Being chased for a debt by a company I think owes me money?

rain_2

Hello, I already tried to post this once and made a mess of it, I'm really sorry if it appears twice. Rewriting it is good in a way as I feel a bit more coherent than I did first time round.

I'm really confused and to be honest starting to panic a bit, and I'd hugely appreciate any advice anyone could give me.

Over four years ago I had a loan with a company called London Scottish, one of those high interest loans that was costing a lot each month for what I'd borrowed. My credit rating improved and I took out a loan with a 'proper' company and phoned (yes, I know now) London Scottish to get a quote for settling the whole debt there and then. I sent them a cheque by special delivery for the amount quoted. As the cheque would have been received very close to the monthly repayment date I didn't cancel the direct debit in case my account went into arrears, they took that month's payment and the next month's before I cancelled the DD. I didn't pursue a refund because I was ill, I never heard any more from them except half a dozen more letters offering me more loans, which I didn't accept.

All summer I've been getting letters from a company called 1st Credit insisting that I owe London Scottish £240. I've contacted them explaining what happened and that London Scottish actually owe me money and asking for a refund or proof of the debt. They ignored these requests, kept sending more letters telling me to pay up, and eventually I got a letter from a debt collection agency. The debt collectors then replied to a letter I'd sent to 1st credit yet again explaining the situation, cc'ed to them, telling me they'd sent all their files back to 1st credit and they weren't taking anything more to do with it.

I got a couple more letters from 1st credit telling me to pay up, and every request I sent them for proof or a refund received a reply telling me to pay up. Eventually I got a letter saying they'd got a statement of the account from London Scottish but they wouldn't send me it unless I gave them my driving licence or passport. As I do not trust this company one inch I told them that there was no way they were getting their hands on valuable identity documents and to pay up or give me the proof. No reply.

This morning I've received a letter from a different debt collection agency telling me to pay up in seven days from when they sent the letter (the 17th) or they'd be sending the heavies round to my door to take the money.

I tried phoning 1st credit and got an answering machine saying they're shut??

I'm both terrified, and completely furious. I feel that I'm being blackmailed, and that my only option is to pay money I'm utterly convinced I don't owe. If I owed the money I'd pay it, but for over four years I've been harbouring mild resentment that I never got the overpayments refunded (which I know is my own fault) and now I'm expected to overpay even more - it's just wrong. I've never had any explanation of why London Scottish never contacted me about the supposed debt yet kept trying to get me to take out more loans, and I don't have a clue what to do.

I feel as though my only option is to pay to stop them threatening me, but include a letter saying that I'm only paying because I'm being blackmailed into it, I don't owe the money and will be seeking it and the original overpayment refunded. I know that's probably completely the wrong thing to do but I honestly don't think I have any other options.

I'm really sorry this is such a long message, I'd be so grateful for any advice. Thank you for reading.

liz105

Best advice I can give is to stick to your guns, and dont let anyone into your house. They are probably lying to scare you into paying. But they will only be debt collectors not bailiffs as they need a court order first. Dont let anyone in, dont even open the door if anyone does come round.

Have you requested the original agreement from them? theres a template for a letter on here somewhere and what to do with it etc. They have to be able to produce the agreement to enforce the debt regardless of anything else, it might be an easy way of ending the disagreement, if the 'debt' has been passed around I bet they wont have the right paperwork and are just trying it on.

chevalier

Hi there
Did you ever get a letter or statement from London Scottish showing a zero balance? If yes then send a copy of this to the debt collector in a letter that tells them that you don't acknowledge the debt, and that the enclosed is why.

Other than that would suggest a trip to the CAB to see if they can offer any other advice.
chev

rog2

Hi rain - please don't let yourself be bullied by these thugs. You have a perfect right to receive a full statement on request and the Debt Collection Agencies are legally obliged to provide you with one.

First of all, you need to get a copy of the original cca and statement of account, which they are obliged, by law, to send you within 12 working days.

Template letter:

http://www.nationaldebtline.co.uk/england_wales/temp/7124_55061.pdf

I assume that you have a record of the 'settlement' cheque being cashed, by London Scottish.

Who is the current debt collection agency?