Credit card "debt" crisis..help!!

Simran

Hi, i'd really be grateful if anyone can offer some advice - my friend had an Access credit card provided to him by one of the high st banks between 1999-2000. In 2000 he got a letter from them stating that as he did not use his card, it would be cancelled, to which he agreed. It made no mention of any outstanding debt. He moved house in 2000, his bank was aware of his new address as they send correspondence to it (and he has another credit card with that bank).

4-5 years down the line, he has suddenly received mail from a debt collection agency stating that it has purchased his "debt" and demanding £188. He contacted the bank and protested that this was the first he had heard of any debt. The bank explained that Access is not part of the bank but is a separate company. He contacted Access who have not responded other than stating that he would have been sent several reminders (which is not true).

He has now received threats of court summons and court costs have added another £77 to the amount. He is willing to settle provided that he is given a full breakdown of his "debt" but they have not been forthcoming and are threateninh him with legal action or a "visit" if he does not respond within a few days.

I think it is disgraceful practice to contact someone 4 years down the line with an immediate request for payment of a "purchased" debt he knows nothing about and not give him a reasonable opportunity to investigate. Is there anything he can do or should he pay up??

Thanks!

file_wizzard

Try the following:


Dear Sirs

Further to your recent communication to myself I would state that I do not acknowledge any debt to your company.

I therefore require you to supply the following documentation before I will correspond further on this matter.,

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit) - your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number XXXXX

2. A signed true copy of the original default notice that you state exists for this account.

3. A signed true copy of the deed of assignment or transfer of the above referenced agreement if one has been created.

4. You are notified that you are obliged to supply these documents, whether you are the original creditor or not.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.

Take note at this stage, that any legal action you may contemplate will be both vigorously defended and contested.

---

if they are unable to corectly document the debt as requested above then they have 0 chance of getting a court order to enforce it.


Just as a matter of interrest which Debt Colector is it ?

Simran

thanks a tonne, file_wizzard! I will draft the response as you have suggested. The agency is called capQuest Debt Recovery and they have now passed it to Keppe & Partners Solicitors.

I'll let you know how it goes.

best wishes

Bossyboots

How can court costs have added £77 when no proceedings have been issued?

Simran

Bossyboots, the solicitors letter says that if he fails to repay the amount of £188 by 31st Oct, they will start immediate legal proceedings and costs of £77 will be added making the amount due £265 or they will instruct their "doorstep collection agency" to make a personal visit.

Bossyboots

He needs to contact the solicitors on Monday and inform them that he has no knowledge of the debt and ask them to supply copies of all the paperwork including statements and correspondence sent to him. Inform them the origins of the debt are unclear and that he has been asking for some information in relation to this to ascertain whether the debt is his. He needs to ask them for an extension of time to deal with the issues, say 10 working days from receipt of proof of the debt. Hopefully this approach will persuade them to send the details and give an extension of time in which he can decide what to do. As you say, he will pay up if the debt is his and if he is satisfied it is not then perhaps he should just let them go to court where he can defend the debt. It may be though that once he has the paperwork folks on here can help construct an answer to the solicitors to persuade them the debt is not his (if that is the case).

Simran

Thanks, Bossyboots, will the suggested letter by file_wizzard above do the trick?

Bossyboots

Yes, but I would tone it down a bit so that it is more of an appeal for help than a demand. The solicitors shouldn't demand payment for the paperwork to be sent out. Also, I don't think the bit about the credit agreement is relevant as presumably the application for the card was signed, thus forming an agreement. Your friend is not actually disputing that an agreement existed, simply that the debt may not have been incurred by him. If there is any doubt over whether he signed anything then the letter by file_wizzard could be sent but he needs to be covering all his bases. There is every possibility that events will run away with him if he doesn't show that he is at least attempting to sort the issues out. As you have said, it may be his debt so he needs to try to minimise his liability.

This is how I would change it:-

Further to your recent communication to myself, I do not acknowledge any debt to Access.

I should therefore be grateful if you would supply the following documentation in order that I can consider the position further.

1. A copy of the transactions which caused the debt to accrue.

2. A copy of all statements and correspondence alleged to have been sent to me informing me of this debt.

Upon receipt of these, I will review the position. I should be grateful for your allowing me 10 working days from receipt by me of the documentation in which to check my own records and respond to you.

I should say that at this stage, any legal action you may contemplate will be both vigorously defended and contested.

However, once I have sight of the documentation requested we may be able to resolve this one way or the other to our mutual satisfaction.

file_wizzard

Bossyboots wrote:

Yes, but I would tone it down a bit so that it is more of an appeal for help than a demand. The solicitors shouldn't demand payment for the paperwork to be sent out. Also, I don't think the bit about the credit agreement is relevant as presumably the application for the card was signed, thus forming an agreement.

I’m sorry I don’t agree.....

Cap quest are debt buyers, and keppe and partners can hardly be called real solicitors !, that act exclusively on behalf of capital one or other credit card company’s, however they can be amenable and will try to negotiate with you.

I also think you are missing the point that if the OP has been sent a threat of court action then the creditor / DCA which has been assigned the debt should actualy be in a position to carry out their idle threats.

The tone used by these companies is wholly unacceptable and is in direct breach of OFT guidelines, They certainly haven’t sent a letter saying;

"dear Mr X please contact us about your old account there may be a problem Ect."

They have sent a out a letter which is intentionally designed to intimidate and frighten people in to paying more or less with out question through the fear of being prosecuted.

Therefore I don’t believe any one should have any qualms about playing them at their own game.

file_wizzard

Simran wrote:

Bossyboots, the solicitors letter says that if he fails to repay the amount of £188 by 31st Oct, they will start immediate legal proceedings and costs of £77 will be added making the amount due £265 or they will instruct their "doorstep collection agency" to make a personal visit.

Normal bullyboy tactics !, and yes the costs can only be assigned once a claim form has been issued, which i will eat my hat if they actualy do !