Debt Company U-turn..Can they do it?

Miss_H

Hi All,

I am looking for a bit of advice really about something that has happened today with a debt recovery company who I had made an arrangement with. It's a bit of a long one so bear with me.

I January I made an arrangement with the debt recovery company (DRC) on a old credit card debt of £1400. They had offered a reduced settlement figure but as I was not able to pay this amount in full I offered £500 (in two lots - middle & end of Jan) and payments of £50 per month going forward. Spoke to a nice bloke at the DRC who agreed this (he checked with his managers) and said he would put it to their client and call me back. He did the next day and he sent me a confirmation of arrangement. I paid the 1st £250 over the counter using my reference number and the 2nd £250 was paid by a mate by debit card. The 1st monthly payment went out on 21st Feb. All was hunky dory...or so I thought.

I get in today after spending 3 hours in A&E to find a final notice waiting for me of £1100. So I call the DRC to find out what was going on. After querying this with the person on the phone he tells me that their client has reviewed the account and feel that becaue the debt is old, they would prefer full settlement and will be chasing me legally for it. I said that I was confused and disappointed to find that the agreement had been made and accepted by all and then not. The guy at the DRC started talking over me and then came out with "well, you have only paid £250 off the agreement anyway!". Turns out that even though I called a few days after the counter payment was made and was told that the payment had been allocated to my account...it hadn't. He said that none of his staff would be able to see the system that the payment would be on and he only had my word that they had said that. Now I wasn't being off with him in anyway but I asked if he thought I was lying about the counter payment. He said that I was being offensive and he would get someone to call me back about the missing £250 payment. I asked if I could speak and he said no. I said "i'm sorry if you think i'm being offensive, i'm not, i've just spent 3 hours in a & e, i'm in alot of pain and i'm upset" (I was crying on the phone at that point). He replied with "Well, maybe you should concentrate on getting better rather than coming on the phone and being defensive with me!". In the end he put the phone down on me after saying someone would call me back.

I know these companies get irrate people on the phone effing and jeffing at them but I don't think I deserved that. I have been open and honest all the way through about what I can and cant do and have always got back to them when I said I would.

My main query is can a DRC go back on an agreement if I have it in writing? Does it not form a contract?

Many Thanks,

in_debt_again_but_dealing_with_it

I would think not particularly if its in writing. When you speak to them again tell them that you are recording the conversation, there was a thread on here a while ago about it and you are within your rights to say this, either buy a dictaphone or bluff them perhaps that will change their telephone manner!

CLAPTON

keep to whatever agreement you came to .. it's not entirely clear..are you paying the full amount but in instalments?

anyway, keep receipts of all payments..ask your friend for a copy of his payment, do not pay by debt card in any circumstances.

gerturdeanna

CLAPTON wrote: »

do not pay by debt card in any circumstances.

Why would you not pay by debit card? It would still show up on statements.

FatJock

Miss H,

I would follow up the conversation with a letter to the DCA advising them of the conversation and the payment proposed. Ensure that this letter includes how much you will send each month, the payment method (DD, cheque etc), the payment date and then send the letter registered post (possibly with a payment if you can afford it).

As long as they cash the cheque and you do not miss a payment then you should be ok I would also chase your mate to see if the payment went out of their account and ensure it went to the correct place (it may have been rejected or sent somewhere else).

Do not let the DCA get you down. althought the debt is old and they want payment, you cannot give what you do not have. Stick to the arrangement and you should be ok. If you miss a payment then the DCA could say you've broken the arrangement and demand full settlement.

Hope this is useful to you.

regards,
FatJock

Bambywamby

As far as I am aware they cannot break a written agreement... if you have broken your side of the agreement by only paying £250 rather than £500, you broke the agreement first and this moves the goal posts for both of you.

However if it is due to their poor admin that your second payment hasn't been logged in time, I would write to them and explain the situation.
Explain what and when you have paid, giving any proof you have... dates, cheques numbers and the dates they cashed them etc and state you are willing to continue paying the debt in installments as agreed but will only allow further correspondence by letter due to their rude telephoe conduct.

That way you will not have to listen to some rude git trying to upset you on the phone.

Good luck x x

Megatimbo

Hello Miss H, when you say an old credit card debt how old is it?,also i wouldnt phone them but contact them by letter,as this puts you in control of the situation,whereas on the phone they could persuade you to agree to a payment you couldnt afford,or verbally bully you if you are upset at the time.

Also for the debt you are entitled to ask for your credit agreement under your rights of the consumer credit act 1974,the Debt collection agency must provide this for a fee of £1 ,stating that they must provide a true executed copy of your agreement with your signature on it and the credit providers.

Also ask if the DCA own the debt or or acting as agents for the credit card company,they still have to provide you with the agreement ,the time limits are 12 days from receipt of your request to provide the credit agreement ,no agreement then its unenforcable,also after the 12 days a further calender month of 30 days then the credit provider is commiting a criminal offence under the act as they have failed to supply the credit agreement in the alotted time.

Remember no agreement no debt.

Regards M

CLAPTON

gerturdeanna wrote: »

Why would you not pay by debit card? It would still show up on statements.

because with a debit card you give them your number and agree an amount... if they take a different amount or take it twice its impossible to proof what was agreed

Miss_H

Hi,

Thanks everyone for your replies.

The debt recovery company in question is Maceknzie Hall. They are chasing the debt on behalf of Cabot Financial who originally bought the debt from Barclaycard in about 2000/2001. It is a debt of mine that I had been ignoring for a long time and I decided to sort it out.

I offered Mac Hall £500 (in two installments) and then ongoing payments of £50 until the debt was cleared, this worked out at 19 months. They accepted this and confirmed it in writing. I have not broken my agreement, the £500 has been paid and I have proof of the 2 x £250 payments. They have had one monthly installment and the next one is due next week.

My sister took the letters the the CAB for me today and they have advised me to carry on paying the installments, go to the branch of RBS where the missing £250 payment was made and ask for a trace to be put onto the payment. Then send a copy of this along with a copy of the written agreement and the new final notice with a written letter outlining my position. By the sounds of the other dealing with Mackenzie hall on this website, i am better writing to them than speaking to them on the phone.

I still have not recieved a call from them today regarding the missing £250.00 payment as promised by the oh so charming man yesterday. Suprise, suprise.

To$$ers the lot of em!

Miss_H

I really wonder if Mackenzie Hall have any idea about what they are doing.

Despite me being upto date with payments and their advisors acknowledging this every time I call, I keep getting letters stating "Despite repeated requests for payment by our client your outstanding account for £X remains outstanding". Even though I have a payment agreement with them they have said that they will continue to sent me letters and they cannot stop this and have told me to ignore the letters.

angelavdavis

McKenzie Hall seem to pop up on here a lot - they are particularly abusive on the phone.

It sounds like its all in hand now which is good but I would also send them a registered letter asking that in future, as you have now agreed a payment schedule with them, that all future correspondence is made in writing.

Keep copies of everything and expect to have to dish copies of your correspondence out on a regular basis - they are cretins with poor admin processes so would rather call you a liar and send you computer generated letters than go look for the file and update it.