token payment and default

dumb_blonde

hello all hope you can advise me,
we had a loan with the AA
we thought we had unemployment insurance but it turned out not to cover us.
As we were applying for missold ppi they passed us to blair, oliver and scott.
We offered a token payment of £1 per month as advised by CAB, which we also did to our other creditors
we got a letter accepting the offer to be reviewed periodically.This was in March.
We have since got our ppi back (minus arrears)from the AA.
Today we got a letter from Blair, oliver and scott saying they have been trying to get the balance from us and we have been ignoring them
(we havent had any letters from them except the acceptance of token payment letter)
i rang them and they said they only agreed to the £1 payment because we were in dispute over the insurance and that now that is sorted they want the full amount.(over £7000)
They said there is a new legislation that the minimum they haveto accept is £10 per month, and if we didnt pay this we would be defaulted. I cannot pay this as it would be treating them preferentially over my other creditors.
What happens next?
I asked them to put this in writing, do i then go back to CAB.
When i had my first appointment they made it clear they do not like it if you run to them for advice unless its really important
Is it?
Sorry for the long post,advice much appreciated. x

fermi

dumb_blonde wrote: »

They said there is a new legislation that the minimum they haveto accept is £10 per month, and if we didnt pay this we would be defaulted.

That is nonsense. There is no such legislation.

I would write back to them repeating your offer.

You should also point out to them that under OFT debt collection Guidelines.........

Those contacting debtors must not be deceitful by misrepresenting their authority and/or the correct legal position.

and

Physical/psychological harassment

2.5 Putting pressure on debtors or third parties is considered to be oppressive.

2.6 Examples of unfair practices are as follows:

............

f. pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so

PNPSUKNET

I would ask for a copyof the legislation where it says it, I havent come accross itv