How much money will a debt collection agency take me to court over?

jasonwyn

How much money would a debt collection agency take me to court over?

I'm assuming it would not be feasible for them to take someone to court for less than £1000 ?

This question isn't related to debt avoidance.

Thanks

terryw

It depends on the agency. Some take all debtors to court. some just huff and puuf and don't take any.

DarkConvict

Less than £1000 is actually very common, because if they win the court fee is added to the debt. And the court fee is only £50 i think, and they employ solicitors full time anyway so no additional costs incur there. So many CCJs happen there is a bulk processing centre.

If they do not take you to court and you do not pay the creditor risks the debt going statute barred, getting a CCJ will secure the debt effectively until it is paid. Also if they get the CCJ they can use bailiffs to enforce it, of which you would pay the bailiff costs.

Most agencies do not bother with court action and will keep asking or sell the debt to other companies. But usually in the end they will go for court action to secure the debt. Some creditors charge in with a CCJ fairly quickly, mobile phone debts is a common one.

jasonwyn

What about Lowell are they known to take individuals to court for less than £1000?

Jesthar

Hi, jasonwyn, and welcome!

It's difficult to say without knowing the circumstances. Lowell are infamous for trying to pursue debts that cannot legally be collected through bully boy and scare tactics, but each case is different...

~Jes

RAS

You can be made bankrupt for £750, although creditors only do that if they think there is enough money to get their costs back.

jasonwyn

Also how could Lowell have my postal address as it certainly could not have been from the company I believe the debt to be from.

Very confused by this one.

Jesthar

There are many reasons, the most obvious being that Lowells are independent debt collectors who buy up debts original creditors have stopped chasing (usually paying about 2% of the amount of the debt for it, or less), even those which are absolutely unenforeable in law, then set about making a profit from them through fear and intimidation.

That means they may have your details from the original creditor, or they may just be sending out mailshots to anyone who could *possibly* be the debtor (has a similar name, etc.). So it may not even be your debt they are actually chasing. And no, they don't are whether or not the real debtor pays the debt off or not, just about getting money out of you.

One thing is certain, if Lowells have the debt then the original creditors are never going to see a penny of what you pay Lowells, and Lowells only interest is to extract as much money as they can from you. To do this they will use every scare tactic under the sun, including wild threats of court and bankrupcy. So if you have a letter asking them to call you, please NEVER do that, or you may find yourself asked being harrassed to pay a debt that is not yours. Deal with them in writing only - there are template letters you can use, as well, to protect yourself from their less legal actions.

Is it possible to know what you think the debt is for, and how old it is?

~Jes

jasonwyn

not sure about the debt - when it is from, certainly not from the last 4 years or so...

not sure it is mine.

They addressed letter is missing a letter from my name...

Hannah_10

Whoa there stop a minute- it might not even be yours. First off you want to send them the prove it letter.

Jesthar

jasonwyn wrote: »

not sure about the debt - when it is from, certainly not from the last 4 years or so...

not sure it is mine.

They addressed letter is missing a letter from my name...

Right, have you actually contacted them about it yet? Because if you haven't DON'T call them. EVER.

I think you have a couple of options at this point:

1. Bin the letter under the assumption they are on a fishing expedition, hoping someone will bite. If you read the letter, aside from the misspelt name I suspect you will find lots of terms like 'may lead to legal action' and 'could result in bankrupcy' etc. - note the use of 'may' and 'could' as opposed to 'shall' and 'will'. It's scare tactics designed to get you to call them so they can bully you over the phone. If you never hear from them again after binning the letter, suspicions of a fishing trip are confirmed. If you do, you can reconsider how you handle it.

or 2. Send them a letter asking them to prove they are chasing a debt that is both actually yours and is legally collectable. If they can't prove the debt is yours, or it is statute barred, they are breaking the law by asking you to pay it. Which, of course, they know, but are hoping you don't! If you decide on this route, there is a template letter you can use, and you should only print or type your name, not sign it (in case they forge your signature on documents to try and get you to pay - it has happened!) - we can give you a link to the letter you need.

Either which way, don't phone them, and don't be tempted to part with any money until you are *sure* the debt is both yours and legally owed.

~Jes