Past Due Credit Solutions - High Admin Fees!!

[spooner1200]

Hi CAG Colleagues

I had a debt with BT to the tune of £480.00 which has now been cleared. Past Due Credit Solutions have added on top of this debt £131.46 in admin fees - to stress, I have not paid this.

 

To cut a long story short, I wrote to them in June 2011 asking for a full breakdown of their fees. A few days later, I received an acknowledgement letter and that it would look into the matter. However, I was also warned that as the debt belonged to them, there will be admin fees levied as per the BT contract, citing their 'reasonable' fees (I think not!), and PD will reply in 10 working days. Then, nothing.....until the 15th December, when I received another letter from them, requesting the same amount which they promised to investigate.

 

I wrote a complaint letter to them, stating that it was their responsibility to adhere to deadlines, and requesting another breakdown. I also cited the OFT Leaflet 664 Sec 2.9 Debt Collection Guidance.

 

I then received another letter from PD on the 29th December, offering me a lower payment offer of £98.06.

 

I rang the OFT, who advised me to ring the Telephone Ombudsman. I can't do that as I have not made a complaint to BT.

 

Also rang Consumer Direct, who were stuck as they could not find any legislation on what is termed as 'reasonable', and only a CC Judge can only make the final decision.

 

I have dealt with Debt Collection Agencies in the past, and they have been happy to waive the admin fees as soon as you mention the words OFT. For some reason, Past Due seem to be ignoring this.

 

Any ideas would be greatly appreciated.

 

Cheers.

[sillygirl1]

Do what the OFT told you to do, you do not have the arguement with BT, it is with their collections procedure. That is what is causing this issue - listen to the OFT for once, they are tightening up on legislation and trying to put a stop to the 'drip feed' effect the DCAs are having on the shaky economy.

 

If you don't complain as directed by the OFT then you are wasting your time posting on this forum.

[citizenB]

They can only apply fees that are the actual cost.. so they would most likely have to provide an accurate accounting if they decided to get funny and go to court. However, I also think that as you have paid the actual amount due, they cannot start litigation purely for their costs.

 

I am sure someone will correct me if I am wrong.

 

Do contact the Telephone Ombudsman as advised though. They are agents of BT and are equally responsible for the actions of the DCA

[spooner1200]

Hi Sillygirl

I have rang the Telephone Ombudsman, and they have referred be back to the OFT, as this is classed as a 3rd party involved debt, which they only deal with the telecommunication side of things. I'm going back to the OFT and see what else they suggest.