34 months paying debt that is now proven not to be mine - reclaim nightmare begins

Silver_Acorn

I have been verbally challenging a debt collection company about a PayPal working capital loan I set up when I worked for my ex husbands limited company in 2018/19.

I resigned from the company in 2020 to peruse my own career.

In 2021 I was inundated with calls and letters from Wescot collections (Wescot) who have verbally told me that this debt was mine as it is in my name.

I have a job that will not allow CCJ's or adverse credit therefore after verbally challenging this I set up a payment monthly payment plan. 

After discovering the company has now closed I was left wondering about this debt and took advice from the Citizens Advice Bureau (CAB) who recommended writing to Wescot for proof of this debt. Wescot reached out to PayPal and responded with a terms and conditions (t&c) of debt which CAB reviewed and advised that I accept the debt as it is inconclusive whom the debt belongs to and that I set it up. As I have always refused to accept it was my own personal debt I wrote back to Wescot explaining that the only name mentioned on the t&c is the business and can they please provide evidence that the business debt is my personal debt as I have resigned from the business a year prior to there harassment.

Last week Wescot sent me an email saying that this debt is not mine, it belongs to the business, can I contact the business and advise them of the debt!

I wrote back asking when I can expect a refund and that finally after almost three years I can finally be free of this chain around my neck that they have ignored despite my insistence it wasn't my personal debt.
They advised that they would send the request for a refund to PayPal.
A day later they advised that a complaint had been raised about my verbal challenge of this debt initially and, that they could not refund me but that I could contact my bank and file an indemnity claim.
I contacted Halifax and they listed the thirty-four monthly direct debit payments to Wescot and filed a claim. This morning I have a decline letter as it does not meet the criteria for a claim under the direct debit guarantee.

What do I do now please?

Andyjflet

What sort of sum is this? is it worth your while going to the small claims court and filing a case. I would also write them a letter, giving them 14 days to pay the outstanding amount owed to you.You can also give them a bank account to pay the money into. 

To my mind they have admitted the liability so now should take action to sort it out, by passing you to "the company" that you worked for isnt good enough and unprofessional. Its their job to retrieve that from your husbands business. 

fatbelly

I agree. You may not have to start a claim but you should proceed along that route.As they have admitted that you were effectively bullied into paying a debt that wasn't yours, I don't see how they have a leg to stand on.

You should also complain to CAB about their advice. Even if you don't seek compensation there is at least a lesson they should learn from

Silver_Acorn

Thank you for your advice.

Thankfully I paid minimum payment to date I have made are £3,500, it could have been worse, still it has never been my personal debt to pay.

I have now sent an email advising that to add to the complaint that when I challenged them in writing they sent back 'proof' which didn't have a single name of myself nor the business just terms and conditions and a date the agreement was made. I then had to write again to Wescot to further challenge the 'proof' which is what they finally looked into and admitted it was in fact not myself personally.

I have asked them to pay within 14 days of today and given them my bank details.