Mortimer Clarke / Black Horse loan - Help required.

piggybank123

Hi all. To give you some background into this, I took out a loan with Black Horse a while a go. I got into a bit of financial difficulty when my marriage ended and missed a few payments, however I contacted them and we agreed a (slightly) reduced payment, which I paid monthly. This continued for some time without issue and then one day I came home to a letter stating that the debt had been transferred to Mortimer Clarke and that I should pay them going forward. I amended my standing order and have been paying them the same value ever since. Throughout the period I've received many letters offering me a reduced settlement figure if I settle the balance in full - offers which I've ignored as despite the balance being relatively small, I've not been in a position to settle. Today I've received a letter from MC stating that my concessionary period has expired (income/expenditure form attached) and that I must contact them within seven days. I've read some of the threads about this company, so before I do, I wanted to get some advice. The payment value was agreed with Black Horse - can MC force me to pay more? and if so, can it be more than the monthly installment per the original loan agreement? Also, are MC charging additional interest on the balance of the account (ie more than the original loan agreement) if the repayments are being made regularly? I'm a bit confused by how all this works (and to be honest, why BH transferred the debt in the first place when payments were being made!)

Any help gratefully received. What is it they say? Forewarned is forearmed?

Thanks!

Tixy

Quite usual for a debt to be passed on to a debt collector eventually, even if you keep up with reduced payments.

No debt collector can force you to pay more a month, and you do not need to fill in a an income & expenditure account if you do not wish to.
They can ask you to increase your payment but only a court can order you to.

I would likely write back to say your circumstances haven't changed and you can still only afford £x per month (if that is the case). Or you could say that you now afford £x per month (if your circumstances have improved).

They may or may not currently be charging interest at the moment. You would have to get a statement from them to know that. And they may or may not be entitled to charge interest (that would depend on what the original loan agreement with BH stated). In practice debts collectors usually can but often don't.