Offered catalogue what i can afford.

kazz3105_2

My daughter had a catalogue with Littlewoods. Her circumstances changed and she could not afford the repayments £130 per month (total owed just short of £400). I wrote a letter to them for her explaining her situation and offering to pay £30. She in tears now because she has received a snotty letter off them today saying they cannot accept that. Am i wrong in thinking that as long as you offer something then they would normally accept it. Does anyone on here have any advise for her that i can pass on.
Thanks in advance.

elaine12022

This may be of help to you

http://www.insolvencyhelpline.co.uk/debt_factsheets/what_if_a_creditor_refuses_my_offer_of_payment.php

timbstoke

First, don't worry. The fact that they want more doesn't magically make her able to afford more, and they need to learn this. The problem with Littlewoods is that they will apply a £12 charge for every payment that is late, too low, or missed. For a £400 debt, £30/month should be more than enough. Write back to them, advising that unfortunately, £30 is all you can afford, and you will ensure that this is paid on time each month. You're not asking for permission here, you're telling them that's what they can have - take it or leave it. Then, make the payment each month - if you have access to the account online, do it that way - otherwise, send them a cheque. Don't pay over the phone.

As for the £12 charge, you have two choices here - you can either accept it, and deal with the fact that it'll take twice as long to clear the debt, or do what I did - the first time it's applied, write to them to tell them that you are disputing their fees, and as they are not prepared to accept your payments without applying unreasonable fees, you will not be making any further payments until either an agreement is reached or the matter goes to court. Tell them that if it goes to court, you intend to defend yourself, and ask that the court deduct all late payment fees from the judgment amount. Then stop paying them, but MAKE SURE the £30/month is put to one side. If they pass the matter on, send the DCA a copy of your letter, pointing out that the debt is currently being disputed. Chances are, your £30/month will add up to enough to clear the debt before they get anywhere. If it turns out they've continued to add £12/month charges, write to them and tell them that you're prepared to pay the outstanding amount plus 1 £12 charge, but as they have failed to reach a payment agreement with you, you are not prepared to pay more than the first instance of their fees. Don't pay them a penny until they agree to this - after the recent court cases regarding bank fees, catalogues are fully aware that they're on very thin ice regarding these ridiculous fees.

kazz3105_2

THANK YOU to both of you. I have showed my daughter as she feels much better. We are going to use all the advise given. Why do your kids take notice of total strangers rather than their mum?? Good advice all round. Thanks again.:T

kazz3105_2

Sort of a good response. Same company different names Littlewoods & very. Very accepted the offer of £30 per month have frozen the interest (without her asking) and thanked her for contacting them. Littlewoods said no, then no again and when i sent the letter asking for them to reconsider and also to freeze the interest they sent her one which she received today stating that they still wont reduce her payments will not freeze the interest and also want to put her on a payment plan over 3 years at 39.9%apr. This is going to cost her more in the long run. Would it be worth using the sample letter to advise that they can take her to court, she is prepared to do this her house phone gets cut off tomorrow as they reduced her bill for a short time to give her chance to get her finances sorted unfortunatly her finances have not improved so she has asked them to disconnect her as she cannot afford the line rental. They have even waived the rest of the contract so she does not have further bills for the next 6 months. How can some companies have empathy and others not give a stuff.