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  • FIRST POST
    • eande
    • By eande 7th Oct 17, 1:40 PM
    • 15Posts
    • 1Thanks
    eande
    Debt collection letter advice
    • #1
    • 7th Oct 17, 1:40 PM
    Debt collection letter advice 7th Oct 17 at 1:40 PM
    Hi,

    After some advice on behalf of my parents.

    They left extra energy two years ago, and received a final bill. They had a number of billing issues during their supply period. They recently received a new final bill with demand for payment.

    I have complained regarding the delay in billing and disputed the amount. The complaint is currently being investigated by the Ombudsman.
    Today they have received a debt collection letter from Past Due Credit Solutions.

    I had thought that Extra Energy would not chase any supposed debt while the Ombudsman is investigating. Any advice on the best way to deal with the debt collection agency?
Page 1
    • sourcrates
    • By sourcrates 7th Oct 17, 4:46 PM
    • 12,213 Posts
    • 11,659 Thanks
    sourcrates
    • #2
    • 7th Oct 17, 4:46 PM
    • #2
    • 7th Oct 17, 4:46 PM
    I had thought that Extra Energy would not chase any supposed debt while the Ombudsman is investigating. Any advice on the best way to deal with the debt collection agency?
    Originally posted by eande
    Hi,

    You thought you were dealing with a company that had more than an ounce of common sense, unfortunately you were wrong !!

    The account should of been placed "on hold" whilst investigations into the billing error continue, instead it appears to of gone straight to the collections stage.

    You can ignore the debt collector, they just bark a lot on behalf of the creditor, and have no more power to do anything than a flat battery, they can be ignored completely.

    In the mean time, write a strongly worded letter of complaint to Extra Energy, pointing out the glaring errors in due diligence they have committed.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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  • National Debtline
    • #3
    • 12th Oct 17, 5:45 PM
    • #3
    • 12th Oct 17, 5:45 PM
    Hi eande,


    I would agree with Sourcrates to write to Extra Energy highlighting this debt should never have been passed on and ask them to recall the debt from the debt collector and put the matter back on hold.


    With regard to the debt collector, it would likely be easier for you to copy them in on all of this, otherwise the letters and calls are likely to just carry on. Ask them to put the matter on hold as well (in case you get no reply from Extra Energy). Remember, they are not a bailiff and have no right of entry or repossession, so are no one to worry about, but can be a bit of a nuisance whilst you are waiting on the Ombudsman's decision.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • eande
    • By eande 12th Oct 17, 7:12 PM
    • 15 Posts
    • 1 Thanks
    eande
    • #4
    • 12th Oct 17, 7:12 PM
    • #4
    • 12th Oct 17, 7:12 PM
    Thanks for your replies.

    Interestingly, I contacted the Ombudsman who did say that an energy company can pursue a debt (via a debt collector) while an Ombudsman case is ongoing, providing they believe the debt is genuine.

    Subsequently the Ombudsman has finished investigating, finding that Extra Energy were at fault and has told them to remove their debt collectors from the case.
    • fatbelly
    • By fatbelly 12th Oct 17, 7:21 PM
    • 11,378 Posts
    • 8,538 Thanks
    fatbelly
    • #5
    • 12th Oct 17, 7:21 PM
    • #5
    • 12th Oct 17, 7:21 PM
    Thanks for your replies.

    Interestingly, I contacted the Ombudsman who did say that an energy company can pursue a debt (via a debt collector) while an Ombudsman case is ongoing, providing they believe the debt is genuine.

    Subsequently the Ombudsman has finished investigating, finding that Extra Energy were at fault and has told them to remove their debt collectors from the case.
    Originally posted by eande
    Good result, and while they are technically correct with this debt and this situation, FCA rule 7.15.10 does say

    A lender must not initiate legal proceedings in relation to a regulated credit agreement where the lender is aware that the customer has submitted a valid complaint or what appears to the firm may be a valid complaint relating to the agreement in question that is being considered by the Financial Ombudsman Service.
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