Help with RBS/Tesco Loan needed

nunnygirl

Hi everyone, first time on the debt-free wannabe board and I am looking for some advice

In 2008 DH took out a loan with Tesco/RBS for £7,500 over 5 years. He was paying £147 a month. Current balance is just over £6500 but the interest has been paid off, he's now only paying off what he took out

He was made unemployed a while ago and started to claim JSA. He is still claiming this now (please no agro about him being unemployed, thats not why I'm here)


We wrote to Tesco after the job loss on advice from the CCCS and sent them a budget, telling Tesco that we could only afford to pay £80 a month. The new payment was accepted and he's been paying this for a just over a year now.

Today we got a phone call from RBS telling us that he owes them £900 as he's not been keeping up with the contractual payments:eek:

I was under the impression that £80 was a new contractual payment?

He's now having a default put onto his credit file as he owes them this money, which I can totally understand

What can/should we do? Is it just a case of "it's your fault pay up?"

Thanks in advance:T

DarkConvict

No, the £80 is not a contractual payment. The contractual payment was the £147 a month, as this is what your DH signed for when taking it out.

The £80 is an informal agreement of reduced payment, if you have heard of a DMP (Debt Management Plan) it is the same thing, reduced payments to creditors to what you can afford.

As it is informal they can stop it at anytime. Since the payments are below the contractual payment they can issue a default and sell the debt on. So long as they send a default notice (Example) out there is nothing you can do about it, to be blunt "it's your fault pay up?" is correct.

As the loan is post April 2007, it is covered by the CCA 2006 so the loopholes on preventing a CCJ to recover the debt are mostly closed, but you could try reading about the CCA procress here - http://forums.moneysavingexpert.com/showthread.html?p=26867731#post26867731