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[JamesV6CDX]

A few months ago I took out a flexible overdraft with Frodo Financial, at a good interest rate. As it stands, I owe them around £1000 on it.

They always take 10% of the outstanding balance by direct debit each month. The month just gone (April) no payment was taken, yet their website when I logged in said a payment had been received.

I tried to call for several days in a row, and the 0845 customer service number kept going straight to a BT voicemail on a mobile phone. Odd, thought I. This continued for several days. I also sent several emails, both to their enquiries address, and to a member of staff I'd previously dealt with when I set up the account. Again - no reply.

I have done a little research online, and I can see they went into administration, after "running out of cash" on 28 March this year.

What do I do now? I accept the debt, and that I need to make repayments to someone - but who? I have no intention to withold payment - but I can't find out who/what/when to pay!

Any ideas? I don't want this to affect my credit score

Cheers,
James

[Kevin Wood]

I would cancel your direct debit and write a letter recorded delivery to the administrators telling them what you have done and why, and asking them to contact you.

[Marks DTM Calib]

You need to contact the appointed administrators and be prepared to pay the full sum back.

http://www.creditman.biz/uk/members/news-view.asp?newsviewID=17790

As per above, this would appear to be a company called Harrisons

As Frodo was a tin pot company with a staff of five its highly likely that your original contacts are no longer there:

http://www.harrisons.uk.com/marketing-statement-frodocom

So contact Harrisons (who state they are continuing to trade)

[JamesV6CDX]

You need to contact the appointed administrators and be prepared to pay the full sum back.

http://www.creditman.biz/uk/members/news-view.asp?newsviewID=17790

As per above, this would appear to be a company called Harrisons

As Frodo was a tin pot company with a staff of five its highly likely that your original contacts are no longer there:

http://www.harrisons.uk.com/marketing-statement-frodocom

So contact Harrisons (who state they are continuing to trade)

[steve6367]

As said be prepared to pay the whole amount. There is no obligation on the administrators to continue with the original payment schedule.

Steve

[bigegg]

As said be prepared to pay the whole amount. There is no obligation on the administrators to continue with the original payment schedule.

Steve

I am inclined to disagree with the above (although I am prepared to be educated).
The administrators administer the company.
They have no remit to amend a contract - what usually happens (in my experience) is that the contract (and the debt) will be sold to another company.
The payments will therefore continue as per the credit agreement, but to the new owner of the debt.

The one thing you can guarantee is that it won't be written off

[Marks DTM Calib]

As said be prepared to pay the whole amount. There is no obligation on the administrators to continue with the original payment schedule.

Steve

I am inclined to disagree with the above (although I am prepared to be educated).
The administrators administer the company.
They have no remit to amend a contract - what usually happens (in my experience) is that the contract (and the debt) will be sold to another company.
The payments will therefore continue as per the credit agreement, but to the new owner of the debt.

The one thing you can guarantee is that it won't be written off

You can bet your life that there will be a clause in the original contract stating that terms and conditions will be subject to change and stating a notification period and method.

The challenge will be finding a buyer as looking at the rate (not great when compared to a bank loan but good compared to other companies) its probably difficult to get the investment needed

Hence it can (and has in the past) happen

[bigegg]

As said be prepared to pay the whole amount. There is no obligation on the administrators to continue with the original payment schedule.

Steve

I am inclined to disagree with the above (although I am prepared to be educated).
<snip>
what usually happens (in my experience) is that the contract (and the debt) will be sold to another company.

You can bet your life that there will be a clause in the original contract stating that terms and conditions will be subject to change and stating a notification period and method.

The challenge will be finding a buyer as looking at the rate (not great when compared to a bank loan but good compared to other companies) its probably difficult to get the investment needed

Hence it can (and has in the past) happen

What I have seen happen is that the buyer will buy the contract at a discount - ie, a 1k loan over a year will sell for £700, making it a good investment, at the original contracted rate.

It's sometimes worth contacting the administrators and offering to buy the contract yourself - it can be done.

Ie, you buy your own 1K loan for 800 quid - administrators get more than from a different buyer, so they're happy. You just made 200 quid.