+++ red debt collection... £1 postal order sent but.....

n_ireland_lad

hi all, great forum!

i have been hounded by red debt collection service for £155 that i apparently owe O2. I'm not so sure i do as I have had a o2 contract phone with the same number for approx.5 years and they have never attempted to cut me off etc etc.

However, I came across the letter template that this site provides asking for the credit agreement. I sent the £1 postal order with it and sent it recorded delivery.

About a week later I recieved a letter from red along with my £1 postal order. The letter acknowledged written request for the credit agreement. However it states -" PLEASE NOTE THAT THE BALANCE REQUESTED FOR PAYMENT IS A SERVICE AGREEMENT AND NOT A CREDIT AGREEMENT AS DEFINED BY THE CONSUMER CREDIT ACT 1974".

They also said that the account is on hold until the forward the requested statements from the orginial creditor. Then we can discuss how to repay!

The letter was dated 28/04/2010.

Basically whats my next move, what differance is there between credit / service agreements and how does that affect me?

Many thanks for taking time to read this!

Keep up the good work!

DarkConvict

You made a common mistake and came across CCAs when looking up debt collectors. Sadly is does make it look like you haven't got a clue what your doing to the debt collector so they may not take you seriously in future letters.

CCA is consumer credit agreement, that is loans, credit cards,s tore card, hire purchase, insurance etc.
Service agreements are not covered by a CCA as they are services not credit. Mobiles, overdrafts, utility bills, TV packages, phone lines are all service agreements.

If you owe the money you need to make an offer of payment to repay, unless you are disputing the debt is of an incorrect amount.

Template letters for offering repayment can be found here - http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6
By the way, is the debt over 6 years old since you last made payment? Or did you just stop paying your phone contract for some reason like job loss.

RAS

You would be better sending the "prove it" letter, which applies to service agreements and credit agreements.

n_ireland_lad

thanks all for advice. I'm guessin that a change of address and bank may have caused mistakes, but certainly not in the last 4 years. I still continue to use o2. So i'd be best waiting for the proof from o2? Is there a time scale they must reply in?

DarkConvict

If 02 has sold on the account you will probably have little joy with 02, so send the prove it letter to Red (who i believe are another name for lowells debt collection) - http://forums.moneysavingexpert.com/showpost.php?p=11570893&postcount=2

There is no timescale for replies as these are not legal requests for information.
Any legal requests such as a SAR (DPA 1998) would likely acknowledge the debt.

If the debt is over 6 years old, (5 in Scotland) since last payment or written acknowledgement then it is statute barred - http://forums.moneysavingexpert.com/showpost.php?p=11571227&postcount=3