Debt Recovery Agency increases repayments every 3 months

gisaster

Hi all, just wanted some advice with a company that has been increasing my repayments every 3 months. I got into financial difficulties around 5 years ago and defaulted on my loan and credit cards. Two of my debts were passed onto debt collection agencies and, after lots of haggling, we came to arrangements to repay. The first company agreed to be paid £1 a month and the second one was £65 a month (the discrepancy was due to me being unemployed at the time of negotiating with the first company and me having a new job by the time the second one came calling). Every 6 months, I get a letter from the £65 a month folks, asking me to call them to discuss my monthly payments. I never have done (I forgot the first time and noticed nothing happened, so...:)) and I continue to pay on time every month.

The second company sends me a letter every month, stating what I owe and what I should pay, but every 3rd month they increase the payments (from £1 to £3, then £7, then £12 and so on). Now, I've never really had an issue with it, because I want to pay my debts and I could afford to do so, but now they have put it up to £72 and that is my limit. Obviously I will phone them to discuss my situation when they send the next letter increasing the payments again (probably to £80), but I just wanted to know what they can or can't do as they were very very abusive to me on the phone when we agreed the initial £1 payment. Thanks for reading and for any advice you can give me.

taffy056

Pay what you can afford, if for example you can pay £50 a month for each debt pay that, and tell them via recorded delivery that is what you can afford and that is what they are getting. Just send your payments by standing order directly to their bank account. Don't accept anything you can't afford to pay, as it will lead to more difficulty.

poppasmurf_bewdley

How do you pay them? Presumably not by DD or Debit or Credit Card. If you pay by Standing Order, Cheque or Cash then you are in control. They can demand all they like but remember you are in control.

Tell them what you can afford to pay, and if they don't like it, tell them to take you to court and you will be happy to let the judge set the amount you have to pay.

gisaster

I pay them via online banking. It's not a DD because I used to be paid every 4 weeks, so couldn't set up DDs as my pay day was different every month.

Thanks for the advice, guys. I was just a bit wary of talking to them again due to their offensive nature first time round. I will stand my ground and be firm if they get nasty again.

taffy056

You don't have to talk to them at all, send them a letter saying this is what I can afford, it won't in all likelihood go to court because you are paying and not ignoring the debts.

gisaster

I hadn't thought of that. Thanks!