Catalogue Debt

amyparr

Hey guys,

I am a law student and a volunteer at a debt advice centre in Leicester, and I have come across something which you guys may or may not know about.

Basically, if you owe a catalogue company some money (like Freemans etc) and it's not a massive amount, there may be a way you can get around it.

If you write to the company and ask them for a copy of the signed agreement between yourselves and them, and they cannot provide one, there is very little they can do to enforce the agreement. It sounds ridiculous that these companies dont make these written agreements, but most people just assume that you can't argue with them and pay up, so the companies rarely do actually have one, as few people question them about it.

Obviously, if you can pay back what you owe, then that is best, but if you really have no way of paying them, and they keep hounding you for the money, this may be a way to get them off of your back.

I'm not guaranteeing anything, but for the cost of a stamp, it's worth having a go!

Good luck!

Amy

Harassed_2

Yes, it does work. The letter to send is copied below.

Send the catalogue company a copy of the letter below. Send it by Recorded Delivery and enclose a £1 postal order in payment of the statutory fee.

I 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.

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.

iwanttosave_2

I have just taken over my mums debt as she has moved abroad, I wonder if I can do this too?

She bought something through another persons catalogue, moved, I wanted it and said I will pay the rest off. I have never signed anything saying I would, they just sent me a statement after the agent gave my name.

Harassed_2

Slightly different scenario. Depends on whether your mum signed an agreement with the company. The debt is owed to the agent, who will be liable if you refuse to pay.

iwanttosave_2

I'm not even sure if she signed anything. Saying that the agent isn;t a very nice person, I think I would rather pay it

Kimberley

Even though they can't claim you signed, the catalogue companies will still put your debt on a credit file and won't remove it even if you ask for the agreement and they can't supply it. So even if you get away with paying, it will show up on your credit file as a black mark.

shellsuit

Harassed wrote:

Yes, it does work. The letter to send is copied below.

Send the catalogue company a copy of the letter below. Send it by Recorded Delivery and enclose a £1 postal order in payment of the statutory fee.

What normally happens next when you send one of these letters off?

Harassed_2

They usually try to make you pay and send a blank copy of the 'agreement', make all sorts of threats. Simple response is this second letter.

I am in receipt of your letter dated (date); the contents are noted. The item and confirmation that I requested from you has not been supplied.

1. I requested a true copy of the consumer credit agreement that you state exists; to which I am entitled to under the Consumer Credit Act 1974 (CCA). The supposed copy that you have supplied is not a true copy; there are major errors in the information contained therein. I would draw your attention to the following. It is an offence under Section 40(1)(c)/(d) of the Administration of Justice Act 1970 to falsely present a document as having some official character which it has not, with the object of coercing another person to pay money claimed as a debt due under a contract. It is also contrary to the provisions of the Section 25(2)(d) of the CCA to mislead the debtor as to the origin or authority of any document.

2. I also requested you to confirm whether or not you entered a properly executed and signed consumer credit agreement for the above account. This you have not done. 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.

As the information which was requested has not been supplied, take this letter as notice that both the account and the amount you claim is owed, are in dispute. They will remain so until the requested information has been supplied.

I await your response in writing,

asharon

Why not simply say, I purchased something with the sole intention of ripping you off using this loophole. Why should I pay for something I've now had and used and don't really want any mor eas it was an imppulse buy.

Put a black mark on my file and see if I care because I'm going to get loads.

So there's a loophole doesn't make it right does it ? It's like the bank charges being illegal thing, yes if the bank makes a mistake then why should a customer care, but if you don't want the high charges pick another account, but then people don't get the money back and say well ok £25 a bounced cheque is too high I will pay them £5 they get it all and keep it.

If someone drops a wallet you can keep it's contents if you so hcoose doesn't make it right.

Harassed_2

Quite simple. If a creditor wants to use the law to recover a debt, then they have to obey the law. They don't (through greed), they lose.

Tootsie_Roll

Why should a creditor HAVE to use the law to recover as debt - OK some circumstances may mean that from time to time people have difficulty paying accounts back but that does not mean they can get away with paying via a loophole.

As I have mentioned previously your argument does not stand up anyway when the person has received the goods concerned and been making payments to the catalogue company.