Mobile Phone Debt

matrix999

Hi All,

Looking for a little help for one of my friends who has got herself into a bit of a pickle with mobile phone debt.

She had a contract with O2 and ran up a big bill but couldn't afford to pay it as she is unemployed and living on benefits of £40.00 every second week.

The debt has since been passed over to a debt collection agency to pursue her and they are asking for a minimum payment of £10.00 per week which is far to much for her to pay in relation to the money she is receiving on benefits.

Does anybody have any idea how should she tackle this situation by speaking to the debt collection agency and reducing her payment.

Can she make token payment of a few pounds?

Can she be taken to court by the debt collection company for making reduced payments?

Thanks,

DrStep

How much is it - ? Can you not lend it to her as a friend and pay it off in one go?

I think in all honesty she needs to get a job if she can - if she doesnt have young children; she has too much time on her hands making these calls and spending money rather than earning it.

It would be the best for her and you (friendship wise) in the long term.

matrix999

Its approx £250.00, she can't get a job as she cares full time for her sick gran.

I would like to know if she can offer smaller payments and how the law would see it if they do take her to court?

DrStep

Sorry to hear that. Some people are really living on the bread line - even in such a "rich" country as ours.

The collection agency cant force her to hand over her last £1. They have a responsibilty too. They must allow her some money left, but can take what they feel is an acceptable amount. She can ask to offer smaller payments I believe its up to the debt collectors.

Has she contacted citzens advice beareu or social services? Maybe some home help is in order here.

matrix999

DrStep wrote:

Sorry to hear that. Some people are really living on the bread line - even in such a "rich" country as ours.

The collection agency cant force her to hand over her last £1. They have a responsibilty too. They must allow her some money left, but can take what they feel is an acceptable amount. She can ask to offer smaller payments I believe its up to the debt collectors.

Has she contacted citzens advice beareu or social services? Maybe some home help is in order here.

Surely it is up to her to offer what she can afford after taking into consideration the money she needs to actually live on.. Eg Food etc etc

sockospice

You could also help her by checking that she's receiving all the benefits she's entitled to, eg as a carer.

If she's only getting £20 she may well be entitled to more.

micheleen

Is her gran ill enough to get Attendance Allowance. If so she should be entitled to Carers Allowance which is £45.70/week.

matrix999

Thanks for your replies folks,

I would like to know how the law stands if she offers reduced token payments to pay this debt to the debt collection agency.

Xbigman

You need to have your friend draw up a budget so she can show how much free income she has (it sounds like it will be zero). Send this budget to the debt collectors and offer a token payment of £1 per week. If they don't accept then tell them to take your friend to court, but keep sending the £1 payments whether they accept or not (you can get a proof of posting certificates from a post office for free). Any judge seeing the circumstances outlined will freeze the interest and accept the £1 payment.
Simply don't worry about any threats they make, they are 99.9% groundless. Although it can be a hassle dealing with them.
Regards



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