two companies trying to collect the same debt.

picket_fence

Need some urgent advice. A disputed debt went to court, judgement was awarded to collection agency and a payment plan was agreed and has been adhered to. Another company has now come along claiming that the debt is theirs to collect. They were informed about the ccj and payment plan being in place, however they have ignored this information and will proceed to court themselves if the money (the full amount) is not paid.

I cannot provide full details, as the debt is not mine. What is the correct way to deal with this? What's to stop other collectors coming along and threatening court action for the same debt?! Also, I was wondering whether this means that the original creditor sold the debt to more than one company (which I thought was against the rules)?

I know I have not given full details, as I don't feel right about doing so without express permission from the person involved; but any help or advice you can give would be very much appreciated.

FireWyrm

Well, it is pretty hard to advise without more specific details, but logically speaking, only one of them can be right. What do the current creditor think is happening exactly?

My first port of call would be them. I would demand a statement of account, or written explanation as to who has the debt now. I would write to the current lot chasing this and tell them that it is 'in dispute' with the current creditor and to get lost. You are not disputing the debt, just who has the right to collect.

I assume the person in question has all relevant paperwork? If so, pitch up in court with it and explain the situation. They cant make you pay twice and they cant award a CCJ for the same debt twice, but that assumes the court is aware that two agencies are pursuing the same debt.

Either way, you need to get to the bottom of it with the original creditor. If the original creditor says "no, it's still with us", you write to the second bunch telling them to foxtrot oscar and be done with it.

National_Debtline

Great post from FireWyrm above.

I would also add that a collection agency shouldn't continue to collect for a debt which is reasonably disputed, or in this case already has a CCJ, as per the Financial Conduct Authority Debt Collection Guidance.

You could make a written complaint to the second collection agency, and threaten to escalate a complaint to the FOS if they continue to pursue.

We have a useful factsheet which provides more information on complaints here.

Best Wishes,

James @natdebtline

picket_fence

Thank you both very much. I shall pass on that information