2006-11-20 06:39:22 · 5 answers · asked by Susan D 1 in Business & Finance ➔ Personal Finance
I defaulted on my payments for council tax and the debt collection agency froze my account
2006-11-20 06:49:28 · update #1
You will need to speak to your Bank AND the Debt collection agency. The chances are that the Bank was obliged to block the account and may have received an order from an authority, possibly a court, before doing so. What have the Bank said to you? They will have sent you some sort of advice letting you know this was going to happen or may be in the process of trying to contact you. Do not ignore the letters or calls.
If your account has been frozen I guess that your financial situation is a serious concern to you. It is all too easy these days to get into debt, robbing Peter to pay Paul but there is help at hand. In the first instance contact the CCCS, the Consumer Credit Councelling Service. You must contact them in writing although it is sometimes reassuring to speak to someone first.
The CCCS are not judgmental and will help you initially by working out with you your priority payments (mortgage, electric, council tax, food clothing money etc) and draw up a realistic plan for repaying your creditors. Basically your priority payments are made in full first and anything you have left is shared out amongst those you owe money to. It is always best to come clean with those you owe money to - if the problem is short term you may get an agreement to accept reduced payments for between 3-6 months, in some cases interest may be suspended.
Not all creditors play by the same rules. Some try to scare you into finding money you haven't got. DO NOT BE SCARED. Simply be upfront about what you can afford, and do not budge from that position. Never offer to repay more than you can really afford. With a CCCS plan behind you your chances of reaching a settlement arrangement are good.
In case you do not know it most lenders adhere to the Code of Banking Practice and this requires them to come to an arrangement with you in times of difficulty so do not be led into believing otherwise. Full details of the codes can be found online.
Debt collection agencies are, in my experience (yes, I have been there too in case you hadn't guessed) better to deal with than the companies you originally dealt with, after all the company you borrowed from have sold the debt to get it off their books so provided you eventually repay the debt collection agency they will be making a profit. You may be taken to court if you refuse to pay or the company thinks you can afford to pay more than you have offered but again, if you can prove you have honestly tried to reach an arrangement a Court may enforce acceptance of your offer.
Sorry if this answer has been long winded but I hope it helps. Believe me, the relief you will feel after all is out in the open is fantastic. A trouble shared etc. Good luck
2006-11-20 07:34:18 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Hmmm not heard of this before.
The Bank can freeze your account, the goverment can freeze your account, the Police can freeze your account but I don't think a debt collector has any right to freeze your account without your permission.
Talk to your local CAB and ask your bank who exactly gave them authority to freeze.
2006-11-20 06:54:57 · answer #2 · answered by angie 5 · 0⤊ 0⤋
A debt collector won't be able to freeze your economic corporation account without getting a courtroom order. So with pastime and expenditures, sure, the quantity ought to extremely be doubled. And sure, they might take all your money.
2016-11-25 21:28:04 · answer #3 · answered by marcy 4 · 0⤊ 0⤋
I didnt know a debt collector has the power to freeze your bank account. You should talk to your bank.
2006-11-20 06:44:50 · answer #4 · answered by fuck off 5 · 1⤊ 0⤋
That does not sound right how do they expect you to pay the debt if you can't get at your money,get some legal advice
2006-11-20 06:52:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋