On default payment to Allianceand Leicester. My outstanding debt wastaken over by the Debt Collection Company. Last year in Jan 2011 they agreed to accept £5.00 per month (I have a letter from them acknowledging this). But this year in Jan 2012 they rang me and said they would only continue with the £5.00 per month repayment provided I did a ‘Voluntary Mortgage over my Property’. When I declined to do this, that’s when they started the litigation and sent me the County Court Claim Form for £2252. I have been searching around trying to get more information. I spoke to one Legal Advise helpline. The advisor suggested that though I have received a Claim Form from their solicitor, there is no harm in writing to them and accepting their ‘Voluntary Mortgage over my Property’ and also offering to make an increased repayment of £10.00 if they withdraw their Claim. I am concerned about this ‘Voluntary Mortgage over my Property’ and what it pertains?

Hello All I had an Alliance and Leicester Credit Card which I could not repay; hence a default repayment was setup for £5.00 per month. The Debt was passed to a Debt Collection Company and I continued paying the £5.00 per month. A few months back my debt was taken over by ARROW GLOBAL LIMITED who called me and said that as this debt (£2252.00) has gone on far too long and they will only accept £5.00 per month and if I agree to a Voluntary Mortgage over my property. I refused but instead offered that I could arrange to pay £450 as full and final settlement of my account. But they rejected my offer and said they were going to proceed towards litigation against me. Today I received a Claim Form from ELS & COLE SOLICITORS claiming the full amount of £2252. But they added the £75.00 (Court Fee) + £80.00 (Solicitors Cost) which has brought the total to £2407. 1. I have never defaulted since the repayments started. 2. What should Ido? 3. Can I not offer any defence to their aggressive and harassing gesture. The debt has now unnecessary increased by these added court fees by £155.00 Please advice? I only have 14 days to reply. Thanks