Advice sought

Justindebt

For around the past four or five years I have been paying off a credit card debt through a collection agency.

The debt was in the region of 12K and I have been paying a goodly sum each month, near enough £200.

I have more or less halved the debt but increasingly the monthy payments are crippling me and I can now no longer afford to meet them.

I called and asked for a settlement figure and was given one of circa £4500. I told the person on the phone I would be speaking to family members who had said they would help me and that I would get back to them a.s.a.p.

I stressed to the agent that I was not, at that stage, saying I could take up the offer but would try to raise the money.

I wasn't able to raise that much, but was able to call them and offer £2000 in full and final settlement.

I put this in writing.

I have yet to receive a reply re the written offer.

Instead, I have now had two letters this week saying that I am in "default" over an agreed "arrangement" to settle the debt at the £4,500 figure.

They are now demanding this figure imediately and the remaining £1,500 in a month's time.

Or they will do this, that and t' other.

I have written to them again, this time using a registered envelope, telling them that no committment had been made by myself and that no arrangement exists whilst at the same time once more making an offer of £2000 to close the matter for good.

One of their people called me yesterday on my mobile when I was out and I asked him to call me at home later in the evening.....we agreed a time but no phone call came nor has he called today, but another threatening letter arrived this morning, once more alleging I am in "default" and threatening me with someone coming to my home and possible court action if I don't make full payment of the debt by Monday.

Where do I stand in all of this?

Thanks in anticipation.

Little_Miss_Uni-Debt

Hey Justindebt,

That's the trouble with DCA's any sniff of a final payment and they think it's cast in stone.

They have no written proof that you agreed to the £4500 settlement as it was done over the phone.

Have you paid them the £2000 that you raised yet?

Justindebt

No....they haven't got back to me to say they will accept it.

Justindebt

anyone any more advice?

dancingfairy

Hi. Well firstly don't pay them a settlement figure until you have it agred in writing that that is it and that the remainder of the balance will be written off and no debt will be sold on, etc.
Don't worry about them calling at your home - only a court bailiff has any power, if in the unlikely event that someone did call at your house you can tell them to go away as you don't wish to talk to them. They could potentially take you to court but that will cost them time and money and it should be patently obvious to them that you haven't got any money so court is likely to be a waste of their time. They may get a CCJ against you but you could then appeal to the courts to pay in installments (which may or may not be as high as the debt collectors would like ).
I would either continue on the payment plan while trying to sort out a final settlement or write to them and let them know what you can afford per month and pay that instead (no doubt that will rattle them, but tough - you can't give them what you haven't got can you?).
It might be worth contacting someone like National Debtline, CCCS or your local CAB to explore other options as well -perhaps bankruptcy or a DRO would give you a fresh start? or they can advise you with regards to payment plans etc.
Alternatively you could try and get more credit to pay off the debt collectors depending on the state of your credit rating. It's not the worlds best idea but it may get them off your back but then you would need to pay off the new debt of course It may be worth doing if you could get a very low settlement figure from the debt collectors though.
Best of Luck
df