Loan going to legal action what do I do?

ssapril1

Hi,
I took out a loan with Halifax in August 2007 but due to a number of factors - I had to take a lower paid job for health reasons and then lovely Halifax continually charging me £35 got me further and further into financial difficulties and I could no longer afford the repayments.
I am very guilty of burying my head in the sand and things have escalated to solicitors who are threatening legal action.
I had an accident at work in July and have been signed off on SSP since, doctors have said I could need another 6 months. I have made a claim to Halfax to repay the PPI as I was told it would mean I would definately get approved for the loan and they have said they will get back to me by 16th of this month. But the solicitors are literally giving me till tomorrow to come up with a lump sum and start £400 a month when I'm not even being paid that much!
I was thinking of writing a letter today to explain as the agent won't listen to anything I say? I was trying to get through to the CCCS as we have spoken about it before but there are too many callers.

Any help would be really appreciated.
Thanks

ILW

If you have not reclaimed the PPI yet, you should be able to claim on it to cover the repayments.

Ames

First of all, if you read the letter carefully, does it say they WILL start legal proceedings, or that they MAY start legal proceedings? Usually it's the latter, but people read the former.

Secondly, you need to pay them something. If you're not working and on benefits then it's £1 a month. Explain to them that you have no income, therefore can't pay them.

Just remember, if you don't have it, they can't have it. Even if they take you to court, you'll have a chance to explain to the judge and he'll make an award that you can afford - probably £1 a month. You don't say how much the loan is for, if it's fairly small then if you write explaining your situation then they're unlikely to take court action because it would cost them a lot with no guarantee of getting it back.

Have you got other debts you're struggling with? If you have it might be worth popping over to the debt free wannabe board for help and advice.

Good luck!