UK credit card debt advice
Jun 22nd 2009, 2:00 pm
#1
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Joined: Jun 2009
Location: The Hoosier State
Posts: 14
UK credit card debt advice
Hi all,
I moved permanently to the US with my American wife in May 2005. We own our own home here, with the help of a US bank's mortgage, and used all of our cash getting the house up to muster (air conditioning, new bathrooms, etc...it's a Victorian farmhouse), so have no savings left.
I am a full time PhD student, my wife works full time but between us we barely make enough to meet our bills, even though we live very simply.
When we left the UK we both had perfect credit ratings and were constantly turning down offers to borrow money! Obviously, we've had to rebuild our rating here, and both have a 'good' credit rating here, being careful to pay our bills on time and having about $4,800 of Visa card liability between us here (paid on time and within limits, issued by our US bank).
I brought with me a long-owned 12,000 pound credit limit Visa card from the UK, via Lloyds TSB that I had always paid on time and had often cleared completely, but moving has it's expenses, so it ran up to what I thought...at the time...was a manageable sum of 1,300 pounds. I was making all the payments on time and in full, but one day out of the blue, I received a letter from Visa saying that they were cancelling my card because after 911 they were no longer able to issue cards to people living abroad!
I was miffed after being such a good customer, but still made monthly payments, expecting to find work shortly, and recognizing the need to keep some cash back for 'emergencies' that can happen to any homeowner.
However, when the money we brought started to dwindle and with still no steady income, I contacted Visa by telephone SEVERAL times (always a call centre in India) to try to find a way to keep my payments larger than their interest payments. I was constantly told just to keep making the full payments (about 40.00 pounds a month) in order to avoid trouble.
When the dollar/pound exchange rate fell, I found it impossible to make the 40.00 pound payments, again calling the Visa issuer to get help, but never did they budge an inch. I finally ran out of savings here and was unable to make the necessary payments in full, and the late fees started piling on, so that now I owe them over 1,500 pounds!
Initially, Visa passed the account to their collections firm, some lawyers, and I wrote them offering a cash payment in final settlement of around 400 pounds (I would be able to borrow that from family...embarrassing as that was at my age - in my 40's then).
I was unemployed at this time and our monthly income was around $1,200.00 Our mortgage was almost $1,000 and I was selling household effects to make the US bills...but managing. Finally, unable to find regular work, I enrolled in university to do a PhD and now receive $1,700 monthly as a research assistant.
Visa's collection lawyers never responded, even when I faxed the letter again to them. Nothing. no letters, no calls, no faxes, no e-mails.
A few months ago I received a letter from Visa saying that I had defaulted and now the whole amount was due (laugh). And last week, a credit collection agency called me and offered me a deal of almost 900.00 pounds to settle. That is far beyond my means of course...or all my US bills will go unpaid.
Unable to borrow that kind of money, I have today called the collections firm to offer $50 a month. I can only do this if the amount repaid does not exceed 1,500 pounds - if it all goes in interest and charges, what's the point? Of course, if I get a professorship upon completing my doctorate, I will be able to clear this UK debt, but that is a year away yet. I thought this $50 monthly offer the most honorable way to proceed. At least I am offering SOMETHING! After Visa and their cronies ignored my pleas for help, then came back with ridiculous sums to settle, I genuinely feel little obligation toward them, but I am responsible for at least the 1,300 pounds of original debt and am not by nature a 'skipper.'
I COULD walk away I know, but would prefer not to. Do you think anything can be done to force the full settlement sum of 900 pounds or even 1,500 pounds by the UK debt collector?
Does anyone know where I stand in terms of asking them to waive further charges and interest payments? Has anyone been through a similar situation?
Sorry this first post is so long.
I moved permanently to the US with my American wife in May 2005. We own our own home here, with the help of a US bank's mortgage, and used all of our cash getting the house up to muster (air conditioning, new bathrooms, etc...it's a Victorian farmhouse), so have no savings left.
I am a full time PhD student, my wife works full time but between us we barely make enough to meet our bills, even though we live very simply.
When we left the UK we both had perfect credit ratings and were constantly turning down offers to borrow money! Obviously, we've had to rebuild our rating here, and both have a 'good' credit rating here, being careful to pay our bills on time and having about $4,800 of Visa card liability between us here (paid on time and within limits, issued by our US bank).
I brought with me a long-owned 12,000 pound credit limit Visa card from the UK, via Lloyds TSB that I had always paid on time and had often cleared completely, but moving has it's expenses, so it ran up to what I thought...at the time...was a manageable sum of 1,300 pounds. I was making all the payments on time and in full, but one day out of the blue, I received a letter from Visa saying that they were cancelling my card because after 911 they were no longer able to issue cards to people living abroad!
I was miffed after being such a good customer, but still made monthly payments, expecting to find work shortly, and recognizing the need to keep some cash back for 'emergencies' that can happen to any homeowner.
However, when the money we brought started to dwindle and with still no steady income, I contacted Visa by telephone SEVERAL times (always a call centre in India) to try to find a way to keep my payments larger than their interest payments. I was constantly told just to keep making the full payments (about 40.00 pounds a month) in order to avoid trouble.
When the dollar/pound exchange rate fell, I found it impossible to make the 40.00 pound payments, again calling the Visa issuer to get help, but never did they budge an inch. I finally ran out of savings here and was unable to make the necessary payments in full, and the late fees started piling on, so that now I owe them over 1,500 pounds!
Initially, Visa passed the account to their collections firm, some lawyers, and I wrote them offering a cash payment in final settlement of around 400 pounds (I would be able to borrow that from family...embarrassing as that was at my age - in my 40's then).
I was unemployed at this time and our monthly income was around $1,200.00 Our mortgage was almost $1,000 and I was selling household effects to make the US bills...but managing. Finally, unable to find regular work, I enrolled in university to do a PhD and now receive $1,700 monthly as a research assistant.
Visa's collection lawyers never responded, even when I faxed the letter again to them. Nothing. no letters, no calls, no faxes, no e-mails.
A few months ago I received a letter from Visa saying that I had defaulted and now the whole amount was due (laugh). And last week, a credit collection agency called me and offered me a deal of almost 900.00 pounds to settle. That is far beyond my means of course...or all my US bills will go unpaid.
Unable to borrow that kind of money, I have today called the collections firm to offer $50 a month. I can only do this if the amount repaid does not exceed 1,500 pounds - if it all goes in interest and charges, what's the point? Of course, if I get a professorship upon completing my doctorate, I will be able to clear this UK debt, but that is a year away yet. I thought this $50 monthly offer the most honorable way to proceed. At least I am offering SOMETHING! After Visa and their cronies ignored my pleas for help, then came back with ridiculous sums to settle, I genuinely feel little obligation toward them, but I am responsible for at least the 1,300 pounds of original debt and am not by nature a 'skipper.'
I COULD walk away I know, but would prefer not to. Do you think anything can be done to force the full settlement sum of 900 pounds or even 1,500 pounds by the UK debt collector?
Does anyone know where I stand in terms of asking them to waive further charges and interest payments? Has anyone been through a similar situation?
Sorry this first post is so long.
Last edited by ToffeeUSA; Jun 22nd 2009 at 2:03 pm.
Jun 22nd 2009, 3:06 pm
#2
Forum Regular
Joined: Jun 2009
Location: Los Angeles
Posts: 102
Re: UK credit card debt advice
Hi all,
I moved permanently to the US with my American wife in May 2005. We own our own home here, with the help of a US bank's mortgage, and used all of our cash getting the house up to muster (air conditioning, new bathrooms, etc...it's a Victorian farmhouse), so have no savings left.
I am a full time PhD student, my wife works full time but between us we barely make enough to meet our bills, even though we live very simply.
When we left the UK we both had perfect credit ratings and were constantly turning down offers to borrow money! Obviously, we've had to rebuild our rating here, and both have a 'good' credit rating here, being careful to pay our bills on time and having about $4,800 of Visa card liability between us here (paid on time and within limits, issued by our US bank).
I brought with me a long-owned 12,000 pound credit limit Visa card from the UK, via Lloyds TSB that I had always paid on time and had often cleared completely, but moving has it's expenses, so it ran up to what I thought...at the time...was a manageable sum of 1,300 pounds. I was making all the payments on time and in full, but one day out of the blue, I received a letter from Visa saying that they were cancelling my card because after 911 they were no longer able to issue cards to people living abroad!
I was miffed after being such a good customer, but still made monthly payments, expecting to find work shortly, and recognizing the need to keep some cash back for 'emergencies' that can happen to any homeowner.
However, when the money we brought started to dwindle and with still no steady income, I contacted Visa by telephone SEVERAL times (always a call centre in India) to try to find a way to keep my payments larger than their interest payments. I was constantly told just to keep making the full payments (about 40.00 pounds a month) in order to avoid trouble.
When the dollar/pound exchange rate fell, I found it impossible to make the 40.00 pound payments, again calling the Visa issuer to get help, but never did they budge an inch. I finally ran out of savings here and was unable to make the necessary payments in full, and the late fees started piling on, so that now I owe them over 1,500 pounds!
Initially, Visa passed the account to their collections firm, some lawyers, and I wrote them offering a cash payment in final settlement of around 400 pounds (I would be able to borrow that from family...embarrassing as that was at my age - in my 40's then).
I was unemployed at this time and our monthly income was around $1,200.00 Our mortgage was almost $1,000 and I was selling household effects to make the US bills...but managing. Finally, unable to find regular work, I enrolled in university to do a PhD and now receive $1,700 monthly as a research assistant.
Visa's collection lawyers never responded, even when I faxed the letter again to them. Nothing. no letters, no calls, no faxes, no e-mails.
A few months ago I received a letter from Visa saying that I had defaulted and now the whole amount was due (laugh). And last week, a credit collection agency called me and offered me a deal of almost 900.00 pounds to settle. That is far beyond my means of course...or all my US bills will go unpaid.
Unable to borrow that kind of money, I have today called the collections firm to offer $50 a month. I can only do this if the amount repaid does not exceed 1,500 pounds - if it all goes in interest and charges, what's the point? Of course, if I get a professorship upon completing my doctorate, I will be able to clear this UK debt, but that is a year away yet. I thought this $50 monthly offer the most honorable way to proceed. At least I am offering SOMETHING! After Visa and their cronies ignored my pleas for help, then came back with ridiculous sums to settle, I genuinely feel little obligation toward them, but I am responsible for at least the 1,300 pounds of original debt and am not by nature a 'skipper.'
I COULD walk away I know, but would prefer not to. Do you think anything can be done to force the full settlement sum of 900 pounds or even 1,500 pounds by the UK debt collector?
Does anyone know where I stand in terms of asking them to waive further charges and interest payments? Has anyone been through a similar situation?
Sorry this first post is so long.
I moved permanently to the US with my American wife in May 2005. We own our own home here, with the help of a US bank's mortgage, and used all of our cash getting the house up to muster (air conditioning, new bathrooms, etc...it's a Victorian farmhouse), so have no savings left.
I am a full time PhD student, my wife works full time but between us we barely make enough to meet our bills, even though we live very simply.
When we left the UK we both had perfect credit ratings and were constantly turning down offers to borrow money! Obviously, we've had to rebuild our rating here, and both have a 'good' credit rating here, being careful to pay our bills on time and having about $4,800 of Visa card liability between us here (paid on time and within limits, issued by our US bank).
I brought with me a long-owned 12,000 pound credit limit Visa card from the UK, via Lloyds TSB that I had always paid on time and had often cleared completely, but moving has it's expenses, so it ran up to what I thought...at the time...was a manageable sum of 1,300 pounds. I was making all the payments on time and in full, but one day out of the blue, I received a letter from Visa saying that they were cancelling my card because after 911 they were no longer able to issue cards to people living abroad!
I was miffed after being such a good customer, but still made monthly payments, expecting to find work shortly, and recognizing the need to keep some cash back for 'emergencies' that can happen to any homeowner.
However, when the money we brought started to dwindle and with still no steady income, I contacted Visa by telephone SEVERAL times (always a call centre in India) to try to find a way to keep my payments larger than their interest payments. I was constantly told just to keep making the full payments (about 40.00 pounds a month) in order to avoid trouble.
When the dollar/pound exchange rate fell, I found it impossible to make the 40.00 pound payments, again calling the Visa issuer to get help, but never did they budge an inch. I finally ran out of savings here and was unable to make the necessary payments in full, and the late fees started piling on, so that now I owe them over 1,500 pounds!
Initially, Visa passed the account to their collections firm, some lawyers, and I wrote them offering a cash payment in final settlement of around 400 pounds (I would be able to borrow that from family...embarrassing as that was at my age - in my 40's then).
I was unemployed at this time and our monthly income was around $1,200.00 Our mortgage was almost $1,000 and I was selling household effects to make the US bills...but managing. Finally, unable to find regular work, I enrolled in university to do a PhD and now receive $1,700 monthly as a research assistant.
Visa's collection lawyers never responded, even when I faxed the letter again to them. Nothing. no letters, no calls, no faxes, no e-mails.
A few months ago I received a letter from Visa saying that I had defaulted and now the whole amount was due (laugh). And last week, a credit collection agency called me and offered me a deal of almost 900.00 pounds to settle. That is far beyond my means of course...or all my US bills will go unpaid.
Unable to borrow that kind of money, I have today called the collections firm to offer $50 a month. I can only do this if the amount repaid does not exceed 1,500 pounds - if it all goes in interest and charges, what's the point? Of course, if I get a professorship upon completing my doctorate, I will be able to clear this UK debt, but that is a year away yet. I thought this $50 monthly offer the most honorable way to proceed. At least I am offering SOMETHING! After Visa and their cronies ignored my pleas for help, then came back with ridiculous sums to settle, I genuinely feel little obligation toward them, but I am responsible for at least the 1,300 pounds of original debt and am not by nature a 'skipper.'
I COULD walk away I know, but would prefer not to. Do you think anything can be done to force the full settlement sum of 900 pounds or even 1,500 pounds by the UK debt collector?
Does anyone know where I stand in terms of asking them to waive further charges and interest payments? Has anyone been through a similar situation?
Sorry this first post is so long.
Insist they send you some paperwork with a payment schedule. I wouldn't pay unless I had that.
Maybe the UK Citizens Advice have a website. Sorry I aren't much help.
Jun 22nd 2009, 3:11 pm
#3
SUPER MODERATOR
Joined: Dec 2005
Posts: 88,022
Re: UK credit card debt advice
You should be aware that they can and may sell your debt to a US collections company.
Jun 22nd 2009, 3:12 pm
#4
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Joined: Jun 2009
Location: The Hoosier State
Posts: 14
Jun 22nd 2009, 3:16 pm
#5
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Joined: Dec 2005
Posts: 88,022
Re: UK credit card debt advice
You will have them calling you and knocking on your door...I have no idea how far they will go but if they've paid for the debt they aren't going to give up easily. Don't give up on this...try to resolve it with the UK company.
Jun 22nd 2009, 3:37 pm
#6
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Joined: Jun 2009
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Re: UK credit card debt advice
Essentially, my understanding is that I can walk away from this debt if I choose...even if the debt is sold to a US firm - and apart from huffing and puffing, there's not a thing anyone can do about it.
It is a civil matter, not a criminal one, so I cannot be detained if I choose to re-enter the UK and of course no seizure of assets or charges on assets can be levied without my express consent (which I would never give).
For these reasons, I will stick to my $50 monthly offer and furthermore only agree to repay $500 in total (which is more than they would have paid to buy the debt), on the condition that the UK firm writes in detail to confirm that this will amount to full and final settlement of the entire debt (named, numbered). Then, if I choose to pay it off sooner, all well and good. This way, I will leave them a choice between something or nothing...take it or leave it. I will see how they react. I used to be a debt collector in the UK years ago (1980's) so I know they storm, shout, threaten and it's 99% bluff - I reckon that they are prepared/able to force the issue in only 1% of cases, especially when the amount involved is small.
I'll report what their response is.
Thanks everyone.
Jun 22nd 2009, 4:03 pm
#8
Septicity
Joined: May 2004
Posts: 23,762
Re: UK credit card debt advice
Essentially, my understanding is that I can walk away from this debt if I choose...even if the debt is sold to a US firm - and apart from huffing and puffing, there's not a thing anyone can do about it.
It is a civil matter, not a criminal one, so I cannot be detained if I choose to re-enter the UK and of course no seizure of assets or charges on assets can be levied without my express consent (which I would never give).
For these reasons, I will stick to my $50 monthly offer and furthermore only agree to repay $500 in total (which is more than they would have paid to buy the debt), on the condition that the UK firm writes in detail to confirm that this will amount to full and final settlement of the entire debt (named, numbered). Then, if I choose to pay it off sooner, all well and good. This way, I will leave them a choice between something or nothing...take it or leave it. I will see how they react. I used to be a debt collector in the UK years ago (1980's) so I know they storm, shout, threaten and it's 99% bluff - I reckon that they are prepared/able to force the issue in only 1% of cases, especially when the amount involved is small.
It is a civil matter, not a criminal one, so I cannot be detained if I choose to re-enter the UK and of course no seizure of assets or charges on assets can be levied without my express consent (which I would never give).
For these reasons, I will stick to my $50 monthly offer and furthermore only agree to repay $500 in total (which is more than they would have paid to buy the debt), on the condition that the UK firm writes in detail to confirm that this will amount to full and final settlement of the entire debt (named, numbered). Then, if I choose to pay it off sooner, all well and good. This way, I will leave them a choice between something or nothing...take it or leave it. I will see how they react. I used to be a debt collector in the UK years ago (1980's) so I know they storm, shout, threaten and it's 99% bluff - I reckon that they are prepared/able to force the issue in only 1% of cases, especially when the amount involved is small.
Monitor your US credit record periodically to see if they've tried to get it on. If they have, there are methods for challenging it and getting it removed.
Jun 22nd 2009, 5:04 pm
#9
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Joined: Jun 2009
Location: The Hoosier State
Posts: 14
Re: UK credit card debt advice
Your plan is good. The cards really are stacked in your favor. Either they negotiate with you and put it in writing, or they can do without -- it really is that simple.
Monitor your US credit record periodically to see if they've tried to get it on. If they have, there are methods for challenging it and getting it removed.
Monitor your US credit record periodically to see if they've tried to get it on. If they have, there are methods for challenging it and getting it removed.
Jun 27th 2009, 4:16 pm
#10
BE Forum Addict
Joined: Sep 2006
Posts: 1,966
Re: UK credit card debt advice
Why don't you send them a payment of $50 with a letter stating that this is your first monthly installment for a total of $x.xx repayment. If they cash it, I'd take that as acceptance of the deal, as would a court I would imagine.
Jun 27th 2009, 8:04 pm
#11
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Re: UK credit card debt advice
Sounds worth a try. No response as yet from them!
Jun 27th 2009, 8:14 pm
#12
BE Forum Addict
Joined: Feb 2004
Location: South Florida
Posts: 2,068
Re: UK credit card debt advice
Jun 27th 2009, 10:07 pm
#13
Shocked of Redmond
Joined: Feb 2005
Location: Redmond, WA
Posts: 3,446
Re: UK credit card debt advice
BTW, you may want to review the Fair Debt Collection Practices Act: http://www.expertlaw.com/library/con...ollection.html
Jun 27th 2009, 10:41 pm
#14
Joined: Oct 2006
Location: Reno Nevada
Posts: 15,917
Re: UK credit card debt advice
To be paying 50 pounds for a 1500 CC debit, well they should be happy about that amount, I would of thought you should of got away with alot less a month to be honest more like 20 to 30quid max.
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Try this web-site http://www.moneysavingexpert.com/ I used to get great advice on here and contact info.
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Try this web-site http://www.moneysavingexpert.com/ I used to get great advice on here and contact info.
