Provident loan, help!

andy69_2

I know its not a big loan or anything but I get stressed out easily. 2 years ago I took a provident loan of 200 pound. Stupid I know but I was pier pressured by my partner at the time. ANyway I think I had about 90 pound left to pay then I went to afghanistan. Whilst I was their my missus moved out as the house we where renting was not good (another story) and anyway when I got back I had obviously not paid provident and then When we moved into new house I just forgot all about it. I recently rangf them as i remembered and they said its gone to a debt collection company. They said ring back on Monday to get details of where the debt has gone etc. What should I do? Ring them and pay them off or what? Will their be much interest on top of what was owed? Thanks

Tixy

The balance they quote could be much much higher than £90, they may have been adding interest & charges on every month since.

If the debt is with a debt collector then you would probably be able to offer a lower figure than whatever balance they tell you (known as a reduced full & final settlement). However if you are doing this you need to make sure you get confirmation in writing before you make your payment that they will not chase you for the remainder - here is a template letter which shows the info you would need. http://www.nationaldebtline.co.uk/england_wales/temp/7322_98411.pdf

If you do not contact them they will in all likelihood eventually find you (next time you apply for credit or via other ways). If they did not ask for payment for 6years since the date you last paid the debt would become statute barred but because the debt is relatively recent this is not particularly likely to happen. Have you checked your credit report recently? That will tell you if a default or even a CCJ has been registered and may tell you which debt agency the debt is with.

andy69_2

Well literally 1 month ago I applied for a mortgage, (first time buyer) with the abbey who check with experian and nothing must have come up as it has been accepted etc, just the contracts need to be signed. Could this still affect my mortgage or will they not credit check me again? Thanks!

GeorgeUK

I would also suggest looking at your credit file to see if a default has been issued.

Edit: There should only be one credit check per credit application so it doesn't look like there is anything bad there. I would advise trying to get it sorted asap though and get a statement before making any payment so that you can see exactly what is being charged.