Paid "full & final settlement" last year, now new DCA wants the rest!

ivyleaf

Hope someone can advise us. I often read this board as our son is in debt, and it's great the way you all encourage each other!:beer:

Last year our son set up a DMP with Payplan. It seemed to take ages to set it up, and in the meantime he accrued an overdraft (not for the first time) with NatWest, who had steadfastly refused to close his account (so that they could keep adding charges.). He had opened a new account with another bank in the meantime. He asked NatWest to let him pay the overdraft off in instalments and they eventually agreed, but instead they passed it to a DCA. These wrote to him, then rang him. He owed £716-odd, and the guy on the phone said that if we paid it that day they would accept £600 and the matter would be closed. Our son was in such a state that I paid it on his behalf, and was assured that he would hear no more about it.

A year later, and he starts getting letters fron another DCA (AIC), asking for the other £116! I told him to send them a copy of the receipt from the first DCA, but he says he doesn't think they ever sent him one!

Is there anything he can do? He can't afford to pay it, but if there is no written proof that the £600 was in "full and final settlement" presumably he hasn't a leg to stand on? Of course if this happened now, I would ask the first DCA to confirm in writing that they'd accept £600 in full and final settlement, before parting with a penny, (not to mention negotiating a lower amount!) but this was before I discovered MSE and this board!:rolleyes:

immoral_angeluk

did he recieve a letter from them to state that the balance was settled? If not it's going to be hard for him to prove that was he paid was a full and final settlement and not just a payment towards the outstanding balance. Ask him to call the company he paid and get them to confirm the balance is settled.

roger56

ivyleaf wrote:

A year later, and he starts getting letters fron another DCA (AIC), asking for the other £116! I told him to send them a copy of the receipt from the first DCA, but he says he doesn't think they ever sent him one!

Is there anything he can do?

Surely you did not pay by cash, therefore you must have a record of payment by cheque or payment by credit card on your statements.
These are proof enough and traceable.

You are left with proving that the first DCA agreed it would be a final settlement - that seems to be more difficult. You could ask the first DCA to confirm the final settlement in writing - I suggest you don't mention the reason why, just say you haven't received confirmation of final settlement of the debt, you'll need to referenec payment dates / card used etc.

If they get awkward or won't help, a Subject Access Request will get their attention and you'll get all the info they have about you - they are legally required to give the data to you. This leaflet will help you:
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/subject_access_-_guide_for_data_subjects.pdf

Good Luck