Advice on debt passed to Capita

r710

Hi,

I wonder if you could share your advice on the below?

I had insurance with Sureterm for a campervan. For the first year, we paid monthly from my husband's account, but when we renewed in June 2012 we asked for the money to be taken from my account.

I noticed a couple of weeks later that the first payment hadn't been taken, so I called Sureterm, concerned that we wouldn't be covered. They explained we were covered but that they'd had problems with several direct debits being set up, and it would be resolved soon.

We then were forced to sell our campervan for financial reasons. I overlooked cancelling the insurance until October 2010.

I expected to be billed appropriately, a proportionate cost for the 5 months of insurance they we ended up with. I was then sent a letter requesting a sum that was greater (£265) than the cost of the yearly premium (£237). I queried how after just five months of cover I could owe more, even with a cancellation fee. I was not disputing my obligation to pay, but rather the sum.

I intended to take this up with the Financial Ombudsman as I felt this was a disproportionate charge but due to some unfortunate personal circumstances and if I'm honest, some burying my head in the sand, I failed to do this before Sureterm passed the debt to Capita.

I have asked Sureterm to provide me with a copy of the credit agreement under the Consumer Credit Act (not sure if this was the right thing to ask?) but they have not been able to. They say they don't have one. They say that the behaviour of both parties imply a contractual obligation.

So now Capita are bombarding me with letters, calling my husband's mobile number for me, and steadily increasing the amount owed.

- Am I too late to challenge this with the Ombudsman now?
- Is there any significance to the fact there appears to be no signed credit agreement - possibly evidenced by the fact no direct debit was ever set up?
-Should I now just get on and make a payment plan with Capita before it gets even more out of hand?

I'd appreciate your thoughts. I've never personally got into this mess with anyone before and it's really worrying me now.

Thanks for taking the time to read.

Regards,

r710

happy_bunny_2

Hi,

First thing, is this on your credit report at all?

Worth checking.

There should be some kind of agreement, there is whenever I've paid monthly for insurance.

I would tell them you are not paying until you see a copy of the agreement and breakdown of costs.

If they talk to your husband about the account in your name, they are breaking the data protection act. I suggest you write to them to complain they are calling another persons number and they should remove it or you will be reporting them to the ICO.

HB

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r710 wrote: »

Hi,
I have asked Sureterm to provide me with a copy of the credit agreement under the Consumer Credit Act (not sure if this was the right thing to ask?) but they have not been able to. They say they don't have one. They say that the behaviour of both parties imply a contractual obligation.

That's laughable! That'd be like me lending someone a tenner and then taking them to court over a broken contract 'because he smiled and winked when I handed it over, so that to me was the contractual obligation to repay.'

If they were stupid enough to not draw up any credit agreement, that's their fault. I'd go as far as to say that they're risking their status with the FSA if they're doing things like that.

Do you still have a copy of the insurance policy? They may have included a credit agreement in there. If not, then I guess the argument could be that the agreement is null and void because a contract was not signed and recorded as such. 'The behaviour of both parties' is a p!ss-poor stance from their point of view, whoever they have on their legal team who came up with that doozie sounds like they shouldn't be practicing law at all.

r710

Thanks for your replies.

It's not on my credit report.

They've given me a breakdown of the costs but no copy of the credit agreement, signed or otherwise.

I'll write to Capita and ask them to provide one, and additionally request them to stop calling my husband. Is there any particular legislation or anything I need to refer to, or template for any such letter?

If they can't provide the agreement, am I right that it's not enforecable then and I don't have to pay it?

Regards