Debt Collection Letter - Zero Balance

bilko89

Hi Everyone,

Bit of background....I had car insurance and an old claim they say I didn't confirm to them at the time of the quotation came up and they added a huge amount onto my monthly premiums which, at the time, was completely unpayable. (I didn't think there was a claim but made a statement at the time of the accident, should have mentioned it if in doubt and have learned my lesson) I ended up not being able to pay and the insurance was cancelled, got insurance elsewhere and didn't hear anything again (this is 1.5 yrs ago).

Fast forward to today and I've received a letter from C.A.R.S debt collection, mentioning this insurance but saying the balance is zero! If i don't clear the balance further action may be taken etc... Thinking it's a typo, I go to their website, type in the details on the letter, and lo and behold, the balance is zero on there too! What do I do? Do I poke the nest and ask on the phone/email?

sourcrates

No, never assume anything.

You send them a cheque, (or some other kind of payment these days but on a cheque it looks better) for zero pounds, and zero pence.

Paid in full.

bilko89

Ok thanks for that sourcrates! I reckon a cheque is the only thing that would do the job as it doesn't allow you to make a payment of zero via card or bank transfer of course. I'll just have a covering letter accompanying the cheque confirm this is payment to pay account number "XYZ" in full.

peteuk

Out of interest - if you didn't pay the balance in full and they sent a bailiff round, what would he take as goods in payment and would you be then liable for the costs of said bailiff?  (If it got that far that is) 

sourcrates

peteuk said:

Out of interest - if you didn't pay the balance in full and they sent a bailiff round, what would he take as goods in payment and would you be then liable for the costs of said bailiff?  (If it got that far that is) 

I really wish people would not keep mentioning bailiffs, when talking about debt collection.

Debt collectors collect debts, they are powerless, and work for private companies, usually from a call centre.

Bailiffs are court appointed, and work under a county court, or High court writ, but can only be instructed after legal action has been taken, a CCJ awarded, and you fail to pay the judgement debt.

Then, and only then would the services of a bailiff be considered, and yes there are a table of enforcement fee`s payable, dependant on what stage of enforcement you are at.

peteuk

sourcrates said:

peteuk said:

Out of interest - if you didn't pay the balance in full and they sent a bailiff round, what would he take as goods in payment and would you be then liable for the costs of said bailiff?  (If it got that far that is) 

I really wish people would not keep mentioning bailiffs, when talking about debt collection.

Debt collectors collect debts, they are powerless, and work for private companies, usually from a call centre.

Apologises, I was trying to inject some humor into a non sensical situation.  Surely someone noticed the balance was zero, even if OP were to phone the debt collectors they would notice the balance is zero and hopefully close the account.   If it went to court (which we would both suggest it wont) but if it did, it would be farcical.  Even more so if Bailiffs where instructed to recover nothing...

   

sourcrates

peteuk said:

sourcrates said:

peteuk said:

Out of interest - if you didn't pay the balance in full and they sent a bailiff round, what would he take as goods in payment and would you be then liable for the costs of said bailiff?  (If it got that far that is) 

I really wish people would not keep mentioning bailiffs, when talking about debt collection.

Debt collectors collect debts, they are powerless, and work for private companies, usually from a call centre.

Apologises, I was trying to inject some humour into a non sensical situation.  Surely someone noticed the balance was zero, even if OP were to phone the debt collectors they would notice the balance is zero and hopefully close the account.   If it went to court (which we would both suggest it wont) but if it did, it would be farcical.  Even more so if Bailiffs where instructed to recover nothing...

   

Not a problem, we can all do with a little more humour in our lives.

Graham1982

@sourcrates:

Does that mean (I know the difference between the two i.e. you cannot ignore a court bailiff) that debt collectors ultimately rely on intimidation etc and do not have the right to do anything. is it in effect similar to you lend me money, I don't pay it so you send your big mate round to collect assuming I will buckle because said mate is big and potentially aggressive?  

sourcrates

Graham1982 said:

@sourcrates:

Does that mean (I know the difference between the two i.e. you cannot ignore a court bailiff) that debt collectors ultimately rely on intimidation etc and do not have the right to do anything. is it in effect similar to you lend me money, I don't pay it so you send your big mate round to collect assuming I will buckle because said mate is big and potentially aggressive?  

Yes, debt collectors are just normal workers like you or I.

No special powers, just normal individuals, who happen to collect debts for a living.

They have the same recourse to use the courts, again, just like you or I do.


Then there are bailiffs, there are various types including "County court" and "High court" bailiffs, both have very similar powers of entry, and the ability to take goods in lieu of payment, none of them can force entry to your home, unless they are chasing unpaid criminal fines, tax or stamp duty, and then only as a last resort, so you do not have to allow them entry.

Obviously if its an eviction they are carrying out, then they will be acting under a court order, and can force entry.

All bailiffs can enter peacefully through an unlocked door, they can be sent to collect many different types of debt, so if you don`t want the hassle of dealing with them, make sure you make arrangements to pay your debts before it escalates to this stage.