First National Personal Loan

KariAnne_3

Hi, I am new to the message forum and would appreciate some advice. I took out a personal loan with First National in November 2004 for £4,000. The repayments were £103 per month. Unfortunately, shortly after I encountered financial difficulties and had to cancel the direct debit. I went to the Citizens Advice Bureau in Scotland for advice on how to deal with my creditors. Before I had a chance to sort out my finances, First National hit us with a decree, however, the debt adviser at the CAB managed to stop this going to court and agreed a repayment plan of £100 per month. I started to pay this in May 2005 and have been paying £100 each month since then, which should total around £3,000. However, I am now finding it difficult to continue to pay £100 and contacted the Solicitors acting on their behalf and supplied them with a financial statement asking them to reduce the payments. I received a telephone call today from one of their staff to say they were unable to accept reduced payments and that I still owed around £5,000 on this loan. So now the £4,000 loan has soared to £8,000. She threatened that if we do not continue to pay £100 they would arrest our wages. She also refused to stop the interest charges being applied to the loan. She said that because a decree was served on the loan, the interest could not be stopped and no reduced payments accepted. If this did not go to court, is a decree still valid?? I would appreciate any help in this matter as the lady in the solicitors was certainly no help and quite cheeky to me.
Thanks. Kari....Glasgow