Did I do the right thing?

Keith

Hi,

Around 6 months ago I got a letter from a debt collection agency chasing payment for an outstanding amount on an old car insurance policy. I called them and pointed out that I did not owe anything.

A few months ago, I recieved another letter chasing payment again, so I wrote to them, including a letter from the insurance company stating I had made an overpayment and that I was due a refund.

Today I recieved a letter chasing payment and asking for me to call. I've called and asked for them to prove this debt exists, the lady told me I would need to contact my previous insurer to get proof, so I've asked them to prove it as to me this debt does not exist.

Have I done the right thing? What should I do now? I stated in the previous letters not to contact me at home but to keep everything in writing, and if that this debt exists to start the court action they had threatened many times on voicemail

Thanks in advance

Keith :eek:

WelshConsumer

There are normally a standard set of letters that are automatically generated by debt collection agencies. Depending on the amount they alledge you owe will depend on the ferocity with which they chase it. I would write to them sending it recorded delivery stating you owe no money and leave it at that - a debt collection agency has a duty (IMHO) to establish the debt exists.

Harassed_2

Who's the debt collection agency?

Keith

The agency is Direct Legal & Collections (DLC), it looks like I am not the only one having problems with them!

The debt is small at £71 and if they proved it, or even the old insurers had ever mentioned it, I'd pay. Its the fact the insurance company stated I had over paid!

cresswell80

Keith wrote:

The agency is Direct Legal & Collections (DLC), it looks like I am not the only one having problems with them!

Did they stop calling you after you asked them to only contact you in writing?? you can see my problem here!

Keith

My letter was sent around the same time as I changed my home phone number so I couldn't say. I know what you meant about the answering machine messages :eek:

Todays letter was a simple please phone to discuss your account, and the operators first words were "and how would you like to pay" even though she had "read" my file on screen!

Coffeeman_3

You should be able to prove how much you have paid on this - from bank statements etc. Do you have full details of the cost of the insurance? I'm sure the old insurer will supply them if needed. You should then be able to show the bill has been paid in full which should sort this one.

Keith

It should be very straight forward but I had a few problems with the policy.

1) The insurers said they had never recieved back my signed documents even though, they had sent me one of the copies back as I needed to keep one (this was marked with their recieved stamp). So the policy was cancelled after around 6 weeks.
2) The only two payments made were the 10% 1st payment and the following payment, before the policy was cancelled.
3) Then I recieved the letter stating I had overpaid and was due a refund, which they paid out.

It looks as if they have cocked up somewhere, to have issued a refund that should not have been issued. But if its up to the collection agency to prove the debt, this letter stating an overpayment, and the recieved refund surely doesn't leave them a leg to stand on?

I could possibly find my bank statments but I would need to get copies. And I don't know how I paid it!

EDIT I am just digging out past correspondence with them, and the first line of their first letter "all contact must now be with us" today they said I had to contact the insurers! Baffling