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Debit Finance Collections plc - problem with them

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Hi,

I am a newbie on here but I've already noticed that there was similar thread regarding DFC plc. My situation is slightly different I believe and therefore I'd like to ask you for any opinion. Sorry for a link to pictures but I'm not allowed to embed them into the post.

In October 2008 we've signed our little lad to the Karate Academy, monthly direct debit was collected through Debit Finance Collections and it was £39/month. That's our copy of agreement (+backpage) and letter which we received later on. If you copy these links and put . instead of dot word it should hopefuly work

DD form:
picamatic(dot)com/show/2011/08/28/02/39/7821519_1024x767.jpg



backpage:
picamatic(dot)com/show/2011/08/28/02/39/7821520_1024x774.jpg


welcome letter:
picamatic(dot)com/show/2011/08/28/02/38/7821514_707x1024.jpg


On the 1st of June 2011 we received a letter saying that monthly fee will increase to £43/month.

That's the letter we received:
picamatic(dot)com/show/2011/08/28/02/39/7821521_676x1024.jpg


At this point we've decided to cancel Karate membership and on 7th of June I sent the cancelation email to the Karate Club (Not to the DFC plc. which was probably my mistake). I've also canceled DD at my bank

Situation at the moment is that shortly after DD being bounced off the've sent me a letter saying I owe them £43 (which is a monthly fee after increase) + £10 charge = £53 in total, then I've received letter saying I owe them £73 due to more charges AND my next DD is due on... because there was 90-day cancelation notice.

The thing is, that I can understand their 90day cancelation policy in small print, and if that would be the case I'd probably never argue with them and would pay them for the next 3 months... I'd !!!!ed off though. The issue I have is that the price increased and that pushed me to cancel the membership. Letter saying about fee I received 18 days before DD, so I didn't have a chance to give them 90-day notice. I'm asking myself a question - what if my local Karate Club would increase the monthly fee to £500/month? Would I still be liable for paying for the next 90 days?

This DFC plc. plays on my nerves, I sent them few replies about what I think etc. one of this letter was quite long with few questions and all they sent me back was some letters with another bills, new DD instructions, or letters saying that the will have to hand over this case to Debit Collector. I never got any proper reply off them except these automated letters.

Do you have any ideas if I stand a chance? Can they ruin my Credit Score? I know I'll be careful with small prints in the future but I can't stop thinking that paying something like £150 just for cancelling my kid's Karate membership is little bit too much.

I'll appreciate any suggestions and sorry for my English

Regards

Comments

  • vuvuzela
    vuvuzela Posts: 3,648 Forumite
    Your English is fine, better than many posters here :)
    You shouldn't look at it that you are paying 150 to cancel, look at it that you are paying 30 quid (ie an extra tenner for 3 months) and the kid is still using the facility during that time.
  • bod1467
    bod1467 Posts: 15,214 Forumite
    So what do the T&C's say? When was the contract formed and what is the duration? Is this an annual contract which automatically renews?

    Regardless, if contract terms are changed to your material disadvantage then you have the right to cancel the contract with no penalty. They must also give you notice of any changes - 14 days I think so that letter (just) complies on this count. But you can still reject the change and cancel - 90 days termination clause is irrelevant and only applies where both parties have agreed the terms of the contract (and any amendments).
  • Tangible
    Tangible Posts: 219 Forumite
    One of the letters does refer to a contract, and you should have been given a copy if one was signed. Ask to have a copy, if you were never given one, and point this out to them.

    Threats in the form you mention may not be made, in the same way that if you threatened to punch them in the face it wouldn't be legal either. They could point out that an adverse entry could be made against your record if they prove you have defaulted on a properly incurred debt, but they haven't got that far yet.

    The fact that they have confirmed to you a different notice period in their letter has damaged their case. In a similar situation I asserted that if a company wished to alter contract terms unilaterally after a contract had been signed, then it must adhere to all those terms, even if they inadvertantly benefitted me, or they could set aside all the changes. As I was being reasonable, in stating that all the changes could stand, or they could all be set aside, not allowing the other party to pick and choose, my view held.

    The more charges they add to your bill, the more likely it is that any action they take against you will fail. It is well established that penalty fees will never be allowed by any court and it is a scare tactic that some Debt Collection Agencies use.

    The debt is in dispute and tell them that, and get a copy of the contract (that you signed) if you don't have one. I copied a more formal letter you can send from another site, but keep it simple for now.
    Never ever give your card details to anyone over the phone, and check the reputation of any company you do intend to give them to.
  • Hi!

    Thank you so much for your help :)

    I've asked them for copy of my contract and they've send me this DD form and backpage I've attached. I sent them a long letter that it's a dispute and everything, I've asked them few questions and request for my copy of contract and that what they've sent me back... oh, sorry, there was also attached note "with compliments" ;)

    Bod1467, I know you've said that they must give me a notice of any changes 14 days before, and letter they've send me is dated 1st June, DD was on 15th June... I probably got the letter on 2nd or 3rd of June, so it's all around being 14 days notice, more or less... But it looks that they didn't give me any choice really - I got the letter, I wasn't prepared for paying more, I've canceled it but they're saying it's a 90-days cancelation notice. To me it looks like they should give me a 90 days + 14 days notice so I could comply with their policy.

    Tangible, thanks for all your suggestions. Which letter do you mean they've pointed to my agreement? The "welcome letter"? Do you think I should ask them for a copy again stating clearly that I want a copy of AGREEMENT not the DD Application Form? Becasue as I said, the've sent me this DD form when I've asked them for a copy of contract. You're right it says in one place a month's cancelation notice and in other place 90-days notice... even in more recent letters I received off them (the one demanding money + charges) the've said 90 days, and in the next letter, 2 weeks later the've said month's notice....

    I'll keep it simple, I'll work on a letter tonight so I can send it over the weekend. Any more suggestions what I should put in there are more than welcome, I've already said to them my point of view really, so don't want to repeat myself, unless you think it is going to work ;)

    Thanks again to everyone
    Regards
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