What to do about Studio?

joders

As far as I was aware, I owed just £70 to Studio but due to missed payment it has gone up to £91.45!!

On the statement it shows that on 15/01/2012 they added...
Default sum - £20
Service charge - £1.45


This debt is still with Studio and not a debt collector.


How is best to deal with this please? To stop more charges and arrange a payment plan with them.

rising_from_the_ashes

If you've missed a payment then it's fairly standard for a late payment fee to be added.

Are you in a position to make a payment to bring the account back up to date?

Have you had any correspondence from them advising that a default would be issued? (Unusual for just one missed payment unless they have been previous problems).

joders

Hello!
I'm in a position to pay the £10 per month, as previous. I've only just found out about the default by looking online - very rare they send a statement out.

I can't call as its a premium rate number but i've just e-mailed asking to be contacted.

National_Debtline

Hi Joders

You are entitled to ask for a copy of the agreement and terms & conditions if you do not already have them - these documents should outline the scope for any such penalties and charges, and hopefully should also outline the potential amounts involved as well.

Let's be clear as well that the reference to a "default sum" is not to be confused with a "default notice". A formal default will only be recorded on your credit file in the event that a default notice is issued under s87 of the Consumer Credit Act - this will usually only happen in the event of a series of missed payments. The term "default sum" is used interchangeably with terms such as "late payment", "late sum" etc etc.

as far as your payment plan goes, it is worth starting to send the £10 payments you can offer through ASAP - waiting for a formal reply from Studio may simply mean more charges get added in the meantime. The best way to present your offer is by sending Studio an income and expenditure statement (which you will see referred to on this forum as an SOA - Statement of Affairs) together with a covering letter explaining your reasons for making this offer.

Without knowing more about your situation, £10 seems a reasonable enough offer given the modest size of the debt. It all depends though on whether you are trying to maintain the use of this catalogue or are simply trying to pay off the balance now.

rising_from_the_ashes

National_Debtline_representative wrote: »

Without knowing more about your situation, £10 seems a reasonable enough offer given the modest size of the debt. It all depends though on whether you are trying to maintain the use of this catalogue or are simply trying to pay off the balance now.

I would also add that if you do come to a repayment arrangement, eg the £10 / month, then this will obviously affect your credit file much more / for longer than one late payment marker (if it is just the one).

Obviously, your own circumstances / credit file status may have an impact on the decision you make.