Linda,(posted 7542 days ago)You say the AIC have bought the debt, presumably they are debt collectors, if so, make them prove they have really bought it. You should put them to strict proof of the alleged debt too. Was the property undersold ? Are you within the Financial Ombudsman's window for complaining ? 6 years from date of sale. After all you have been trying to resolve this, you have the proof, and they are ignoring you. The OFT may well be able to help too. Furthermore, the debt should have been assigned to them by the lender in the correct manner. I would sarn AIC immediately (I have a copy of a sarn letter if you want), add on the sarn letter that you require a copy of the assignment document. You will need a qualified solicitor to tell you if the assignment has been done properly. If AIC do not respond to the Sarn you can complain to the Information Commission and request an assessment (if they do not comply with your sarn request they will be breaking the law). If you are not happy with the assessment you can request a full review.
I don't think anyone can tell you if AIC would be likely to accept a reduced settlement, different organisations adopt different policies. The CAB can be a bit hit and miss, have you tried the Mary Ward Legal Centre or NAMV ?
Good Luck,
Mark.
P.S. I'll email you some advice from a solicitor re settling.