RED Debt Collection Services & 3 Mobile...

benastin

Hey guys,

Hope someone can help with this cos my bad credit is killing me!!

Back in 2005 I had my 3 phone stolen and as I was in USA I didn't know, so when the next bill for £300 came to me in the post my dad cancelled the phone straight away.

I called 3 from USA and told them that the insurance should cover this and that I'm not liable, but they wouldn't accept that and wanted to start a payment plan (I had cancelled my direct debit). I declined this and said I'll wait to see what happens...they wrote me a letter and hassled me on the phone.

So...given advice from an ex-solicitor I agreed to write them a letter explaining the unfortunate way this debt came about and that I'm in no financial place to pay the bill. However, I included a cheque for £50 as a token of goodwill and a 'sorry' gift. I asked them that I hope this cheque could be...

'a full and final settlement of the account'

They rung me within days letting me know they weren't ready to accept the £50, HOWEVER, I then noticed on my bank statement that they had cashed the £50 cheque I sent them. When I told the solicitor this, he says that legally they have now accepted the full and final settlement of the account.

Is this true?? Can anyone help because I am now getting hassled by RED who are the second debt firm on my case. The first firm acknowledging the £50 cheque and passing the debt back to 3.

I now have RED on my case not accepting that the account should be closed. It really is getting me down because I have a bad credit rating now which I could really do with getting out of. I'm 26 and probably have a mortgage coming my way in the next year or so which I know I won't be accepted for....I can't even get a credit card at the moment and it's all down to this debt which should be written off.

Any help appreciated, I have sent a letter to RED, again explaining what's happened and awaiting there reply but not looking hopeful. I'm tempted to ring them to see if they have received my letter.

phew! this is a long post. Sorry guys but at my wit's end here.

Benny

money saving newbie!

chilli_dog

Have you got a copy of your credit file at all? might be worthwhile getting one.

Im not sure if the debt can be written off by 3 cashing the cheque, maybe some one else can.

Any idea why your insurance would not cover the cost of the phone replacement phone, they usually replace the handset and the contract continues?

How much are red asking for?

benastin

Hi Chilli-dog,

Cheers for the reply. I got the phone replaced but the bill that was run up by the people who stole my phone wasn't accounted for.

RED are asking for £297. I have written to them offering to pay half of this just simply because I want to have this debt cleared and off my report. I did get a credit report and I'm going to be doing some investigating tonight as to who holds the key to my bad credit. It must be this debt tho, I have never had anything like it in my life.

If a company cashes a payment which is for full and final settlement of an account and only for that, stated clearly in a letter then legally I think I'm covered. That's what my dad's solicitor believes and the first debt company ran a mile when I posted them the evidence of the letter and my bank statement showing the cleared cheque.

RED seem pretty dodgy, reading all the posts from the forum

Ben;)

chilli_dog

Get your credit file, payment history lasts for about a year, if Three have gone for a default then that will stay on your file for 6 years.

You can do it online from credit expert, free for 30 days.

benastin

Great, will have a look