I've been reading the posts for a few months now and have found it very helpful in negotiating with my creditors. In March I wrote to everyone and they've all agreed to payment plans. So, thanks guys for all your very helpful information.

I do have a problem now though which I hope someone could help with. Basically I bought a suite (this debt was not included in my payment plan) two and a half years ago and the payments were deferred for a year. Every payment had been made on time but I was under the impression that the payments were taken on the last day of the month but in fact I have since been advise that the payments are due on 30th of the month. This came to light in March when my salary didn't go into my account until 31st. The direct debit was returned by my bank unpaid (£32 charge) and the company then added on £50 to the usual £74.54 monthly payment.

Anyway I wrote to the company and asked if they would split the £124.54 over the six months remaining of the term but they refused this and said they would take further action and that would "probably" involve arresting my wages. I then wrote again asking them to reconsider my offer (including my budget sheet) and advised that my other creditors had accepted my offers. This was again refused and a defualt notice was issued and said that I had to pay £174.54 immediately but I was unable to pay this amount.

On Friday I received a letter then a telephone call from a Debt Collection Agency who said that I had to pay £204.54 over the telephone on that day or else they would take action to recover the full amount owed (£676.32 plus collection fee of £50). I advised the woman that I was not in a position to pay that day and again offered to pay the installments over the remaining six months. She refused this and said that they would recover the full amount by taking me to court and arresting my wages. I did feel very intimidated by her attitude on the telephone.

Could someone please give me some advice as what to do next as I am really worried about having to go to court and that if my wages are arrested it will muck up the arrangements I have with my other creditors and I really don't want to be in a position where my mortgage is not paid.

I'm sorry if this seems trivial to some people but I thought I was getting back on track but this has knocked me for six.


p.s. I live in Scotland, if that makes a difference.


  • Foxy994
    Foxy994 Posts: 17 Forumite
    Can someone pleeeeezzzzz give me some advice on this one? :D
  • Murtle
    Murtle Posts: 4,154 Forumite
    First Post First Anniversary Combo Breaker
    contact your local CAB office/nationaldebtline there are links at the top of this page.

    They will be able to help you and speak to the company involved. This will take some stress of you, but do it quickly as CAB can be VERY busy. But try them both and let us know how you get on.

    x x x
  • Xbigman
    Xbigman Posts: 3,884 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Debt collectors often contact people and threaten immediate legal action or attachement of wages. Its mostly bluff and nothing much to worry about. To start with tell this new company you will only deal in writing.
    Then contact the company you originally owed the money too and find out where the debt now is. Does the debt collectors want the whole amount or just the arrears? If the whole debt has been passed on then you should immediately cancel that direct debit and offer that amount of money to the debt collector as a payment. If they are only after the arrears put you offer to pay over six months in writing (recorded delivery) with a copy of your budget.
    If it goes to court and you have made a reasonable offer the courts tend to be on your side.
    Keep us updated.

    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • Foxy994
    Foxy994 Posts: 17 Forumite
    Thanks for both your replies, a feel alot calmer now. I've got an appointment on Monday with my local Money Advice Centre. The woman there was very helpful and told me that she sees clients with this problem all the time. I'll let you know how I get on.

    Thanks again.
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