Credit card

[masma]

My daughter has fallen behind in her credit card payments, she rang them 2 weeks ago to ask if it was ok to pay �50 per month off and they agreed to this (she owes �700). This week she had a phone call from them and they have told her that unless she pays all of the balance within 7 days they will pass it over to debt collectors.
She can't afford to pay this amount and neither can I.
My question is - are they allowed to do this and what would happen if it is put into the hands of the debt collectors. TIA.

[annie49]

I would consult with Citizens Advice first thing on Monday morning----unless someone ion here can give you legal advice

[bednobs]

it seems really strange that a credit card debt of 700 pounds means minimum payments of �50 - surely she is offering them more than the minmum payment?
If she can afford 50 quid a month, cant she just transfer the balance elsewhere, or get a bank loan?

[Bivvysenior]

Put your offer in writing to demonstrate that you have offfered to pay what you can afford. Make sure that you do not default on the promised payments..
What can they do but accept your offer.Taking you through debt collectors will not increase their return, but only their costs. Also go and see CAB get their view on the reasonableness of your offer.

[CheekyChops]

Yeah, I have to agree with Bednobs... most CC comapnies used to ask for a 5% minimum payment each month and most have gone down to less than this. 5% of �700 is �35 so where does �50 come from. Is she in arrears or have a larger balance than she is telling you?

Either way, debt collectors are usually pretty eay to deal with as long as you come up with a repayment plan that is acceptable to both and your daughter sticks to it. A credit card of mine was sent to a DCA and they kept me on the same repayment terms as I had when it was with the original CC conpany..ie 2.5% per of the balance per month.