Do debt collectors charge interest?

fuzzgun19

I have this 'old' debt from an adams store card (approx £300).

I was on a monthly agreement of £10 per month which they agreed to about 12-18 months ago (and interest was frozen).
All was fine until I was 2 days late paying one month, then they started sending letters saying I was behind...blah blah.
I spoke to them on the phone and told them I had paid but was 2 days late.. which they seemed to accept.
Ever since then the monthly statements have changed to include 'interest' mounting to about £4 each month.

I have asked them to freeze the interest and they said no.

If I do not pay (or advise them that I may not pay the £10pm if interest is still charged), and this goes to a debt collector, will the debt collector still charge interest?

I thought they didn't but want to check.

fuzzgun19

I'd like to get a letter in todays post.. does anyone know?

fuzzgun19

Thanks.

I am considering putting this sentence in my letter

If these monthly charges and interest amounts continue to be applied to my account, then I am willing to let the account go to a debt collector where interest may not be charged.

Does anyone think this is worded correctly, or have any suggestions?

fermi

How much is the debt and when did you first take the store card out?

fuzzgun19

It's about £300, and the card was taken out about 1999-2000.

bigbum_2

fuzzgun19 wrote: »

I have this 'old' debt from an adams store card (approx £300).

I was on a monthly agreement of £10 per month which they agreed to about 12-18 months ago (and interest was frozen).
All was fine until I was 2 days late paying one month, then they started sending letters saying I was behind...blah blah.
I spoke to them on the phone and told them I had paid but was 2 days late.. which they seemed to accept.
Ever since then the monthly statements have changed to include 'interest' mounting to about £4 each month.

I have asked them to freeze the interest and they said no.

If I do not pay (or advise them that I may not pay the £10pm if interest is still charged), and this goes to a debt collector, will the debt collector still charge interest?

I thought they didn't but want to check.

Hi Fuzzgun,

Hope someone can give you a bit more information but i've had to deal with 2 debt collectors over the last 6 or so years. One was in connection with failed dd payments and the other for unpaid bank loans and a credit card. I've never had them charge me any kind of interest.
If anything, i've found them to be pretty flexible (to a degree) when it comes to making payments if your having temporary problems with paying. I've always kept them informed of my situation and they've given me a little breathing space to get on top of things when i've needed it. I guess they appreciate it if your honest with them from the start.

Sorry, i can't be of any real help but i hope it works out well for you. Good luck.

fuzzgun19

Thanks very much bigbum!

fuzzgun19

I sent the letter one week ago, along with the letter from the National debtline site statng I will only communicate in writing.

They continue to call at various times of the day (I don't answer), and today I have had a postcard saying they have been unable to contact me and are getting 'one of our representatives' to call at my address.

What can I do about this?

I am willing to start re-paying £10 per month on this, but I don't want to pay interest on it (they stopped the interest before - why can't they do it now?) I am also willing to communicate in writing.

Do you think someone WILL call at my address, or are they bluffing?

peteuk

Fuzzgun.

In my experience, Debt Collecting Agents just want money...

When they first get the debt they will ask for full payment, depending on the company they may phone or write. They will try the hard push to get it all.

However most will agree a fiqure and as long as you continue to pay then they will be happy.

Some of the bigger companies/banks have internal DCA's or will only deal with a select debt collecting agency.

I have never been charged interest when dealing with debt collectors, even on a loan.

However you have to way up the cost of the mark against your credit rating for the next 5 years. With such a debt youve been paying then it might just be eaiser to swollow the £4 interest.

Runnig from them probably wont help, so do speak to them. If they continue to phone then inform them that you have sent a letter. Even though you are asking about the interest, then still pay the payments untill the problem is resolved.

I tried the non payment on a HSBC loan, they just continued to charge interest on the account and added chargers onto my bank account. They passed it to a collection agency but just increased the amount owed. So it doesnt always work in your favour.

Good luck!!

Pete

Jesthar

Hi fuzzgun (love the name! ),

You didn't mention if you had done a CCA request for this card? Now, I'm fully supportive of wanting to pay off debts rather than avoid them, but if they can't provide a valid CCA, it might give you more bargaining power as you will have no legal obligation to pay the debt, only goodwill.

As usual, if I'm way off base here, people (CCAs are not my specialist subject ), please correct me!

~Jes

fuzzgun19

Do you mean a 'Signed credit agreement'?
If so, I don't know if this would be any good, as I have already 'admitted' the debt by agreeing to the £10pm agreement and communicating by letter?