Debt Help - What can be done

veggie_girl

Hello, a friend of mine started a new business as a sole trader last year & she made a mistake of signing up for a course which promised to help her make lots of money using Linkedin.
The course was £1500 in total to be paid in instalments to Helen Pritchards Linkedin Program, also known as Blue Sky Digital Marketing Limited.
She now realises she has made a big mistake as the course with Helen Pritchard didn't help her business at all and I've also looked about to see you can get similar courses elsewhere for less than £100. This has been a big learning curve for her as she is new to business.
She wrote to them and explained the situation but they keep pressing her for about £1000 that she hasn't got.
She has explained she is now on benefits as covid has killed her business.
The matter has now been passed on to a debt collector, Husband Collection Services also known as My Debt Recovery.
Even though she has explained she no money, is on benefits and struggling to survive they are threatening her with court action.
What would be the best way forward with this?

sourcrates

Hi,

This from their website -

https://www.hcservicesltd.com/litigation/

Each case is viewed for litigation based on its own merits, I suggest she only agrees to contact in writing only, then send them a letter detailing her financial position.

The threat of legal action to recover debts is as old as the hills, In the current circumstances no one will be looking to spend money they have no hope of recovering, if she dosen`t have the money, then pursuing this course of action would be pointless.

Should a letter before action be forthcoming, then offer £1 a week, there are no magic solutions to this, she signed up, now they want their money, circumstances aside, if she can`t pay it, then thats the advice.

I also note that they work on a "no collection - no fee" basis, which would explain the robust nature of their collection activity, the staff are most likley on a similar deal to add impertus to their dealings with you.

veggie_girl

thanks for the reply.
As advised she has replied back to their email but they are insisting she pays over £100 per month despite her statement she is on benefits and struggling to feed her kids.
They are demanding she completes a financial statement. Is she legally required to do so?

Carrot007

veggie_girl said:

They are demanding she completes a financial statement. Is she legally required to do so?

Of course not, but why would she want to not do something that would probably shut them up after they realise they are just wasting their own money chasing her.

sourcrates

She has no legal requirement to do anything, but i suggest she fills it in so that it shows whatever she is comfortable with paying.

As carrott007 says above, use your imagination a little.

alt80

Don't believe for a second they will take her to court - no hope recovering the money as @sourcrates says above. Don't worry about it.

veggie_girl

Thanks for the replies.
She has filled in the form and emailed it back. Despite showing her minus income figure and debt they are insisting on £25 a week and told her to reduce her payemnts to other debts.

sourcrates

They can insist till the cows come home, makes no difference to anything.

Even a court won`t make you pay more than is affordable, so there legal threat is a mute one.

I would suggest further contact between them is pointless and unproductive, tell her to pay whats affordable and nothing more, if they issue a claim, them she can set payments at the same level.

Galloglass

 told her to reduce her payemnts to other debts.

It is a non-priority debt. Rent, council tax and utilities get paid first. Reducing payments to them to pay Helen is just plain stupid and they'll know this.

Respond as a reasonable person and offer a token payment. If there is a threat of legal action, welcome it and tell them that you will ask the court to recognise your financial position and confirm a token payment is all that is payable.

In other words, as has been mentioned above, token offer first and then call their bluff.