Letter received from a debt collector

Received a letter from a solicitors on behalf of my bank. Apparently I owe €600 for a credit card debt that hasn't been paid. I hold my hands up and admit it was my fault as the DD failed a couple of times to take out the minimum payment and as a result hasn't been paid in a good while.

I'm only after receiving a pile of letters from them (as the address they were posted to was my mothers and she hadn't given me my post in months...usually they are only my mobile bill so I never bothered collecting). The last letter was dated over a week ago and they said they were about to go for a judgment.

What happens in these cases?

Mr. Incognito

[Deleted User] wrote: »

Received a letter from a solicitors on behalf of my bank. Apparently I owe €600 for a credit card debt that hasn't been paid. I hold my hands up and admit it was my fault as the DD failed a couple of times to take out the minimum payment and as a result hasn't been paid in a good while.

I'm only after receiving a pile of letters from them (as the address they were posted to was my mothers and she hadn't given me my post in months...usually they are only my mobile bill so I never bothered collecting). The last letter was dated over a week ago and they said they were about to go for a judgment.

What happens in these cases?

Generally what happenso is the bank sells the debt to debt collection firms. They send increasingly threatening letters then write the debt off if it's less than a grand.

Your credit rating is destroyed now for five years whether you pay or not.

If you get a summons make arrangements to pay. If not. Ignore.

nuac

A judgement for €600 wil have a much more disproportionate effect on your credit rating.

Unless this amount is statuebarred or that you have some other defence, you should try to make a deal on this

I have no defence. I owe the money but am not in a position to pay back anything other than a nominal amount per month. I hate that it has gone this far but unfortunately, due to carelessness on my part, I didn't see the letters. They hadn't tried to contact me via phone or email but I suppose they fulfilled their obligation with letters.

TheChizler

Ideally you'd make a plan to pay them back with payment terms agreed, is this a possibility?

gavindublin

If you engage them they'll come up with a plan. The only ones I've dealt with that go to judgement stage are [name of solicitors' firm deleted]

They'll want you to fill out a statement of earnings, they'll say a figure per week/month you can argue it up or down a bit and all goes ok.

They won't want a lump sum

thanks guys. i assume once the bank discharged the debt that my credit is banjaxed now anyways?

RainyDay

gavindublin wrote: »

They won't want a lump sum

But if you have a lump sum, you can clear it straight off - right?

Mrs cockett

I wouldn't pay if you cannot afford to. They are not going to get a judgement for 600 euro- buttons to them a lot to you. Ignore

blacklilly

Mrs cockett wrote: »

I wouldn't pay if you cannot afford to. They are not going to get a judgement for 600 euro- buttons to them a lot to you. Ignore

Very bad advice here.

Op arrange to enter into a payment plan to clear the debt. I'd contact the debt collectors asap. Abide by the payment plan that is agreed upon and remember to check your post more regularly in future

Chijj

Not a regular poster by any means however OP dont listen to the people who are saying to ignore etc.

Although I'd agree that the vast majority play on bully boy tactics it could stop you getting credit in the future,

I suggest giving them a call and see what's the best they will accept if you can afford a lump sum or a payment plan.

Chij

Mr. Incognito

blacklilly wrote: »

Very bad advice here.

Op arrange to enter into a payment plan to clear the debt. I'd contact the debt collectors asap. Abide by the payment plan that is agreed upon and remember to check your post more regularly in future

Lets be clear here, the bank have written this off and sold it to the debt collection company for a fraction. That action has destroyed his credit rating immediately with the irish credit bureau for five years so the debt collection companies threats to rating is meaningless.

The debt collection company will not bother taking anyone to the small claims (which this is) court for small amounts.

The industry standard is to write three letters each threatening fire and brimstone and write it off.

No summons.

No deal.

Ignore them until they show they mean it, then cut a deal.

Mrs cockett

I rest my case

Baby Jane

Crazy that people are telling you not to pay the money you owe for a service you used, and which you acknowledge yourself that you owe (fair play). Contact them to set up a payment plan.

Mr. Incognito

Baby Jane wrote: »

Crazy that people are telling you not to pay the money you owe for a service you used, and which you acknowledge yourself that you owe (fair play). Contact them to set up a payment plan.

Yes, but the Bank has destroyed his credit rating for five years for the sake of a few hundred quid.

That means

• No overdrafts
• No mortgage
• No loans
• No credit card approvals
• No hire purchase agreements

will be approved for five years.

If he asks for a credit check that will also show up and the five years will re-start.

The bank have written this off. Their compensation is ruining his credit and the tiny percentage they got for the loan. That means all he will be paying is some parasite debt collector who will pocket this.

The bank will not get any money he pays back, and they will not reverse the consequence of his credit rating getting destroyed.

Paying these chaps on top of a destroyed credit rating would be shooting yourself in the other foot. The worst of both worlds.

Bored_lad

Mr. Incognito wrote: »

Yes, but the Bank has destroyed his credit rating for five years for the sake of a few hundred quid.

That means

• No overdrafts
• No mortgage
• No loans
• No credit card approvals
• No hire purchase agreements

will be approved for five years.

If he asks for a credit check that will also show up and the five years will re-start.

The bank have written this off. Their compensation is ruining his credit and the tiny percentage they got for the loan. That means all he will be paying is some parasite debt collector who will pocket this.

The bank will not get any money he pays back, and they will not reverse the consequence of his credit rating getting destroyed.

Paying these chaps on top of a destroyed credit rating would be shooting yourself in the other foot. The worst of both worlds.

No they haven't the bank here have not ruined anyone's credit. The op has ruined their own credit by not paying.

Op pay up you used the service even though the bank have sold the debt pay up and face the consequences of your actions. If you contact them and offer to pay a certain amount each month I'm sure they'll have no problem with that.

One thing that is confusing me is that when I went in to check on my online banking today, the cc debt is still there and available to pay off as a bill. Does that mean I owe the debt collector AND the bank still? What would happen if I just paid an amount off the online banking amount each month?

TheChizler

Deleted User wrote: »

One thing that is confusing me is that when I went in to check on my online banking today, the cc debt is still there and available to pay off as a bill. Does that mean I owe the debt collector AND the bank still? What would happen if I just paid an amount off the online banking amount each month?

If that's the case I would just pay it off in online banking and say nothing! You might have a chance to keep your credit rating!

Mr. Incognito

Deleted User wrote: »

One thing that is confusing me is that when I went in to check on my online banking today, the cc debt is still there and available to pay off as a bill. Does that mean I owe the debt collector AND the bank still? What would happen if I just paid an amount off the online banking amount each month?

Ring them for clarification.

I just paid 40 off it there. I think I will just do that every couple of weeks.

blacklilly

Deleted User wrote: »

I just paid 40 off it there. I think I will just do that every couple of weeks.

Surely the best thing to do is to contact your bank to discuss the amount owing. Considering you've received letters from a debt collection agency in respect of the debt. It's like head in sand syndrome.

angelcop

Mr. Incognito wrote: »

If he asks for a credit check that will also show up and the five years will re-start.

Can you clarify this part?

So if you have even have a peek at your credit rating, it goes back to 5 years?

What if after 5 years the OP checks his credit thinking "Ah, it must be back to normal now" but finds that there is one month left before he's clear. He's blacklisted for a further 5 years?!

Mr. Incognito

angelcop wrote: »

Can you clarify this part?

So if you have even have a peek at your credit rating, it goes back to 5 years?

What if after 5 years the OP checks his credit thinking "Ah, it must be back to normal now" but finds that there is one month left before he's clear. He's blacklisted for a further 5 years?!

Pulling down a copy of your credit rating is not a rating check.

However credit decisions and credit applications are maintained for five years.

So if you miss mortgage payments and come to an agreement those missed payments will be recorded.

If you apply for a credit card 4 years later they can look at those missed payments and if they decline that is recorded.

The records are maintained for five years of each application / rejection etc

so in two years when you would have had a clean slate the missed payments are no longer recorded but the rejected credit card application is.

Cushie Butterfield

Deleted User wrote: »

One thing that is confusing me is that when I went in to check on my online banking today, the cc debt is still there and available to pay off as a bill. Does that mean I owe the debt collector AND the bank still? What would happen if I just paid an amount off the online banking amount each month?

It hasn't been established from your posts that the debt has actually been sold on - this was just an assumption by a previous poster & it seems to have become fact now.

If the debt was sold on you would have to have been informed in writing by whoever bought it. There is a difference between 'the matter now being in the hands of a debt collection agency' (who would basically be acting on behalf of the bank & receiving commission on any recouped amounts) and 'the debt being sold to a debt collection agency' (which would mean that you now owe the debt to the agency).

The solicitors letters could be coming from the bank's legal dept or from a debt collection agency but printed on solicitor's headed paper, but the debt is still owed to them (bank).

Some banks/credit card companies send a batch of outstanding delinquent accounts over to a debt collection agency if their own efforts have been exhausted, especially if they have failed to contact you or if you have failed to respond to them.

It's best to sort something out & come to some sort of agreed/structured repayment agreement. You may find that if you contact the credit card company that they'll tell you to deal with the collection agency, but there is nothing stopping you continuing to pay them directly through online banking (the credit card co would be sending regular info to the agency anyway of amounts received directly by them).