55% of my debt is from charges

soontobemrsg

A little while ago I wrote how thrilled I was to finally be overdraft free leaving me with x2 debts (plus my student loan)

One to Orange which has never been chased and will be SB next month.

The other to Express Gifts Ltd for £385 from 2009 which I believed when I moved was totally paid off but clearly wasn't since seeing it on my report and sending them the prove it letter.

Anyway, from statements that they have finally sent me it seems I do indeed owe this amount but a whopping 55% of that amount relates to charges.

I plan on writing to them saying that I believe these charges to be unfair. Tips on what I should include would be helpful.

Do you think they will accept a full and final based on this?

I am trying so hard to save right now to pay for carpeting in the new house we are due to move to. They have never ever chased me for this debt but I just don't like it sitting there as a big huge red marker on my file.

cockaleekee

What are the charges for - interest, late payments etc? How much are they?

soontobemrsg

cockaleekee wrote: »

What are the charges for - interest, late payments etc? How much are they?

Thanks...It's £120 from 'DEFAULT SUM' so I assume missed payments

and £93.74 from'SERVICE CHARGE' which I assume is interest and possibly PPI but I don't know for sure.

cockaleekee

soontobemrsg wrote: »

Thanks...It's £120 from 'DEFAULT SUM' so I assume missed payments

and £93 from'SERVICE CHARGE' which I assume is interest and possibly PPI but I don't know for sure.

Ask for a breakdown of the service charge if you wish to, however as long as the fees were detailed in your agreement, there is no reason why they should be deemed unlawful.

They may offer you a reduced settlement, but that is at their discretion.

Edit: Assuming it is Studio catalogue (or one of that group), the terms and conditions are on the website, and seem fair.

Willing2Learn

Just wanted to add this as an option for you to consider.

If you have not made any payments OR made any written acknowledgement of the debt since 2009, then it will become 'Statute Barred' sometime in 2015 (England and Wales) or 'Extinguished' sometime in 2014 (Scotland)

Edit: (Statute Barred means the debt will still exist but will no longer be legally enforceable)

soontobemrsg

Thanks both. Yes it is a Studio account. I guess I can only be hopeful and offer them a reduced amount based on the charges to pay off this debt.

Whilst I realise that it will drop off my file in 2015 it's bound to look better as settled than defaulted until that time.

I do intend to pay this debt but genuinely believed I had paid the full balance back in 2009 and have not heard anything from them since except for the recent communication I initiated.