Does payment Plan affect Default Date - Will they attempt further action in future?

[MLPA2168]

Hello,

I have a debt of £5700 with a bank that was defaulted in 2010 and passed to numerous DCA's. iQor are the latest and have been hassling me repeatedly and also offering a 50% reduction of the balance in full and final settlement. I got very stressed about this and wrote to them saying that I am out of work, have no disposable income and cannot afford to pay more than £1 a month.

Surprisingly they came back and said they would accept the £1 a month and sent me some giro credit forms to use!

I now don't know what to do. If I start paying this £1 a month will this affect the default date on my account? Does it extend the date from the time i start paying the £1 a month or will the Default drop off with the three CRA's at the six year anniversary of the default date still?

Also if I was to pay the £1 a month for the next three years until the Six years is up can I just stop paying it then? This then makes me think surely they won't just accept £36 in the next three years? Does anyone have any idea what sort of action they might take to get more money from me?

Thanks very much.

[labman]

Re: Does payment Plan affect Default Date - Will they attempt further action in futur

I have a debt of £5700 with a bank that was defaulted in 2010 and passed to numerous DCA's. iQor are the latest and have been hassling me repeatedly and also offering a 50% reduction of the balance in full and final settlement. I got very stressed about this and wrote to them saying that I am out of work, have no disposable income and cannot afford to pay more than £1 a month.

Surprisingly they came back and said they would accept the £1 a month and sent me some giro credit forms to use! That is quite normal.

I now don't know what to do. If I start paying this £1 a month will this affect the default date on my account? Does it extend the date from the time i start paying the £1 a month or will the Default drop off with the three CRA's at the six year anniversary of the default date still? The default will drop off after 6 years.

Also if I was to pay the £1 a month for the next three years until the Six years is up can I just stop paying it then? No

This then makes me think surely they won't just accept £36 in the next three years? Does anyone have any idea what sort of action they might take to get more money from me? It depends on your circumstances. Ultimately they could make you bankrupt. If you own your own property they can go for a charge against your house. They may go to court for a CCJ and see if they can get an increased payment - there's lots they can do.

Thanks very much.

Have iQor proved their right to collect the debt at all?

[FlamingParrot]

Re: Does payment Plan affect Default Date - Will they attempt further action in futur

You may want to look at this thread -> http://www.legalbeagles.info/forums/...ime-limits-etc

Defaults recorded with the CRAs drop off after six years but that has no relation with debts going statute barred after six years (in England), if you make any payments, even £1/month, each payment resets the clock and the debt will be live long after the default has dropped off your CRA files. Both are six year periods but not the same six years.

Accepting reduced or token payments is no guarantee creditors will not start court action in the future either, such arrangements are not legally binding. Whether they are more likely to take you to court if you don't pay anything and try for statute barred is anyone's guess, I'm half way through SBd with my cards, having taken the CCA (unenforceability) route in 2010. :grin:

[labman]

Re: Does payment Plan affect Default Date - Will they attempt further action in futur

I think you definitely need to be sure iQor have the right to collect the debt. Have you received a Notice of Assignment?