Just when I thought it was safe - please help!

[Sarah_Pussycat]

I honestly thought I'd finally paid off all my debts - until today I received a letter from a company called 1st Credit regarding an outstanding electricity bill from my old property, I was on a debt meter whilst I lived at the property and moved out in March 2006.

 

The letter reads as follows:

 

LEGAL PROCEEDINGS

 

£374.13

 

I regret the above sum remains outstanding.

 

We now intend to take legal proceedings against you. If successful it may result in:

Insert lots of scare stories designed to intimidate me here......

 

Subsequent failure to make payment could result in enforcement action;

More intimidating scare stories here..

 

If you are not resident in England or Wales legal enforcement action will be in strict accordance with the laws relating to the Country of your residence.

 

PLEASE TAKE THIS FINAL OPPORTUNITY TO MAKE CONTACT.

 

Now I DO owe the money, I admit to having completely forgotten about it as I've had a lot going on in the last couple of years. This is the first contact I've had from them since April 2006. My problem is there's no way I can afford to pay anything until January!

 

The last thing I want is for this to go to court and to start the new year in more debt - but I'm too scared to call them now, as I know from previous contacts with DCAs they'll just demand payment straight away and I'll end up in tears on the phone.

 

The only other thing i can do is see if I can get a bigger overdraft to pay it off straight away - but again i don't want to start the new year struggling to get out of an overdraft! Would anyone recommend I do this?

 

There's no timescale on the letter - how long do I have before they might start legal proceedings? Is it worth calling them now to offer part payment but not until January?

 

Please help!

[BlurredFX]

I would suggest making a Schedule of Income and Expenditure, demostrating your incomings and outgoings. They cannot get a CCJ unless they have given you opportunity to pay etc. If you cannot afford it. you cannot afford it, just make a reasonable and sensible offer and you should be OK I would have thought.

 

 

Or, as a delay, ask for a SAR, send the CCA letter etc. CCA letter is probably best as it only costs £1. That's my thoughts, anyway, for what it is worth.

[The GodMother]

No point in a cca for a gas/ele bill or company they dont fall under that rule.

 

I would S..R them as they have to deal with a S.A.R, they have 40 days to comply and that will take you till end of january.

 

Remember to enclose a £10.00 Postal order.

 

Chrissi

[Sarah_Pussycat]

I just phoned them and offered to pay the whole amount on January 1st and they declined, and said the minimum they could accept was £100 today - which I just can't afford with it being just before Christmas! I can't afford to pay ANYTHING today, but the lady on the phone said their solicitors won't wait until January..... is this just scare tactics?

 

I'll be able to pay the whole amount on December 31st, which is in just over two weeks, are they likely to have started legal proceedings by then?

 

They say they have had my account on file for 27 days and have written to me 3 times - but I only have the one letter or I would have responded sooner!

 

I knew I shouldn't have phoned them - I feel like I've made it worse! I'm so stressed now I'm actually shaking......

 

Would it help if I wrote to them offering the full amount on December 31st?

[Sarah_Pussycat]

Would the SAR actually delay any legal proceedings? I'm not disputing the debt, I just need an extra couple of weeks!

[Sarah_Pussycat]

Ok I know everyone's going to think I'm daft to panic over such a small amount, but a small amount's how I ended up in tons of debt a few years ago with all the resulting court fees and charges, and I've only just started to get back on track. And please excuse me talking to myself, it's helping me work things out in my head!

 

I've managed to get them off my back for now by paying £50 today (the final dregs of my fledgling savings account) and the whole amount in January. I said I'd set up a standing order for the rest, as I don't want any direct debits....

 

Then I called the bank, but couldn't set up the standing order as they're not open that day! But I tried..... anyway, on further consideration, I've realised that paying the whole amount will leave me with just under £100 to last the whole month, so I've been browsing the great template letters on this site and am thinking of sending them one offering half at the beginning of January and the rest on 1st February.

 

I hope that will hold off any legal action..... am I doing enough? Thanks Xxx

[Under Siege]

Sarah,

 

Try not to panic, these companies specialise in scare tactics. Follow Godmothers advice, put everything in writing and send recorded delivery. DO NOT SPEAK TO THEM ON THE PHONE.

 

I have received more threats from DCA's than I care to remember. They are usually all talk and no action.

[Lula]

absolutely Sarah, do as godmother says, ROFLMAO at the thought of a solicitor working over christmas.

 

Send the SAR, if they keep ringing you , send the harrassment by phone letter in the templates section.

 

DO NOT PAY THEM ANY MORE MONEY, until you have a breakdown of costs which they are legally obliged to send you, and do not be harrassed into paying more than you can afford.

 

When you have the SAR stuff back from them draw up an I/E sheet and offer them a realistically affordable repayment per week or per month and if they dont like it let them take you to court.

 

A court will see that you have made a reasonable offer and let you stick to it, also I would start sending them cheques when you have done the sheet AFTER you receive an answer to the SAR.

 

Send the cheques recorded delivery and photocopy them, whether they choose to accept them or not is up to them, but it will show a court (should it ever get that far) that you have been reasonable.

[Sarah_Pussycat]

Thank you so much - I've been clicking on scales (although it wouldn't let me click yours Lula - I think you've given me too much good advice!)

Can anyone point me in the direction of a template for the S.A.R. ? I can only find the bank one and it doesn't seem to fit for debt collection agencies!

[Lula]

It is the bank one you just need to adjust it to fit, hang on I will see if anyone has anything handy, give me 15 minutes to ask

[Sarah_Pussycat]

Thanks

[Lula]

right Sarah, send them this

 

Dear Sir/Madam

 

Account no:

 

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

 

I/we would point out that I/we have no knowledge of any such debt being owed to (insert company name).

 

I am/we are familiar with the Office of Fair Trading Debt Collection Guidance which states that it unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

 

I/we would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

 

Furthermore ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

 

I/we would ask that no further contact be made concerning the above account unless you can provide evidence as to my/our liability for the debt in question. This evidence would include, but is not limited to, a statement of account, the terms and conditions of the account including tariffs, a notice of assignment and a fair processing notice.

 

I/we await your written confirmation that this matter is now closed. Otherwise I will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

 

I/we look forward to your reply.

 

Yours faithfully

 

 

 

(Your Name) Print do not sign

 

it will take them till after christmas to answer, do not talk to them on the phone, tell them to put it in writing, dont waiver when they try and brow beat you.

[The GodMother]

I have this one.

 

Data Protection Act 1998

 

Subject Access Request

 

 

 

 

 

Dear Sir/Madam

 

 

ACCOUNT NUMBER: xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxx

 

Please supply me with a complete list of transactions and charges relating to my loan / credit history with your organisation. Alternatively, a complete set of statements for that period will be acceptable.

 

Additionally, where there has been any event in my account history over this period which has required manual intervention by any member of your staff, or any other person, I require disclosure of any indication or notes which have either caused or resulted in that manual intervention, or other evidence of that manual intervention in relation to my loan business with you.

 

If you are unable to supply this data because there has been no such manual intervention, then please be so kind as to confirm this in your response.

 

I enclose the statutory maximum fee of £10. You have 40 days in which to comply. Furthermore, if I discover that you have levied disproportionate penalties against me, then I shall be reclaiming them, and also reclaiming the enclosed £10 Data Protection Act subject access request fee.

 

If there is specific information which you require in order to satisfy yourself as to my identity, please let me know by return. However, please note that the above address is the one which you normally use to communicate my private business to which and me you have hitherto found to be acceptable.

I would be happy to collect the Data from my local branch.

 

 

Yours faithfully,

 

 

Give them 40 days FROM DATE OF RECIPT to get back to you.

 

This will buy you sum time.

 

Send recorded delivery minimum and DONT SEND A CHEQUE. DCAs have been known to get photoshop happy.

 

Dont sign either just print your name.

 

Chrissi

[Sarah_Pussycat]

Brilliant thanks! I shall work on a cross between the two over the weekend - just one question - won't it look strange that I just paid them £50 if I'm disputing the debt in question? Or can I just put that down to panic?

 

Hope it buys me some time!

[Lula]

yes, just put it down to panic, and it will buy some time

[Lula]

just one thing, how did you pay them the £50?

[Lula]

please dont say debit card

[The GodMother]

you can always cancel the transaction with the bank in the morning or even now depending on what bank you use.

[Sarah_Pussycat]

Debit card - they wanted to set up a direct debit to take the rest in January, but I said no and I'd arrange a standing order instead.

[The GodMother]

If you are with lloydstsb you can ring them and cancell the payment. That way they dont get the money.

 

All you need to tell them is that after the company put it threw they found you did not need to pay it and the company advised you to cancel it with your bank.

[Lula]

oh Bugger!!!!!!!

 

Never ever pay a DCA with a credit or debit card, they are very likely to take the lot, you need to get on the phone to the bank as soon as they open and tell them that you have only authorised £50, anything else will be theft, if you need to, cancel the card.

 

'then, when you send the letter to the company, in that letter mention the fact that you have only authorised a £50 one time payment and if they attempt to take anymore then you will consider it theft and report them to the police. Actually, i would cancel the card completely and make sure that you tell the bank that you want no more than the one time £50 payment to them, get it in writing

[Lula]

LOL Good thinking God mother, is that true for all banks?

[Lula]

I would try and cancel it now if I were you

[The GodMother]

Depends on the bank some of them are not 24/7 tho. if you PM me or just tell us who the bank is l will see if it is a 24/7 one for you and provide a phone number

[Sarah_Pussycat]

Do you think this might work?

How about I post a cheque (dated 01/01/2008!) for half the amount, along with a letter offering full settlement on 01/02/2008? After all, I'm not disputing that I DO owe the money. Surely then if they DID take me to court I couldn't be seen as acting unreasonably, and then they couldn't force me to pay legal charges could they?