Help with Credit Union Debt

[MrJohnM]

Hi there,

 

Hope I can get some help here before I call these guys Monday.

 

Basically we took out a loan with a credit union, total of £400, backed up with £200 savings as "collateral".

 

I only made 1 payment, and then had some serious family issues, then moved house, and completely forgot about it until I got a (poorly presented and written) letter today from the East of England Trade protection society claiming I owe £516.

 

My first concern is how they got my new address(which is incorrect, as is the spelling of my name), not that I am trying to dodge the debt, as I will pay it, and would have paid it previously if the credit union in question had contacted me.

 

Secondly, I only owe approximately £164 pounds on the debt, plus the interest which is about £40.

 

Any advice?

 

Thanks

[sillygirl1]

Get onto your local Trading Standards, there are a few opportunists going around at the moment trying to chase debts and adding huge fees.

 

They cannot add fees for collecting and if they send anyone round they can be told to buzz off. If you pay somebody on the door there is no guarantee that they will pass the whole amount onto their masters....

[cerberusalert]

http://www.eetps.co.uk/

 

You would be better contacting the credit union and coming to a repayment arrangement and keeping EETPS out of the loop.

[MrJohnM]

Hi there,

 

Contacted the credit uniona and they were at bit useless TBH.

 

They were unable to confirm if it was held by themselves or EETS, they said they had not sold the debt, but that EETS collected debt on their behalf, and the EETS can add charges for collection.

 

I am getting a callback tommorow from the area manager, as the woman on the phone was a bit useless and just kept repeating things she obviously had no idea about.

 

Whats the exact legislation that stops them from adding charges for collection?

 

Thanks

[cerberusalert]

EETS can add charges for collection.

No they can't, not unless it is specifically included within the original agreement.

[cerberusalert]

Page 7 http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

 

Charging for debt collection

 

2.9 Charges should not be levied unfairly.

2.10 Examples of unfair practices are as follows:

a. claiming collection costs from a debtor in the absence of express

contractual or other legal provision

b. misleading debtors into believing they are legally liable to pay

collection charges when this is not the case, for example, when there

is no contractual provision

c. not giving an indication in credit agreements of the amount of any

charges payable on default

d. applying unreasonable charges, for example, charges not based on actual

and necessary costs

e. applying charges which are disproportionate to the main debt.

[MrJohnM]

Thanks for that, will use that tommorow. Will have to see if I can find the original argreement, but I am sure the whole Credit Union thing disallowed stuff like that.