When is a debt legally in dispute ?

[RETURNED TO SENDER]

I had a debt in dispute with HSBC, HSBC part settled the dispute but before I could deal with the rest of the dispute they sold it on to a debt collection agency.

 

I agreed to pay this DCA (as forty phone calls a day off them was doing my nut in) whilst I was continuing the dispute with HSBC as I was unaware at the time that a disputed debt should not be sold on under the OFT guidelines and 13.6 of the banking code.

 

I recently went to the small claims court to try and recover the amount I had paid to the DCA as they admitted to me in writing that upon investigation the debt was in dispute when they purchased it, I also told the DCA this when they first telephoned me to try and recover money from me some months before.

 

The judge at the county court dismissed my case as he said it was not in dispute, even with the above evidence presented to him.

 

So I am a bit confused as to when a debt is legally "in dispute"

 

Any help would be most welcome !

[RETURNED TO SENDER]

Anyone ?

[phatram]

bump

[RETURNED TO SENDER]

Thanks for your support !

[phatram]

I would ask this question in the debt section.

I think you will get a response there.

Cheers

P

[Blossomandebony]

a disputed debt should not be sold on under the OFT guidelines and 13.6 of the banking code.

 

 

 

Hi, Return To Sender,

 

A debt is 'in dispute' from the moment they receive your letter explaining why you dispute it. However, the DCA will argue that it is no longer in dispute once the company involved have done their so called 'investigation' your complaint.

 

However, that is by the by, unfortunately. The reality is that District Judges will only refer to OFT guidelines when they want to, and are not legally bound to follow them anyway. Going from what I have seen in small claims court recently, most DJs want to dissuade ordinary claimants from any sort of action, whether it has merits or not.

 

BAE

[Varuna]

subbing