Crapquest - Beware!!

Marthasdad

Hi - received a well cheeky letter from Crapquest last week - I've been paying them £60 per month for a debt for well over a year now and never missed a payment (thanks to advice on here - I pay by Standing Order).

They wrote to me and said they've reviewed my payments and my new payment amount will be £72 per month - they also attached a Direct Debit Mandate and said I had to return this to them by 27th March!

Cheeky s*ds I thought!

I wrote to them and told them that I could not afford this (20%!) increase in payments - I explained that the current financial climate meant that my pay has been frozen - I also explained that (according to BBC news last week) real terms inflation is at 3.7% (this is inflation without mortgage interest payments). As I rent my home, I am not benefitting from reduced interest payments and, therefore, in real terms, I have had a cut in income of 3.7%.

I went on to explain that I should really be seeking to reduce my instalment amount but, as I am serious about dealing with my debts, I will keep the Standing Order at the current level and do my utmost to maintain it at that level.

I was quite pleased with myself - any views? (Happy to post the letter if it would help anyone!?):beer:

Blackruby

I think as long as you have a good payment history with them, then they really don't have a leg to stand on. Though, I have a question, why is a standing order better than a DD?

Honeybee_2

Perhaps stick in a bit about oft guidelines, stating that debtors should not be pressurised into paying more than they can afford?

lxpeanut

because they can alter a direct debit without your permission. However a standing order leaves you in control especialy if you have online banking and can alter it yourself.

fermi

Blackruby wrote: »

Though, I have a question, why is a standing order better than a DD?

Because it is in your control. Not theirs.

Debt collectors have been known to abuse the DD system in the past to change payments without permission.

topbadger

Blackruby wrote: »

I think as long as you have a good payment history with them, then they really don't have a leg to stand on. Though, I have a question, why is a standing order better than a DD?

You have total control over the amount that they are paid with a standing order as you are making the payment. With a direct debit, they are taking the payment and in theory could take more than you agreed.

While the direct debit guarantee says any mistakes will be sorted out, in a situation like this you can bet they'd argue they were only taking what they were entitled to if they helped themselves to more money out of your account than they were supposed to!

Blackruby

Thank you so much, that's very helpful. I will have to remember that.

fermi

Honeybee wrote: »

Perhaps stick in a bit about oft guidelines, stating that debtors should not be pressurised into paying more than they can afford?

Yep.

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

If they threaten court action or refuse, then take note of the content in letter K here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=14_what_if_a_creditor_refuses_my_offer_of_payment

Marthasdad

Thanks Fermi - already sent the letter so can't insert the OFT bit (but will use if I ever get similar from them again) - will keep a copy of the letter in case they threaten further - great advice....as always....!

Marthasdad

Thanks Blackruby - payment history with them is impecable - I was a very silly boy up until 2 years ago - got in a load of debt but have arrangements with all creditors now and, it's a struggle, but I'm managing to keep up all payments.

That's why the letter annoyed me so much - they think they can frighten you into paying more than you can afford - highly iresponsible vultures in my view!!

If I had a DD, then they could have upped the amount and only have to give 10 days' notice - this may then result in bank charges if I go overdrawn - SO keeps me in control - they can only get what I pay them!

Merlinexcalibur

Agree totally with Fermi and Honeybee. Take the fight to them and remind them of a few things they should already know but clearly are violating.