myownfault

This is a tricky situation I'll explain it as best I can.

I moved to the USA 15 months ago (resident alien) and am now wanting to relocate back to the UK (long long story).

However, I left behind me a large debt the largest chuck of which is with a well known high street bank and the remainder is split between a mobile phone company and a large computer firm.

So in all I owe roughly 10K between three companies.

Before I left and stopped payments I had an impeccable history.

My question is, what have I got myself into and how do I get myself out of it?

pugoetru

do you know if they have been chasing the debt?

iDLe*

You'll be in all sorts of bother mate, sorry to say it but that sounds serious.

If I were you I'd look to organise a credit history check, try

http://www.experian.com/

Although you can gain this info elsehwere the above is a good starting point for advice.

As you mention your an alien I guess you've not even attempted to gain credit in the States?

Might be worth contacting the Citzens Advice as well.

myownfault

Yes they have been trying to contact me.

When you say serious...to what extent?

Thanks for the replies so far.

iDLe*

Well I would imagine the debts you had with the company have been sold to other recovery companies, can't be sure but I thought they usually passed the debt over to collectors in these circumstances. If this is the case then they'll want a piece of you too, usally add all kinds of fees and extras etc. And that's just the paying it back part.

Then you'll be in Financial limbo - nobody will give you credit which may not be a direct problem if you don't need to borrow but they can get to you in other ways, it may be that you'll not even be able to open a standard bank account which is a nightmare.

Depending on the situation you could also be in trouble for fraud!?!?

All very negative I know but the best thing you can do is get on the case with it all now, its not gonna go away so you may as well deal with it. I hope it's not as much trouble as I suggest but in my experience Corporates can f*ck you over good for a few bob these days!

carl

Can't you change your name while in the USA? Then you'd have to apply for a new UK passport, obviously, providing documentary evidence that you'd changed your name. But the companies chasing the debts might not be able to connect the two together.

TopBanana

Calm down IDLE!

They'll be happy to get any money back and will in all likelihood be willing to do a deal. Tell them you'll pay half back in cash and you want that to be the end of it.

iDLe*

Apoligies if I went over the top but I honestly believe everything I wrote!

Do they not write it off and sell it to another company to recover at least part if it after a time? IF they do then you'll not get anywhere with the original lenders, they won't want to know and once its sold thats that.

Mr.Cookie

iDle

Normally these companies buy debt's off of companies in bulk at a much reduced rate than the debt actually was, so often paying back half the debt the company is still making a profit as they didn't pay that much to start with.

On a side note why not try a different contry for a while this one sucks anyway and iirc once 6 years have past and you've had no contact with company debt is gone.

All above information is based on what i learned from helping a freind when she recieved a letter some 4 years after a house she was bought with her then boyfreind and fell on repayments.
Si

iDLe*

My understanding of the system and I admit I may be wrong...

You borrow £10 from company A and dispear, Company A sells the debt to Company B for £5 and cut their losses, your now liable for the orinal £10 but will have to pay company B who will try and stich you as much as possible and screw anything they can from you. In the early stages you can negotiate the debt with the lender before they write it off and sell it.

As I'm not sure of the situation I'd suggest getting your Credtit file and then gain advise on its contents should you need to.

TopBanana

That's how I understand it IDLE

myownfault

Thanks for the replies and advice.

I know I'm in it up to my neck and am unsure as to what route to take, mixed answers so far :-(

I'm gutted I let things slip this far and am reeked with guilt.

If I obtain my UK credit history (I'm assuming I have to pay) can they trace me or is it confidential?

I am going to move back with about 5K GBP as an incentive towards whom ever I owe the money to, hoping this will help of course.

If anyone else has any experience please add to the thread.

beemerboy

15 months is f** all time mate
the old wrinkly powers that be will barely have opened the filing cabinet on you.

Write to them all and explain the situation, and how you can remedy this.
Offer them either a full settlement or a monthly amount.

What can they do???
They will jump at the chance mate, its not like its a lot of money, in reality.

You aint gonna get banged up, thats for sure.

BB
(good luck)

yoza

Are you moving back to the UK and walking into a job?

It has already been said, but I shall say it again.

Debts are pursued by the companies you owe money to, if they get nowhere in a certain length of time, they 'right them off'. But when I say 'right them off' they actually sell the debts on to reclaimation companies at a fraction of the actual debt. It is these reclaimation companies who will be endevouring to track you down. £10,000 sounds alot to you, but believe me you are small change in the whole scheme of things.

If your working in the UK it will be easier for them to track you down,usually through your NI number. But dont worry too much they will give you the opportunity to pay it back. But remember you will also have to pay monies to the reclamation company for thier trouble.

What would I do?

Nothing.........sounds blahsay(sp), but I wouldnt worry until the letter arrived asking for payment. Your credit rating will be 'black listed', but its not the end of the world.

What would a sensible person do?

Write to your debtors and tell them the full story, tell them you would like to come to an amicable agreement where as you can settle your debt.

PS. When it come to this I am no expert, but I have worked for many debt reclaimation companies, so Ive seen how it works.

[Edited by yoza - 12/11/2003 12:26:51 AM]

Brit_in_Japan

mof, best to get some legal advice. You may find you have CCJ's (County Court Judgements) issued against you.

You might be able to consolidate your debt (i.e. lump it all together) and pay off the creditors with a lower interest loan. Or a solitor could advise you on whether you could declare yourself bankrupt. That you give you greater time to pay off your debts and pay back x pence/pound owed. Once the debts are paid off you become a discharged bankrupt and your credit rating would be re-established. HTH. Good luck.

NACRO

Surely if he moves back to another address in another part of the country his credit record won't be affected at all- he will in fact have a clean slate.

I don't think you will have accusations of fraud levelled at you either, many people fall into debt and are unable to repay it.

If I was you I'd just come back and live my life as if nothing had happened. Next time make sure you do it for a decent amount of money-your credit record is worth more than 10K.

Diablo

What Yoza says, plus -

Yes, your credit rating will be stuffed. New address makes no difference.

Depending on the companies involved, they may or may not have assigned the debt to a third party company.

In the absolutely worst case scenario, you may be subject to bankruptcy proceedings.

Don't delay, get an experian or equifax check done based upon your name and last known address in the UK. Both operate on line credit checking facility - but only you or a licenced credit broker can do this on your behalf.

This will tell you exactly what the score is.

Once you've done this, stick a post on here and I'll see what help I can do.

D

(Insolvency and Business Recovery professional)

NACRO

Can I ask why a new address makes no difference?

For example if my name is David Jones and I move to another part of the country how on earth am I associated with David Jones who lived somewhere else?

Just curious as to your reasoning.

My contention is that a new address makes all the difference in the world.

chiark

Well, my best guess would be NI number (which isn't issued ***** nilly... If you're a British National returning they know you already have one - then they know that you are you).

CraigH

NACRO,

If that were the case, you could rack up a whole load of debt, then move to say, rented accomodation and all would be ok?

Be nice if it were that easy

People say on here that it's not exactly a lot of money and they'll be glad to sort things. When I got into a a bit of a mess, I was up front with GE Capital, tried to negotiate lower payments until things improved etc - but they weren't interested. Went straight for the throat, issued court proceedings, judge didn't give a monkeys about my personal situation, slammed on a CCJ, then a few weeks after that, GE put a charge on my house. ie, they automatically get what is owed and make you sell your house. So, they aren't always glad to sort things out And that was for a similar amount.....w4nkers

what would scooby do

Credit reference companies track your every location through electoral registers and NI numbers etc.. any gaps in this history would probably mean a very low vredit rating (no loans for you boyo)

NACRO

quote: "If that were the case, you could rack up a whole load of debt, then move to say, rented accomodation and all would be ok?

Be nice if it were that easy"


Well I don't wish to burst anyone bubble but someone I know does exactly that.......ie runs up large amount of debt and moves onto building credit up in the next place and so it continues. I have to say admire his ***** for doing it but I think it's so much hard work he'd be better off getting a proper job. BTW he's been doing it all the time I've known him (over 10 yrs) and has seemingly always got away with it.
As for tracing people by NI number- how can anyone gain access to someones NI records? I'm interested to know how a private company gets that info. Have to admit I've never taken a loan other than a mortgage so I don't know if NI number is something that's disclosed when you take a loan out. Perhaps it is a simple as writing to the tax man and asking for it? If it is then there are some people I'd like to track down myself.

Chris L

Once you have got it sorted, I believe that most of the big credit reference agencies do now offer schemes to 'repair' your credit rating. Obviously this isn't going to happen until you've settled your debts, but it should be possible to limit the impact on you in the future. I would guess this costs more money, but it doesn't have to be all doom and gloom.

Chris

Scooby96

Dont think the NI route is true - as long as you move and then dont register anything like utility bills in your name, gain more credit at the new address its easy to lose creditors. A friend of mine did this with an IF account and a few cc's - still hasnt paid a penny to this day!

Dont agree with it but then again cc companies rip everyone off!

iDLe*

NACRO - Does your dodgy mate have any fixed assets? A place of his own with a morgage?? I doubt it and I doubt he ever will. Cash in hand boy for life sounds good until you can't go out and earn anymore. Bet he's not even got a proper bank account.

NACRO

I presume he has a bank account- he paid for the work I did on his leaseholds with cash from a machine.

I think a lot of bullsh1t has been spoken here with regards to tracing of debtors through NI records- but as I'm no expert I could be wrong. Personally I don't believe in ripping of companies from a moral point of view (ie I wouldn't like it to happen to me) however I think the only people who lose out when they go into debt are people who play the game- those that throw the rule book out of the window seem to get away with murder.

carl

Whenever I've applied for loans, credit cards, etc. they've never asked for NI number. So how would they know?

douglasb

NACRO - I also don't think NI numbers will be used for cross-referncing credit checks, however assuming that someone moving to a different part of the country keeps the same mobile phone, bank account, credit card, etc., these will be easier to cross-reference.

I realise that this will probably not apply to the original poster who will probably have cancelled such things before moving to the States.

Doug

NACRO

My point exactly- there are a million or more Dave Smiths or Alan Jones, who the **** knows one from the other???

Seems there are many ways to dodge debt if one is that way inclined.

NACRO

quote: "however assuming that someone moving to a different part of the country keeps the same mobile phone, bank account, credit card, etc., these will be easier to cross-reference."

Well if you were trying to dodge debt you wouldn't keep the same ones would you?
Mobile phone-pay as you go, bank account screwed for all the money you can before you left, same for credit card. It seems to me it's extremely simple to dodge debt, or perhaps I'm missing something.

Personally I can't understand why people allow themselves to get into that state in the first place but if I did the last thing I'd do is lose any sleep over it. It doesn't matter at all.