We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Token payment agreed for £0.00??

Hi,
after sending out up to date financial statements to all our creditors and offering them token payments of £1 a month, most have been agreed. Lloyds TSB being one of them, sent us a letter this morning, and it says:

"Dear Mr XXXXXX,
RE Account number XXXXXXXX

Your offer of £0.00 has been accepted for a period of 6 months at which time the arrangement will be reviewed, unless the debt is fully repaid earlier. The first payment should be made within 30 days of the date on this letter.

A book of paying in slips will be sent in the next 7-10 days. These can ve used at any branch of Lloyds TSB free of charge. Alternatively, you may send payments direct to ourselves which must be accompanied with a payment slip.
"


Legally where do we stand if we do not make any payments? We offered £1 a month but they have put in writing to us that they have accepted our offer of £0.00. So what should we do?

Comments

  • lilian1977
    lilian1977 Posts: 5,172 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Do you have a previous letter from them suggesting £1? Or anything you've sent to them saying £1?

    For that small amount I'd be tempted to pay it - but as for the legal angle, I can't help, sorry.
  • 10past6
    10past6 Posts: 4,962 Forumite
    Hi Kate :hello:

    Welcome to the forum, personally for a £1.00 it wouldn't be worth the hassle it may create, if it was a larger amount it may be worth challenging.
    Click here for Martins (MSE) advice on who to contact with Debt Issues - YOU HAVE NO REASON TO USE A FEE PAYING DEBT MANAGEMENT COMPANY- THEY CANNOT DO ANYMORE FOR YOU THAN THOSE LISTED IN MY LINK ABOVE.

    All information given by myself is offered informally and without prejudice - if in doubt seek help from a qualified and insured professional
  • 10past6 wrote: »
    Hi Kate :hello:

    Welcome to the forum, personally for a £1.00 it wouldn't be worth the hassle it may create, if it was a larger amount it may be worth challenging.


    Hi,
    yes I agree, my husband says we should not pay as it's their error, but for the sake of £6 I don't think it's worth the hassle either!
    Thanks
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    Not paying looks bad to a court should the situation ever end up there, I'd just pay the £1.
    No longer using this account for new posts from 2013
  • Starlett
    Starlett Posts: 109 Forumite
    I don't have any real experience... but, maybe in 6 months when they come to review it and they see you've not paid anything, they might think it was you being awkward?? Rather than seeing it was their mistake?! Good luck with it though!! x
    LBM April Fools day 2008 - £20,345 debt!!! _pale_
    Current Debt NOTHING!! - DFD - June 2009 - [STRIKE]I'm emigrating!! [/STRIKE] :j I've emigrated!! :j
    Official DFW Nerd Club - Member no. 949!
  • angeldiva
    angeldiva Posts: 346 Forumite
    Debt-free and Proud!
    Id pay it, but they are muppets arent they? lol
    In Jan 2007 I had a debt of £27,896.00 :eek:
    In October 2011 I paid it off and owned £0.00 - Kinda proud of this!:T
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.