CRS AJJB chasing money for Photo Studio Group run by Michael John Hannah

[simond1000]

I took my 14 year old daughter to a no obligation studio photo shoot after she replied to an online ad for potentital models to send in a selfie.

 

My daughter was told that she was selected out of thousands of applicants and had won a place to attend the photo shoot at "Hype Digital" studios in Birmingham but I would have to pay a £50 deposit to secure the palce. A I paid the deposit on my credit card.

You you you

 

The photoshoot took about 4 hours with my daughter expected to change in between shots behind a flimsy curtain in the same room as hair and makeup was being done and other people were waiting. It all looked a  bit makeshift as though the studio had been hired for the day. You are you you you you you you you are

 

After the photo shoot we were taken into a side room to get the results. We were given the impression that Emma (my daughter) had passed the test and she could now become a top model but I would need to purchase one of their portfolio products to progress her modelling career otherwise the photos would be deleted.
The product was £2000 which I could not afford but my daughter was getting upset to think the photos might be deleted. They said I could not change my mind or cancel the order later. I was pressurised into making a decision there and then.

 

When I said I couldn't afford it they said I could pay £200 deposit on my credit card and setup £218 per month direct debits from the same card.
There were no affordability checks made to assess my ability to pay. The salesman said we would have model agencies contacting us to discuss any potential modelling work that Emma could do.

After a couple of months we had no contact from anybody so I tried to get hold of the studio but couldn't get through after several attempts. Eventually I did get through to someone who said I would have to setup an appointment for someone to call me back. I waited by the phone at the appointment time but nobody called. I then researched the company and a large number of people were saying it was a scam and not to pay them anything. I submitted a dispute to the credit card company stating my suspicions that it was a scam.
They refunded the following 2 months direct debit payments to my credit card and cancelled the direct debit. They said the merchant did not contest the chargebacks so I thought the contract would be cancelled as I had won the dispute. 

From the 6th Sept 2020 I have been getting demands for payment by text and email from a debt collection agency called CRS (Credit Resource Solutions) demanding a payment of the balance of my account to the Photo Studio Group for £864.
Now this has been elevated to a law firm called AJJB Law threatening legal action if I don't pay saying the next stage will be to add costs to the balance. 

The Photo Studio Group  is run by Michael John Hannah who used to run Kube Studios which has appeared on BBC Watchdog for exactly the same scam.   
You This is a link to the Watchdog report https://www.bbc.co.uk/programmes/articles/2DJ6GCxl7JWHd08jZMb4kSG/kube-studios

 

I emailed AJJB Law with a "prove it" letter demading they prove that I owe the money by sending the signed contract and any related documents.  They have now put the action on hold for 30 days whilst they request the documents from their client.
They said the next stage will be to add costs to the debt. 

 I have reported this scam to Action Fraud and to BBC Watchdog and I have started a section 75 claim with the credit card company to get back the 3 intiial direct debit payments. I also got the credit card company to send me a letter stating the dispute I made was upheld and the 2 chargeback amounts were not contested by the merchant.

I am worried they might add £100's to the debt in costs and get a court to issue a CCJ against me. I have never received the photos or portfolio or had any contact from modelling agencies as they promised. 

 I was wondering if I should pay the debt on the credit card to get them off my back and then try to get it refunded through the section 75 claim?

Edited October 24, 2020 by BankFodder
Restructured to make it intelligible

[simond1000]

It also states at the bottom of the  Companies House web page that The Photo Studio Group Limited previous company name was Kube Studios Limited, the subject of the BBC Watchdog investigation   https://find-and-update.company-information.service.gov.uk/company/08043958 

https://www.bbc.co.uk/programmes/articles/2DJ6GCxl7JWHd08jZMb4kSG/kube-studios

[simond1000]

I sent AJJb Law a "prove it" letter so they have to send me all documentation to prove I owe the debt, e.g. copy of the signed contract, payment plan, statement of account etc.

 

They said they would put the action on hold for 30 days whilst they request the information from their client.

That was a couple of weeks ago and I haven't heard back from them yet.

 

latest threats was sent By text message 

[simond1000]

I got the advice from the Which legal team saying if debt collectors are chasing you for money they firstly have to prove you owe the debt or they must stop harassing you and there is a template for a "prove it" letter on the Which web site.

 

The problem is that it might be a scam and people are saying to ignore the debt collectors, but the Photo Studio Group is a legitimate company and I signed what I thought was a legally binding contract.

 

The Which legal team want to see the contract if they send it to find out if it is legally binding.

 

What I can't seem to find out is if these scam photo studio companies have ever actually taken anyone to court, and if so, have they been successful?

[simond1000]

Ok, i'll post the contract on here if I get it. 

 

[simond1000]

To be fair, Which don't know they said 'our client' as they only said that after I got the Which advice, but this does make me feel more confident there won't be any court action and they are just bluffing

[simond1000]

CRS has just sent me the contract I signed before they commence  legal action.

 

I have attached the contract with my personal information blanked out.

I don't remember signing all the sub clauses but I must have done as I just wanted to get out of there after the hard sell routine.

 

I think this contract was mis-sold as I was given misleading information and no cooling off period.

Do I have a leg to stand on if they take me to court?

 

 

contract.pdf

[simond1000]

Your resume of the situation is correct  except is does say near the top of the contract that it includes a Digital Z Card, Efolio, Prints and Portfolio disc by putting a YES box by them.

[simond1000]

I  think they have broken the  Consumer Protection from Unfair Trading Regulations 2008 specifically two banned pracices :-

 

The list of banned practices includes the following: 

 

• Limited offers   Falsely stating that a product will only be available for a very limited time, or that it will only be available on particular terms for a very limited time, in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice.
• Pressure selling   Creating the impression that the consumer cannot leave the premises until a contract is formed.

[simond1000]

It says on their web site T&C's "All copyrighted images are sold on the day of the shoot only" - https://hype-digital.co.uk/terms-of-service/

That covers the "limited offers" black listed practice

 

The contract says "I understand that once I leave the premesis I cannot change or reduce the order"

 

That shows the offer is only available at that time and it is pressure selling by giving me the impression I cannot get the offer at any other time uinless I sign a contract there and then.

 

We had an initial email from them that suggests my daughter had succesfully passed their selection process and has been shortlisted. It goes on to say "if you are successful on the day" which gives you the impression you will pass their test to become a model but I expect everybody passes. I will attach this email.

Gmail - Successful Applicant.pdf

[simond1000]

They said there were thousands of applicants to my daughter on the phone so we don't have proof of the word "thousands", just that she had been shortlisted on the email. I think the bottom line is a 14 year old girl could understandably think she had won the chance of a modelling contract and on the day her parents are put under extreme pressure to pay for portfolio's and photos that are pretty useless according to several sources including the Sun and Guardian newspaper and BBC Watchdog.

 

Everybody says not to pay them anything or to stop paying them if you started (including people on this site) because its a scam.

 

Now I have stopped paying them there is a chance they could take me to court and get a CCJ for the balance.

I can't see how somebody running a scam would be allowed to pursue legal action.

 

I just need to know if I should pay them and put it down to experience or are they likely to take me to court and if so are they likely to win?

[simond1000]

Thanks for the advice, actually my daughter would have waited a day or two before making a decision but we wern't given that option, it was there and then or the photos would be deleted.  I'm not seeing how the word "thousands" is so significant, I would have thought being told you were shortlisted after applying to a nationally run ad would infer there were a large number of applicants.

 

I cannot find any information either about anybody being taken to court by any of these modelling platform companies. Is there any sort of court register where you can search by company name to see how many court actions they have brought by them?

 

I would have thought the evidence from BBC Watchdog and the Guardian Newspaper exposing the same scam by companies run by Michael Hannah would be enough to persuade a judge he is a scammer. These are the links in case you haven't seen them 

 

https://www.bbc.co.uk/programmes/articles/2DJ6GCxl7JWHd08jZMb4kSG/kube-studios 

https://www.theguardian.com/money/2017/dec/18/modelling-agencies-platforms-scam-studio-collective

 

I think I will tell them to send me the court date and time and not to contact me again until then and see what they do.

 

I will keep you posted

 

 

[simond1000]

How do you know there have never been any court actions by these companies if there is no way to see who the claimants are on the CCJ register?

[simond1000]

I get your point but don't worry I don't intent to pay them unless instructed to by a court but only when I have checked the CCJ is legitimate as I have read there are numerous court and bailiff scams out there demanding money off people.

 

This company (The Photo Studio Group)  is not a popup but is listed in Companies House as existing since 2017 and then as Kube Studios since 2012. Maybe it would be worth doing a defendant check on them to see if anyone has taken them to court to get their money back, that might help my case?

[simond1000]

I will do it if they give me a court date.

One angle I've been thinking of is the contract cannot be enforced because there have already been two chargebacks made by my credit card company against this account which were not contested and the money can not be requested again so I could not pay the total sum in the contract and therefore I could not receive the goods so they broke the contract by not contesting the chargebacks. 

Does that sound feasible?

[simond1000]

I have blanked out the reference number as well

AJJBLawLetter.pdf

[simond1000]

I have just had a response from Which legal team after I sent them the so called contract. They are saying they cannot see an agreement to pay for the  photo's, Efolio / Digital zcards at a price of £2,000 but they can see a credit agreement to repay a loan I haven't had.

[simond1000]

Yes, I posted it on this site in message number 20

[simond1000]

The direct debits were cancelled by the credit card company as the agreement was made with my credit card not a bank.

 

The credit card have charged back 2 direct debit payments which were not contested and I have raised a section 75 complaint to get back the rest of the money that had already been paid on my credit card.

 

The photo studio group is threatening to take legal action for what they say is the balance of £863.49 but if you say the agreement is void I have nothing to worry about.

 

Why do you think the agreement is void?

[simond1000]

This is how they sent it to me so I don't have the original. Should I ask them for it?

 

Do you think I could get this contract recinded because it was built on frauulent misrepresentaion by the studio?

[simond1000]

Ok thanks very much for looking at it. I will not contact them and wait to see what happens.

[simond1000]

I have now been sent an official Letter Before Claim (I have attached the first page with personal info removed, the other pages are just reply forms). I think they are serious about taking me to court now.

 

One other update , Trading Standards are investigating the scam.

Are they allowed to take me court whilst they are being investigated?

What do you think I should do now?

letter before action 1.pdf

[simond1000]

Thanks for this info but they might say they told me the prices of the photos / portfolios before I signed the contract.

 

One thing I find odd is that if it is a legitimate credit agreement why it doesn't show up on my credit file like my other credit agreements and why I didn't get notification of late / missed payments when the direct debits were cancelled which I thought you had to do under the Consumer Credit Act 1774?  

 

You might say I could wipe the floor with them in court but I don't think I would be a match against an experienced solicitor and most people said it wouldn't get to court so i'm wondering what to do next.

[simond1000]

I'm not sure if their side of the contract has been fulfilled or not, apart from poor customer service, as I have not finished paying the finance for me to get the services.

 

I just stopped paying them after onlne advice about it being a scam.

 

It looks as if I'm going to have to stand in front of a judge and say I think its a scam because of what I read online.

 

Do you think the judge will buy that?

[simond1000]

They say in the letter "the debt relates to a contractual arrangement between you and our client" and their client is the Photo Studio Group who the credit agreement is with so I think it does relate to that.

 

They have already sent me the contract which I asked for which is their proof that I owe the money, i'm not sure what other proof I can ask for?

 

Isn't an ADR a way of setting up a payment plan to pay them back?

 

I have just seen that the Photo Studio Group is a registered trader with the ADR company Consumer-Dispute http://www.consumer-dispute.co.uk/home

 

so I have asked for an application form to raise a dispute with them