VIC Help with Credit Corp Issues?

Discussion in 'Debt and Bankruptcy Law Forum' started by HeyMa, 31 August 2018.

  1. HeyMa

    HeyMa Member

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    Hi team,

    We had a loan with Commonwealth bank and we missed 2 payments as we moved and didn't get the mail till after the date due to the redirection process. They didn't email or call us but then we were contacted on 7th Sep 2011 from Credit Corp saying they brought the debt. We tried to explain to our branch but they said it was too late as no contact was made.

    The debt was sold to Credit Corp 7th Sep 2011 with an interest rate of 16.95%. The debt was $26.411.48 when they got it. It is now $26.826.42 as of 30/08/18

    I was diagnosed in Aug 2011 after being sick for a year in 2010 they ran some tests and realised I had multiple sclerosis. We explained to CC that we were on the one wage now and I didn't get disability pension due to my partner earning too much each f/n for Pension for myself. I needed to buy so many things as I had a horrendous attack. They would even call when I was in the hospital, wanting to change payments arrangements or offering huge deductions if we could pay a certain amount now.

    We made a payment plan, when they got the debt it was at 16.95%, they dropped it to 8.5% and then eventually to 0%. I have asked for these dates to be sent when each interest rates were changed, I also asked for a statement of all the payments we have made and the dates.

    They keep asking can we pay a large amount to close the account & I feel it's pretty pushy tactics when we have explained our situation.

    Is there a way to get some sort of relief fund application to bypass these people or apply to lower repayments or have some of it wiped off, I don't want to really be paying all the extra hoohars?

    What amount would we put forward to them on the debt owed to close and settle the account? Do we go with the initial debt or the debt with Credit Corp's extra $400 odd bucks on top? What percentage should we offer like 40%-60% on total amount?

    I also would like to know what to offer as a % rate on a credit card debt of $777 owing, I'd like to close and settle it.

    I really appreciate your time.

    Thanks, heaps
     
  2. Rob Legat - SBPL

    LawTap Verified

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    I would say that you need to be speaking to a financial counsellor. You can usually speak to a free one if you call 1800 007 007. It would be improper for anyone to comment on your financial situation without being properly credentialed and in possession of all the information.

    Credit Corp aren't a bank - they're a debt collection company. That's why they're being pushy. There's a few things to consider:

    1. If they've reduced the interest rate to zero, they've already given you a break. I'm assuming they've made the change under the hardship provisions of the National Credit Code, which requires that they give notice in writing of the changes (such as the dates of interest rate reduction you've asked for). Even if they haven't, it's still good practice to give notice in writing.

    2. They're unlikely to reduce the principal amount owing on the debt, and extremely unlikely to reduce the amount owing below what they paid for the debt - unless there is a breach of the responsible lending guidelines.

    3. You're entitled to a statement of account, and they need to provide one within 14 days for transactions within the last year (or within 30 days for transactions that are more than a year old).

    4. Credit Corp should be adhering to the ASIC/ACCC Debt Collection Guidelines. The guidelines cover a lot of aspects, but the important one for you is the frequency and timing of contact. Unless it's a follow up to a query you've made, the guideline recommends no more contact than three times per week, up to 10 times per month (actual contact). Over that may constitute undue harassment. The same stands for repeated contact attempts (when they don't actually reach you). During a contact they may try to get you to agree for them to contact you again. Be careful - the follow up contact will not count against the recommended number of contacts because you invited it.
     
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