General questions about 3 letters outcomes.

by jax_puddle Wed Apr 11, 2018 8:36 pm

Evening,

I have a few questions re the three letters process for DCA acting for banks etc.

1. Is the point of doing the three letters process to effectively argue it out with the bank or DCA until they sell the debt on? Will they always sell it on to another company or do they take legal action to recover the debt?
2. How does the legal action work? Can you agree to make nominal payments at any point? What sort of trouble do you get into for not paying/doing the three letters process/stalling to make an agreement?
3. If they do sell the debt on, does that mean that you don't have to pay because you don't have an agreement with the new debt owner? Or is it then the case of hoping that they don't have the relevant paperwork as listed in the three letters and therefore they will just leave you alone?
4. What's the deal with them chasing you again after five years? I read something about this on here but can't remember the correct terminology?

I'm just trying to get my head around it all to weigh up options.
Cheers. Smile

by **daveiron** Thu Apr 12, 2018 10:06 am

Hi,
I would suggest that you read through the 3 letter process until you understand them.Also research money creation,

Remember if you take the 3 letter route ,you need to insist that ALL of the information you request is supplied to you,
when that is not forthcoming (as it never is ) you will understand that they cannot or will not provide proof of their claim.
Be aware they may even suggest that you pay only £1 a month towards the alleged dept, if you do that you will be admitting that the debt is yours and they will then come down hard because you have screwed yourself.
Most 'lenders' will sell on but not all.
This will not be an overnight process so you will have time to study ,read through the forum here ,there are also may links to useful info to help you.
Downsides are that if you default it shows on your credit file whichever way you go for six years.
You will always get help from this site ,just be prepared to see whatever route you take through to the end.
All they rely on is trying to instill fear & once you have lost that ,life looks a whole lot better.

by Ausk Tue Apr 17, 2018 9:07 am

daveiron wrote:Hi,
Downsides are that if you default it shows on your credit file whichever way you go for six years.

I agree to this payment plan on condition that all negative remarks are removed from all credit reference agencies where such remarks are entered."

why would this not work?

by **daveiron** Tue Apr 17, 2018 11:18 am

Hi Ausk,

To do that you will admit liability for the debt, once you do that you are screwed and they are free to report it to CRA's.

by Ausk Wed Apr 18, 2018 9:12 am

daveiron wrote:Hi Ausk,

To do that you will admit liability for the debt, once you do that you are screwed and they are free to report it to CRA's.

Until all the terms and conditions of the payment plan have been agreed upon, there is no admission of anything.

All that is taking place is negotiation. (If you do x then I will do y.)

There is no admission of ownership of the debt until the payment plan has been signed.

So why not make agreement to the plan, conditional upon all negative remarks on credit reference agencies being removed as a condition of agreement to the plan? Its simply a way of getting them removed without having to wait the 6 years or whatever the law stipulates.

E.g; "It is agreed that all negative remarks on credit reference agencies be removed within one month of this agreement being entered into otherwise this agreement becomes null and void."

OR; something like;

"It is agreed that payments under this plan will only commence when all negative remarks on credit reference agencies are removed. Proof of removal shall be xyz.

If one has to give a bit then why not get a bit in return?

by **daveiron** Wed Apr 18, 2018 9:21 am

Hi Ausk,

Could be worth a try for those really afraid of court. However the wording would need to be very carefully crafted so as not to admit liability at any point.

by hoopoe22 Wed Apr 18, 2018 3:35 pm

I have had a claim for an alleged mobile phone contract debt from Lowell which I dealt with via the 3 letter process. They admitted buying the debt from the phone company. They have now passed it on to Fredrickson which is the same company so I doubt they would have sold it to them. I have sent the first two letters the same as I sent to Lowell. I'm just having some nagging doubts as to whether I do the same this time.

by Ausk Thu Apr 19, 2018 11:19 am

daveiron wrote:Hi Ausk,

Could be worth a try for those really afraid of court. However the wording would need to be very carefully crafted so as not to admit liability at any point.

Yes daveiron; the wording is the key and accepting a payment plan would be attractive for those whose stress levels and other circumstances limit their ability to fight back.

Perhaps something like this might do the trick

Both parties expressly acknowledge and agree to the following:
that liability for the debt remains in dispute.
that nothing in this entire agreement whatsoever; can be used to infer or claim admission of liability for the debt on the part of the alleged debtor.
any written claim of liability for the debt on the part of the alleged debtor, made by xyz company or its related entities, automatically extinguishes, settles, finalises and closes the alleged debt.
xyz company and its related entities, agree to remove or reverse, all negative remarks it or its related entities have with made to credit reference agencies regarding the creditworthiness of the alleged debtor.
payments under this agreement will commence on the date shown in the attached schedule.
payments under this agreement will cease 30 days after the first payment and remain ceased until any and all negative remarks made to credit reference agencies regarding the creditworthiness of the alleged debtor are removed or reversed. Such ceased payments shall not be held by either party to be missed payments with regard to contractual conditions under this agreement.

by **daveiron** Thu Apr 19, 2018 11:48 am

Hi Ausk,

That looks good, See what the consensus of opinion is ,maybe could be made into a template.
One suggestion , maybe add ' due to the constant demands made by you,which is causing distress to my family'.

Just my thoughts ,but I do agree many folk are still too afraid of the system.

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