Collection agency problem - advice sought

Tiglet

I have a long-running problem with an old telephone bill that has been passed to a collection agency.

When I changed supplier I was sent a final reminder for the outstanding balance on my old account, followed by a solicitor's letter, even though my bill was being paid by direct debit. I phoned to ask what was happening and they told me that the DD had been cancelled (in error) and they could no longer collect payments that way. I said I would pay the balance at the same rate as the DD would have been. I made the first payment and then forgot about it.

The next I heard was when I received a letter from a collection agency demanding the original amount plus their fees on top. I checked with my bank and found that the DD had not been cancelled at all, merely that the phone company had stopped using it. The bank says there is no reason why they could not use this to collect any money owed to them.

I am pursuing a complaint against the phone company, but the provisional decision is that they are in the right. Meanwhile the collection agency wants money today or they will start court action (more costs). My view is that I have made the money available to them but they have chosen not to take it.

Does anybody know whether they are within their rights to pursue this via a collection agency/courts, given that a DD is still in force?

rog2

Hi Tiglet - If you have registered a complaint against the phone company, which sounds completely justified to me, you are, effectively putting the 'alleged debt' into dispute.
It is against the OFT guidelines on Debt Collection, for a Debt Collection Agency to pursue ANY debt which is in dispute with the original creditor:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

Tiglet

Thanks for that, Rog2. I thought that was the case.

Something I did earlier was to phone the OFT and ask them whether this sort of thing broke their guidelines. They said that it did, but that there was nothing they could do about it! They advised me to complain to OTELO, which is what I've done, but I'm still getting letters from the DCA.

Can you tell me what are the implications of a company breaking the OFT guidelines - does this mean that they can't collect the debt, or do I need to pay it and then complain against them separately?

rog2

I think that you should write to the DCA and TELL them that the 'alleged debt' (always use the word 'alleged') is in dispute with the original creditor. Inform them that, by continuing to pursue the alleged debt, they are acting in contravention of the OFT Guidelines for Debt Collection, to which they should adhere, and tell them to cease there 'collection demands' forthwith.
Always preface your letters with the words; 'I do not acknowledge ANY debt to your company'.
You can, also, report the Debt Collection Agency to the Trading Standards Office - I would advise reporting them to the Trading Standards Office which is closest to THEIR address.
You can put in your letter that 'any further attempt, by them, at collecting this 'alleged debt' will be instantly reported to the Trading Standards Office, and the FSA (Financial Services Association) and that any action, through the courts, that they attempt to take, will be vigourously contested.

Tiglet

Thanks again for that. It sounds like very good advice. This is the first time I've actually felt as if I know where I'm going with this.