Debt Collector / Credit Management help

secretmachines

hi all, hope this is the right place to post this.

my partner has received letters from ARC (Europe) Ltd. and Trevor Munn solicitors, chasing a debt for unpaid gym (David Lloyd) membership.

the story is...

- she took out a gym membership earlier this year which she would pay monthly by DD

- the first payment failed as the gym set up the DD on the wrong date, when there were insufficient funds in her account

- when this was discovered, she paid for this 1 month in cash at the gym and asked for the DD to be reset to the correct date... they said ok.

- it turns out they didn't do this and the DD failed for a second time, which she only found out about when she went for a session at the gym and was told her membership had been terminated.

so we thought no more of it, made sure any DD was then cancelled so they didn't continue to take money after the termination.

Last week (a number of months later) she received a letter from ARC Europe, saying she owed £690, "a bad debt passed onto ARC from the gym who have been unable to obtain payment from you"

We have never received ANY correspondence from the gym asking for payment! The membership had been terminated.

She phoned ARC immediately and said this as a mistake as her membership had been terminated and she would contact the gym... they said ok.

Then a week later, received a letter on behalf of ARC from Trevor Munn Solicitors threatening Court action and demanding payment immediately.

Jvic28

I think the Gym have behaved appallingly and you need to take it further with them as the initial errors were theirs. I can see how it's been passed to ARC. Your membership was cancelled because you were not paying your fee (not your fault I know). As far as they are concerned at this stage, it was your fault you were not paying and are therefore liable for the remainder of the contract. I suggest you either get down there or write a letter to the big boss at the gym explaining the situation.

edinburgher

You need to be speaking to the gym in the first instance, to figure out exactly what has gone wrong with their reporting procedures for the account not being opened properly.

Make sure you take notes of who you speak to and when and get confirmation of everything in writing, too.

secretmachines

thanks for the quick replies so far guys

my partner has spoken to the gym a couple of times and they have been pretty inconclusive.

when the first DD failed, she went in specifically to pay in cash and ask that the DD be set up correctly.. sadly it wasn't.

the upsetting thing is that we know the issue is with the gym, but the debt collection don't care for the story, they just want money and are sending worrying letters about CCJs and court action

does the debt collection have any legal rights, etc.?

edinburgher

secretmachines wrote: »

the upsetting thing is that we know the issue is with the gym, but the debt collection don't care for the story, they just want money and are sending worrying letters about CCJs and court action does the debt collection have any legal rights, etc.?

Yes they do, as the debt has been sold on to them. The main point to consider here though is that the debt is erroneous. You need to be raising hell with the head office for the gym as to why they've terminated your contract but have sent round 'the heavies' to try and enforce a debt that doesn't exist!

They should be able to prove what you owe them (nothing, as we both know) and proof that your account has been terminated. Otherwise any supposed debt is very likely unenforceable.

Ignore the clowns at the DCA (but do let them know you're speaking direct to the gym) and make sure that you don't take any of their crap - you're in the right here.

secretmachines

thank you
i've just drafted a letter to send to ARC to explain the situation (which we'll CC to the gym)... my partner's spoken to them twice on the phone, but always good to put these things in writing

she's going to try and speak to one of the senior people at the gym tomorrow to develop things further!

it's just worrying getting letters about legal action... the last threatening to register a CCJ

edinburgher

Just remember that that's their last resort - there are a few stages to go through first and they can't apply to have a CCJ registered against you instantly.

The quicker you move the better. I'd probably skip talking to the gym branch directly and go to their head office.

secretmachines

edinburgher wrote: »

Just remember that that's their last resort - there are a few stages to go through first and they can't apply to have a CCJ registered against you instantly.

The quicker you move the better. I'd probably skip talking to the gym branch directly and go to their head office.

good advice thank you

i think we'll send copies of this letter to ARC, Gym Head Office and General Manager of the Gym...

Dear Sir/Madam

I have received 2 letters from yourselves regarding a balance of £690, a “bad debt” passed onto yourselves from David Lloyd Leisure. On 2 occasions, I have telephoned ARC representatives to explain the situation, which I am now putting in writing to you.

This £690 is an erroneous debt, which I am currently trying to resolve with David Lloyd Leisure. On my last visit to their facility, I was informed that my membership had been “terminated”.

I have not received any correspondence from David Lloyd Leisure asking for a payment, part or full, of £690. I presumed that since my membership was “terminated”, that was the end of my relationship with David Lloyd Leisure.

I appreciate that ARC’s responsibility in this situation is to recover the debt. However I am writing to you to explain that this situation has arisen due to David Lloyd’s incompetence with accountancy and administration of my membership.

I am currently trying to speak to the relevant member of staff at David Lloyd Leisure to resolve this issue and in order for ARC to be informed that the debt is erroneous and the case can be closed.

Yours faithfully