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Will the companies I owe money to accept this?

by Claire 11 months ago.

What if they refuse to deal with you and I end up in a worse position?

Answered by Johanna Toomer last updated 6 months ago.

The companies you owe money to don't have to accept your reduced payment offer but under Office of Fair Trading Debt Collection Guidance July 2003 (updated October 2011) they must cash any payment we make on your behalf. They state the following as unfair practices:

3.7i - pressurising debtors to pay more than they can reasonably afford or to pay within an unreasonably short period.

3.7j - failing to allow for alternative, affordable, repayment amounts when a reasonable proposal is made by a debtor or a third party representative acting on his behalf (such as Debt Line)

3.9c - refusing to engage with a 3rd party representative, such as a debt adviser at a free advice centre or a debt management business (such as Debt Line).

If they do refuse our offer then it's likely that the people you owe will continue with their collection process. The most common action will be for the debt to transfer to a 3rd party collection agency. If this does happen you don't need to worry because it's a perfectly normal part of being onboard with us. These 3rd parties tend to be a lot smaller and more willing to negotiate with us than the original company anyway.

From your 3rd payment, as long as you always pay us on time, your debts should be decreasing. If your debts are going up this is called "obstruction" and should not be happening regardless of whether the people you owe have accepted our offer or not.

by Abi-xoxo 10 months ago.

Will you let me know if any of the offers you make are declined?

by Charlie Adams 10 months ago.

Hi Abi,

We will always try to get in touch with you if the offer we have made is declined. Normally we will send you a text message asking you to contact us. Please call us as soon as you can so that we can run through everything with you.

The “My Debts” section of your online account will be updated each time we speak to the people you owe money to, so please keep an eye on this.

Thanks!

Tags: accept, contractual payment, hassle, issue, manage debts, OFT, refuse, reject, struggling

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Will the companies I owe money to accept this?

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