Advice please, re: 1stcredit debt

feedish

Story in a nutshell is I took out a loan a couple of years ago, then had to leave the county due to personal reasons. Came back about a year after and have been back for 4 years but never heard anything. Now out of the blue I've had a letter from 1st Credit

I know I owe the money and am willing to work out a payment plan, or try to reach some sort of settlement with them. However I've read a lot of links from google about their awful business practises and am basically wondering what's the best way to proceed with them now?

For facts sake the loan was taken out around 5 and a half years ago, the last payment made to the lender 4 years and 11 months ago and the first I've heard about it this week

Thanks

Tixy

Have they provided proof that they own the debt and can collect it? If not I would send the prove it letter first. (see the post)

Don't speak to them. Don't even give them a phone number.

If and when they do prove they have bought the debt I would write to them with an offer of a repayment plan that you can reasonably afford. They may ask to see an income & expenditure account. They will almost certainly ask for more money, as long as you are paying as much as you can afford then ignore their demands.

You might want to check your credit file to make sure they haven't done anything untoward - like issue a default notice on the account recently (it should be dated some 4.5years ago)

Tixy

National Debtline "prove it" letter

Quote:

1 High Street,
Newtown,
Kent
R21 4RH
October 9, 2007

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Ref: xxxxxxxxxxx

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

We would point out that we have no knowledge of any such debt being owed to The Loan Company.

We are familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

We would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore, ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

We would ask that no further contact be made concerning the above accounts unless you can provide evidence as to our liability for the debt in question.

We await your written confirmation that this matter is now closed. Otherwise we will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

We look forward to your reply.

Yours faithfully





Mrs A N Other

Tixy

You could also consider asking for a copy of the CCA and consider challenging whether its enforceable - this could potentially mean you could negotiate with 1st credit to settle the debt for a much smaller sum -read this thread for more info - http://forums.moneysavingexpert.com/showthread.html?t=2060575

feedish

Thanks Tixy.

Luckily they have no phone number for me and won't be getting one.

Which of the 2 methods above would you suggest first?

wayne99

i would do the prove it letter first, make sure you send it recorded delivery and keep and copy with the recorded receipt.

Tixy

As wayne says start with the prove it letter either ways.
Then you would need to think about whether you just want to pay it back in full or want to consider the unenforceability route.

fatbelly

If you live in Scotland, this debt will be statute barred in one month.

Just thought I'd mention it.