Difference between revisions of "Creditors and DCAs"
(→Letter K - Ask creditors to write off the debt due to your circumstances) |
(→Letter B - Ask your creditors to accept pro rata offers of payment on your debts) |
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− | + | W F Calder/K Henderson | |
− | + | 32 Finlay Place | |
+ | Mayfield | ||
+ | Dalkeith | ||
+ | Midlothian | ||
+ | Eh22 5nf | ||
+ | to | ||
− | + | ||
+ | SDT Edinburgh office | ||
+ | 14 +15 Bilston Glen | ||
+ | Enrerprise Centre | ||
+ | Midlothian | ||
− | + | 5th Oct 2011 | |
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Dear Sir/Madam | Dear Sir/Madam | ||
− | Re: Account/Reference Number | + | Re: Account/Reference Number C645842/C 845644 |
Since making that above agreement with you, our circumstances have changed. | Since making that above agreement with you, our circumstances have changed. | ||
− | We cannot now afford to agreed monthly payments because | + | We cannot now afford to agreed monthly payments because of loss of benefits/change of circumstances |
− | We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only | + | We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only £14 per month left for our creditors. The offers we have made to our creditors have worked out on a pro−rata basis, and we have written to all our creditors asking them to accept reduced payments. |
− | In view of our circumstances, please would you agree to accept a reduced offer of | + | In view of our circumstances, please would you agree to accept a reduced offer of £40per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you. |
Should our circumstances improve we will contact you again. | Should our circumstances improve we will contact you again. | ||
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Yours faithfully | Yours faithfully | ||
− | + | w f calder/k henderson | |
|} | |} | ||
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== Letter C - Ask your creditors to accept a token payment or no payment on your debts == | == Letter C - Ask your creditors to accept a token payment or no payment on your debts == | ||
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We write with reference to the money which you are claming on the above account. | We write with reference to the money which you are claming on the above account. | ||
− | We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise <span style="color:red"> | + | We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise <span style="color:red">£400 </SPAN>and I want to offer this as an ex−gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability. |
We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full. | We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full. | ||
− | Payment can be made within <span style="color:red"> | + | Payment can be made within <span style="color:red">1 m onth</SPAN>of receiving your written agreement of this offer and method of payment. |
We look forward to receiving your reply. | We look forward to receiving your reply. | ||
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</div></blockquote> | </div></blockquote> | ||
− | |} | + | |}Mrs L Y Rutherford |
== Letter K - Ask creditors to write off the debt due to your circumstances == | == Letter K - Ask creditors to write off the debt due to your circumstances == | ||
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We would therefore be grateful if you would reconsider your decision not to write off this debt. Please take the following information into account when making your decision. | We would therefore be grateful if you would reconsider your decision not to write off this debt. Please take the following information into account when making your decision. | ||
− | Paragraph outlining the special circumstances you have that you want the creditor to take into account. | + | <span style="color:red">Paragraph outlining the special circumstances you have that you want the creditor to take into account</SPAN>. |
We would therefore be grateful if you would give careful reconsideration of your decision not to write off this debt. Should you not feel able to agree to this request, please consider accepting token payments on this account of £1 per month. As you will see from the enclosed personal budget sheet we have no available income and are not in a position to make realistic offers of payment. Additionally we would also ask that any interest and charges on the account be frozen to avoid the situation worsening. | We would therefore be grateful if you would give careful reconsideration of your decision not to write off this debt. Should you not feel able to agree to this request, please consider accepting token payments on this account of £1 per month. As you will see from the enclosed personal budget sheet we have no available income and are not in a position to make realistic offers of payment. Additionally we would also ask that any interest and charges on the account be frozen to avoid the situation worsening. | ||
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</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
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== Letter M - Dispute your liability for a debt where a creditor has not contacted you for over six years == | == Letter M - Dispute your liability for a debt where a creditor has not contacted you for over six years == | ||
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Re: Account/Reference Number <span style="color:red">4563210025897412 </SPAN> | Re: Account/Reference Number <span style="color:red">4563210025897412 </SPAN> | ||
− | + | With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement. | |
− | We | + | We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act. |
− | We | + | We understand a copy of our credit agreement should be supplied within 12 working days. |
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− | We | + | We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act. |
− | We look forward to | + | We look forward to hearing from you. |
Yours faithfully | Yours faithfully | ||
</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
− | |||
== Letter O - Mortgage shortfalls: Breakdown of balance owed == | == Letter O - Mortgage shortfalls: Breakdown of balance owed == | ||
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Please take the following special information into account when making your decision. | Please take the following special information into account when making your decision. | ||
− | Paragraph outlining the special circumstances you have that you want the creditor to take into account. | + | <span style="color:red">Paragraph outlining the special circumstances you have that you want the creditor to take into account</SPAN>. |
As you can see our situation is very unlikely to improve in the future, and our continued high debt level may have a serious effect on our physical and mental wellbeing. We would therefore be grateful if you would seriously consider our request for the debt to be written off. | As you can see our situation is very unlikely to improve in the future, and our continued high debt level may have a serious effect on our physical and mental wellbeing. We would therefore be grateful if you would seriously consider our request for the debt to be written off. | ||
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</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
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== Letter Q - Mortgage shortfalls: Full and final settlement letter == | == Letter Q - Mortgage shortfalls: Full and final settlement letter == | ||
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We write with reference to the money which you are claiming on the above account. We can confirm that we are unable to offer to pay the money which you claim we owe in full. | We write with reference to the money which you are claiming on the above account. We can confirm that we are unable to offer to pay the money which you claim we owe in full. | ||
− | Paragraph outlining the special circumstances you have that you want the creditor to take into account. | + | <span style="color:red">Paragraph outlining the special circumstances you have that you want the creditor to take into account</SPAN>. |
However, we can raise £775 and we want to offer this as an ex−gratia payment in full and final settlement of the account, including any subsequent third party claim. This is not an acceptance of any liability for the amount claimed. This offer is made on the clear understanding that, if accepted, neither you nor any associate company, will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released from any further liability. | However, we can raise £775 and we want to offer this as an ex−gratia payment in full and final settlement of the account, including any subsequent third party claim. This is not an acceptance of any liability for the amount claimed. This offer is made on the clear understanding that, if accepted, neither you nor any associate company, will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released from any further liability. | ||
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</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
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== Letter R - Mortgage shortfalls: Lender should not pursue under CML policy == | == Letter R - Mortgage shortfalls: Lender should not pursue under CML policy == | ||
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“From 11th February 2000 lenders who are members of The Council of Mortgage Lenders have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession. Anyone whose property was taken into possession and sold more than 6 years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall”. | “From 11th February 2000 lenders who are members of The Council of Mortgage Lenders have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession. Anyone whose property was taken into possession and sold more than 6 years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall”. | ||
− | We would point out that the property in question was sold on | + | We would point out that the property in question was sold on <span style="color:red">01/01/2000</SPAN>. Also the first contact we had from yourselves was by in writing on <span style="color:red">23/06/2006</SPAN>. We therefore suggest that under The Council of Mortgage Lenders policy our property was sold more than 6 years and we have not been contacted by yourselves within that time. Therefore we should not be asked to pay any shortfall debt outstanding. |
We would also point out that from 31st October 2004 the Financial Services Authority have issued “The Mortgage Conduct of Business Rules” which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within 6 years of the date of sale. | We would also point out that from 31st October 2004 the Financial Services Authority have issued “The Mortgage Conduct of Business Rules” which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within 6 years of the date of sale. | ||
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</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
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== Letter S - Inform your creditor that you are terminating your hire purchase/condition == | == Letter S - Inform your creditor that you are terminating your hire purchase/condition == | ||
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Please send us details of how the vehicle can be returned to you. | Please send us details of how the vehicle can be returned to you. | ||
− | Please confirm receipt of this request by telephone to us on 01103 555666. | + | Please confirm receipt of this request by telephone to us on <span style="color:red">01103 555666</SPAN>. |
Yours faithfully | Yours faithfully | ||
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</div></blockquote> | </div></blockquote> | ||
|} | |} | ||
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+ | |||
+ | == Letter T - Failure by Creditor/DCA to Supply Agreement == | ||
+ | |||
+ | {| border="0" cellpadding="10" cellspacing="0" align="center" width="90%" style="background-color: #EEEEEE;" | ||
+ | |----- | ||
+ | | | ||
+ | <blockquote><div style= "font-size:95%;"><font color = #EEEEEE> — </font> | ||
+ | <blockquote><div style= "font-size:95%;"><font color = #EEEEEE> — </font> | ||
+ | <span style="color:red">[Your Address] | ||
+ | |||
+ | |||
+ | June 28, 2006 | ||
+ | |||
+ | |||
+ | The Loan Company | ||
+ | |||
+ | Company House, | ||
+ | |||
+ | Church Street, | ||
+ | |||
+ | Newtown, | ||
+ | |||
+ | Kent, | ||
+ | |||
+ | R1 7HG</SPAN> | ||
+ | |||
+ | Dear Sir/Madam, | ||
+ | |||
+ | <center>'''Account In Dispute | ||
+ | |||
+ | Letter Before Action'''</center> | ||
+ | |||
+ | I refer to my recent correspondence with your company concerning this alleged debt, copies of which are enclosed for your perusal and ease of reference. | ||
+ | |||
+ | As <span style="color:red">**DCA** </SPAN> have failed to comply with my Consumer Credit Act request and admitted that the alleged signed executed agreement is unavailable, enforcement action is impossible under section 127 (3) of the Act. | ||
+ | |||
+ | The Consumer Credit Act allows 12 working days for this request to be carried out before your company enter into a default situation. If the request is not satisfied after a further 30 calendar days, Your company commit an offence. These time limits expired on <span style="color:red">XX/XX/XX </SPAN> and <span style="color:red">XX/XX/XX </SPAN> respectively. | ||
+ | |||
+ | As you are no doubt aware subsection (6) states: | ||
+ | |||
+ | If the creditor under an agreement fails to comply with subsection (1)— | ||
+ | |||
+ | (a) He is not entitled, while the default continues, to enforce the agreement; and | ||
+ | (b) If the default continues for one month he commits an offence. | ||
+ | |||
+ | Therefore as at <span style="color:red"> XX/XX/XX </SPAN> this account became unenforceable at law and it is now my intention to refer this matter to the enforcement authorities. | ||
+ | |||
+ | If <span style="color:red">**DCA** </SPAN> chooses to ignore my dispute and attempt enforcement, I will initiate legal action and file reports with the appropriate authorities, including, but not limited to, Trading Standards, Office of Fair Trading, Information Commissioners Office, Financial Ombudsman Service and possible court action. | ||
+ | |||
+ | It is also my belief that your continued pursuance of this matter also constitutes an | ||
+ | offence under Section 40 of the Administration of Justice Act 1970. | ||
+ | |||
+ | Failure to respond favourably to this letter within fourteen (14) days of receipt will result in immediate litigation being commenced against your company without further notice. | ||
+ | I also require a copy of your internal complaints procedure as further action may be necessary. | ||
+ | |||
+ | I would appreciate your due diligence in this matter. | ||
+ | |||
+ | I look forward to hearing from you in writing. | ||
+ | |||
+ | Yours Faithfully </div></blockquote> | ||
+ | |} | ||
+ | |||
+ | |||
+ | |||
+ | |||
Latest revision as of 20:02, 1 October 2011
Contents
- 1 Template letters to creditors and DCA's
- 2 Letter A - Ask your creditors to hold action on your account
- 3 Letter B - Ask your creditors to accept pro rata offers of payment on your debts
- 4 Letter C - Ask your creditors to accept a token payment or no payment on your debts
- 5 Letter D - When a creditor refuses your offer of payment
- 6 Letter E - When a creditor refuses to freeze interest on your account
- 7 Letter F - When a creditor has turned down an offer of payment, interest is still being added, and you want the creditor to take you to court.
- 8 Letter G - When creditors have turned down an offer of payment, interest is still being added but you don’t want to go to court
- 9 Letter H - When a creditor asks you to agree to a voluntary charge against your home
- 10 Letter I - Request for a stay of execution in the High Court
- 11 Letter J - Full and final settlement for any debt
- 12 Letter K - Ask creditors to write off the debt due to your circumstances
- 13 Letter L - Ask your creditors to reconsider if they refuse to write off the debt
- 14 Letter M - Dispute your liability for a debt where a creditor has not contacted you for over six years
- 15 Letter N - Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974
- 16 Letter O - Mortgage shortfalls: Breakdown of balance owed
- 17 Letter P - Mortgage shortfalls: Please write off the debt
- 18 Letter Q - Mortgage shortfalls: Full and final settlement letter
- 19 Letter R - Mortgage shortfalls: Lender should not pursue under CML policy
- 20 Letter S - Inform your creditor that you are terminating your hire purchase/condition
- 21 Letter T - Failure by Creditor/DCA to Supply Agreement
Template letters to creditors and DCA's
Creditors and DCAs - Letter Templates & Budget Planner
Some of these letters refer to a budget planner. Here is a simple budget planner which you can fill in to work out how much you can afford to offer your creditors, and you can print this and send with the relevant letter:
Budget PlannerThere are both Excel and On-line versions
The letters are as follows:
Letter A - Ask your creditors to hold action on your account
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Letter B - Ask your creditors to accept pro rata offers of payment on your debts
W F Calder/K Henderson 32 Finlay Place Mayfield Dalkeith Midlothian Eh22 5nf to
SDT Edinburgh office 14 +15 Bilston Glen Enrerprise Centre Midlothian 5th Oct 2011
Dear Sir/Madam Re: Account/Reference Number C645842/C 845644 Since making that above agreement with you, our circumstances have changed. We cannot now afford to agreed monthly payments because of loss of benefits/change of circumstances We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only £14 per month left for our creditors. The offers we have made to our creditors have worked out on a pro−rata basis, and we have written to all our creditors asking them to accept reduced payments. In view of our circumstances, please would you agree to accept a reduced offer of £40per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you. Should our circumstances improve we will contact you again. We would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. We look forward to hearing from you as soon as possible. Yours faithfully w f calder/k henderson |
Letter C - Ask your creditors to accept a token payment or no payment on your debts
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Letter D - When a creditor refuses your offer of payment
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Letter E - When a creditor refuses to freeze interest on your account
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Letter F - When a creditor has turned down an offer of payment, interest is still being added, and you want the creditor to take you to court.
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Letter G - When creditors have turned down an offer of payment, interest is still being added but you don’t want to go to court
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Letter H - When a creditor asks you to agree to a voluntary charge against your home
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Letter I - Request for a stay of execution in the High Court
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Letter J - Full and final settlement for any debt
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Mrs L Y Rutherford
Letter K - Ask creditors to write off the debt due to your circumstances
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Letter L - Ask your creditors to reconsider if they refuse to write off the debt
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Letter M - Dispute your liability for a debt where a creditor has not contacted you for over six years
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Letter N - Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974
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Letter O - Mortgage shortfalls: Breakdown of balance owed
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Letter P - Mortgage shortfalls: Please write off the debt
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Letter Q - Mortgage shortfalls: Full and final settlement letter
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Letter R - Mortgage shortfalls: Lender should not pursue under CML policy
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Letter S - Inform your creditor that you are terminating your hire purchase/condition
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Letter T - Failure by Creditor/DCA to Supply Agreement
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