Help scared of 1st credits demands

izzywizzy23

My partner has a debt from years ago that he beleived had been paid, that a couple of years ago we got a call from 1st creit about saying they were now the debt collection company for this debt, as they had bought the debt. They were absolutely vile to deal with very nasty and threatening.

However eventually we settled on a figure to pay each month which we have been doing for 2 years. We called today to fin out if we could get an early settlement figure as they had offered it us for about half the amount of the full debt initially but we couldn't afford it then.
So anyway tonight they have asked where we will be getting the money from to pay it and said if its a remortgage they have to see a completion certificate to make sure we can not pay anymore, now we are consolodating some other debts into our mortgage as we have a the equity there to do it, but now I am scared they will look into this and will be able to see how much we are borrowing and demand the full payment back which we can not afford. but I need to know if they have any right to look at what we are borrowing and is it any of there business where the money comes from??.
My partner has said it is a potential bonus at work but nothing confirmed which is why we want a figure, so can they do anything and can they demand the full amount back immediatly or make us borrow more money on our mortgage to pay them...I'm so scared wish we hadnt phoned now.

They are ringing us tomorrow morning so i want to be prepared.

TIA

devonsdreamer

I am dealing with these bullies for my husband - I would suggest getting advice from CCCS, national debtline or CAB.

I wouldnt take the call tomorrow and write to them asking for all coorespondance (sorry sp) to be in writing. I would also use the template letter from national debtline for a full and final settlement for a figure you can afford -

They WILL try to bully you please dont let them frighten you in to anything. We have been dealing with them since new year and so far they have threatened twice to take hubby to court but so far not a peep.

I am sure somone with more expeiance will be along soon.

GeorgeUK

Consolidating is often not a good idea. It is just moving the debt, not dealing with the reasons the debt was created in the first place and quite often you can pay the debt off faster and cheaper without it.

You say the debt is quite old. Was there at any time a period of 6 years where payment wasn't made? If so the debt could be statute barred.

What was the debt initially for? CC, loan, overdraft?
It may be possible to request a copy of the customer credit agreement (CCA). If they are unable to provide it, then the debt is unenforacble.

What are the other debts you are consolidating?

izzywizzy23

We have spoken to a financial advisor about the other debts and have decided at the moment this is the best thing for us to do due to the amount of equity in our home and the fact at the moment we need to just have lower monthly payments so in the long run I understand it may be more expensive in 3 years time(due to changes in personal situation re childcare payments etc) we will be much better off, and can then concentrate on making more payments into the home.

However re the statue barred thing what is that???? when they contacted us the debt was 5 and a half years old, it was actually a debt my partners ex wife had agreed to pay on divorce but then never paid and as both names were on the account they then chased him, we eventually agreed to pay it and have been doing for the pat 2 years so the debt is now 7 and half years old if that makes sense.

izzywizzy23

Sorry missed some of your questions the other we have are overdrafts....not a massive amount but just what we had to use while I was off sick for 6 months after having my child.

The old debt was from a loan.

Thanks

Devonsdreamer I will tell my OH to deal with them in writing...thank you and yes they are bullies.

scooterwife

they just want to get as much money out of you as possible, and they will use any tactic to get it! (they are one of our DCA's as well)
can you remember how much the debt was for originally & work out how much you've paid off already.

From posts I've read on here, they will have 'bought' the debt for a fraction of what you owed, and will often settle for around 1/3 to 1/2 of the balance (which shows how much they 'bought' it for really:rolleyes: )

if you can get an idea of whats outstanding (and they don't add interest as far as I am aware, so it should only have gone down) you can offer them an amount , but make sure that you get their figure in writing and states that it is in Full & Final Settlement. they will try to bully you over the phone to get you to pay there & then, don't do it.
good luck

izzywizzy23

yes the original debt was £6000 we are now at £3900, so do you think offering £2k- £2.5k would be reasonable??

izzywizzy23

also can they really demand to know where you are getting the money from to pay them?? is it there business if we are paying them why does it matter where it comes from??? thats my biggest worry.

scooterwife

well if you've already paid off £2100 and offer them £2K they've got a good two thirds of debt back, and I'd put money on them having paid less for it than that.
just make sure that you get it in writing and that it says full & Final settlement.

Don't know if they can demand to know where money is from though. sorry.
hopefully someone else will have information on that.

scooterwife

would it be better to make an offer of payment in writing? ( and say that you are not prepared to deal with them by phone - somewhere on here is the legal jargon to use for this )that way they would hopefully reply in writing.
*.... goes off to look for legal jargon bit....*

izzywizzy23

Thank you...we will see what tomorrow brings.