I am embarrassed to say that I paid the reduced amt, which in the end was £450. An expensive life lesson. I will not take "free" credit in the future.

Should I continue to pay £35 per month to pay down the oustanding charges?

Hi all I recently discovered that I have accumulated over £1000 in charges on finance provided by Barclays Partner Finance for an Apple iMac purchased in June 2008. I paid £35 per month for the duration of the finance and was expecting the direct debits to stop in June of this year. In July I noticed another direct debit come out of my account. I assumed BPF had made a mistake so called them for the first time. They explained that I still owed +£1100! Apparently I missed a payment in December 2009 and have been accruing £45 per month in charges. £22.5 twice a month. I was unaware of this as I moved house in August 2009 and changed my phone/number shortly after. BPF have been sending letters to an old address and calling a dead phone number. Further, the missed payment occurred in the month that I changed bank accounts and so the unpaid DD went unnoticed. In the duration of the loan this was the only missed payment. I have had a number of telephone conversations with BPF this past month trying to find a resolution. As a gesture of goodwill they have offered to reduce the charge to £550. I am awaiting a full statement and letter stating this and should receive it within the next 7 days. What are my rights? Should I pay the lump sum and then attempt to reclaim? My worry is that if I initiate a claim to have the charges removed completely then I run the risk of the full charges being reinstated. Your advice is very much appreciated.

What comes next once you have received the SAR?