Credit Resolution Services (CRS) & Equidebt Ltd (EQL) chasing gym membership payment

[sexyrb]

Hi All,

 

I'm brand new to this forum so apologies if I've posted this in the wrong forum but this looked to be the most relevant section.

 

I took out a gym membership with Bodyzone in Newcastle upon Tyne and initially agreed a 12 month contract at approx £32 per month. However, during my contract, the gym changed their membership packages, removed the 12 month contract element and dropped their monthly subscription to approx £15 with no contract. I enquired as to whether I could change to this new arrangement and was advised (in writing, via email) that as I had completed 6 months of a 12 month contract I could be changed over immediately and should contact the receptionist at the gym to arrange. I did so (in person) and was advised to cancel my existing direct debit and the gym would take care of the rest.

Due to an injury (sustained at the gym) I did not attend the gym again and assumed as I had written confirmation that I would be moved to the new arrangement (no contract) that I was under no obligation to make any further payments as long as I did not attend the gym. Over the following months I received no further correspondence from the gym, but received a letter from a company called Credit Resolution Services who claimed that I was in debt to them to the sum of £231.50.

 

I contacted CRS and advised that I did not accept their claim nor acknowledge any debt to either CRS or Bodyzone gym. I explained the situation and forwarded the email confirmation I had received in writing from the gym manager. I advised that I would not correspond by telephone and that all contact should be in writing. I was contacted again by CRS some months later advising;

 

"Further to the above matter, we have spoken to (Receptionist) @ the Gym, whom has confirmed, that as you did not pay the required Transfer Fee in the sum of £30.00, your Membership was never changed.

 

In view of the above, this debt is valid and due."

 

The confirmation email that I received did not mention a "transfer fee" nor was this mentioned when I visited the gym in person. I responded to CRS advising that their actions in no way validated their claim and that the written confirmation I received contained no mention of a £30 transfer fee. See below:

 

"Hi (Name removed),

 

Please call into the club and see (Receptionist), so long as you have completed 6 months of a 12 month contract we can change immediately, (Receptionist) will explain the rest.

 

Kind Regards

 

(Name removed)"

 

I have advised CRS numerous times that I dispute their claim entirely and acknowledge no liability to themselves or the company that they act on behalf of. However, this morning I have received 2 emails from a company called Equidebt Ltd (EQL) who have advised that they are acting on behalf of CRS. See below:

 

"Dear (Name removed),

 

Creditor: Credit Resolutions Services

 

Reference: (Removed)

 

We have been instructed by Credit Resolutions Services to collect your unpaid Gym Membership Direct Debit.

 

It is important that you contact us immediately to resolve this outstanding debt of of £231.50

 

Call us after 8am on 0800 032 4280 or visit (website) to make your payment in full.

 

Our hours of business are: 8.00am and 8.00pm Mon - Thurs, 8.00am - 6.00pm Friday or 8.00am - 1.00pm on Saturday.

 

Yours sincerely,

 

Equidebt Limited"

 

I hoped that one of you guys may be able to help with my understanding of my legal position here. I did sign an agreement at the beginning of my membership, but then received written confirmation from the manager that this would be changed (immediately). I at no point signed any agreement with CRS therefore am unsure as to why they have been named as "creditor" by EQL. I've had dealings with EQL previously regarding intimidating letters referencing statute barred debts, so I understand that they aren't an ethical company, however the last thing I want to do is ignore their letters / emails if I have reason to stand my ground. As far as I'm concerned, the most they could claim from me would be a months membership under the new arrangement (therefore approx £15) but I'm also aware that if I state this or make an offer to pay then I am effectively accepting liability.

 

Any help / advice would be greatly appreciated.

 

Thanks guys!

[BRIGADIER2JCS]

It wouls appear that the debt has been sold

so the DCA has the rights and obligations of

the original agreement.

 

You would need to make a formal complaint

to the gym and a letter of dispute to the DCA.

[sexyrb]

It wouls appear that the debt has been sold

so the DCA has the rights and obligations of

the original agreement.

 

You would need to make a formal complaint

to the gym and a letter of dispute to the DCA.

 

Hi Brigadier, thanks for responding.

 

I would have thought if the debt had been "sold" then EQL wouldn't state that they had been instructed to collect on behalf of CRS?

 

What I'm really trying to establish is the legal weight that my written confirmation holds, CRS at no point even acknowledged my evidence and simply stated that they spoke to the receptionist and therefore the debt is valid (I don't think a receptionists recollection of an event is legally binding), before handing the account to Equidebt.

 

I've looked through the documentation regarding the case before Mr Justice Kitchin on 24th June 2011 (OFT Vs Ashbourne Management Services Ltd / John Clayton-Wright / Dawne Clayton Wright) and wondered if the outcome of this case had any relevance to my own situation? (I'm not much good with legal speak so any help would be great!)

 

oft.gov.uk/shared_oft/consumer-enforcement/ams/order.pdf

[BRIGADIER2JCS]

These gym contracts are a menace,

the named creditor is usually the owner

of the debt, so I suggest you check your

credit reference files before going further.

You are correct stating they have ''spoken''

to the receptionist is rubbish.

[sexyrb]

Does that mean that CRS are acting against any kind of guidelines / regulations in passing on the debt without properly considering what I've submitted?

 

What kind of letter should I write to Equidebt?

 

Thanks again.

[BRIGADIER2JCS]

The problem is any company can sell a debt or assign

a 3rd party to collect a debt..

 

I suggest sending a ''prove it'' letter to Equidebt try the following:-

 

The Compliance Manager#

Equidebt

 

Ref: xxxxxxxxx

 

Dear Sir or Madam,

 

I write regarding the debt for £xxxxxx, allegedly owed to xxxxxx,

Please take note I do not acknowledge any debt to you or any

company you claim to represent.

 

This alleged debt has been disputed with the original creditor

who have failed to prove that they have any legitimate right

to claim this amount.

 

I have evidence in writting that the creditor has failed in their

obligation to deal properly with my dispute, therefore I will

not be making any payment or offer of payment to you.

In view of the above I suggest that you return the account

to your client forthwith.

 

Send recorded delivery.

[sexyrb]

Thanks, I'll give that a bash!

[sexyrb]

Am I right in assuming that contacting them via email is just as valid?

[BRIGADIER2JCS]

Am I right in assuming that contacting them via email is just as valid?

 

Yes it is but I suggest you print off hard copies of their replies.

[slick132]

Hi Sexyrb and welcome to CAG

 

On the original m/ship contract, you may find that the gym uses Harlands to administer all m/ship payment matters.

 

CRS are part of the same company and EQL are probably just another name acting from the same offices.

 

Read other threads here and you'll see that Harlands and CRS are always trying to convince gym members that they are obliged to pay this or that, particularly when members try to cancel. Here's an good example - http://www.consumeractiongroup.co.uk/forum/showthread.php?347008-Golds-Gym-CRS-Letter-Recieved-HELP-NEEDED!!!(1-Viewing)-nbsp

 

I see you have already told CRS that no request was ever made for a £30 "transfer fee". So you acted in good faith based on what you were told by the gym staff who are the gym's agents in such matters.

 

See what further demands are made and we can advise further if necessary.

 

[sexyrb]

Thanks Slick, I'll send an email to Equidebt and post their response.

[sexyrb]

Response emailed to EQL this morning:

 

"FAO The Compliance Manager(s)

Equidebt Limited

 

Reference: (Removed)

 

Dear Sir / Madam,

 

I write with reference to the alleged debt of £231.50, allegedly owed to Credit Resolutions Services.

Please note that I do not acknowledge any debt to you or any company that you claim to represent.

 

This alleged debt has been disputed with the original creditor who have failed to prove that they have any legitimate right to claim this amount.

 

I have evidence in writing that the creditor has failed in their obligation to deal properly with my dispute, therefore I will not be making any payment or offer of payment to you.

 

In view of the above, I suggest that you return this account to your client forthwith.

 

Regards,

 

(Removed)"

 

I'll post their response as soon as I receive it.

 

Thanks again for the help and advice guys!

[locutus]

My guess is the reply will be something like

 

Client has investigated this fully, crossed all the T's and dotted all the I's, they searched under the sofa and they have decided this is sufficient proof for us to collect payment. If you don't pay up soon we *may* take you to court, which *may* result in us braking in to your house and kicking your dog (plus a whole heap of other threats)

 

I'm coming further and further to the opinion that people being harassed for gym membership money should tell the admin companied "I don't owe this, I will not enter into any further correspondence, If you feel you have a strong claim, take it to court" and ignoring them. Although court docs *may* land on your doorstep I would say you *may* win the jackpot on the lottery aswell. I also think if you have a solid defense against any court action you should not waste your time with them.

[sexyrb]

Just had a phonecall from EQL where Jane the computer voice told me it was "a call for (me) from Jane at EQL, it is very important that we speak with you, please press 1 to be connected to one of our agents..."

 

Needless to say I didn't press 1. I forgot to advise them not to call me in my last email so I knocked this up and fired it off:

 

Dear Sir / Madam,

 

FAO: The Compliance Manager(s)

Equidebt Limited

 

 

Reference : (Removed)

 

I legally require that all telephone contact from your company cease immediately. I deem telephone calls regarding a matter which I have previously advised to be in dispute with the original creditor to be personally harassing.

 

I require that the telephone number held by your company; (Removed), be removed from your records entirely.

 

I believe that further unsolicited telephone calls will put you in breach of The Protection From Harassment Act 1997 as well as The Communications Act (2003) s.127.

 

Any further telephone calls following receipt of this notice will be reported to OFCOM, Trading Standards and The Office of Fair Trading.

 

Be advised that all telephone calls from your company are logged and recorded.

 

ALL contact regarding this matter MUST be in writing, via this email address.

 

Regards,

 

(Removed)

 

Does that look alright?

[slick132]

Yup, that should do the trick.

 

Personally, I'd just drop them a line saying "I will not deal with this matter by phone so please keep communication in writing only."

 

[sexyrb]

Hi All,

 

I received the following response from EQL this morning:

 

"Dear (My name - misspelled),

 

Our reference: XXXX

Creditor: Credit Resolution Services (sic)

Balance Outstanding: £231.50

 

We write further to our previous correspondence, where it was confirmed any further contact from us would be in writing, as you requested.

 

In addition, on receipt of your complaint we notified our client that you were in dispute with regards to your liability to pay the balance outstanding.

 

Having referred this matter to our client, they notified us that you intended to transfer your membership to someone else and you had been advised that a fee of £30.00 would be required to finalise the transfer.

 

However, the required payment of £30 had not been paid, therefore the completion of the membership transfer had not been finalised.

 

Furthermore, our client has advised us that your dispute with them has been addressed and they did not find it to invalidate the debt.

 

Accordingly, we await your proposals for repayment of the outstanding balance of £231.50.

 

We are prepared to accet reasonable and realistic instalment repayment proposals. We are allowing you a period of 14 days from the date of this letter before we commence further collection activity.

 

It is important that you contact us to discuss repayment by dialling our FREE PHONE number 0800 032 4277.

 

Yours sincerely,

 

Kxxxx Kxxxxxx

Complaints Investigator

Compliance Department."

 

So, they have my name spelled incorrectly and their info regarding my dispute is entirely incorrect (I never had any intention of transferring to someone else). They have also falsely claimed that CRS "addressed" the dispute and found in their own favour! Ha!

 

My intention is to respond with a final statement that I do not accept liability with regard to any alleged debt to any of these companies and to formally state that I will not make any payment or offer of such and that further correspondence aimed at cajoling me into admitting liability will be reported to the FSA and relevant Police dept as harassment. I have written evidence which I have provided the DCA with and am fully prepared to issue a legal defence in county court if necessary.

 

Does anyone have any final pointers before I reply to EQL?

 

Thanks!

[BRIGADIER2JCS]

Yes I would addresss this a formal complaint to

both companies, and to the gym which is obviously

providing false information.

List all the events as bullet points your questions - the answers given.

Adress the letteres to the Compliance Managers at both companies

and copy to the CEO of the gym.

All by recorded delivery.

I can help further if needed.

[slick132]

........ will be reported to the FSA and relevant Police dept as harassment.

 

I would change this to, " ............. will be reported to the OFT who are currently very interested in the activities of gyms and their admin companies."

 

I'd also drop the reference to Police, as they'd be uninterested in any such matter.