Advice please, lumbered with a Next account I can't afford...

bilbob_2

Hello all, firstly, if this is in the wrong place, please feel free to correct, but it looked most at home here...
Right, a brief outline of the story...
a few years ago, my (now, not then) ex opened a credit account with next under my name. At the time, i didn't know about it, but found out late, and all was well, she was making the payments etc and managing it, so I was fine with it.
We split up last year, and she continued to make payments for a while. For the last 4 months or so, it has gone into arrears, and after arguments over it, she has now washed her hands of it completely and left me to deal with it.
Now last two months, I have paid off the arrears to bring it back into the limit,and last month had a reduced payment on the basis that I simply cannot afford the payments (over £100 a month...)
My mother has offer to lend me some money to help clear it, but I don't know how to go about it properly.
When I spoke to Next last time about it, they said they would want at least 90 percent of the outstanding... the balance is currently over 1200 quid!
Is there a process I should follow, someone I should speak to, or a suitable amount to settle I should aim for??

Any advice at all on this would be appreciated, I need this sorting out, I have a new life and a new relationship, and I really don't need all this hanging over us.

ILW

You could report your ex to the police for fraud unless she settles the account.

bilbob_2

I have thought of this, but to be honest, with the amounts involved and the hassle it owuld cause I just want this sorting... not entering into months of argument and accusation and counter accusation... as I said, I have a new life and girlfriend and I just want this out of the way...
I can just afford to make a settlement, but have no idea how much to offer... I have another payment due in 4 days and if I make the payment then it cuts into what i could potentially offer!!

CHR15

It's unlikely they will accept anything shy of the £1,200 whilst they have someone to pursue for the money.

If you were facing bankruptcy, on DMP's or something, then maybe they would accept something as opposed to £1 a Month.

Big lesson learned, I hope you learn from it, your new partner may be fantastic and wouldn't possibly consider doing the same to you, but they all go sour. Don't let it happen again. Look after your own interests.

bilbob_2

if it matters, I am not looking for lower monthlies... i am looking at a lump sum settlement...?

Am I simply screwed? There's not way I can pay an extra 100 odd quid a month!

mrcow

How can she open it without your consent?

Did she forge the documents for the credit agreement? If so, this is fraud and needs to be reported to the police.

There is no hassle involved - it's her problem, not yours.

bilbob_2

it was done online, i certainly don't remembers signing anything for it....
And if I DID go to the plod, then it'll simply be her word against mine... no win scenario?

mrcow

Well only if she denied it.

If she knows full well that she obtained goods by deception, then you at least need to give the police a chance to investigate.

Fraud is a serious criminal offence.

LilacPixie

TBH next will want the lot, APR is also round 30% IIRC, personally I would go to the police and see what they say. write to next and tell them you believe the account to have been opened in you name fraudulently and have reported this to the police, give your crime referance number.

ALIBOBSY

Have a read over on the debt forums, you could do a CCA request where you ask for a copy of the agreement. It would be very rare to see anyone with a valid enforcable agreement on a catalogue and as long as it was taken out more than a couple of years ago (more recent regulations allow for electronic signatures but does not cover retrospectively).

Once you confirm the debt is legally unenforcable it puts you in a stronger position to negotiate. IE The debt is legally unenforcable but as a gesture of goodwill,with no admission of liability I will offer xxxx.

Trouble is next will push for the whole amount until it goes into arrears and defaults. At this point most creditors are more open to offers or pass it to a debt collector. Debt collectors will buy debts for a fraction of their worth sometimes as low as 1-2p in the £, so will be even more open to offers. Trouble is in the meanwhile your credit rating gets hammered and you have to look into ways of getting that cleaned up.

You lose nothing by making an offer to next but I reckon they would want at least 50% at this early stage. Do any negotiations by letter not phone make it clear the cash is not yours, but a relative's and that it is a limited time offer. Make it clear you can't afford the payments so if they don't accept you will more than likely be defaulting, they may decide something is better than nothing. Trouble is they may insist it stays on your credit file as partially settled which again effects your credit rating.

Only other options are either make reduced arrangement with them and ask for the interest to be frozen or go to the police about the fraud.
good luck
Ali x

BTW over on the debt free board people can help you cut your bills to hopefully free up cash to pay it quicker if thats what you decided to do?

bilbob_2

Thanks for that. Given that the current outstanding is about 1200, I was thinking of offering them 800 quid based on the fact it is all I can muster!... is this a realistic sum?