Credit Agency Seeking Repayment on Loan - Advice Needed Please Help!

chris.hoops78

In November last year I received an unexpected letter at my new address, from a debt collection agency, requesting that I pay roughly £250 in outstanding charges on a loan that I took out about three years ago with another company.

As far as I was aware the term of the loan had completed in October 2006, with no outstanding charges. However, it appears that this was not in fact the case, and that I had missed a number of months payments (totalling roughly £80, I have checked this )).

Being rather shocked at the amount of the outstanding balance, I queried this with the collection agency, and requested that they get back in touch with my original creditors to obtain evidence of any charges applied to the account, and hence prove that the total requested is in fact owed by me. An agreement was reached with the agent, and so I decided to wait unless their next communication.

This all happened before Christmas. Today I received a letter asking me to pay again, and stating that unless i contacted them within 48 hours, they would advise a debt collection service to take action, and possibly instigate legal proceedings. They said in their letter that mail sent to me had been returned, which I believe is rubbish, however I have no way to prove this. They have my telephone number and so could have easily contacted me to explain this at the time. I am obviously still waiting for proof that the amount outstanding is correct.

Before I call them to resolve this tommorrow, I wonder if any one can advise me - is it my legal right to seek evidence that the balance is correct? The discrepancy between what I 'should' owe and what they are asking is obviously quite large, although i appreciate this could easily be made up in late charges, interest etc.

What is very annoying is i did not receive a single letter from my original creditor informing me that i had missed any payments, they were all slapped on at the end. Unfortunately I moved away from the address in October 2006, so I must have missed their final letters regarding the outstanding balance. As far as I knew however, the term of the loan had expired and all payments were up to date. Just goes to show you need to keep a really good eye on things - oh well, i'll know next time.

Anyway, I do need to know if I have a legal right to seek the information on my account balance/charges etc. before paying them this sum which, as far as I know, they could have pulled out of thin air. Any advice would be gratefully received.

[Deleted User]

Firstly don't speak to these companies on the telephone, if they're pursuing you for money then you might get pressured into entering an agreement that isn't affordable. Keep everything in writing so you can create a paper trail.

Secondly, send them a request under the Data Protection Act to get the details of exactly what you've paid and what charges/interest has been levied onto the balance. This is your legal right to gain access to this information. You'll need to send a cheque or postal order for £10 for this and they should provide this to you within 40 days.

Once you've got the information you'll be in a much stronger position to negotiate.