Money Shop - Bounced Cheque

MissChaos

Hi,

Just looking for a bit of advice for the other half

He currently has a debt with the Money Shop for almost 900 quid, though it appears this has been sold to several debt collectors.

The issue surrounding this is that when working for his previous employers, he cashed his paychecks with the Money Shop only for the employer to go in to liquidation and thus the cheques given to the Money Shop bounced.

Because of this, they now want my partner to repay the 900 pounds whereas he doesn't believe he should have to as really, the debt is between his ex-employer and the Money Shop as the cheques he cashed were payment for hours worked.

I guess what I want to find out is, is the debt his? How do we go about getting it written off if not?

Just seems pretty unfair

MusicalLawyer

I know it seems unfair, however the debt is in your partners name, therefore they are liable for this debt.

MissChaos

Even though his employers never paid up?

Have been pointed in the direction of the insolvency service but not sure if that's really who we need..

BlushingRose

Yep, I'm afraid it looks as though your hubby is liable for this as he was the one who cashed the cheques using The Money Shop. Had he put them into the bank and waited for them to clear, you might have some sort of claim.

Might be worth ringing one of the money charities for advice?

MissChaos

Typical! This is where impatience gets you huh lol..

How likely is it that he could try and claim the debt amount from the bust company then just... use that to pay off the debt?

BlushingRose

MissChaos wrote: »

Typical! This is where impatience gets you huh lol..

Possibly

MissChaos wrote: »

How likely is it that he could try and claim the debt amount from the bust company then just... use that to pay off the debt?

I dunno, to be honest, might be worth a shot. But in the meantime, you'll have to start paying it off yourselves I think.
Again, one of the free debt charities might be able to advise..

skintandfat

You could call their bluff

Tell them you don't aknowlege the debt and they should prove it or take it to court

tobiascurious

MissChaos wrote: »

Hi,

Just looking for a bit of advice for the other half

He currently has a debt with the Money Shop for almost 900 quid, though it appears this has been sold to several debt collectors.

he should definitely approach one of the debt charities

timbstoke

MissChaos wrote: »

he doesn't believe he should have to as really, the debt is between his ex-employer and the Money Shop as the cheques he cashed were payment for hours worked.

Not true. Your partners ex-employer promised him £900. He, completely seperately, promised the Money Shop £900. Therefore, your partner is still owed £900 from the ex-employer. And, again completely seperately, your partner owes the Money Shop £900.

Unfortunately, your partner isn't likely to see any money from his ex-employer if they've gone into liquidation. However, that doesn't change the fact that he owes the Money Shop the money that they lent him in good faith. I'm sorry if that's not what you want to hear, but that's the situation.

Look at it this way - if you'd put the money into a bank, then spent it, the bank would have just taken the money back, leaving you overdrawn and probably charging you a fortune for the privilege. In that sense, cashing the cheque via the Money Shop may have actually saved your partner money.

MissChaos

Thank you all for the replies, I realise there may not ever be a perfect solution to this but I just wanted advice.

I'm hoping to arrange a direct debit for a few quid a month - I believe that if you offer anything they're obliged to accept?

Will keep chasing ex-employer though... few free phonecalls and an hour or so of my time is well worth a possible 900quid reduction in debt!

poppasmurf_bewdley

MissChaos wrote: »

Typical! This is where impatience gets you huh lol..

How likely is it that he could try and claim the debt amount from the bust company then just... use that to pay off the debt?

Don't hold your breath.

I once worked for a firm that went into liquidation and it took two and a half years to get my wages from the administrators.