Link finance debt

AlihaR

So, I have had help from step change to manage various debts totalling £20,000. Loans used to help me manage through Uni. Step Change negotiated a plan with all of my creditors and a freeze on the interest.
All was going well until Future Finance sold my debt on to a credit agency, Link Financial, my largest debt which was just under £10,000. Link Financial have re-instated the interest so I now find that I am owing even more. I have spoken with them and they say there is no help they can offer.
They are now threatening legal action as my payments through step change do not meet the amount of initial agreed payment and they are asking me to pay £1,500 now to clear the arrears.
Has anyone, I wonder, had dealings with this company and could perhaps offer any insight?
many thanks 

fatbelly

I've asked for this to be moved to the debt-free wannabe board, where more people will see it.

Are you asking whether you should be paying anything to Link when they are applying interest?

sourcrates

If they are still charging interest, and asking you to clear the arrears, it sounds very much like the account was bought as a "live and active" account, and has yet to default.

Is that a fair description?

The threat of legal action is likely a bluff at this stage, as it cannot be instigated until a default is registered, and in any case a court would not expect you to pay anything that was not affordable, so unless a CCJ would be detrimental to you in other ways, the threat is a mute one.

If it were me, I would call their bluff, stop paying them altogether, and allow the account to default, at that point all interest will stop, and they will either sell it to someone else, or accept whatever affordable payment plan you offer them.