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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71135
Experience:  Over 5 years in practice
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I have got a loan since since 2012, I'm paying £297.54 a month,

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I have got a loan since since 2012, I'm paying £297.54 a month, but since August 2015, I'm on sick pay receiving monthly average £394. My wife is working and have her own loan and she's taking care of every expenses we face now. I ask my bank to low the the amount of monthly loan to pay, but my bank told me there is nothing to do and I have to pay the same amount. Do I have to declare cessation of payment? What to do?
Thank you for your question. My name is ***** ***** I will try to help with this.
Does the agreement say you can take a payment break?
Jo C. and 2 other Law Specialists are ready to help you
Customer: replied 2 years ago.
The agreement doesn't say any break
Ok. Is your credit rating already poor?
Customer: replied 2 years ago.
my credit rate is not poor, I always paid back all I got from bank and never be late
If you can't pay then you can't pay. They cannot have what isn't there.
However, if you stop paying or reduce the payment then you will be acting in breach. They might well accept your offer as they cannot have funds you don't have but the breach remains.
The risk of that is that they could sue or place a default on your credit account. The chances they will sue are low as there is no point if you have no money and this is a fairly minimal sum anyway. The default is the greater risk. If you had a poor credit rating anyway then it might not matter but your credit rating is good so far.
If you can't pay though then just submit an offer to pay a lesser sum. They will not agree but if you begin paying they will take your money.
Can I clarify anything for you?
Customer: replied 2 years ago.
Yes, I'm going to submit a leser amount to pay but if they refuse? Do you think it's possible for me to declare cessation of payment ?
At least, you can. But it doesn't improve upon your position.
they will refuse.
When they do, just keep paying at the lesser sum. They won't refuse to take your money.
Customer: replied 2 years ago.
You 're wright! I'll follow your advice. Thank you Jo.
No problem.
You will get rejections and threatening letters. Just come back when you do. You can reopen this post for free.