Debt Collector

YFlyer

I received a letter today to say my credit card is permanently blocked now. It is due to not keeping up my payment.

The bank management have said if I don't pay that they will passed my details to a debt collection agency.

Are these agencies aggressive in seeking payment?

Wheety

Well they're not allowed harass you. They'll call you and write letters.

Have a read of this so you know your rights.

Debt collection (citizensinformation.ie)

iwillhtfu

At this point the "Debt collection agency" will likely be the the desk next to the one sending the threatening letters. Banks don't typically sell your debt to the agencies you see in the movies, they typically have an inhouse arrears dept. In saying that they will chase you feverishly and will eventually look to block access to your current accounts.

The solution is to engage with the bank, they will have you complete a detailed financial form with all your incoming and outgoing. After this you will come to an agreement on a repayment plan. Ignore all these guys saying feck the banks sure they let Sean Fitzpatrick away with millions blah blah blah.

Once again, engage with the bank, it will not go away.

Dempo1

Basically they'll close the account and sell on the Debt to a couple of well know entities at a discount. There'll be no cold calling just letters in the coming months, depending on the Debt size it's possible whomever purchased the Debt may seek a judgement against you. The most important thing to be aware of however, regardless of any action or communication, the Debt will be on your credit report until such time it's cleared and that in turn may have consequences for you.

If its at all possible (perhaps not) try and come to a payment arrangement with bank, they may not agree but worth exploring.

In essence it's a Debt, that whilst not secured, will stay with you and don't think if you hear nothing for months or years it's gone away , the entity who purchase the debt will sit back as eventually they know it has to be dealt with, do not rely on this Statue Barred notion you may have heard of.

Sorry for your predictiment but it's best deal with, sooner rather than later.

YFlyer

Thanks everyone.

I rang the bank and we agreed that I pay €100 per month by direct debit.

https://www.boards.ie/discussion/comment/119215377#Comment_119215377

As del boy used to say " you know it makes sense".

YFlyer

https://www.boards.ie/discussion/comment/119314412#Comment_119314412

Thanks Ken.

piplip87

Some misconceptions here alot of the time the bank won't sell your debt to a collections company, they will employ the company and usually pay them about 10% of what they collect.

Banking debt is very different than say an unpaid utility as they collection company will still have to abide by the banking regulations, which means limits on how often they can call you.

Best bet is what you have done here. No matter how much you owe you are far far better dealing with the bank that issued the loan as they have far more scope accept a lower amount per month. If you are really in trouble go to MABS and they can deal with the bank on your behalf.

Debt never goes away until it is paid in full, but good that OP has sense not to ignore it. It’s been er good to have a poor credit rating hanging over you.

macvin

The OP has done the right thing - they engaged with the bank and quickly came to a mutual agreement. This means that the OP will possibly eb able to get credit from that bank in future should they need it.

And Banks DO NOT sell credit card debts on a whim. Also they do not pay a commission rate to a legal firm. Its a contracted rate

Banks will initially try and deal directly and come to an agreement with a customer as the banks understands these are short term issues in many cases and they see value in keeping you as a customer. In such a case you are dealing with a bank employee and letters will come from the bank

If you don't engage, the bank no longer sees any value in keeping you as a customer, so passes it on to a credit agency. An example is Cabot (part of a huge worldwide group called Encore Financial). They will have a contract with AIB and others to manage all their "soft" collections and will write to you and issue proceedings where an amount is deemed "collectable" (they will have checked you out). It is NOT a different desk in the same office. It is a third party company contacting you on behalf of the financial institution

Only if they deems it not collectible do they write it off and it is at this point that they will sell the debt to a more aggressive collections agency. And sometimes that will be a different arm of the debt management company, but they can be quite aggressive in their manner, but will do a deal with you. Problem is that at this point your credit record is ruined for many years - and that can be a far bigger issue.

So anyone in such a situation, do as the OP did, engage with the bank, or as suggested, go via MABS. Do not bury your head in the sand.

eusap

you should ask the bank can you convert credit card debt to a loan, this will have a lower interest rate

YFlyer

https://www.boards.ie/discussion/comment/119322250#Comment_119322250

Thanks everyone.

My understanding is that I will my paying what it is owed. The amount is frozen.

Managed to change my monthly payment from €100 to €40.

After 12 months the monthly payment may be altered.

https://www.boards.ie/discussion/comment/119214575#Comment_119214575

remember that pension reserve fund ireland had built up....what was it....20Billion, gave it away we did.

Jim_Hodge

https://www.boards.ie/discussion/comment/119338737#Comment_119338737

What has that to do with the OPs legal debt? Nothing,

https://www.boards.ie/discussion/comment/119338854#Comment_119338854

When he get a letter looking for money, send them a link to the story about ireland giving away 20 billion. Suggest they make his disappear in the same way. Magic.

Jim_Hodge

https://www.boards.ie/discussion/comment/119339250#Comment_119339250

So, as I said, nothing to do with his issue. Just a 'smart' worthless comment.

Jim_Hodge

https://www.boards.ie/discussion/comment/122990277#Comment_122990277

You do realise the thread is two and a half years old and from a now banned poster, don't you? And it was with reference to a situation in Ireland.