NEXT DIRECTORY Inflated Debt

makingchanges

I had a few bad years with debt a while ago but over the last few years things have massively improved and I have started to pay back what I owe.

A letter has landed this morning from Debt Managers Services LTD with a Next Debt of £147.46. I know for a fine fact that the debt had around £20 to £30 left on it because I had been whittling it down. Stupidly I ended up forgetting about it in the midst of moving. Is there anything I can at the fact that they are trying to recover so much more than the actual debt was?

Please help. I am terrified to acknowledge the debt with them as I know it stops it from becoming statue barred. I am three years past this debt being defaulted but at the same time I want my credit rating to improve. Really dont know what to do for the best here.

sourcrates

makingchanges wrote: »

Please help. I am terrified to acknowledge the debt with them as I know it stops it from becoming statue barred. .

Hi,

I think this statement may be a little extreme, as we are talking about a relatively small amount of money, there are people on here who owe many thousands, I think a little perspective may be required.

The way to challenge this is to complain in writing to Next, if they have added excessive charges, then ask for them to be refunded, its a straightforward process.

I think the statute barred defence is pushing things a bit.

makingchanges

This is just another debt that has popped up and added itself to the pile. Hence the stress and worry. Everytime I try to make a dent in things something else pops up. It might seem extreme to you and others, but its all relative to the person although I do understand what you are saying. I can't help how much this worries me. Thanks for your reply though. How would I go about challenging the amount? I dont have a statement or anything.

sourcrates

If you have other debts, maybe you could do a statement of affairs (SOA) then the forumites may be able to suggest ways out of your current predicament.

As for the next debt, simple send, what we call, the "provit" letter to the DCA that's contacting you.

In order to collect a debt, the creditor must prove liability when asked, that normally includes a statement of account as well.


Once you have that info you can complain to Next.

The SOA link, and the "provit" letter link, can both be found here :


https://forums.moneysavingexpert.com/discussion/4895819

fatbelly

Just to be clear - the prove-it letter does not acknowledge the debt.

Do DMS say they are acting for Next, or some other company who have bought the debt?

If you choose not to pay, the owner of the debt is unlikely to try court action for such a small sum, and in 3 years time the entry drops off your credit report, with the account going statute barred a little before this.

If you have a lot of small debts it would be worth posting a soa as there might be a better strategy than (a) small payments or (b) ignoring them till statute barred.

makingchanges

Thank you for the link, I will get that done and sent on Monday.

When the statement confirms the debt has been massively inflated with charges ect, what am I actually able to do about that? Will complaining make a difference?

Thanks FatBelly for clarifying that. I have a few smaller debts and other quite substantial ones (£1000+). I'm in the midst of paying the most important ones off. Its just so frustrating that more keep on creeping out the woodwork when I think I've got a handle on things.

sourcrates

makingchanges wrote: »

When the statement confirms the debt has been massively inflated with charges ect, what am I actually able to do about that? Will complaining make a difference?

Step (1)

Make sure you ask for a statement of account in the provit letter.

Step (2)

Once you have the statement, if you believe any interest or charges have been added unfairly, then put in a written complaint to Next, (complaint goes to the original creditor as they originally added the charges) tell them they are unfair, disproportionate, or excessive, which ever applies.

Step (3)

They then have 8 weeks to investigate your complaint, if they don't get in touch after 8 weeks has elapsed, or you are not happy with there response, you can then pass your complaint to the financial ombudsman service, who will make a determination on the grounds of fairness to both parties.

Step (4)

If Next agree the charges are excessive, or if the FOS find in your favour, your balance will be reduced accordingly, you may even have it wiped, or you may get other compensation as well.

If the FOS adjudicator determines the charges were fair, you can ask an ombudsman to look at the case, if they concur, then unfortunately that's the end of the line.