Dealing with a creditor in liquidation

slobberdong

Hi all. I'm looking for some advice - I'll try and keep it as brief as I can.

Back in 2016 I took out a payday loan for £700 with Payday Express. My finances at the time had spiralled out of control and I had amassed a number of debts totalling around £13,000. 

I decided to set up a Debt Management Plan with StepChange and was making monthly payments until August of this year. Working from home during the pandemic has meant I've been able to pay off all of my remaining debts with one lump sum as I've managed to save so much more than usual.

I contacted CRS, the debt collection company handling my Payday Express account, in August to arrange to pay a full and final settlement, which they agreed to. This was for around £84.

However, a month ago I received a letter from CRS informing me there was still an outstanding balance on my account of £494 that needs paying. I sent them evidence of all of the payments I've made to CRS and Payday Express through my DMP and they quietly handed my account back to Instant Cash Loans, which is the name of the company that owns Payday Express. Instant Cash Loans is now in liquidation and has been since October 2019.

I contacted Instant Cash Loans today and they are insisting that I owe them £494, which is interest on the loan I took out they neglected to tell me even existed. It also appears I've missed the 6 month window to make an affordability complaint against them and I've received nothing in writing from them for years.

What options do I have here? Is the best move to just take the hit from this debt and move on or is there anything else I can do to reduce or clear it entirely?

sourcrates

Hi,

Depends if you value your credit file, or not, ideally an affordabillity complaint may have reduced or written off your balance, but that ship has sailed now, so, your options are, pay it, or negoatiate a reduction first, then pay it, or you could wait until they sell on their loan books, then if it gets chased, plead ignorence, as far as your concerned you`ve paid it, the new owner won`t be privvy to events prior to buying the debt, chance your arm, if push comes to shove, a debt collector will almost always take an offer.