Paying a lower amount than the contract

littlebiscuit

Hello.

I have a debt with Orange, and it's been passed on to NCO Europe. Unfortunately the debt was due to a misunderstanding, but I'm now left to pay it.

I had no idea that I was in debt, but I found out from NCO that I was about £500 in debt with Orange and had to start paying them. I originally agreed to pay £25 a month as that was the same as my contract, however my money situation has changed, and I can no longer afford to pay £25 a month, as I'm also paying that for littlewoods due to a debt my sister has with them (she ordered something on my account and didn't keep up with the payments as agreed, so another £300 debt)

I wanted to arrange a smaller payment plan until I'm back on my feet and suggested £10 a month, which is a lot lower but right now all I can really afford, only to be told that the minimum I can pay is £25 a month because that's what my contract was?

I was just wondering if this was true, also I just had a letter from them saying I missed a payment and unless I call them within 24 hours of receiving the letter to make my payment, I have to pay the amount in full, which obviously I can't do. I can't ring them today and make a payment because I just don't have it, I had set up a direct debit with them and for some reason they didn't take it. The money was in the bank until about 3 days ago, but I ended up having to use it as it was the only money I had and had to buy food.

I'm sorry for the ramble, I was just wondering if anyone had any advice. Thank you.

laurenjr

THEY HAVE TO ACCEPT IT IF THATS ALL YOU CAN AFFORD

you can offer them £1 a month and they HAVE to take it.

send them an expenditure form.

matttye

You can't pay more than you can afford. However you should really treat your creditors equally, so you should be paying Littlewoods and NCO £17.50 each. NCO are unlikely to take kindly to you reducing your payments to them so that you can pay another creditor more.

NCO has no more powers than you or I. They can take you to court and apply for a CCJ (County Court Judgment), where a judge will order you to pay them the money you owe. So long as you attend court with your income and expenditure information, a judge will order you to pay a certain amount each month based on what you can afford. If you then fail to pay what has been ordered by the judge, NCO will have enforcement options available to them such as bailiffs etc. We're a long way off from that though.

A judge wouldn't order you to pay in full if you can't afford to do so, and also wouldn't order you to pay a low priority debt such as this over things like rent/mortgage or utility bills.

All they can do is blow hot air and make demands that they can't really back up unless they take you to court.

Also DON'T call them - write to them by recorded delivery and request that they reduce all correspondence to writing as well. That way you won't be pressured into making an agreement you can't afford, and there's a record of what has been said.

littlebiscuit

Thank you both. laurenjr That's what I thought, too. But NCO told me that it HAS to be my contract payment or more. I can't go less.

matttye wrote: »

You can't pay more than you can afford. However you should really treat your creditors equally, so you should be paying Littlewoods and NCO £17.50 each.

Ideally I'd pay less to Littlewoods too, or get the money from my sister, but she can't afford it at the moment, which is why we're in this mess.

Also, I've looked at an expenditure form, and most of my money doesn't go to the things it lists. I still live with parents so I don't pay all the rent and council tax, bills etc. However I don't work due to illness and I get ESA plus low rate DLA.

I do pay £200 a month to my mum so I suppose I can count that toward rent. I'm not left with a lot of money after I've paid Littlewoods, Very (although this is almost paid off) and NCO. What I have left isn't paid to anyone official so I can't prove it, but my mum is also in a lot of debt and most of what I have left ends up going to her.

So although I can't really prove it, I really don't have the money they think I do. I really don't know what to do anymore.

matttye

littlebiscuit wrote: »

Thank you both. laurenjr That's what I thought, too. But NCO told me that it HAS to be my contract payment or more. I can't go less.



Ideally I'd pay less to Littlewoods too, or get the money from my sister, but she can't afford it at the moment, which is why we're in this mess.

Also, I've looked at an expenditure form, and most of my money doesn't go to the things it lists. I still live with parents so I don't pay all the rent and council tax, bills etc. However I don't work due to illness and I get ESA plus low rate DLA.

I do pay £200 a month to my mum so I suppose I can count that toward rent. I'm not left with a lot of money after I've paid Littlewoods, Very (although this is almost paid off) and NCO. What I have left isn't paid to anyone official so I can't prove it, but my mum is also in a lot of debt and most of what I have left ends up going to her.

So although I can't really prove it, I really don't have the money they think I do. I really don't know what to do anymore.

Send them something like this:

"Dear NCO

Thank you for your letter.

I have previously contacted you about my present financial difficulties and suggested that I pay £10 per month until my situation improves, as I can no longer afford £25 per month. Your suggestion that I will have to pay the monies owed in full within 24 hours of your letter if I do not make a payment is therefore ludicrous.

My income and expenditure, in terms of priority (high to low), is as follows: -

Income - £

Rent/mortgage - £
Food - £
Bill1 - £
Bill2 - £
Bill3 - £
Transport - £
Littlewoods - £
You - £

As you can see my income is accounted for entirely by my financial commitments. If you consider yourself to be a higher priority than I do, I invite you to take me to court.

I will continue to pay you £ per month until such time as I can afford more or a judge orders me to pay more.

Yours faithfully


(name here - type don't sign)"

Send them your own exhaustive list of expenditure, not their own forms, which are often biased towards the creditor so that they can claim you have spare money.

Why dont you suggest to your parents that rather than you contributing towards their debts, they put your rent up. Then you can put a higher rent amount on your form and you won't be inflating the figures.

Even if you live with parents you can still put money down for food.

eskbanker

littlebiscuit wrote: »

I can no longer afford to pay £25 a month, as I'm also paying that for littlewoods due to a debt my sister has with them (she ordered something on my account and didn't keep up with the payments as agreed, so another £300 debt)

littlebiscuit wrote: »

Ideally I'd pay less to Littlewoods too, or get the money from my sister, but she can't afford it at the moment, which is why we're in this mess.

What I have left isn't paid to anyone official so I can't prove it, but my mum is also in a lot of debt and most of what I have left ends up going to her.

Obviously it's difficult for outsiders to know your family situation but it really doesn't seem right to me that you get into debt at least partially because of others in your family. Easier said than done I know but can't you say to them that you're not in a position to help bail them out until you're back on your own feet financially?

Sorry if that sounds harsh and it may be completely wrong for your circumstances, but it does sound like you're maybe putting others first a bit too much just now, which is admirable normally but perhaps inappropriate at the moment, especially if you're unable to work because of illness?

harveybobbles

Do all these debts appear on your CRA?

CCA everyone and stop paying until they reposnd.

littlebiscuit

I"m sorry, I don't know what CRA and CCA are =/

sourcrates

littlebiscuit wrote: »

I"m sorry, I don't know what CRA and CCA are =/

Credit report, do the debts appear on your credit report ?, you can find out by contacting the credit reference agency's and requesting a copy of your credit file.

CCA - consumer credit agreement, if its a catalogue debt, when did you open the account ? if its pre-2007, the agreement may be unenforceable, or they may not have the correct paperwork which means they cant get a judgement against you in court.
Write to them requesting a copy of your agreement, you need to pay them £1 for this, search this site for explanations and template letters.
This will not work with the orange debt though as you don't sign a CCA agreement for a phone contract.
Hope this helps.