Case 2
The 'debt' was for GBP60.00 for music CD's that the
customer received through one of the mail order clubs
(buy 3 for GBP3.00 each, and then one per month at the
'normal'). The customer cancelled the 'membership' after
completing the first year and buying all she was obliged
to buy. CD's continued to be sent and were always
returned with a plea to stop sending further CD's:
eventually the CD's stopped arriving and nothing more
was heard until now.
In both cases (not connected) a letter was sent from
different debt recovery agencies (we have copies) with
the name of the creditor, account number and the balance
outstanding: neither had any date other than the date
the demands were sent. Both said that the debtor had
ignored previous recovery attempts. Both threatened the
use of a local debt collector to call at their home,
court action and a debt recorded against the debtor.
Finally, one stated, "you have had the benefit of
goods/services supplied for which you have not paid".
We took over the responsibility to contact the
creditors/debt agencies to hopefully get these two
'debts' quashed. We made a dozen calls to both debt
agencies without getting through on any occasion. We
finally conceded that telephone contact was not what the
debt agencies wanted which left communication by letter
alone (visiting was impossible with one agency as it
used a PO Box number, and the other was too far away to
contemplate a visit).
We sent a similar letter to both agencies, in the name
of the debtors, as follows:
BY RECORDED
DELIVERY
Dear Sirs
Re: Account Number 458712 Balance Outstanding GBP60.00
In response to your letter of 2nd August 2006
I have tried to contact you by telephone almost every
day since receiving your letter. On all occasions, bar
one call when I got through automatically to piped
music, your telephone was not answered which mocks your
comment on your letter that reads "calls may be
monitored for security and training purposes".
The balance you claim is an error. The supplier of the
goods (CD's through a members club) continued to send
CD's to my home despite my numerous requests by letter
and telephone to terminate my membership (terminated in
April 2001. I subsequently sent all CD's back, unopened
and at my personal expense.
After a few deliveries the CD's stopped, a few months
after that the statements also stopped. From then, until
now, I have assumed the matter to be closed. As such,
you must contact the creditor and inform them of my
position, being, the matter is settled, the balance is
nil as no goods remain unpaid.
Please take note, you must accept my position in writing
or commence legal action which I will vigorously defend.
If you fail to send a specific response to this letter
by the 20th August 2006 I will assume the matter is
closed.
END
The Law
The law allows creditors up to twelve-years to
collect debts, however, if for a spell of six-years
(anywhere within the 12-years) the debtor is not
contacted the debt is automatically quashed. There has
also been quite a bit of press coverage on this subject
but with mortgage short-fall debts.
What's Happening Now?
The problem with the non-answering telephone was
probably manufactured by the debt agency as they are
unlikely to want to hear from hundreds/thousands of
genuine ex-customers with reasons not to pay screaming
at them on the telephone.
Neither debt agency replied to the letter, although both
'debtors' were sent overlapping demand letters. It is
probably a good sign that no further contact has been
made by the debt agencies as on receipt of such a letter
they know the profitability in pursuing the case is
virtually gone and both cases have probably been crossed
off their debt list. It's clear that the original
suppliers of the mobile phone and CD's have dumped years
worth of 'problem' accounts on to a debt agency, or the
debt agency have contacted the CD and Mobile company in
pursuit of such cases where they can automatically mass
mail out to thousands of similar cases and then split
the income with the suppliers: it MAY be the case that
the debt agencies had no intention of taking legal
action and used the letter content for scare value only.
If you get similar demand letters it is best to answer
the letter without delay (if only to stop the follow up
letters) however if you do write to them and they
continue to demand payment from you, you can either
ignore the follow ups in the knowledge that you have
answered the letter once and that is enough, or contact
the
Office of Fair Trading
(debt agency regulators and report the agency for
harassment by them continuing to contact you when you
have informed them in writing to sue you or go away! You
could of course pay them to get rid of the stress ...a
cold day... |
