Need advice dealing with debt collection agency

cppm64

I am in the process of organising a payment arrangement with Frederickson International debt collection services for an outstanding credit card balance of £1,067 (capital one).

I sent them a financial statement showing my income and total monthly expenditure , and they sent a reply saying that I did not mention how much I intend to pay and how often, but I'm not sure what to tell them.

Before I give them a call I would appreciate some advice on what to say to them. At the moment, the most I could afford would be £20 per month, but would they see that as being acceptable, and if so, can they force me to pay by direct debit? I really don't want to pay by direct debit for 2 reasons, one is that I don't like giving them my bank details, but also because I couldn't guarantee that there would be enough funds in my account on the payment date. I am a self employed electrician so I don't have a regular weekly wage , and things can get very tight when I am waiting for payments from customers.

Depth_Charge

cppm64 wrote: »

I am in the process of organising a payment arrangement with Frederickson International debt collection services for an outstanding credit card balance of £1,067 (capital one).

I sent them a financial statement showing my income and total monthly expenditure , and they sent a reply saying that I did not mention how much I intend to pay and how often, but I'm not sure what to tell them.

Before I give them a call I would appreciate some advice on what to say to them. At the moment, the most I could afford would be £20 per month, but would they see that as being acceptable, and if so, can they force me to pay by direct debit? I really don't want to pay by direct debit for 2 reasons, one is that I don't like giving them my bank details, but also because I couldn't guarantee that there would be enough funds in my account on the payment date. I am a self employed electrician so I don't have a regular weekly wage , and things can get very tight when I am waiting for payments from customers.

Hi

If you cannot guarantee funds in your account then it would be best to use another method of payment for obvious reasons.

Frederickson International cant force you to do anything and should / will come under the OFT guidelines on debt collection.

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/debt-collection

How much disposable income is showing on your Financial Statement and have you any other debts?

Have you taken independent advice on your debts etc?

It is difficult to help you any further really without more information, can you put up your SOA?

nottoolate

write. dont call

cppm64 wrote: »

At the moment, the most I could afford would be £20 per month, but would they see that as being acceptable, and if so, can they force me to pay by direct debit? I really don't want to pay by direct debit for 2 reasons, one is that I don't like giving them my bank details, but also because I couldn't guarantee that there would be enough funds in my account on the payment date.

if you only have £20 then that is all you pay. doesnt matter what freds think is acceptable

never ever ever ever ever set up a direct debt with a dca. standing order or bank transfer only.

DVardysShadow

nottoolate wrote: »

... never ever ever ever ever set up a direct debt with a dca.

standing order or bank transfer only.

Absolutely. And be very clear about the difference between a Direct Debit and a Standing Order.

It would probably not be unknown for a DCA to pretend they are setting up a Standing order for you when in fact they use the information given to set up a Direct Debit. You can set up the Standing Order yourself - but you need their Bank details. If they get sticky about giving you this, then you need to start sending cheques. They may bully you to give them a Direct Debit, Do not give in. They have no right to a DirectDebit

Bubbles12

Sorry if this is a silly question but why shouldn't they set up a direct debit? I don't understand the difference between that and a standing order

I have a few accounts with dca's luckily paid by standing order but just curious so I don't ever make this mistake!

nottoolate

with a debt debit the debt collector controls how much is taken and when. some have been known to take large sums without permission. or increase payments without asking.

so its advisable to be in control of exactly how much is paid and when its paid yourself

poppellerant

Bubbles12 wrote: »

Sorry if this is a silly question but why shouldn't they set up a direct debit? I don't understand the difference between that and a standing order

I have a few accounts with dca's luckily paid by standing order but just curious so I don't ever make this mistake!

Basically you are in charge of the standing order and have complete control over what you pay. A direct debit can be variable, so some shady DCAs could change the amount without telling you.

cppm64

Thank you everyone for your replys , they have been very helpful. I do have other debts apart from this one and don't have any disposable income at the end of most months so I have decided I will get some advice from CAB.