Being Threatened With County Court

Boppy_2

I received a letter this morning from Arc Credit Management regarding a debt I have with Egg for £1021.76, i have being paying this debt to Credit Solutions Limited at £1 a month as agreed for the past year or so. Now this morning i get a letter from Arc telling me i have 10 days to make a substantial payment and then a firm offer to clear the rest of the balance or they will pass the account to their solicitors with instructions to issue proceedings against me in the county court.

The letter is very abrupt and to be honest i felt sick when i first read it but:-

(1) i do not have any money at the moment (see another post i have done regarding income support not paying me)
(2) i am going to be on benefits for the foreseeable future because i am mentally ill.

What can i do? At the moment i have no incomings at all, i am awaiting to hear about a crisis loan i applied for on Friday things are that tight, i also have higher priority debts with Rent Arrears and Gas :mad:

Any advice would be great I'm hoping this makes sense, i have a 3 year old running around in excitement because he's going to nursery soon :j

rog2

Hi Boppy - I think you should talk to one of the Debt Counselling Charities, such as National Debtline - 0808 808 4000, CCCS - 0800 138 1111 or your local CAB. They can offer free, professional and confidential advice, and may even correspond with ARC on your behalf.
You are, and should continue to do so, currently making token payments, so in the event that ARC do decide to issue a County Court Claim (Summons) against you, you should state this, in your defence. The Court would see that you are not trying to avoid this 'debt' and will, based on your income/expenditure make a judgement for continued monthly payments that it 'deems' that you can afford (this may not, in fact, be more than you are currently paying).
Any 'judgement' issued by the court would be just as binding on ARC as it would be on you, and any further attempts, after a CCJ is issued, to try to pressure you into making any higher payments, would be illegal.
So do NOT bow to their 'pressure' - talk to a debt charity and do not offer to pay any more than you can afford.

stapeley

hi echo what rog2 says , hes the man !