Next Directory debt.

thenightporter

Hi,

We are setting up a DMP with CCCS which we anticipate starting in April, possibly May. In the meantime we have started making token payments of £1 to our non-priority creditors. Next Directory have cashed our £1 cheque but have sent us this letter:

"I write with reference to your letter regarding your Next Directory Account.

I have to advise you that unfortunately the sum of £1.00 per month in not acceptable; the minimum we can accept on a monthly basis is £5.00.

In order for this to be set up as a formal agreement, please phone one of our advisors etc...

If we receive no confirmation of your acceptance of this offer by the 24TH FEBRUARY the account will transfer out to an external debt recovery agency for management on our behalf."

£5.00 incidentally is less than we anticipate them receiving pro rata under our DMP, but we don't want to and don't think we are allowed to enter into individual arrangements with creditors outside of the CCCS plan so do we:

• Write back and tell them that we can't make individual arrangements, keep paying £1 and tell them CCCS will contact them in due course
• or simply continue making £1 payments without even making reference to the offer and wait to see what they do.

Are there any other options here and what do you think the implications of these choices are?

The debt is relatively small (less than £600), we will probably be in a position to offer a full & final settlement within the next 6 months or so. I've seen people say that DCAs may be easier to deal with than the original creditor in terms of F&Fs - could it end up being better for us if they do sell it on?

I'm also a little confused by the wording of the letter. Does the last paragraph imply that they will still own the debt but hire an agency to chase us or are they going to sell the debt on? In either case would they have to default us first? Should we request a CCA now?

Deep_In_Debt

I'd do the first option. Next were one of my creditors in my dmp with CCCS. When I was setting my dmp up, I sent them (and all my creditors) £1.00 as per the advice given by CCCS. Fortunately, my dmp was set up a month later and they got their £5.00 per month which they accepted.

My debt with them was only about £100 and they had been accepting £10 pm before that anyway - just had to include them in my dmp.

Yep, DCA's buy debts for peanuts - literally pennies in the £ so you can negotiate low with them. However, Next will accept £5.00pm. I'd just pay them that until you are in a position to offer a F&F.

I didn't bother with them, cleared my debt of of £70 in full eventually as because it was so low and I'd had the goods, I couldn't really argue.

heatherks

£5 was the least any of my creditors would take Next being one of them ...and they have been on of the creditors that have been most understanding as long as you pay them what they ask on time