- Original Poster
- #1
I signed for a cash facility that allowed my business account to go under 0 in debt. The total amount was £15.000 which had to be balanced every year. The problem was not only my negligence for not reading the agreement properly, the bank's supervisor didn't communicate this very clearly and I believe he said the balance period is two years. I believed him on his good word which was obviously ignorant of myself. After exactly one year I did not receive any communication from the bank. My account was still active, nothing happened. I received a letter that I had to clear the fee for the loan rate (my account was at £15.150 by then) I immediately cleared that sum. Now, at that time I'm still thinking that I have one more year to clear this debt up. Unfortunately business wasn't going well however I still had a year to make up for it. Around five months later I receive a letter from the bank demanding that I either pay my full debt within a two weeks or it would be sold to a collecting agency (which is actually owned by that same bank) I've made a deal with the collecting agency who are practicing ridiculously high rates on top of the rate that I am already paying. I used to pay off 150 a month but asked to reduce it to £50 a month since my situation has gotten worse.
Now, what I am paying off is very low and I don't believe that it is because they're really good Christians. This £50/month is not even enough to cover the rates that they are charging me.
I've heard from a good-hearted attorney who practices bank/insurance law that this collecting agency bought my loan for a lower price with the sole purpose of making extremely high profits.
I don't know what to believe anymore, I wish I had more experience. With all that I've been paid off for the last year excluding the rates I'd still have around £13.000 in debt.
My question is: will a collecting agency be willing to accept an offer to pay off debt in one time rather than waiting for the next 7-10 years for me to pay off the full debt? Is it possible that because they bought it for a lower price I can offer for instance £12.500 or make a good deal? Is it possible that they bought it for a cheaper price in the first place or is this collecting agency just hired to collect the loan and make a small amount of profit with these rates?
Thanks
Now, what I am paying off is very low and I don't believe that it is because they're really good Christians. This £50/month is not even enough to cover the rates that they are charging me.
I've heard from a good-hearted attorney who practices bank/insurance law that this collecting agency bought my loan for a lower price with the sole purpose of making extremely high profits.
I don't know what to believe anymore, I wish I had more experience. With all that I've been paid off for the last year excluding the rates I'd still have around £13.000 in debt.
My question is: will a collecting agency be willing to accept an offer to pay off debt in one time rather than waiting for the next 7-10 years for me to pay off the full debt? Is it possible that because they bought it for a lower price I can offer for instance £12.500 or make a good deal? Is it possible that they bought it for a cheaper price in the first place or is this collecting agency just hired to collect the loan and make a small amount of profit with these rates?
Thanks
