Catalogue debt

Catalogue debt should be treated the same as any other debts.

If the debt requires more than 5 payments in 12 months or is over £50, then these debts are regulated by the Consumer Credit Act 1974. This Act requires a written agreement which must be signed by the creditor and the consumer.

If a creditor fails to provide a written agreement singed by both you and the creditor, then it may be that the debt is not enforceable through the courts depending on when the catalogue was taken.

If you are unsure whether or not you signed a written agreement, you should request this from the creditor. The creditors have a responsibility to keep records of these agreements and send them out if requested.

If the creditor fails to provide you with an agreement, you are within your rights to withhold your repayments until you are in receipt of this agreement.

If the creditor does send you the agreement and you are not in a position to repay the amounts at the agreed set payment, you can make proposals to the creditor to reduce the amount you repay each month.

The creditors are under no obligation to accept reduced repayments but more often than not, if the repayment proposals are satisfactory, they will accept for a period of time and may request reviews of your financial circumstances from time to time to see if you are able to increase your repayments.

If you act as an agent for a catalogue, it is important to set up separate accounts for each customer otherwise you could find yourself liable to make repayments on goods that have been ordered by a customer who has failed to make payment.

It is important to ensure when borrowing jointly that you are fully responsible to repay the whole of the debt should the other party not be able to pay for any reason.

Call our specialist debt team on 08000 915 004 to find out how we could help you.