My daughter who is unemployed and paying off a very small bank loan (but obviously not paying it off fast enough) received a letter from her bank stating that if she does not pay off the outstanding amount of 197 euros in 28 days, they intend to take action, file a default, legal proceedings etc etc. She has been trying very hard in the last 12 months to pay it off on a regular basis, and has reduced the loan from 600 euros to 197 in less than a year, and she continues to pay it off. There is no way she can pay off the outstanding amount in 28 days, it might take her a year to pay back this amount, as the interest and charges are so high that they swallow up most of the money she puts in in the first place.
However, it is clear to the bank that she is putting money in her overdrawn account regularly. What should she do next? She cant afford a solicitor, and I think court proceedings would be a waste of everyone's time, as she is paying the loan at the best of her ability.