Letter when you know nothing about about the debt...

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From: http://www.moneysavingexpert.com/loans/debt-help-plan


There are a number of debt collection agencies, whose job it is to chase down unpaid debts for other companies. Disgustingly, one time-saving tactic used is to fish for the right person by sending demands to all those with the same surname, in the hope someone will pay up.

If you're called or receive a letter asking for money, the onus is on THEM to prove that you DO owe the money and that it is genuine debt. So if the debts aren't yours, don't panic; send a letter to say you're not responsible. National Debtline has a template letter you can use.

1 High Street,
Newtown,
Kent
R21 4RH
October 9, 2007

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Ref: xxxxxxxxxxx

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

We would point out that we have no knowledge of any such debt being owed to The Loan Company.

We are familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

We would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore, ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

We would ask that no further contact be made concerning the above accounts unless you can provide evidence as to our liability for the debt in question.

We await your written confirmation that this matter is now closed. Otherwise we will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

We look forward to your reply.

Yours faithfully





Mrs A N Other

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IMPORTANT.

Also please note that if you are unsure that the debt being chasing is valid or yours, then use the letter above.

Please do not be tempted to send a request (CCA request) under s77-79 of the Consumer Credit Act 1974 requesting copies of the credit agreement.

(1) If you want them to prove your liability for the debt then the above is all you need. Quote other Acts etc and you complicated what is a simple matter.

i.e. They have to prove you are liable for the debt. If they can't or won't, they are obliged to stop chasing you.

(2) Not all debts are covered by the CCA1974 or required to have credit agreements. e.g. mobile phone accounts, overdrafts, utilities etc etc......

Requesting a CCA under the act in those cases is a complete nonsense, and will most likely result in your request being ignored, refused or brushed off.

(3) Only the actual debtor is entitled to make a s77-79 request for a regulated debt. if you think you are not the debtor, then you do not have the right to make the request in the first place.

Just require them to prove the debt without. The above letter is all you need.

(4) A s77-79 request does not have to provide a signed copy of the agreement. So if you are looking to use it to prove whether you took out the debt or not or signed an agreement, then you may be wasting your time. It is not a good tool for proof of debt.

(5) And not least, s77-79 requests are often used when someone is disputing the enforceability of a debt, rather than disputing it outright. Because of that, rightly or wrongly, debt collectors tend to take an adversarial view when receiving such requests and often jump to the conclusion that you do actually owe the debt, but are simply trying to avoid payment. This then backs you into a corner that can then be hard to extract yourself from, when in truth you actually wanted to dispute that the debt was ever yours.

The above is not saying the s77-79 request do not have their place and uses. They do. But when you have a fundamental dispute over whether you owe a debt, they are to be avoided, at least as the first avenue to take.

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If the debt collector/creditor ignores your dispute.

As per: http://forums.moneysavingexpert.com/...9&postcount=38 this is a possible course of action.

Originally Posted by fatbelly

This is an update of an earlier post.

If you've sent the prove-it letter (by recorded delivery preferably) and not had a sensible response then you need to take it further.

From the OFT's Debt Collection Guidance (2003, updated 2011) they are engaged in the following unfair practices:

3.7o. ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make demands for payment without providing clear justification and/or evidence as to why the claims are not valid

3.9k. failing to cease debt recovery activity whilst investigating a reasonably queried or disputed debt when the debtor has, or appears as if he may have, valid grounds for the query or dispute

and probably others - you can tick them off against the guidance.

If they persist with their activity, something like this might wake them up: