Heidi,(posted 7709 days ago)I forgot to add you could also try offering the debt collecting agency 370 pounds as a full and final settlement and state that if they don't accept this then you will declare bankruptcy (although, of course, you must be prepared to go bankrupt if they do refuse). If you do go for a settlement make sure any third party is included, such as an insurance company. I have a sample settlement letter if you are interested.
Mark.