Letter needed : £ 1.00 p.m. to creditors

Apple_2

I need to write to O/H's creditors ( 2 c/c's & 2 loans ) offering £ 1 p.m. until he is working and can start making proper payments again. I remember on a thread here, someone in the 'debt recovery' industry said debtors could do this and the companies had to accept it ?

Does anyone have a letter that I could use as a template, maybe quoting the legislation or whatever applies ??

Many Thanks.

davels

Here is one I wrote...

Dear Sirs,

RE: (my account #)

Previously, I have been repaying my debt/s to you, by standing order from my bank account. However, due to my recent difficulties, I have been in touch with a firm called FCL (Federated Credit Limited), who are a free debt advice agency.

I have been through a free financial assessment with them, and am hoping to set up an arrangement with them, to repay my debts to yourself and my other creditors. Therefore, at this time I will be canceling my standing order payments to you, as I can no longer keep up with these, and offer you a token payment of £1 until my arrangement is in effect, which I expect to be late in October. The token payment will be paid on the 25th, the date I would normally make my normal payment.

Please accept this offer as a goodwill gesture for a short period of time, and my Case Officer will be in touch with you, in due course to negotiate the new payments to you.

Thank you for your time, patience and understanding with this matter.

Kind Regards

Your name

moneysavingplumber

Hi Apple,

Having read your other thread, I noticed that one of your loans is secured. I'm not sure that it's possible to negotiate token payments on secured debt, someone here's bound to know though. As they have a way to get their money, logically they have little incentive to agree to it. Sorry to be a dark cloud, but it's best to be sure now. Good luck.

moneysavingplumber

OOps sorry Apple, got you confused with someone else! Story of my life, write the letter!!

1313

Excellent that you are doing this, as this also gives you breathing space and time to think.

What is the total of O/H debts?

Maybe other avenues of clearing the debt would be more appropriate when O/H is back at work, as you cannot guarantee same income etc.