BOI Credit Card terminated - requesting full payment / proposal

A

alandavin

Guest
Hi guys, been reading posts on the site for a while and joined up today with a question of my own.

Basically i have been out of work for a year and struggling with paying off some debts.
Most are now either cleared or under control, however my BOI credit card was the one i had the most trouble paying off.
Now i fully admit it is my fault that i fell behind on payments. I rang up last month after i had let it go for 2 or 3 months and explained the situation i am in, but the payments they were looking for were just too much and i was only able to give them €250, which was just under half what they wanted.

I recently had some good news in that i'm going to be employed temporarily for the month of december, however i was unable to clear the payment they required and now have recieved a letter saying my Credit Card agreement is now formally terminated.
The letter has stated that failure to make the entire payment (€4250) or to submit my proposals will result in legal action being taken against me to recover the debt.

Again i realise it is my own fault for not keeping up payments, but in light of the upcoming employment I was wondering what my options are.
Obviously i will not be able to pay this in full, as 4 weeks work will only be enough to put a dent in that figure.
Is it too late for them to agree to a payment plan to try get it down or have i blown my chance completely and now face legal proceedings?
I plan to phone them tomorrow to discuss it but was hoping for a few pointers or a heads up so i know what i'm dealing with before phoning in tomorrow / so that i might get a slightly better nights sleep!

Thanks a lot for reading, i know it was a bit of a rant for one problem!

(I should also point out that my only current income is 200 per week in welfare payments and am still living at home so in light of paying off my other debts would have around 200 p/m to give them, perhaps more next month to get it started in light of the work i have coming up)
 
As with any institution you may be telling the truth when you say that you cannot pay but you need to prove it to them as well. I would suggest getting together copies of your most recent bank statements and doing an income and expenditure worksheet detailing where and how your income is spent.

Then when you contact the bank get the details of a specific person who will be dealing with your account, from then address all correspondence to them.

Outline your circumstances and point out that you are not in a position the clear the balance. in a lot of cases these letters are computer generated and are done to "focus the mind" of the person who has the debt. You are more likely to react to a threatening letter than one that is all sweetness and light.

Dont agree to anything over the phone rather tell them that you will forward all the information in writing and tell them what you can afford. Exclude December from your calculations as that is a one off and base it on what you can afford every month rather than one.

Also, when you are on the phone to them, ask if it is possible to have the credit card debt converted into a term loan.
 
Colndas thanks very much for the advice. Those pointers will come in very handy for me before i deal with them. Hopefully something can be organised anyway.
All the best,
Al.
 
Hi
Check out www.mabs.ie
They have standard letters that you can use to inform banks of your situation as well as budget sheets etc. I'd recommend dealing with them by letter only. I know of someone who entered into a repayment plan with a UK bank over the phone and they subsequently denied any knowledge of it and continued to charge interest. At least if you have it in writing they can't back out of it.
Good luck with sorting it out.
Cheers
K
 
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