www.iva.co.uk

I have a debt which the creditors said could be paid off with £1800 in March 2007, I was unable to do it at the time, but have serviced it well since and would now like to pay it off. The debt has now apparently been sold on, and they are now looking at the original amount I borrowed which was £6800. I am now in a position to pay, thanks to my parents who are going to treat me like I am in bankrupcty but are using their credit line instead - but need some help. What happens when debt is bought? Dad has got a discount from the original debt which takes it down to about £4000, but this is still way more than the settlement figure before the debt was bought. What should we offer them? The creditor is Yes Car (now defunct) and the collection people are Direct Legal (or possibly Direct Credit)

As you did not comply with the terms of the agreed settlement, the purchasing company are well within their rights to pursue you for the full balance. It may pay off to negotiate further, but don't be suprised if they dig in an agree to the £4,000, which is still giving you a discount of nearly £3,000!