Disputed Debt - Can DCA still pursue? Template Letter

lvm

Hello,

Quick Q...

My friend has asked me for help in relation to a DCA pursuing her for debt.

Long story short - the debt is hers however she has a fairly good chance of disputing (gym membership - they completely messed the whole thing up, lost loads of paperwork and refused her a membership without redoing all applications again).

Original creditor asked for email of details so I emailed them giving full background of issue and disputing that the debt exists.

I then forwarded email to Philips (DCA) informing them debt is in dispute and to cease pursuing of the debt.

They have replied saying they will continue to pursue unless the original creditor informs them otherwise.

My question - is this legal? Or can I write to them saying any further correspondance will be considered harrassment and we will report to OFT, trading standards etc? Or are they completely within their rights to carry on with this?

Any help much appreciated!

Thanks!

lvm

Sorry...bumping this for any ideas!

vax2002

Has she used the services they are charging for

lvm

No. But I'm fine dealing with that.

Just wondering about the disputed debt bit - have told DCA to cease contact and they have refused. I was under the impression they had to stop - I could be wrong though!

fermi

This is what the OFT says....

OFT Debt Collection & letter Guidance

Physical/psychological harassment

2.5 Putting pressure on debtors or third parties is considered to be oppressive.

2.6 Examples of unfair practices are as follows:

h. ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.

2.8 Examples of unfair practices are as follows:

i. failing to investigate and/or provide details as appropriate, when a debt is queried or disputed, possibly resulting in debtors being wrongly pursued

k. not ceasing collection activity whilst investigating a reasonably queried or disputed debt.

lvm

That is exactly what I needed Fermi! Thanks so much!

DVardysShadow

Can you clarify?

• She took out a membership
• Gym lost the paperwork
• She was refused use of the gym due to lost paperwork
• Gym demanded a new contract to let her use the gym
• She refused to authorise new paperwork
• Gym have enough paperwork to set the DCA onto her

If this is a fair summary, then I would say that this is not a debt issue, it is fair and square consumer rights and there is no debt.

However, unless she wrote a letter of complaint at the time, her biggest problem is evidence of the crucial point: being denied use of the gym.

lvm

All those facts are correct - unfortunately she thought ignoring the letters would make them go away which is why I usually end up sorting everything out for her. Current situation is that if she went to ask for a membership card they wouldn't be able to provide it as they don't have the details needed so hopefully will be ok. Just need to try and get DCA off her back while she sorts it out with the council (the gym provider!).

Thanks for all the help!

DVardysShadow

lvm wrote: »

All those facts are correct - unfortunately she thought ignoring the letters would make them go away which is why I usually end up sorting everything out for her. Current situation is that if she went to ask for a membership card they wouldn't be able to provide it as they don't have the details needed so hopefully will be ok. Just need to try and get DCA off her back while she sorts it out with the council (the gym provider!).

Thanks for all the help!

I don't think that failure to provide a membership card is going to help here. As she has not paid, it is quite reasonable that they don't give her a membership card - refusal now would not prove the key issue here - that the reason for all this is that the council did not honour its obligations at the start.

On the facts you have confirmed, there is no debt. You'll have to do your best to argue the point with the council - and on that, a genuine [rather than a dismissive] good luck. As a learning point for your friend, if it does not work out, understanding that just walking away from a dispute and stopping the money without getting anything recorded in writing is virtually a guarantee of losing may do more good than actually winning this one.