Advice Needed: Debt Payment Arrangement

[ziad]

Hello everyone,

I’m seeking advice regarding a credit card debt that’s over 8 years old. This debt was sold to a collection agency around 4.5 years ago. Before the sale, I had an arrangement with the original creditor to pay £1 per month, and that arrangement has continued even after the debt was sold. Currently, £1 is deducted monthly from my account via direct debit, but the payee still shows as the original creditor, not the collection agency.

The debt has been removed from my credit file, but recently, the collection agency has been contacting me frequently, saying I need to arrange payments directly with them because payments through the original creditor are delayed.

I can’t afford to pay anything beyond the £1 per month, and I’m wondering what actions they can take in this situation. Specifically:

1. Since I’ve been regularly paying the £1, can they still take me to court for non-payment or on other grounds?
2. Are there legal risks I should be aware of, considering the debt is over 8 years old and already off my credit file?
3. Should I contact the collection agency directly, or is it safer to continue letting payments go through the original creditor?

I’d appreciate any advice on how to handle this while staying protected.

Thank you!

[echat11]

Hi Ziad

Welcome to LB

1. Since I’ve been regularly paying the £1, can they still take me to court for non-payment or on other grounds?

It's not non payment as you are paying £1 a month which was agreed, you possibly filled in an Income and Expenditure form. Before they can take you to Court, they would have to follow CPR Pre Action Protocols i.e. send you a Letter Before Action etc.If they do make contact and say they are considering Court action, you would fill in a Income and Expenditure form, you would take into account the cost of living crisis, so as to give yourself some 'leeway' so you won't struggle if prices rocket.
Remember a Court will only ask you to pay what you can afford, so if that is £1 a month, so be it. Consider preparing an I & E form.

https://nedcab.cabmoney.org.uk/

https://www.citizensadvice.org.uk/de...itor---letter/

2. Are there legal risks I should be aware of, considering the debt is over 8 years old and already off my credit file?

Although Defaults can appear on Credit File twice, it shouldn't happen, once it drops off, it should go back on.

3. Should I contact the collection agency directly, or is it safer to continue letting payments go through the original creditor?

I would just carry on with the 'current arrangement', it's working and is in place.