Help me deal with debt collection agency!!!

stinkerbell

Hi all, this is my first ever thread, so bear with me. I need some help dealing with a small debt problem. Anyway the situation is this, I was a member of a gym and paid monthly by direct debit. Then I became pregnant and cancelled my gym membership in March 2006. We subsequently bought a house and moved in July 2006. Everything was fine until June 2007, but then I got a phonecall from a debt collection agency who told me that I owed the gym 90 pounds and had to pay this as well as the debt collection agencies fees (around 30 pounds). I was genuinely surprised by this and told the debt collection agency that I had settled my payments with the gym. I told them that I was happy to pay the gym money if I owed them anything, but would not pay the debt collection agency any money as the gym had sent me no correspondence or contacted me asking for the money.

Now the debt collection agency have traced me and I have just received a letter asking for 170 pounds (no breakdown given). This has really unsettled me. I have never been in debt and don't even use my credit card if I can avoid it.

Can they really do this? I would understand if the gym had made an effort to contact me asking me for the money, but they didn't. They clearly had my phone number which they forwarded onto the debt collection agency. They could have just phoned me and I would have paid them anything I owed them. I feel like I am paying the debt collection agency because the gym couldn't be bothered to contact me.

Can anyone help me with this one? Any help will be gratefully accepted.

Gale_10

Please don't worry, there are loads of people who know so much about this sort of stuff. There are templates of letters you can write, and people who know all about the law on things like this. Someone will come along shortly!

The only thing I can really say is don't panic, you are right to not pay the debt collection agency, don't pay anyone anything unless they can prove conclusively you owe them.

All the best,
Gale

angelavdavis

Write a letter back, detailing what you have listed in your post, with dates and when/how you cancelled your agreement. Then send recorded delivery to the company concerned.

Ensure that you include the following paragraph:

In summary, I DO NOT ACKNOWLEDGE THIS DEBT as I have clearly cancelled any agreement with xxxx (gym name).

Good luck

Ange

stinkerbell

Hi Ange,

Do you think this will be sufficient? I am just worried that they will keep adding more admin costs to the money they claim I already owe them.

Just need some reassurance!!!

Thanks,

Stinkerbell.

fiveyearplan

Have you phoned or contacted the gym and asked why they have done this? They could put a stop to it.

stinkerbell

I have just sent the Debt Collection Agency a letter outlining what the situation is and stating that I am disputing this debt. I haven't phoned the gym yet, do you think I should. I just assumed they wouldnt know what I was talking about as it has been such a long time since I cancelled my contract with them. Also, if the gym can prove to me that I owe them money and I pay them over the phone, will the debt collection agency accept this, or will they want money as well?

Sorry, so many questions, but have never been in this situation before!!! I just can't believe Debt Collection Agencies can get away with this kind of behaviour!!!

fiveyearplan

I think you should start with the gym and be forceful that you did cancel when you were pregnant. If it was NOT okay to cancel at that time they should have let you know then and there where you stood. Tell them this on the phone and if you get no joy speak to someone higher up. Is this an independent gym or big chain?

stinkerbell

To write the letter, I dug up all the details and I have the cancellation agreement between the gym and myself dated the 20th February 2006!!! I don't have my statements going back that far, but am certain I did not cancel any direct debits to the gym. Need to ring the bank to confirm this though. It is an independent gym (I think!!!). They are called Golds gym. I think I will phone the bank first to find out if I did cancel any d/d's and when the last payment to Golds Gym went out. Then maybe I should call the gym. What do you think?

fiveyearplan

Yes, it would be better to have your information to hand when you speak to them. Gold's Gym is a chain (which is probably why they have the money to pursue you). Anyway why did they leave it so long to chase you?

stinkerbell

Sorry for the late reply. I asked the debt collection agency the very same thing!!! It just doesnt make sense for the gym to have my phone number and not call me for it directly or even write to me!!! Anyway haven't heard back from the debt collection agency yet, so maybe that will be it (heres hoping!!!).