I agree --- That is the idea of having this type of arrangement, they would not be looked on favourably at all by any court in applying unreasonable or unfair changes to an existing arrangement, that you have kept up to in good faith.

You have upheld your part of the deal and their action further places you at a financial disadvantage, and could undo all the positive changes that have so far come about, so seek the CCCS or CAB opinion.

I owe approx 40k in unsecured debts. I am currently having my debts managed by the CCCS, it’s a charity that helps people in my position.

At present I am paying CCCS, X £’s per month and the payment is proportioned across my creditors. My biggest creditor took me to the county court back in Jan 2007 where by the court turned the debt into a secured loan, and they have their name on the deeds of my house until the debt is paid in full.

All is going well and I am slowly getting my finances back on track and I have even managed to increase my monthly payment to the CCCS, knocking 3 years of the total time it’s going to take me to pay everyone back.

However one of my creditors has decided that they no longer are willing to accept my payments under the above method. They also claim that they will be going back to charging me interest on the debt, for which I cannot afford to pay.

I have told them this and they claim that it is company procedure to wait until the account is in default by 6 months before passing the account over to their “default accounts” department. They will then in turn pass the debt to a debt recovery agent, who will then either accept my lower payment or take me to court.

I tired to reason with them as to why they can not pass the account over now, and that 6 months interest plus late or non payment fees is in fact going to take me back to a worse position then what I was in a year ago on the account.

By waiting 6 months I calculate that they will be sticking another £1,000.00 at least on to what I already owe, and that figure is without any court costs etc.

Anything else I can try and do to avoid this?

Cheers in advance