Help with debt being sold on

theresa1a

Hi
I would be grateful of any advice regarding my credit card debt. I have had this card for a number of years (about ten I think). During this time the company kept increasing the limit up to £12000.00 without me asking for any increase. I always paid PPP and unfortunately in 2007 I had to make a claim due to illness. The insurance ran out in October of last year. I am still on the sick and unable to work therefore I cannot afford to make the minimum monthly payments. I contacted the company and offered to pay £50 a month they said this was okay for a couple of payments then after 6 months they would sell my debt on. Can they legally do this? Also while I was claiming PPP they were still charging my account payment protection. When I ask them about this they said this was normal, but what happens to the money I paid in whilst claiming? I have until April before it is sold to a debt collection agency which I am really scared of. Has anyone any idea of what I can do to prevent this? I owe just less than £5000

Kind regards

DarkConvict

Hi,

Whilst PPI did pay out, you may still have a case to reclaim the PPI premiums, read the guide and post in the PPi forum.
Guide - http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Forum - http://forums.moneysavingexpert.com/forumdisplay.html?f=169

As to selling the debt on, this is legal and a common practice where a debtor has failed to meet the minimum payments, either a 3rd party collects on behalf, or they sell it on at a low percentage 10-50%, the debt company then tries to get the full amount to make a profit.
Unless your credit card has terms in it that allows them to charge for debt collection a DCA (Debt Collection Agency) can't add interest or further charges.

If you are really struggling to make payments, it maybe worth checking the enforceability of the document, if not enforceable they cant get a CCJ which will reduce your stress and let you pay back as much as you can afford - http://forums.moneysavingexpert.com/showthread.html?p=26867731#post26867731

theresa1a

Thanks Dark Convict I have just used the template letter on the link you provided. I feel a bet easier but I know I have a long way to go. Once again thanks for your advice

DarkConvict

Its not a quick thing to do, and takes a few reads to understand but there is plenty of advice available here and on the PPI forums if you plan to investigate both avenues.