Can I refuse to deal with debt collection agency?

jkdt0077

Hi

I owe arrears on a payment to our property management company (OM Property) and my account was "referred" to PDC Ltd - a property debt collection agency.

To clarify:
OM are the creditor that I owe the arrears to.
PDC are "acting on behalf" of OM Property. They have not bought the debt they are simply trying to collect it.

My question is, do I need to deal with PDC? It seems there is no legal obligation for me to have to deal with this third party and I would prefer to deal directly with the creditor (OM Property) - but OM refuse to deal with me and even refuse to take payment from me.

Do I have any right to insist that I only deal with the creditor as they still fully own the rights to the debt?

Thanks

chanz4

You don't have todo deal with them, however as the management company have asked for them to act on their behalf they have the same rights.

jkdt0077

Thanks chanz,

Can I insist that I deal directly with OM?
E.G. If I keep saying that I will pay OM, but only OM directly, but they do not let me, and then PDC begin legal actions.. is that fair?

jkdt0077

Does anyone have any more advice on this?

matttye

You're saying you don't want to deal with PDC, and OM are saying they don't want to deal with you. It's pretty much the same thing. OM are entitled to instruct an agency to collect debts on their behalf, just as you have the right to refuse to work with said agency - for now. You have the same option available and can instruct a debt charity or debt management company to help you.

Otherwise, it seems you're at a stalemate and the only way to get past it is court action. Court action would be fair and, in fact, appropriate in these circumstances.

If you get a CCJ, you can't refuse to pay the DCA if they are named in the CCJ just because you don't want to work with them, unless you want enforcement action to be taken against you.

jkdt0077

matttye wrote: »

OM are entitled to instruct an agency to collect debts on their behalf, just as you have the right to refuse to work with said agency - for now.

Thanks matttye.

I get that they can instruct an agency to collect on their behalf, but it's still a bit of a grey area to me that this also means I can no longer deal with the creditor. Does the instruction to an agency to collect on their behalf automatically mean that the creditor can completely refuse to deal with me? If so, do you know where can I read about the part of law that states this?

thick_tom

i would suggest you consult a solicitor.

poppasmurf_bewdley

As far as the law is concerned, the DMC are the same as the original company. Just like the man who comes to your door every week to collect the rent is working on behalf of the principal. Would you refuse to deal with the rent collector, and demand the property owner comes in person to collect the rent?

But if the PMC sell the debt to the DMC, even for a fraction of the original level, then the DMC will own the debt and you will owe them the full amount.

jkdt0077

poppasmurf_bewdley wrote: »

As far as the law is concerned, the DMC are the same as the original company. Just like the man who comes to your door every week to collect the rent is working on behalf of the principal. Would you refuse to deal with the rent collector, and demand the property owner comes in person to collect the rent?

But if the PMC sell the debt to the DMC, even for a fraction of the original level, then the DMC will own the debt and you will owe them the full amount.

I can't really answer your question above as I've never rented so don't really know the ins and outs of it. But, in the scenario above, if there was a dispute with the amount etc then I would expect to have the right to be able to deal with the property owner directly in order to resolve it. Are you saying I wouldn't have that right?

matttye

jkdt0077 wrote: »

Thanks matttye.

I get that they can instruct an agency to collect on their behalf, but it's still a bit of a grey area to me that this also means I can no longer deal with the creditor. Does the instruction to an agency to collect on their behalf automatically mean that the creditor can completely refuse to deal with me? If so, do you know where can I read about the part of law that states this?

No idea, but all consumer guidance on the subject makes reference to dealing with the DCA.

http://www.oft.gov.uk/shared_oft/consumer_leaflets/credit/oft1299.pdf

There's a general right to instruct others to carry out work on your behalf, in most sectors, isnt there. Construction companies can hire others to carry out work for them. Solicitors' firms can hire solicitors from other firms to represent their clients when they're unable to. Schools can bring in supply teachers. Factories can bring in agency workers. A company could hire a call centre to field all of their calls and direct them to the right person.

I can't think of a reason why a creditor that you owe money to can't do the same thing. Many creditors don't have the time or resources to chase up all of their debts and that's why they pass them on.

jkdt0077

matttye wrote: »

There's a general right to instruct others to carry out work on your behalf, in most sectors, isnt there. Construction companies can hire others to carry out work for them. Solicitors' firms can hire solicitors from other firms to represent their clients when they're unable to. Schools can bring in supply teachers. Factories can bring in agency workers. A company could hire a call centre to field all of their calls and direct them to the right person.

Yes, of course. But I would still be paying/dealing with the construction company, the solicitor's firm, the school, the factory, the company.. not the third party they use to help them.

If you buy a fridge from Curry's you pay £20 for delivery by a third party company - but you don't pay the delivery company direct, you pay Curry's.

I really just want to know why it's different for DCAs and where it states this in the law.