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Bad debt write off

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Hi,

 

I had a payment plan in place for a loan with the original lender (Northern Rock) and I've just received a statement detailing all the payments etc. In May however theres one item that says 'Bad debt write off' for the entire amount of the debt. I'm guessing that means that it has been sold on to a DCA? The letter also says the usual 'your account has fallen into arrears etc' does that mean I should stop the payments to the original lender?

 

I have also received a letter from Eversh*ts offering me 35% reduction of the outstanding balance. What would be the best course of action? (I don't have any money so I can't pay it off, so thats one course of action down.)

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'Bad debt write off'

That's so NR can claim tax relief & then sell the debt on.

 

You should have received a 'Notice of Assignment' telling you the debt had been passed on. Any payments should now be made to Eversh*ts as should any CCA request if you decide to check on the enforceability of the debt.


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