Letter from Mortimer Clark for an old outstanding debt

[Sunday1234]

Hi

I have received a letter from Mortimer Clark and don't understand what it could mean. I defaulted on a debt back in 2008 when I was very mentally unwell. The debt was sold on and they got a CCJ against me around 2010 for it. I was making payments towards this and did so for around 7-8 years. I then became unwell again and stopped having the means to pay, also as I was unwell I was too unwell to even think about the debt. They sent a letter in 2019 asking for the money, at that point I had support from mental health charity who supported me to write to them about the debt and interest they were charging stating I had significant mental health problems and was very unwell. They responded by letter and removed all the interest (they had added around £13k in interest). The advise the MH charity gave me at that point was to then do nothing, to wait and see what they did next, also I wasn't in a position to pay anything at that point. Since then I have heard nothing. Yesterday I received a letter stating the following:

We are instructed by our client to close your account. Your account has been referred back to our client and your debt remains outstanding. Our client's agent will be in touch in due course, if and as is appropriate.

Please could someone advise what this means? They haven't asked me to contact them, the letter contains the sentence above and nothing else. I am worried sick about it, my mental health has been stable for a year or so but do not want to end up very unwell again and can already feel this having a big effect on me.

Thanks in advance

[echat11]

Hi SUNDAY1234

Welcome to LB

Firstly calm down, wait to see what they do.

Even if they attempt to take the matter to Court via CCJ, it isn't straightforward for them because of the 'delay, they will need good reasons..

When they make contact / chase the debt, update the thread.

[DE DOGS]

Sit back and wait, it is now up to the original company that granted the money, for them to make the next move, don't panic you cannot pay what you don't have.

[atticus]

The letter means that there is presently no intention to take any action against you.

[Sunday1234]

Hiya

Ok, thank you for all your advise. Why would they decide not to take any action? I've read so many horror stories about debt collectors and experienced really aggressive and what has felt unrelenting contact from them previously so seems odd they appear to be backing off. It just makes me feel they could take action if they liked in the future.

Thanks again

[Sunday1234]

Hi

Today I have had a letter from Cabot Financial saying the debt has now been passed back to them. Asking me to contact them to set up a payment plan or agree a lump sum. The debt has increased by £12.5k from what the solicitor letter stated!! What should I do. The letter isn't threatening but I am completely fearful they are likely to start becoming like that. I don't know what go to.

Thanks

[echat11]

a) The debt has increased by £12.5k from what the solicitor letter stated!!

How much have they added?

b) Are you in a position to offer a heavily discounted lump sum settlement?

c) What would you like to do?

[Sunday1234]

Hi

Thanks for replying. The first letter solicitor sent by the solicitor saying the account was being closed said the debt was £21k, the letter from Cabots today says the debt is £32.5k.

I want this debt and problem out of my life, so if I can make an offer to them would that make it go away? I've paid them about £7-8k over the last few years already. I've been through all the previous letters they've sent and they have previously made me an offer to settle it for £5k then £4k. I don't have the money but my partner has offered me £3k to pay them off. What happens if they refuse? Should I wait for them to come to me again with an offer? What then happens if I do settle?

[echat11]

If you've already received a letter from them that it's £21k, then that is what the debt is. They can't play musical chairs with the debt (if they are, you are within your rights to make a formal complaint to them, then the FOS if it isn't resolved).

a) I want this debt and problem out of my life, so if I can make an offer to them would that make it go away?

Yes.

b) I've paid them about £7-8k over the last few years already. I've been through all the previous letters they've sent and they have previously made me an offer to settle it for £5k then £4k.

O.K., there is now a 'cost of living crisis', so your offer will be lower.

c) I don't have the money but my partner has offered me £3k to pay them off. What happens if they refuse?

Write that you don't have the money, but your partner is willing to give you the money. If they refuse update the thread.

d) Should I wait for them to come to me again with an offer? What then happens if I do settle?

Ordinarily I'd wait, but I think it might be an idea to be pro-active.

Have a read of the following:

https://nationaldebtline.org/fact-sh...ent-offers-ew/

Here is a template, remove parts that don't apply / amend it to suit your circumstances, include your health, cost of living crisis etc.

Maybe start with £1,500 (I've paid them about £7-8k over the last few years already) or lower, whatever you feel comfortable with.

https://nationaldebtline.org/sample-...tlement-offer/

Make sure you get Proof of Postage.

[Sunday1234]

Thank you so much for your detailed response, it is really helpful and easing my huge anxiety over this.

It's shocking they can add a huge amount of extra debt to the figure the solicitor quoted.

If it's settled will they then stop all contact? And do they log this on my credit file? It's not on there as my partner has signed up to somewhere and checked for me, he used check my file which he said lists all agencies, he also checked the ccj court records (I think he paid to do both these things). I am in rented property and need to move so if it's going to appear on there after / if it's settled I need to know as I won't be able to pass any credit check for a new home.
Thanks again

[echat11]

a) If it's settled will they then stop all contact?

Yes

b) And do they log this on my credit file? It's not on there as my partner has signed up to somewhere and checked for me, he used check my file which he said lists all agencies, he also checked the ccj court records (I think he paid to do both these things).

You can add that to the template, get confirmation in writing from them. It was already on there in 2010, so they can't put it on again.

c) I am in rented property and need to move so if it's going to appear on there after / if it's settled I need to know as I won't be able to pass any credit check for a new home.

Answered in (b)

[Sunday1234]

Hi

Thankx again for your updated response. I'm sending the letter this weekend I just wondered if there is any legal framework or law I can add to the letter about them reading this to my credit file? Thanks

[echat11]

Hi

Thankx again for your updated response. I'm sending the letter this weekend I just wondered if there is any legal framework or law I can add to the letter about them reading this to my credit file? Thanks

No there isn't, but if the data is incorrect on your credit file, then the Data Protection Act might help.