cancelled a contract, will they bother recovering the money?

kmb500

I had a subscription to my local cinema, the service is identical to Cineworld Unlimited except it's for a small chain with only 5 sites.
The contract is 12 months @ £16.95 pm.
I have had it for 8 months, paid 8 instalments, but I'm trying to save money so I cancelled the direct debit.

If I refuse to set another DD up with them, what do you think the chance is that they actually try to recover this money? Its only £67.80 left, I wouldn't have thought they would bother, but does anyone have any experience with small companies and small amounts like this?

Also - I have never seen my credit file but what affects credit rating? I used to work for this company and we always had to tell customers that if they quit the contract early, it would not affect their credit rating and we would not chase the missing payments up. However the managers were a bit clueless and reading through the T&Cs now, it does say that they may use debt collectors to recover the money. Could this potentially affect my credit rating?

sourcrates

Hi,

How long is a piece of string ?

They may or may not chase it, usually, for such a small amount, they won't chase it for long.

However, I read another post tonight where a chap got a CCJ for a £20 debt to an estate agent, so never say never.

The only way it would affect your credit file is if they did take legal action, you lost, and didn't pay within 30 days.

National_Debtline

Hi KMB500,


Unfortunately, we can never say what the 'cut off' amount is for debts to be chased, if it is a small company this debt may mean more to them than if they were a larger one. However, we just never know what they will do. I would suggest you think of it slightly differently and rather than asking if they will, it is more of a case if they can? And they can if they want to.


If they did chase it then it would be considered a non priority debt, which means they can use debt collectors and the county court. As far as your credit file is concerned, the creditor would needed to have outlined in the contract about whether or not they can record information on your credit file, before court action. They may not be able to before a potential CCJ but if the matter got as far as a CCJ that can be recorded on your file and may mean the debt is for more than it is today.


You should also check the contract for details of interest and charges. This debt is not regulated by the consumer credit act and could incur interest at 8%. If you are trying to save money, you have to consider if this is worth the aggravation. Good luck,


Laura
@natdebtline.

Alexis95

kmb500 wrote: »

I had a subscription to my local cinema, the service is identical to Cineworld Unlimited except it's for a small chain with only 5 sites.
The contract is 12 months @ £16.95 pm.
I have had it for 8 months, paid 8 instalments, but I'm trying to save money so I cancelled the direct debit.

If I refuse to set another DD up with them, what do you think the chance is that they actually try to recover this money? Its only £67.80 left, I wouldn't have thought they would bother, but does anyone have any experience with small companies and small amounts like this?

Also - I have never seen my credit file but what affects credit rating? I used to work for this company and we always had to tell customers that if they quit the contract early, it would not affect their credit rating and we would not chase the missing payments up. However the managers were a bit clueless and reading through the T&Cs now, it does say that they may use debt collectors to recover the money. Could this potentially affect my credit rating?

I've always lived by the rule that an ignored debt is a forgotten debt.

I've knocked countless people over the years, and whether it was for as little as £10 or as much as £10,000, no one has ever botherrd me for those debts.

In this instance, it is obviously the philosphy of the business not to chase up any debts as you were instructed to inform customers when you worked there, no doubt by the same managers you are now so disparaging about.

In any event, as long as you manage to not acknowledge the debt for at least 6 years, the debt cannot legally be enforced.
That may sound a long time, but I figure if you can stay out of trouble for 12 months, you can do it forever.
Even in the unlikely event they do pursue you, as you say, it's only for £67.80, so if it looks like they are not as good as their word, pay them then, after they have done a lot of chasing.

As it's only a small company you say, I very much doubt they report to any CRA. I'm sure you would be aware if they did from having worked there yourself, previously.

rogue999

Alexis95 wrote: »

I've always lived by the rule that an ignored debt is a forgotten debt.

I've knocked countless people over the years, and whether it was for as little as £10 or as much as £10,000, no one has ever botherrd me for those debts.

You sound like a lovely person!

OP - are you just trying to save a bit of money in future or can you not afford to pay it at all?

If you are struggling to pay your priority bills and buy food then just cancel the payment and see what happens - it's a luxury and if you can't afford essentials then I would cancel.

IF - you'd just like to save money going forward, then is it worth the worry for £67? Just enjoy going to the cinema until your subscription ends then don't continue next year. You're obviously concerned or else you wouldn't have asked, so why worry for this relatively small amount. Yes you could cancel and try and get away with it - but is it worth it?

EssexHebridean

Alexis95 wrote: »

I've always lived by the rule that an ignored debt is a forgotten debt.

I've knocked countless people over the years, and whether it was for as little as £10 or as much as £10,000, no one has ever botherrd me for those debts.

Your parents must be so proud...

I *DO* hope that some of those people catch up with you in due course...

EssexHebridean

kmb500 wrote: »

I had a subscription to my local cinema, the service is identical to Cineworld Unlimited except it's for a small chain with only 5 sites.
The contract is 12 months @ £16.95 pm.
I have had it for 8 months, paid 8 instalments, but I'm trying to save money so I cancelled the direct debit.

If I refuse to set another DD up with them, what do you think the chance is that they actually try to recover this money? Its only £67.80 left, I wouldn't have thought they would bother, but does anyone have any experience with small companies and small amounts like this?

Also - I have never seen my credit file but what affects credit rating? I used to work for this company and we always had to tell customers that if they quit the contract early, it would not affect their credit rating and we would not chase the missing payments up. However the managers were a bit clueless and reading through the T&Cs now, it does say that they may use debt collectors to recover the money. Could this potentially affect my credit rating?

First off you can join up to the MSE Credit Club to keep an eye on your credit file. It's an easy sign up and I'd suggest worthwhile in any event.

Is your reason for asking about this contract that you can't afford to pay it? If so, then rather than spending the next 6 years looking over your shoulder, why not put together your SOA (Statement Of Affairs) and post it in here and we can take a look and see if there's anywhere you can free up the money to sort things out? The link can be found at the top of the board here, in the "Sticky" post there. It does seem to me at least to be a far easier route than spending the next few years wondering every time you get home whether this will be the day that the brown envelope is on the doormat waiting for you...

sourcrates

EssexHebridean wrote: »

It does seem to me at least to be a far easier route than spending the next few years wondering every time you get home whether this will be the day that the brown envelope is on the doormat waiting for you...

Come on, it's not even a proper debt, don't be so hard on the man.

They won't waste time or money chasing this, you may get a letter or two, it'll then be forgotten.

Let's just keep things in perspective here.

sourcrates

OP,

Assuming the small print is the same as cineworlds.

You can terminate the contract for the following reasons, I suggest you suddenly get ill or say you've moved.!!!!

11. Termination by you

11.1 You may terminate the Agreement during the Initial Period only where (i) the Unlimited Member is unable to use his or her Unlimited Card for a continuing period of three calendar months due to medical reasons or (ii) because the Unlimited Member’s permanent address moves to an address outside the Territory (in these Conditions, these reasons are called ‘Legitimate Grounds’). You must notify Cineworld in writing of your request to terminate, stating the reason for termination and enclosing any supporting evidence. The application must be made by phone or in writing by post or email to the Unlimited Helpline.

11.2 If Cineworld accepts that the Unlimited Member has Legitimate Grounds and You are on the Monthly Payment Plan, the Agreement will terminate one month after the date of the Direct Debit which follows receipt of the application referred to in clause 11.1 by the Unlimited Helpline. If you are on the Annual Payment Plan, Cineworld will repay You an amount equal to the value of the subscription fee for the number of remaining full months after the date of termination.

EssexHebridean

sourcrates wrote: »

Come on, it's not even a proper debt, don't be so hard on the man.

They won't waste time or money chasing this, you may get a letter or two, it'll then be forgotten.

Let's just keep things in perspective here.

It "might" be forgotten. But then again, it "might" not. I think the NatDebtLine post above sets things out pretty clearly, in fairness.

I'd be inclined to play the devil's advocate card and say "not a proper debt? No - so might as well just pay it, then, eh?"

sourcrates

EssexHebridean wrote: »

It "might" be forgotten. But then again, it "might" not. I think the NatDebtLine post above sets things out pretty clearly, in fairness.

I'd be inclined to play the devil's advocate card and say "not a proper debt? No - so might as well just pay it, then, eh?"

Well no, , with respect, I'd disagree.

The OP can use the cancellation policy if they wish.

If they do that there is no debt is there ?