Advice re: catalogue debt please

Rach0580 · 27 November 2012 at 11:29AM

Hi,

Im looking for some advice on behalf of one of my parents. She was living with a partner who worked and opened a catalogue account. She has since split with this partner and is unable to work due to ill health so she is currently receiving benefits. She owes the catalogue £1167.60. She has rang them and advised her situation and agreed a payment plan of £15.00 per week. However they will not hold the interest and as such they are adding £32.30 per month interest on the amount she owes so the £15.00 she is paying is not acheiving anything and she is monthly getting into further debt. How can she resolve this?

Thanks

footyguy · 27 November 2012 at 1:44PM

Rach0580 wrote: »

Hi,

Im looking for some advice on behalf of one of my parents. She was living with a partner who worked and opened a catalogue account. She has since split with this partner and is unable to work due to ill health so she is currently receiving benefits. She owes the catalogue £1167.60. She has rang them and advised her situation and agreed a payment plan of £15.00 per week. However they will not hold the interest and as such they are adding £32.30 per month interest on the amount she owes so the £15.00 she is paying is not acheiving anything and she is monthly getting into further debt. How can she resolve this?

Thanks

£15 per week is just over £60 per month

If interest is being added at £32.30 per month, then she is reducing her debt by almost £30 per month. This should increase as the capital is gradually paid off and hence the interest charge decreases

Rach0580 · 28 November 2012 at 2:12PM

Sorry I meant to put she pays £15.00 per month not per week

Wicked_witch · 28 November 2012 at 2:28PM

Has the account been sent to the collections department? They are usually the ones with authority to freeze interest (been in this position myself through partner having to leave work). If it hasn't, ask what the procedure is for sending it there (possibly missing a couple of months payment). Don't just stop paying without asking though.

gayleanne · 28 November 2012 at 5:06PM

Is the catalouge in your mothers name or your mothers partners name?

CAB_Swansea_Bay_representative · 29 November 2012 at 7:45PM

Hi Rach0580, thank you for your query regarding debt to catalogue
I would suggest your mother writes to the catalogue company and ask them to stop interest as adding interest is increasing the debt owed. If they do not agree you could then make a complaint and take it to the Financial Ombudsman Service but it is worth being aware that creditors are not obliged by law to suspend interest when someone is in financial difficulties but they usually will once the account is passed to their collections department or when it is transferred to an outside debt collection agency. Always remember to keep a copy of letters sent and send recorded delivery or with proof of postage. You can find more information about making a complaint and the Financial Ombudsman Service at https://www.adviceguide.org.uk
Hope this is of assistance

Advice re: catalogue debt please

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