Token Payment confusion.

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Imhotep

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Post by Imhotep » Mon Aug 16, 2010 11:23 am
Hi.

I'm totally confused. We have never missed payments to any of our creditors until two weeks ago when we were advised to pay token payments to our creditors. Which we've done.

We have sent letters off explaining our circumstances (and income & expenditure sheets) and are in the process of seeking further advice from CCCS.

This morning my wife had a telephone meeting with CCCS and she was told that we should be working out payments pro rata. I thought we had to treat all creditors equally until things were in place.

I've heard some people pay nothing, some pay 1.00, some 5.00 and some 10.00.

Now I've no idea what to do.

I've also had a letter from the Co-Op saying that 10.00 isn't enough and we should be paying on a pro rata basis.

Is there ANY consistency out there?
Last edited by Imhotep on Mon Aug 16, 2010 8:46 pm, edited 1 time in total.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 11:37 am
Technically you should pay on a pro rata basis, but a lot of people do pay small amounts to each creditor. They usually say that it is not enough anyway.

Continue to just make whatever payments you can afford, but if they are just token ones, make the the same paymens to all

You don't have to make any if you don't want to. It will make no difference to the voting.
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Shining

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Post by Shining » Mon Aug 16, 2010 11:43 am
I can imagine how confusing it is, I personally made no payments as it was easier and helped me to accumulate a little contingency prior to the acceptance of my IVA.

I do fully appreciate others like to pay token payments and whatever you do will be right for you. x
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MelanieGiles

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Post by MelanieGiles » Mon Aug 16, 2010 12:01 pm
What were you advised to do by CCCS at the time you first made your enquiry? I give my clients the option of paying nothing or making token payments - some choose the former and some the latter, but I have to say it makes no odds at the end of the day whether payments are made or not.

What timescale have they given you for finalising the proposals?
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Imhotep

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Post by Imhotep » Mon Aug 16, 2010 12:12 pm
Thanks for the replies.

At first we were advised to make token payments by CCCS now our case has been passed over to CCCSVA and they are advising to make pro rata payments.

We are in the stage of getting all our documentation together to forward to CCCSVA. We have most of it, including house valuations from two estate agents (yes, we have been busy). All that is left is written confirmation from HR regarding our pension payments being 'standard' payments and amount outstanding payments from our mortgage and our secured loan.

We are really trying to do everything 'by the book' but some things keep changing.

I was going to use any 'spare' monies left over after making this months token payments for two new tyres for the car as we are only allowed 20.00 a month to set aside for car servicing. The tyres will be illegal by the time I save up enough for two new ones.
Last edited by Imhotep on Mon Aug 16, 2010 12:12 pm, edited 1 time in total.
 
 

Shining

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Post by Shining » Mon Aug 16, 2010 12:18 pm
I think it's important not forgetting legal for your car to be in good condition and therefore surely your tyres come before pro-rata payments, I would have a chat with CCSVA and advise them of your concerns.

It really does sound like you're on track with documents and hopefully things will be moving along nicely very soon. x
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MelanieGiles

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Post by MelanieGiles » Mon Aug 16, 2010 12:37 pm
I would say that the tyres are far more important than token payments to your creditors.
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Skippy

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Post by Skippy » Mon Aug 16, 2010 1:06 pm
Melanie, is £20 a month the average for servicing as that doesn't seem a lot to me.

Last year my car was serviced and MOT'd for £110 (a friend does it, it would be a lot dearer at the garage) and I needed 3 new tyres at a cost of £180.00.
 
 

Tina Shortland

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Post by Tina Shortland » Mon Aug 16, 2010 1:42 pm
Hi Skippy, the provision given for servicing is very much dependant on the amount of mileage a client does, the age of the car and other factors which may affect the wear and tear of the car.

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Imhotep

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Post by Imhotep » Mon Aug 16, 2010 1:59 pm
We were never asked about our average mileage (which is around 15k a year) or age, just the value.

Fortunately we have just had a major service which cost 180.00(!) plus two new tyres which cost around 100.00 (nothing fancy, just mid-range tyres). I know the other two will need replacing by next Easter at the latest.

I guess we will have to do without groceries when the next service is due [:(]
Last edited by Imhotep on Mon Aug 16, 2010 2:05 pm, edited 1 time in total.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 2:05 pm
Same here, we were never asked about mileage either, just the value.
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MelanieGiles

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Post by MelanieGiles » Tue Aug 17, 2010 1:57 am
I generally work on £35 per car, but as Tina says it is always down to individual circumstances and a very tailored proposal for our clients.
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Imhotep

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Post by Imhotep » Tue Aug 17, 2010 9:56 pm
35.00 a month does sound a lot more sensible IMO. That would at least cover a service and any unforeseen repairs. We got rid of our last car because it failed it's MOT on emissions. We got a new cat fitted and it just scraped through. We spent close to 500.00 getting it sorted (new cat and new brake pipes). I think we only got 700.00 trade-in for it.

Still don't know what to do regarding token payments. I thought we were being really good by paying 10.00. Obviously I was mistaken. Also, if we pay on a pro rata basis how on Earth is that treating all creditors equal?
 
 

kallis3

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Post by kallis3 » Tue Aug 17, 2010 11:09 pm
It is treating them equally as it is worked out on percentages, so the higher the debt, the higher the pro rata payment.
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Imhotep

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Post by Imhotep » Sun Aug 29, 2010 10:21 am
I've received two letters from the Co-Op bank.

One saying since I've defaulted on a loan repayment they are going to close my current account. I've been given 28 days notice.

The other is a follow up letter saying they are happy to accept the pro rata payments that they outlined in a previous letter as an 'acceptable amounts' (10.29, 15.41 & 16.76).

I'm trying to make token payments of 10.00 to each creditor but they are being really stubborn about this.

All of our paperwork has gone off to CCCSVA and we are awaiting a draft proposal.

Our I&E sheet indicated that we would have 175.00 'spare'. We are paying 10.00 to all the other creditors (there are 10) and we were going to use the remaining 75.00 towards a new pair of tyres.

Any suggestions what to do?

Thanks for reading.

Oh, I'm still getting seven automated telephone calls a day off the Co-Op. Despite sending them letters not to contact me via telephone.
Last edited by Imhotep on Sun Aug 29, 2010 10:22 am, edited 1 time in total.
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