If this is their mistake and she accepts that it’s her mistake and she couldn’t reasonably have known that she had been overpaid, and if they take her to court, although they may get judgement in their favour, they are going to have to give her time to pay and hence, it would be remiss of them to take your daughter to court if she was paying them.
What she needs to do is to come to an arrangement to pay something.
She also needs to explain her own financial circumstances.
Unfortunately, if she were to go bankrupt, it doesn’t write off the ground for students. The reason is that many students were finishing university and going bankrupt just to wipe off the debt so the law was changed a few years ago to prevent that.
With regard to the threatening letters, right back and tell them that they are now harassing her and if they continue to write, the matter will be referred to the police with a view to having them warned under the Protection from Harassment Act and section 40 of the Administration of Justice Act 1970 which makes harassment of debtors a criminal offence.
They should then stop harassing her and it won’t stop them issuing court proceedings against her if they are minded to.
My suggestion would be to tell them that she will pay them £25 per month until such time as she gets a job and then, when she gets a job, she will increase it to £100 per month depending on her wages.
They will not accept that but regardless, keep sending the £25 every month.
If you want to be really bullish, your daughter can simply say that she’s got no money, that they can take her to court and make a bankrupt but she simply does not have the money to pay. They cannot get blood out of a stone.
Can I clarify anything for you?
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