You are correct, under UCCC (Uniform Consumer Credit Code) a lender must give you notice before issuing a letter of demand - which I'm assuming is what the solicitors letter is. Under the code they must issue you a 30, 60 and 90 day notice and give you time to remidy the default. If they say they have issued these and been returned, then I'd be asking for proof. they should retain the letter and envelope should returned to sender. if you really cant afford to pay the full amount off, go back to them, ask for these in a polite manner, record details of who you speak too, times and re-confirm what they tell you. Ask if you can fix up the default and get repaying them. If you have no luck with that request copies of default letters and then go to solicitor / legal aid. GE as pulled out of many consumer finance markets and I'd say would be looking to get as many loans repaid as possible. Don't be bullied by them, but remain polite and decisive and stick with the facts. Let them know you are taking notes of any conversation etc. If they agree to repayments, make sure you do make the payments. good luck