Can anyone advise please? My son bought a new(ish) car last year with a loan from the Nat West after spending so much on it (7k) decided to buy a warranty from a company called Warranty Direct to cover various parts on it. However, he was made redundant not long after he purchased the car. Shortly before he was due to make the next payment to Warranty Direct - the payments were once every three months - he telephoned and cancelled as he could not afford to continue the payments, as he was still within the cover period from the first payment we thought that would be ok. they told him that it was a continuing policy and you had to pay for the year, no matter what. I spoke to them and said look he hadn't got the money to pay for the car and that if that was the case he wouldn't be able to afford the warranty. That the policy was terminated by the customer and no further cover required. He had a couple of letters since last June, but as each one seemed to drop in price we ignored them - they wanted £270 to start with , then £180, then £78.75 in the last letter which came from P&J Debt Collection Services. At this point I sent them the request for copy of credit agreement, with the £1 fee. They replied quite quickly stating that " our client informs us that they are confident that you have no grounds to dispute the above account as they have telephone recordings with yourself which advises that you could not afford to continue with the policy. Our client has charged you for two months cover plus a £50 cancellation fee as per their terms. In reference to your request for a copy of the credit agreement in this case our client does not hold a signed agreement as you instructed them verbally for their services. This can be confirmed with the recordings of telephone calls which took place. Therefore please find your PO payment for £1 as this does not apply in this instance. in view for the situation we are instructed to continue action for recovery forthwith. I must inform you that unless payment is received in the next fourteen days we will advise our client to issue a court claim wthout further notice or delay. the claim would be for the above amount plus legal costs or court fees." Does anyone have any advice for him. He managed to get the bank to help with the repayments and has got a job as a cook at a local hospital and has managed to keep the car. But doesn't have any spare money at the moment. don't want him to have a bad credit record or be dragged to court. Thanks in anticipation for your help!