help please with debt collectors

Chin

hi all

happy new year!

hoping to get some help from the experts on here. we are in a situation where some building work (loft conversion) we had done is in dispute. to cut a very long story short our builder terminated the contract about 3 quarters into the job and left us with an unfinished home.

at the same time the builder has now decided to invoice us for 'additional works' that we were never told about, nor would we have agreed to, that he claims he has done and wants the money for.

we refused, explaining that he terminated the contract leaving us in the sh*t, and also that he cannot simply decide to invoice us for works we didnt agree to nor would we have agreed to at the extortionate rates he has put against the project.

he has now advised us that we will be hearing from a debt collection agency. i'm waiting for the phone calls/letters/potential visits to our property to begin - however i'd like to know from the experts on here how best to handle the debt collection agency.

i am prepared to stand in front of a judge and contest against these charges - but want to ensure all correspondence with the debt collection agency prior to this are 'by the book'.

is the first step to respond to the DCA with a 'prove it' letter? i would like them to prove that i asked for such works to be carried out that would verify the debt.

many thanks for all your help. such a shame first post of 2017 isnt a bit merrier!

regards

National_Debtline

Hi Chin

It does sound like a prove it letter is the way to go at this point. It’s best to keep everything in writing.

We have a template letter here:

www.nationaldebtline.org/EW/sampleletters/Pages/Complaining-to-debt-collection-agencies-that-you-do-not-owe-the-debt-%28sole-name%29.aspx

James
@natdebtline

sourcrates

There is no requirement whatsoever that says you have to deal with anyone but the original creditor.

He has only passed the account to a DCA because he dosent want the time or trouble dealing with it, he still owns this alleged debt, the DCA does not.

You can ignore said DCA completely should you wish to do so.

Chin

thanks for the replies - it's been an incredibly stressful situation to date. appreciate the advice :-)

National_Debtline

For advice on the actual issue you had with the builder I think the Citizen’s Advice Consumer Helpline might be helpful.

https://www.citizensadvice.org.uk/consumer/get-more-help/if-you-need-more-help-about-a-consumer-issue/

James
@natdebtline

sourcrates

National_Debtline wrote: »

For advice on the actual issue you had with the builder I think the Citizen’s Advice Consumer Helpline might be helpful.

https://www.citizensadvice.org.uk/consumer/get-more-help/if-you-need-more-help-about-a-consumer-issue/

James
@natdebtline

I would say this is your best approach, rather than worrying about a toothless DCA.

Chin

Hi all
Hoping for some more advice on this
Today we received a letter from the collection agency.
This is their first correspondence to me.

They have stated I have five days to pay or they will take further action which may include the presentation of bankruptcy petition or proceedings in the county court.

We are obviously disputing this debt.

Does anyone have any advice here on how we should respond? What is a bankruptcy petition?

They have also slapped on a load of additional charges on top of the disputed amount. I assume this is their pay packet. Is this allowed?

Referencing the comments above regarding ignoring the DCA, what consequences will this have? Can they do the bankruptcy petition without a judge deciding if this debt is even valid?!

Any advice would be greatly appreciated.

Thanks

National_Debtline

It sounds like a fairly standard ‘we may’ do this or that but generally they’re designed to worry people into paying. The arbitrary timescales they give add to this.

A bankruptcy petition is part of the process of applying to make someone bankrupt. They would need to present you with a statutory demand before they can get to the stage of a bankruptcy petition, and you need to owe at least £5,000 for them to do so. You can apply to set aside a statutory demand and a judge can assess your liability if necessary.

This factsheet gives an overview of the statutory demand process. If it ever got to that stage it would be advisable to seek legal advice.

www.nationaldebtline.org/EW/factsheets/Pages/statutorydemands/settingasideastatutorydemand.aspx#quicklink1

Did you take advice from the CAB Consumer Helpline I mentioned previously? They can escalate a complaint to Trading Standards if necessary. I think it’s worth speaking to them if you haven’t already done so, or at least take some legal advice to make 100% sure you’re not liable. Then continue to stand your ground disputing the debt in writing.

A debt collection agency should not add costs for collection unless they have a contractual right to do so, according to the FCA rules at 7.7.2:

www.handbook.fca.org.uk/handbook/CONC/7/7.html

James
@natdebtline

another_casualty

I would have thought that ,you should be perusing them!
Have you taken pictures of the unfinished 'job'?
Definitely a rogue trader , at the very least .
Wonder what c a b , or anybody else makes of it ?
Best of luck,

Chin

Thank you for the responses.

The amount he is claiming is over £5.000 but we are disputing it as we never asked for such works to be done and did not sign / agree anything to give him permission to do so. If he even did them at all.

I spoke to CAB and they have said they will notify trading standards but not sure what else they can do to help.

What I don't understand is the following:
- surely he would have had to prove this debt to the DCA? How can they just send a letter asking for a ridiculous amount of money? I could say I've cut my neighbours lawn for the past year and he owes me £x, I'll get a DCA to sort it?

- am I best responding to this and asking them to prove the debt still? I'm surely within my rights to see some agreement/paperwork WHICH IVE SIGNED to show that he had permission to do his works.

- when you say they should not add costs unless they have a contractual right to do so could you expand on that for me a little please? Does that mean unless he makes it explicitly clear in his contract that he can add recovery costs then he can't? And again am I within my right to see a signed copy of this contract?

I've taken photos of the state it was left in, and even started having it put right.

This is a horrible situation and want it closed ASAP. I can see how these DCAs get a lot of their work done by people buckling under the pressure to have the problem just go away.

Greatly appreciate your help / advice as always. I'd buy you a beer for the troubles if I could..!

sourcrates

I can tell from your post you have never dealt with a debt collector before.

Basically this chap has engaged this company to chase this debt on his behalf.

Welcome to the world of threats, lies, complete untruths, mis-representation, yes, the world of debt collection.

This is what debt collectors do, round one, this is what we call in the trade, the "threatogram", this is what we could do, or, this is what we may do, if you don't pay in full now, letter.

Remember back to my original response to your post, this company DO NOT OWN THE DEBT, they cannot do anything to you, at all.
All they can do is "recommend to there client" what he "could" do, and nothing more.

But of course people receive these computer generated threat letters, and panic, this is there sole intention, to panic you into an irrational response.

All you need to do to shut up this DCA is to respond in writing, telling them the account with there client is in dispute, and they should cease all collection activity immediately, and return the account back to there client forthwith.

In my opinion you should then take legal action against the fool for shoddy workmanship, you can do this at money-claim online, for a small fee.

Let me just re-iterate to you so you are clear, the debt collector cannot do a thing against you, they are just this guys mouthpiece, if "he" chooses to take you to court, you would then be able to defend the claim because of his shoddy workmanship, it would only be after any court case that he could take the matter any further.

All this talk of bankruptcy is complete and utter rubbish, they rely on you not been aware of the legal process in order to frighten you.