Any advice appreciated

Emmel

enthusiasticsaver said:

I don't think you should rush to set up payment plans.  I would wait until they have sold the debt on.

Have you built up some emergency savings? 

Im sorry if this sounds like a stupid question, sold the debt on to who? The original credit seems to have sold it on? To the debt collection company?

i have a couple of hundred saved, how much should i be looking to save? Will the not take me to court if i ignore the debt collection agency now its defaulted? I have wrong assumed you start to pay a nominal amount once defaulted

Grumpelstiltskin

You need more than £200 emergency fund, what is the cost of a new fridge freezer? and sod's law 2 things will break at the same time.

You need to be able to live without credit.

The chance of your creditors taking you to court is very small plus they have to let you know in writing they are considering it so put that to the back of your mind.

enthusiasticsaver

Collection agencies will not take you to court for unsecured debt. I would aim for £1000 emergency fund. Anything else save for full and finals. 

lillypoo

So just ignore letters and calls from westcot? They're managing the debt I have with m&s bank ...which has defaulted. 

sourcrates

lillypoo said:

So just ignore letters and calls from westcot? They're managing the debt I have with m&s bank ...which has defaulted. 

They manage the debt, they don`t own it, so can in fact do nothing in regard to enforcement.

They also have no legal rights to take money off you either, they can ask you to pay, but if you don`t, they will have to return the account to the original creditor.

Only a debts legal owner can take legal action against you, and that doesn't happen in the vast majority of cases until an account has been sold on (that`s sold, not assigned) at least once, and you ignore the debt purchaser for a considerable amount of time.

Just because a debt collector manages a debt for another company, that does not give them any extra legal rights, they have no more rights than you or I do, them asking you for payment is no different to me asking you for the same thing.