I had a 3 mobile contract in 2003 when they first launched. I cancelled my direct debit in September 2003 six months into a twelve month contract as the phone never worked at all.

I heard nothing at all after cancelling the DD until today when i've received a letter saying i owe £229.00 on the contract from a Debt Collection agency saying they've bought the debt and i have seven days "either agreeing to a settlement or a repayment plan" or they may "either send a licensed field agent to visit your home at an arranged time to negotiate a settlement or commence if necessary legal action in the Couny Court."

I know it's not statute barred because it's only been five and a half years with no contact. Are they likely to send someone or take me to court? I obviously don't want that but agreeing a settlement is not the same as repaying in full is it? If I call to negotiate a settlement is that not acknowledging that i am liable to the full amount? Is this a trick to make me call? How likely are companies to take out a CCJ for such a small debt? Is it a try on?

I shouldn't have cancelled the DD but i was 21 at the time and a bit skint after uni so thought i'd wing it and if they asked for it i'd have to pay but they never contacted me until now.

Any advice appreciated.