factor bill

colin13

i ad to give up work due to ill health 10 years ago,,and im now behind in my factor bill,,i pay them £15 a mont whic covers the years bill,but tey are wanting back payment,and chharging me late payment fees,,they are now threating court action,,is this a priority bill in ur opinion,,i sent them my finical statement wich they are not accepting,,any ideas where i go from here

BigAunty

The Shelter Scotland website has some general information about factoring that may cover your rights and obligations.

For debt issues, and perhaps factoring rights info, consider booking an appointment with the Citizens Advice Bureau.

I believe some factors belong to a national association - do yours? If so, perhaps they have a complaints or ethics type procedures for dealing with debt collection, for example.

There will also be some debt charities that can help you formulate a debt management strategy - ask on the debt free wanabee board for recommended Scottish ones.

A priority bill is one that has significant repercussions if it goes unpaid - mortage arrears lead to eviction and homelessness, council tax arrears can lead to prosecution.

I couldn't tell you if factors fees are classed as a priority debt but they do have the right to take you to court, I'm not sure of the enforcement actions they can take, and this issue won't go away just by you saying you can't afford the bill.

davidmcn

BigAunty wrote: »

council tax arrears can lead to prosecution

Not in Scotland...

I couldn't tell you if factors fees are classed as a priority debt but they do have the right to take you to court, I'm not sure of the enforcement actions they can take, and this issue won't go away just by you saying you can't afford the bill.

They rank the same as other normal creditors, they don't have special powers to recover the money. They can however register a Notice of Potential Liability against the property, which effectively means they'll get the arrears whenever the property is sold.