What does this letter mean?

[E=MC2]

I've been paying off a credit card with Lloyds TSB, on agreed monthly payments, and all was okay until very recently I told them that due to unforseen circumstances, I would only be able to pay £1 per month until things improved. Their initial response was to reject my new offer of lower payments, and to subsequently send a DCA (MHA Collections) to recover the £19 arrears, regardless of my explanation as to why the payments were being temporarily reduced.

 

Then, despite my continued payments and their protestations, I received this generic letter (see attached pdf), which has left me somewhat confused. I have also revisited my Experian credit file and it would appear that Lloyds TSB have marked that I am now 4 payments in arrears, which has left a huge red cross on my file. What I was told by Experian was that if I began paying the pre-agreed amount again, then Lloyds would be able to remove the late payment comment, and my file would be clean again after a few increased payments and a letter to support them. Does this letter change the agreement, or is it actually working in my favour: ie: they will change my payment information if I re-establish the monthly amount?

 

I've posted it here because it relates to Lloyds TSB and I wasn't sure where else to post it, so apologies if it's in the wrong thread..

lloydsTSB.pdf

[citizenB]

My understanding of this is they are saying they will wipe out all the arrears so long as you start to make the agreed monthly payment.

 

Whether that is the minimum repayment or the agreed reduction plan you had in place doesnt appear to be very clear.

 

IMHO, I would write and ask them to be more specific in what they are saying

 

I dont understand the reference to clause 18.5 as I dont have a copy of their T&cs.

Edited May 13, 2009 by citizenB
reread the letter and made appropriate amendment