How much can a debt collector add to a debt?

Joshellie

Thanks for your advice, I think that this is the best course of action. Will post any updates as they happen. Thankyou again.

mr.ton

As with all DCA's - their letters are just designed to scare & intimidate you into paying up.
They have no legal power to obtain any money off you whatsoever.
Like i say - its not for them to say what a court will or wont do.
As soon as they see you wont buckle easily, they'll soon back off.

FTW

"Your debt is now due for immediate payment and we require payment in full within 3 days." - They can 'require' what they want, it doesn't mean you have to deal with them.

"After 3 days account will move to the solicitor's desk for legal action against you for the total balance outstanding, with applicable court costs and solicitors fees." - Note the underlined part. Unlike most DCAs, which use 'may' as a means of navigating around being accused of threats, HFO doesn't even have the brains to do that. The 'court costs' section is presumptuousness. Why does HFO think they will win if it went to court?

"Your dossier indicates that you can make contributions towards this outstanding debt." - There is no 'dossier', and the implacation that they have some kind of a 'stalkers file' on you is designed to cause worry. What, do they have photographs of you taken at different angles as well? Your details will have been passed to HFO in a bundle portfolio of thousands (usually on a computer disc) of similar 'accounts'. This is HFO trying to sound 'official' and failing miserably. They also do not know your personal circumstances or whether you even can 'make contributions' to what is at this moment, a 'debt' unbstantianted by them. Hopefully, MSE can see to it that you will not 'make contributions' to HFO.

"Once HFO obtains judgment against you, we will seek to enforce our judgment by way of a Warrant of Execution." - 'Once HFO obtains judgment'? I daresay any court will look at such a presumptuous statement with a dim view. Plus, 'will' instead of 'may' turns the sentence from a veiled threat into a direct thread. An OFT complaint is worth it purely for this sentence on its own.

"Court appointed bailiffs will visit you at -my address inserted - (currently registered in the name of) The Bailiffs will seize your assets which will then be sold at public auction in order to pay your debt." - Once again, 'will' instead of 'may'. 'Pay your debt', which once again, HFO haven't substantiated.

"Or HFO may also instruct its solicitors to secure an Order to Obtain Information against you, which means that you will be asked to produce your financial documents." - As above.

"If it is found out that your financial situation is better than what you represented, the court might consider taking a stern action against you." - If it is found that HFO is breaching OFT guidelines or criminal law, then the OFT and Trading Standards/Consumer Direct might consider taking stern action against HFO.

"I would wish for us to avoid such an outcome which makes paying off your debt a far more expensive proposition." - Once again, debt unproven and therefore, nothing to discuss at this point.

"Please contact me for an amicable resolution to your case." - Another lie. HFO don't do 'amicable'.

Joshellie

I have just received another letter from HFO, plus papers on 'I cannot pay my judgment' and also a tree about all that happens if I do not pay them.

It is with regret that we note, it has become clear to us as you are refusing to pay your debt. Our investigation into your account is now complete and we can confirm that your case has been qualified for litigation. You will see that the balance of your debt continues to increase.

You are now on a 72-hour notice of litigation. We should warn you that if we do not hear from you within 72 hours, your account will be passed to our solicitors for legal action. This will result in an immediate increase in the balance of your debt because HFO's legal fees will be added to your debt. You can avoid this by calling us immediately.

Once our solicitors have reviewed your case they will issue a claim form against you in the County Court. The cost of litigation will be added to your debt: this includes court fees, accrued interest and further solicitors' costs. When we have obtained a County Court Judgment against you, the cost of enforcing our Judgment will be added to your debt. Your solicitor will also be able to explain to you how we can enforce our Judgment against your income and any assets you may have. You may refer to the attached information leaflet from "Her Majesty's Court Service", which highlights legal consequences in the event of non payment of your debt.

We hope the above is clear and you can see how your continuing failure to contact us is costing you a significant amount of money. You can put a stop to all this by calling me on 0203 024 9621 within the next 72 hours

Again this is signed by Pratik Munjal.

What I'm wondering is, if they go to County Court will the court send papers to me so that I can explain?

DGJsaver

Yes they will , and make sure you attend to them
I`m betting though , your not getting taken to court.....
I love the way these cretins make the point over and again about adding to the debt in various ways , dont they realise people couldnt pay the ORIGINAL amount never mind the new , massivly increased fairytale figures they pluck from the air

Absolute scum

Fribourg

Did you send them the CCA Request? If so when? Do not call them.

FTW

I hope you've already referred the matter to the OFT (Consumer Credit Licence Fitness Section) and Consumer Direct. If so, time to instigate another complaint with them.

"It is with regret that we note, it has become clear to us as you are refusing to pay your debt." - No. You're just refusing to jump to their tune because they haven't proven anything yet. They've not proven that you owe anything, and they haven't proven that they have the legal right to collect on it. Has the CCA request gone in and when did they get it? If it was received by them before they sent the letter you typed up in post 32, then this is a big OFT no-no - continuing collection activity after the CCA request exceeds the 12+2 default status.

"Our investigation into your account is now complete and we can confirm that your case has been qualified for litigation." - They haven't 'investigated' anything. The 'qualified for litigation' means the next tray bundle.

"You will see that the balance of your debt continues to increase." - No it doesn't. They can't add their own charges on at will, and they know this perfectly well.

"You are now on a 72-hour notice of litigation." - An empty, impotent threat which means nothing.

"We should warn you that if we do not hear from you within 72 hours, your account will be passed to our solicitors for legal action." - Another direct threat. I'd take that as blatant intimidation and lodge a complaint with the police as well as the OFT and Consumer Direct.

"This will result in an immediate increase in the balance of your debt because HFO's legal fees will be added to your debt." - More presumptuousness on HFO's part. IF it went to court, and IF they won, a judge will decide how much extra (if anything) HFO are entitled to. Besides, there is an interesting recurrent thread on Consumer Action Group, concerning the legality of HFO's purchasing of accounts (there is issues between 'HFO Services' and 'HFO Capital'). Might be worth reading through that.

"You can avoid this by calling us immediately." - Not an option.

"Once our solicitors have reviewed your case they will issue a claim form against you in the County Court." - 'Will' instead of 'may'. Another threat. Worth contacting the police on this one.

"The cost of litigation will be added to your debt: this includes court fees, accrued interest and further solicitors' costs." - That's IF HFO won in court, and IF a judge decides they're entitled to any of this.

"When we have obtained a County Court Judgment against you, the cost of enforcing our Judgment will be added to your debt." - 'When'? They seem very sure that they'll get a CCJ against you, regardless of what a judge may say. Again, blatant attempt at intimidation.

"Your solicitor will also be able to explain to you how we can enforce our Judgment against your income and any assets you may have." - Yep, they seem 100% sure they'll win. Why bother mounting a defence? In their eyes, HFO have already won.

"You may refer to the attached information leaflet from "Her Majesty's Court Service", which highlights legal consequences in the event of non payment of your debt." - You could send a letter back to HFO explaining possible consequences of continuing to flout OFT guidelines, and what the possible criminal penalities are for extortion, threats and intimidation.

"We hope the above is clear and you can see how your continuing failure to contact us is costing you a significant amount of money." - No, I can't see it actually.

"You can put a stop to all this by calling me on 0203 024 9621 within the next 72 hours" - Beneath comment.

lindann_2

could this be of use to you,

not giving an indication in credit agreements of the amount of any
charges payable on default
d. applying unreasonable charges, for example, charges not based on actual
and necessary costs
e. applying charges which are disproportionate to the main debt.




it is the methods by which the debt is collected that can be
unfair as follows:
• it is unfair to pursue the debt if the debtor has heard nothing from
the creditor during the relevant limitation period
• if a creditor has been in regular contact with a debtor before the debt
is statute barred, then we do not consider it unfair to continue to
attempt to recover the debt
• it is unfair to mislead debtors as to their rights and obligations, for
example, falsely stating or implying that the debt is still legally
recoverable and relying on consumers not knowing the relevant legal
provisions, and
• continuing to press for payment after a debtor has stated that they
will not be paying a debt because it is statute barred could amount to
harassment contrary to section 40 (1) of the Administration of
Justice Act 1970.

lindann_2

the above may apply to our selves, as a debt company is asking for £360.00 which silly us we paid £140.00 when the debt is only £40.00.

It beggers me that why did not the company who we owed money too! ask for it in the first place rather than just hand it over to their collection debt recovery people.
any way we sending a cca, which l doubt that the company will not have a agreement etc. Plus £1.00 postal order do not send them a cheque etc. just a postal order when you doing a cca.

Joshellie

Thankyou DGJ Saver and FTW for your advice, I did request a CCA about 5 days ago, their latest letter is dated 29 July, so presumably they'd received mine before that was sent to me. I think I'll just hold tight until I hear from the court.
It makes me laugh as they keep saying that I am quite capable of paying this £1173 (and rising) I have only a state pension as does my partner and we live in privately rented accommodation, we do have a car but it's a motability one so that's not going to be taken.
As long as the court do contact me and I can send copies of the intimidating letters and photographs. I will now go onto the OFT website and make them aware of what has been going on.
Thankyou both once again.