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What are my rights?

Liberator
Posts: 11 Forumite
Hi
I've recently decided to face and clear my debts and am a first time poster here. I am on a debt management programme and getting back on an even keel and then out of the blue I received a phone call a month ago from a collections company who are handling an outstanding debt I totally forgot about for a course I did a while ago.
At the time, I came to an agreement with the person who handled the company's finances to pay for it in installments. The agreement wasn't in writing or formal, there may have been something on email but I don't have a copy and am unsure of this.
The last payment was made on December 2007 and I was supposed to make payments up until July 2008 but my financial situation became dire. I always planned to pay back this debt but haven't been able to pay anything since then.
I never heard anything, no letters, no phone calls until a month ago. A lady from a collections company called me to tell me I owe the amount of £2882 which includes some interest that has been put on. I told her that I could only make token payments for now and would speak to my debt management company about adding it on there.
Today I received a letter saying it's being passed to their solicitor and I'm wondering what my rights are here. It seems weird to not chase the debt and then go straight to legal proceedings.
Does it matter that the agreement wasn't formal?
Does it matter that I've never received any letters chasing the debt?
Does it matter they never informed me of any interest being put on top since I didn't sign any credit agreement?
Is there a website I can find more information about any proper proceedings for chasing debt?
Can anyone help me out with any advice?
Thanks
I've recently decided to face and clear my debts and am a first time poster here. I am on a debt management programme and getting back on an even keel and then out of the blue I received a phone call a month ago from a collections company who are handling an outstanding debt I totally forgot about for a course I did a while ago.
At the time, I came to an agreement with the person who handled the company's finances to pay for it in installments. The agreement wasn't in writing or formal, there may have been something on email but I don't have a copy and am unsure of this.
The last payment was made on December 2007 and I was supposed to make payments up until July 2008 but my financial situation became dire. I always planned to pay back this debt but haven't been able to pay anything since then.
I never heard anything, no letters, no phone calls until a month ago. A lady from a collections company called me to tell me I owe the amount of £2882 which includes some interest that has been put on. I told her that I could only make token payments for now and would speak to my debt management company about adding it on there.
Today I received a letter saying it's being passed to their solicitor and I'm wondering what my rights are here. It seems weird to not chase the debt and then go straight to legal proceedings.
Does it matter that the agreement wasn't formal?
Does it matter that I've never received any letters chasing the debt?
Does it matter they never informed me of any interest being put on top since I didn't sign any credit agreement?
Is there a website I can find more information about any proper proceedings for chasing debt?
Can anyone help me out with any advice?
Thanks
0
Comments
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Who id you debt managment plan with?
if they are one of the debt charities, they can deal with the whole of this.
If they are a fee charging company, please talk to a debt charitiy urgently.If you've have not made a mistake, you've made nothing0 -
Which collections company was this? My guess is that this has been sold on to a dodgy debt collector for a pittance.
If this is a valid debt, it can be added in to your dmp. But I would want to challenge their right to add interest. There would have to have been a clause in the terms and conditions of the paperwork that you signed up to.0 -
Thanks
Ras - My debt co is Baines and Earnst and I will talk to a charity about it.
Fatbelly - The collections company is Direct Route. I will challenge their right to add interest after I've spoke to the charity.
Thanks guys0
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