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Rossendales Collect - am I doing the right thing?
Bicks
Posts: 29 Forumite
On Saturday (11.9.10) I recieved a letter from Rossendales Collect demanding £935 for a housing benefit overpayment I recieved in 2008 and unsuccessfully appealed twice.
Since then I have been paying the council £40 a month which is the minimum they would accept. About 4 months ago I re-organised my bank accounts so I had a bills account and a current account so i had more control over where my money was going and forgot to add the standing order to the council onto the bills account. I moved house in August and realised that the £40 had not been coming out so I called the council to apologise, change my address with them and get their bank details to set up the standing order again. I should add that I've been struggling finacially recently but have not missed a single payment on any of my commitments except this.
Then I get this letter from Rossendales demanding the full amount less than 2 weeks later? The letter stated that if I didn't make contact within 7 days of the date of the letter then further action would be taken. I called them on Saturday but they are closed so I called on Monday and asked how I could resolve this as I don't have the full amount. They said that there is no option to settle for a reduced amount as it is taxpayers money I owe. The woman I spoke to (Michelle) said I should email her a Statement of my Affairs along with an offer of payment. She said the least they would accept would be £30 per month. I sat down and wrote this email:
[FONT=Arial, Helvetica, sans-serif]FAO: MICHELLE [/FONT]
[FONT=Arial, Helvetica, sans-serif]Dear Michelle,[/FONT]
[FONT=Arial, Helvetica, sans-serif]RE: ********** BOROUGH COUNCIL - HOUSING BENEFIT OVERPAYMENT OF £934.55 [/FONT]
[FONT=Arial, Helvetica, sans-serif]CLIENT REF:********/YOUR REF:***********[/FONT]
[FONT=Arial, Helvetica, sans-serif]Further to our telephone conversation, as requested, I am providing you with a written statement of my financial position and affairs relating to the current outstanding amount you have taken over from **********Borough Council.[/FONT]
[FONT=Arial, Helvetica, sans-serif]The amount in question is outstanding due to a miscalculation by **********Borough Council for housing benefit paid during 2008-2009. The amount I received was deemed an overpayment several months following the final payment by *******BC and requested to be repaid. Following two unsuccessful appeals to have the amount written off by *********BC, I accepted, through having no other option, to repay the amount at the minimum monthly amount as set by *******BC which was £40 per calendar month.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Having been unable to meet this monthly repayment and ********BC refusing to accept a lower monthly repayment figure, the repayment was not maintained and hence the debt was taken over by you.[/FONT]
[FONT=Arial, Helvetica, sans-serif]I am currently a full time student, undertaking a 3 year NHS funded degree in Midwifery which requires me to work full time hours in return for a monthly bursary. The hospital at which I am placed by the university is located in *********, but I attend university in ******** for my lectures, which is a 170 mile-round trip each day. This leaves me with little spare time to earn any extra income. I also have part time employment, however due to the demands of the course I am currently undertaking I am unable to complete more than a few hours a week, which considerably lowers my potential for any additional income. I am beginning the final year of my studies this week and will be looking to graduate and become employed as a practicing midwife in September 2011.[/FONT]
[FONT=Arial, Helvetica, sans-serif]I am at a loss as to what you would be willing to accept as a monthly repayment amount, as you have already stated during our telephone conversation that your minimum amount would be £30 per month. My concern is that as I had been unable to meet the £40 per month as set by Barrow BC to repay the debt initially, that only reducing this amount to £30 would still be unmanageable in my current financial situation. Having never been in this situation previously, I am finding it difficult to understand your criteria for repayment based on a person’s financial standing. If you could provide me with some advice along these lines, I would be more than willing to reach a mutually agreeable way to repay this debt, in a manner that does not render me further unable as I am to meet other financial commitments.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Please see below a breakdown of my current income and expenditure:[/FONT]
Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary
Total monthly income
Monthly expenses (incl. HP & secured loans)
Available for debt repayments
UNsecured debt repayments
Amount short for making debt repayments
Personal Balance Sheet Summary
Total Assets (things you own)
Total Secured & HP Debt
Total Unsecured Debt
Net Assets
Income, Expense, Debt & Asset Details
Income
Monthly income after tax (NHS Bursary)
Other income (from part-time work)
Total monthly income
Expenses
Rent
Electricity
Gas
Water Rates
Mobile phone
TV Licence
Internet services
Groceries etc.
Petrol/diesel
Road tax
Car Insurance
Car maintenance (including MOT)
Royal College of Midwives Student Fee
Total monthly expenses
Unsecured Debt Description
Credit Card 1
Credit Card 2
Student Account Overdraft
Rossendales Collect
Unsecured Debt totals
[FONT=Arial, Helvetica, sans-serif]I am sure that this breakdown of my income and expenditure goes some way towards explaining my current situation. I hope you will take all of these factors into consideration when reviewing my case and I am happy to discuss any of the information I have provided with you in further detail. Should you need to contact me, you can reach me by return of email or on ******** or *******.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Yours sincerely,[/FONT]
I emailed this on saturday night and it is now wednesday and i have not heard anything further. What should my next move be? Did I do the right thing? Sorry this is so long but I'm so worried. Any thoughts or advice or moral support would be much appreciated.
Since then I have been paying the council £40 a month which is the minimum they would accept. About 4 months ago I re-organised my bank accounts so I had a bills account and a current account so i had more control over where my money was going and forgot to add the standing order to the council onto the bills account. I moved house in August and realised that the £40 had not been coming out so I called the council to apologise, change my address with them and get their bank details to set up the standing order again. I should add that I've been struggling finacially recently but have not missed a single payment on any of my commitments except this.
Then I get this letter from Rossendales demanding the full amount less than 2 weeks later? The letter stated that if I didn't make contact within 7 days of the date of the letter then further action would be taken. I called them on Saturday but they are closed so I called on Monday and asked how I could resolve this as I don't have the full amount. They said that there is no option to settle for a reduced amount as it is taxpayers money I owe. The woman I spoke to (Michelle) said I should email her a Statement of my Affairs along with an offer of payment. She said the least they would accept would be £30 per month. I sat down and wrote this email:
[FONT=Arial, Helvetica, sans-serif]FAO: MICHELLE [/FONT]
[FONT=Arial, Helvetica, sans-serif]Dear Michelle,[/FONT]
[FONT=Arial, Helvetica, sans-serif]RE: ********** BOROUGH COUNCIL - HOUSING BENEFIT OVERPAYMENT OF £934.55 [/FONT]
[FONT=Arial, Helvetica, sans-serif]CLIENT REF:********/YOUR REF:***********[/FONT]
[FONT=Arial, Helvetica, sans-serif]Further to our telephone conversation, as requested, I am providing you with a written statement of my financial position and affairs relating to the current outstanding amount you have taken over from **********Borough Council.[/FONT]
[FONT=Arial, Helvetica, sans-serif]The amount in question is outstanding due to a miscalculation by **********Borough Council for housing benefit paid during 2008-2009. The amount I received was deemed an overpayment several months following the final payment by *******BC and requested to be repaid. Following two unsuccessful appeals to have the amount written off by *********BC, I accepted, through having no other option, to repay the amount at the minimum monthly amount as set by *******BC which was £40 per calendar month.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Having been unable to meet this monthly repayment and ********BC refusing to accept a lower monthly repayment figure, the repayment was not maintained and hence the debt was taken over by you.[/FONT]
[FONT=Arial, Helvetica, sans-serif]I am currently a full time student, undertaking a 3 year NHS funded degree in Midwifery which requires me to work full time hours in return for a monthly bursary. The hospital at which I am placed by the university is located in *********, but I attend university in ******** for my lectures, which is a 170 mile-round trip each day. This leaves me with little spare time to earn any extra income. I also have part time employment, however due to the demands of the course I am currently undertaking I am unable to complete more than a few hours a week, which considerably lowers my potential for any additional income. I am beginning the final year of my studies this week and will be looking to graduate and become employed as a practicing midwife in September 2011.[/FONT]
[FONT=Arial, Helvetica, sans-serif]I am at a loss as to what you would be willing to accept as a monthly repayment amount, as you have already stated during our telephone conversation that your minimum amount would be £30 per month. My concern is that as I had been unable to meet the £40 per month as set by Barrow BC to repay the debt initially, that only reducing this amount to £30 would still be unmanageable in my current financial situation. Having never been in this situation previously, I am finding it difficult to understand your criteria for repayment based on a person’s financial standing. If you could provide me with some advice along these lines, I would be more than willing to reach a mutually agreeable way to repay this debt, in a manner that does not render me further unable as I am to meet other financial commitments.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Please see below a breakdown of my current income and expenditure:[/FONT]
Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary
Amount(£)
509
538.75
-29.75
65
-94.75
Personal Balance Sheet Summary
Amount(£)
0
-0
-7,434.55
-7,434.55
Income, Expense, Debt & Asset Details
Income
Amount(£)
384
125
509
Expenses
Amount(£)
232.5
24.75
24.75
14
20
6
8
80
80
17.08
25
5
1.67
538.75
Unsecured Debt Description
Debt(£)
Monthly(£)
APR(%)
2000
40
15.9
1000
25
16.9
3500
0
0
934.55
?
?
7434.55
65
-
[FONT=Arial, Helvetica, sans-serif]I am sure that this breakdown of my income and expenditure goes some way towards explaining my current situation. I hope you will take all of these factors into consideration when reviewing my case and I am happy to discuss any of the information I have provided with you in further detail. Should you need to contact me, you can reach me by return of email or on ******** or *******.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Yours sincerely,[/FONT]
I emailed this on saturday night and it is now wednesday and i have not heard anything further. What should my next move be? Did I do the right thing? Sorry this is so long but I'm so worried. Any thoughts or advice or moral support would be much appreciated.
0
Comments
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Apologies for the formatting - it looked ok before I submitted it!0
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Its not for the council to say what they will & wont accept - £40 is way too much in my view.....if you offer £1 per month then tough on them if they refuse to accept it.
Rossendales are not bothered how much you do or dont have - they just want payment & are trying to bully it out of you.
Its not for them to say what the minimum is that they will accept either - they have no legal authority to any money off you whatsoever, only a county court does.
I would consider reporting your council & Rossendales to all the relevant authorities....;)0 -
Oh & 1 more thing...stop speaking to these clowns on the phone and refuse to answer security questions if they phone you.
Report Rossendales to the OFT & trading standards if they refuse to stop harassing you.0 -
I want to do everything I can to prevent a county court judgement or bailiffs so I don't want to be seen to be difficult. The council are no longer involved as they seem to have passed the debt onto Rossendales Collect. Should I call the council to verify that they have definately passed the debt on?
Also, Mr.Ton, how do you know that the council won't accept less? They always maintained to me when I called them that no matter what my finacial circumstances they would not accept less than £40 per month.
Now Rossendales say they will not accept less than £30 a month and as you can see from my SOA I will struggle with that. My husband wants to know if they have any legal right to any money from him as we have a joint account (currently overdrawn to the £1000 limit permanently a couple of days after his salary goes in).0 -
How are you paying £40 per month? If you don't have it you can't pay it. Therefore the creditor must wait until your financial situation improves. If the creditor is the council they will ask the court to deal with you by asking them to get you to fill out a means enquiry. The court can then set the payment and if they set the payment at £1 per month then that's what it is. They will not send you to jail for not paying your council tax/housing benefit. You also won't get a CCJ.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Its not a case of you being difficult, thats what the DCA industry wants you to think - you are simply standing up for your rights of which the DCA industry would rather you didnt...
Regards the council - its not for them to say what they will & wont accept - you are the boss of them effectivley, not the other way round.....if for example a £1 per month was all you could afford then they would have to accept that in a like it or lump it sort of way - the same example applies to Rossendales.0 -
Ok, so it seems that because the council would not accept a lower amount from me (even though it appears from what you are telling me here that they had no right to do this in the first place), then didn't recieve a payment from me for 3 months they have now passed the debt onto Rossendales Collect which is a DCA. Therefore the council are no longer involved and I now owe Rossendales for the Housing Benefit I was overpayed?0
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OP: The council should have a policy relating to housing benefit overpayment. It may indeed have a minimum level of payback and should say what happens if you cannot pay.
As you been unable to pay, the council have passed on to a DCA to recover payment. They may be collecting on behalf of the council (so you still actually owe the council)
Your SOA says you cannot pay anything, but you are paying credit cards. I am not sure if this would be ssen as preferential treatment.
You need impartial advice on this, maybe CAB or one of the debt charities could answer for you?
I would suggest that you offer a token payment, rather than asking them. Can you strip out £5 or £10 a month?
Even if they don't agree, you need to keep paying to show willing.
If you get nowhere, I would consider emailing your local councillor and ask them if they can help you resolve the situation.0 -
OP already has a £30 overspend excluding any debt repayments. So it's strip out £30 plus another £5 or £10.NorthernLas wrote: »I would suggest that you offer a token payment, rather than asking them. Can you strip out £5 or £10 a month?
Even if they don't agree, you need to keep paying to show willing..
Why does OP need to show willing? What are the consequences for not paying this debt?:footie: Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Sorry, misread the figures. OP can only pay what they can afford.0
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