your goods may be removed and salt or other enforcement proceedings may be taken against you. ”
It is advisable not to allow your debts to get to the stage where a creditor applies to the courts for a County Court Judgement. The above problem could have been solved at an earlier date without having to get the courts involved.
This is obviously a good result for the client as they are now able to make affordable payments towards this debt.
So we thought that it would be a good idea to list some sites, that we think offer services or advice that would help you on your journey.
These are all UK Based sites.
The list is in no particular order:
“The award-winning Miss Thrifty has become hugely popular. Her posts tackle all cash problems: beauty, fashion, holidays, weddings, personal finance and food” – The Daily Telegraph
This site is packed full of great money saving ideas. Subscribe to the Miss Thrifty newsletter for regular updates – We do!
http://www.miss-thrifty.co.uk/
This site gives lots of information on as the name suggest, on saving money.
The site covers all sorts of topics from; Popular Winter Cruise Destinations, Booking Car Hire Online, The Savings Trap, Food Money Saving Coupons and much more.
http://howtosavemoneyuk.org.uk/
“Started back in July 2008 by the formidable FruGal, TotallyMoney Blogs is now a little older and a little wiser. Once a one woman show, TotallyMoney Blogs now houses a whole host of frugal mavens who are hell bent on letting you know how to live large on a small budget. We celebrate the best of the personal finance blogosphere in our TotallyMoney Carnival and in our brand spanking new TotallyMoney Top Personal Finance Blogs list.”
http://www.totallymoney.com/blogs/
This site is a forum primarily for visitors to ask question about debt issues. You can sign up anonymously and ask any question about debt or money.
We always recommend that you ask as many people as possible about your situation, this way you will get a good idea of what the solution should be.
Also the site is completely free to use.
http://www.ridingtherhino.co.uk
“Lush living with thrift” The £10 A Week Challenge, to recipes and much more.
“I work in the, not as glamourous as you would think, world of fashion photography. Being a freelancer where the money comes and goes and goes: you always must be prepared for The Lean Times.”
“Hi, I’m Belle.
A friend and I started this site to bring to every ladies attention that you can always have what you want – Love, Money, Shoes – if you want them, you can actually have them.
I wrote the blog, it tells you my trials and tribulations and how I enrolled into my current lifestyle and how I keep it.”
This really is a fantastic site, they even have an app that you can download, so that you get the latest discounts straight to your mobile.
The site lists all the major retailers who are offering discounts.
By using this site you can save money when you shop on-line and also off-line.
Before you make any purchases on-line log into the CashBack site first and then start buying. As you shop you will then get CashBack to your account. This site even gets you CashBack if you use eBay.
“saving mummys money”. Savvymummys uses the power of group buying to get up to 90% off top brands, shops, cafes and all things mummy’s love in your community.
“SHORT SETTLEMENT OFFER
With regards to recent correspondence we are pleased to offer a short settlement of £678 available until the 31 October 2011.
Once the settlement is confirmed & payment is received, MBNA will register a settlement with the licensed Credit Reference Agencies and a default will remain registered. You will not have to repay the remaining balance and the debt will not be pursued any further all stop
If the final payment Is not received by31st of October 2011 The settlement agreement will be null and void.
If you have any queries regarding the above contact our office today on 0161 819 2288
Client: MBNA Europe Bank Ltd
Debt: £2242.25″
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Here is another example of how an associate company managed to save a client £1564.25 in a full and final settlement.
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Here is a copy of a letter from Rockwell Debt Collection Agency:
“Rockwell
P.O. Box 198
Southend-on-Sea
Essex
SS1 2GX
Call us on 01702 444794 or 0845 2241806
Outstanding Balance: £1804 .24
FINAL NOTICE BEFORE ACTION
Further to our previous correspondence, your account still remains unpaid and we have received no proposals for repayment. It is a legal requirement to us to send a notice of Intended Litigation before legal proceedings are issued against you. This letter meets these requirements, even if it is not actually read.
We will now consider the options available to us to recover this debt, including litigation.
To prevent legal action from being taken you must arrange to make payment in full to these offices by 20 September 2011 otherwise we will take immediate action against.
If you fail to respond to this letter Judgement Order/Decree may be obtained and, if this remains unsatisfied, enforcement of your debt may be sought by one or more of the following:
You should understand that a judgement/decree against you would seriously affect your ability to obtain further credit.
TO AVOID ROCKWELL TAKING ANY FURTHER ACTION, TELEPHONE THE PRE-LEGAL DEPARTMENT NOW ON THE NUMBER ABOVE.
ROCKWELL DEBT COLLECTION AGENCY”
Obviously the letter above should be taken seriously! In this particular case, the client sought help and reduced monthly payments are being negotiated.
As part of a pro-rata split the client will be paying £11 to the creditor on a monthly basis, in a debt management plan.
This is a short-term loan designed to give you funds until payday. Some providers require the funds to be paid back as soon as you have been paid whilst other operate more flexible repayment terms.
Payday loans are a fast and convenient way of getting cash but can be rather expensive. The loan is usually paid direct to your bank account, usually within just a few hours to about 24 hours once your application has been approved. The repayment(s) plus interest is taken directly from your account on the pre-arranged due date. There is usually a typical charge is about £25 per month for every £100 borrowed. Advertised interest rates (APRs) can be about 2,000% or even more.
This is mainly due to the small amounts involved, credit checking procedure costs and also the fact that these loans have a higher than average risks of the borrower defaulting.The Payday loan should only be used as a short term solution, otherwise the cost to the borrower would be astronomical.
Basically, the loan is secured against your car, so if you fail to make repayments you could end up losing your vehicle, as well as having to pay a high rate of interest. As the loan is secured against the vehicle there are often no credit checks. This can make it more temping for customers who are struggling with other debt to take out a Logbook Loan. The downside is that they are putting their car and finances at risk.
These basically are to payday loans, except that repayments are typically spread over a longer period and a representative from the company visits your house to collect a weekly/monthly repayment.
In general these are cheaper than Payday loans, but they can still very expensive.
Here is a recent video testimonial.
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Many professionals and those in debt are often unsure what to do when issued with a CCJ (County Court Judgement). However not all Debt Management Companies (DMC’s) can or do help, and they should!!
A CCJ is a County Court Judgement that a county court issues when someone has failed to pay money that is owed to a creditor.
When a debtor owes money to a creditor, the creditor can apply to the County Courts for a judgement against the debtor in order to reclaim the money owed. The Court to decide whether or not there is a debt to repay. If there is, a CCJ is issued, which will usually state that the amount is to be paid in full by a certain date
If the debt is not paid the creditor can apply to the courts to enforce the judgement. There are various methods to enforce the judgments; Warrant of Execution – which means that a court bailiff can seize a debtor’s goods to sell and pay off what they owe; an Attachment of Earnings – which forces a debtor’s employer to deduct money from their wages and pay it to a creditor direct; a Charging Order- which means that the creditor secures the debt against debtor’s property; a Third Party Debt Order-instructs someone who owes money to the debtor(including bank accounts) to pay it instead to the creditor.
Before a CCJ is finalised, there are various points at which a DMC and the debtor can/should intervene.
Many people do not realise that a CCJ can be stopped, even when court proceedings hae started.
Negotiation is one of the most effective methods when dealing with threats of legal action. In the early stages and explaining your circumstances to the creditor accompanied by a full financial statement is of vital importance.
It should indicate to the unsecured creditors that they are being dealt with on a fair basis (i.e payments to them are on a pro-rata split). The household budget should also show that the debtor is making sacrifices to achieve this.
If a judgement is enforced the DMC/debtor in complete a Variation Order based upon what the debtor can reasonably afford. Taking legal action is a costly process and most lenders would prefer to come to an amicable solution. In other words offering monthly payments.
The best strategy is to act immediately on creditor correspondence before legal action takes place. This is why seeking advice form a professional DMC can significantly help the situation and also be of assistance in other debt related scenarios.
“DOORSTEP COLLECTION NOTICE
as you have failed to come to a satisfactory arrangement with us for the discharge
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of the debt you owe to Lloyds TSB Bank PLC you have left me with no eternity but to arrange for a Debt Collector to visit your home to agree with you how you will settle this long overdue debt.
To avoid this action you must urgently contact us on 08451460177 between 8.00am and 9.00pm Monday to Friday or 8.00am to 1.00pm Saturday to pay this debt in full or come to an acceptable arrangement.
Yours sincerely
Ruth Pointon – Head of Collections for iQor Recovery Services Ltd
YOU NOW HAVE 72 HOURS TO
RESPOND TO THIS LETTER
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