Please Help

JOHNSTONE1

My husband had an account that went into default in 2007 during a time when he had a breakdown the company (first response finance) gave teh debt to Shoosmiths to collect. The starting balance the gave us in September 08 was £7971. I have been paying this off at £150 per month as agreed. At the begginging of this month I used all my saving to pay the final amount off £5351 i got a letter from Shoosmith saying thanks and the account is settled and to check with first response if his credit rating isnt adjusted.

Have just checked his credit report and it says amount owing £6677. I called up first response who said this is correct the last payment thet recieved was at the end of Jan for £150 and thats my balance. They havent recieved the £5351 which is to be expected but the figures are £1326 out??!!!

I called Shoosmiths who said the debt amount instruct was £7971 and that waht I've paid and that all the money barring the 5351 has been passed over and that will be sent at the end of the month.

I'm really stresses now and dont know what to do this was all my savings and its still not clear. Shoosmith dont add any interest the account is frozen they said but could forst response of added their own interest even though they passed it over for collection? please help not sure what to do next! x

JOHNSTONE1

Also the origonal amount in the agreement signed was £7610 that was for the value of the car plus 4 years interest.that was 2007 and I've paid 7971 a year and a half early can this be right??

RAS

Firstly it can take several months for a payment to show on a credit report.
Secondly, was the £5351 payment a full and final settlement?

JOHNSTONE1

thanks for replying. I know it takes a while for a payment to be updated on a credit report which is why I called first response to get the correct remaining balance from them.

The debt instructed to Shoosmiths was £7971 i have paid £7971 so the account should be cleared. Some how an extra 1326 has been added an no one at shoesmiths or first response can explain why.

Any help would be appreciated.