Do debt collectors charge interest?

dawyldthing

my old housemate that then left had debt collection letters coming all the time from Ann Summers and because no one responded apart from sending back to sender over the 2 years there must have been 5 different agencies send letters week after week for it, along with postcards saying they were going to turn up, no one ever did for it so I wouldn't worry about it, but these do seem more likely to accept the £10, so if you phone them up explain about the frozen interest and see if they can lower the amount (you would be shocked how much they can lower it by as I found out from another housemate who worked for a debt collection agency) you could prob get an agreement with them to sort it all out

fuzzgun19

Thanks.

@dawyldthing - I don't have any intention of paying anything to them now I know and have proof that it's unenforcable.

I'm off to compose a 'Go forth' letter... lol

fuzzgun19

Just to double check before I send my letter that this 'true copy' Creation sent me is not enforcable? It isn't even signed.

sofababe

That looks like a blank copy to me.

Send this to the OC and the DCA currently dealing with it.



Dear Sirs,

Account No: XXXXXXXX

I write with reference to previous correspondence, and in particular to the above numbered account which, for ease and clarity, I hereby deem unenforceable in line with s.127(3) CCA(1974) and this letter is my final response on the matter. In my original letter, dated XX/XX/XXXX, I requested a true copy of the credit agreement to which I genuinely expected to receive an exact copy of that which you hold in your records i.e. an actual "replica" of the agreement which is allegedly signed by myself and your representative and also contained the Prescibed Terms, in line with current legislation.

Whilst I appreciate that under the Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983 you are able to omit a signature and date box from the copy; I would like to hold in my records an exact "true copy" of the document that you hold that also contains direct reference to, or contains the Prescribed Terms. I do not want a piece of paper that alludes to there being an agreement; I would like a photocopy of the actual lawful agreement. I also appreciate and understand the provision of the recent Carey v HSBC {and others} case that stipluates a reconstituted agreement can be provided; yes it can however I am disputing the actual existence of such an original which means the Carey case is irrelevant as without one the account would still be deemed unenforceable. Carey only went to prove that if you could not provide an original, for whatever reason, but had proof on your systems/records that certain conditions were in place at that time then a recon could be submitted only in-so-far as to satisfy your s.78 request. If you do not have an original then a recon cannot be produced.

I do not think it is a lot to ask for you to simply go and fetch the original agreement, photocopy it and pop it in an envelope to me. The only reason that I can presume avoidance of such a simple process is if you never actually had a copy of the original agreement in which case may I remind you that OFT Guidance clearly states that lenders would be acting unfairly, and potentially in breach of their consumer credit licenses, if they misled borrowers by:

hiding or disguising the fact that there was never a proper signed agreement in the first place
providing only a copy of the current terms and conditions, not the original ones

In order to be able to adjudge my position effectively I would require a "true copy" of the actual agreement that apparently exists and I therefore appeal to you to fulfil my request. I am willing to pay any reasonable charge that you feel is necessary, in order to provide a copy of the “actual” credit agreement. In considering my request, I ask that you take a common sense approach and do not hold to the line that you have provided all that is expected of you nor the recent test case in Manchester, namely, and to be known as: Carey v HSBC Bank Plc [2009] EWHC 3417 (QB) (23 December 2009). The recent McGuffick and Carey cases confirmed that a lender should submit upon request a valid true copy of the original CCA.

I make my request in good faith and I feel it is a nonsense approach to hold to the idea that you won’t provide this document because you simply don’t have to. I feel that would take advantage of your position and such an approach from your business not be in the best interests of a healthy business/client relationship. In light of the above, I consider this account to be unenforceable until such time you properly comply with my original s.78 request and send a photocopy of the original purported document, if it exists. If it does not, then you must confirm this to me in line with your licensing guidance, as detailed above.

For clarification, the document you sent, purporting to be a credit agreement, does not contain all of the prescribed terms as required by section 60(1) Consumer Credit Act 1974. The Consumer Credit (Agreements) Regulations 1983 (SI 1983/1553) made under the authority of the “1974 Act” sets out what the prescribed terms are, I refer you to Schedule 6 Column 2 of SI 1983/1553 for the definition of what is required. Suffice to say, all of the required terms are not present in this document. Since this document does not contain the required prescribed terms it is rendered unenforceable by s127 (3) consumer Credit Act 1974, which states:

127(3) The court shall not make an enforcement order under section 65(1) if section 61(1)(a)(signing of agreements) was not complied with unless a document (whether or not in the prescribed form and complying with regulations under section 60(1)) itself containing all the prescribed terms of the agreement was signed by the debtor or hirer (whether or not in the prescribed manner).

This situation is backed by case law from the Lords of Appeal in Ordinary (House of Lords) the highest court in the land. Your attention is drawn to the authority of the House of Lords in Wilson-v- FCT [2003] All ER (D) 187 (Jul) which confirms that where a document does not contain the required terms under the Consumer Credit Act 1974 the agreement cannot be enforced.

In addition should you continue to pursue me for this debt you will be in breach of OFT guidelines. These guidelines (issued July 2003 & updated December 2006) relate to debt collections and what the OFT considers unfair, I have enclosed an excerpt from page 5 of the guidance which states;

2.6 Examples of unfair practices are as follows:
h. Ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment

As this account is clearly unenforceable, I expect you to write back and confirm that no further action will be taken and that the account is now closed and no further correspondence will take place; irrespective, unless you do supply a copy of the original agreement I will not correspond with you again and any threats will be averred and unlawful and vexatious with a counter-claim forthcoming.

Yours faithfully


Sign digitally

jadex

sofababe wrote: »

This situation is backed by case law from the Lords of Appeal in Ordinary (House of Lords) the highest court in the land.

this is no longer the case, so remove that underlined part of sentence

fuzzgun19

Nice letter Sofababe!

You say to send a copy to the original creditor and DCA. In the DCA copy, should I include a cover letter stating that I have posted a copy to the OC?

Do I still have to send the £1 PO? and should I still enclose a copy of the letter from OC about the 'system anomaly'?

thechippy

Just send the letters, no more money and guard the letter about the anomoly.

That tosh they sent would not be enforceable even if it was filled in and signed - no prescribed terms....;)

fuzzgun19

Thanks chippy

fuzzgun19

I'm still getting letters about this debt, even though I have moved house 1 year ago, they seem to have found out my address.

This time its from Lowell/Hamptons legal.

They are sending approx one letter a week, and have called a few times. The letters are the usual jargon about deciding the best course of action, CCJ, Bailiffs etc.

I havent replied, but feel I need to now.

I've sent all these DCA's various letters in the past asking for signed credit agreements, sending £1 cheques etc.

I still have the letter from Creation stating the system anomily and they can't provide the original agreement.

Which letter should I send to these latest lot, and sould I send another £1?