Credit Resolution Services (CRS) Extortionist!

[Netyard]

I was a member of Golds Gym for about 3 months when I moved out of the area and sent a letter to say so to cancel my membership, a little while later I received a letter from a company called CRS Credit Resolution, the text in red is my main issue as I can't see how they can do this, isn't this extortion?
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22 Jan 2007

We write to advise you that a debt of £150.00 has been passed to us by Golds Gym.

This debt has arisen as you did not fully comply with Golds Gym cancellation procedure. You have also now become responsible for our fees in recovering this outstanding amount. Our standard charge of £80.00 has therefore been applied bringing the full outstanding balance to £230.00

You can only speak to us about this debt. Gold Gym will simply refer you back to us if you contact them.
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I then phoned them and said that I could only afford to pay £10.00 per month which they did not feel was enough, I then asked about the £80.00 fee added to the debt and said I wanted a breakdown of the costs so I received this letter:

21 Feb 2007

We refer to our telephone conversation today

As requested, the breakdown of your debt is as follows:

£150.00 Membership Fees, due under the terms of your contract.
£50.00 Recovery Fee, Incurred as your file was passed to CRS.
£30.00 Trace Fee, charge incurred in tracing you to your new address

£230.00 TOTAL DEBT

We are prepared to accept repayments of your outstanding balance by instalments, however, additional amounts would be added. These depend on the method of payment and number of instalments to be collected.

Payment by Direct Debit £10.00 set up fee, £2.25 - £2.75 handling fee per instalment

Payments by any other method £25.00 set up fee, £2.75 - £3.25 handling fee per instalment
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I can't believe it!! are they trying to rob me or what??!

can they do this??

[kennyparkroad]

send the debt collection a CCA.

Did you sign a form when you created your membership?

I would send them the CCA recorded delivery AS SOON AS POSSIBLE, then they are not allowed to chase you for the debt until they can prove the debt actually exists.

Hope this helps, and hang in there, somone else will be along shortly to help u out.

[whats a mook?]

Firstly don't talk to them on the phone.

Tracing fee?
Direct Debit set-up fee?
3.75 Handling fee?

Utter tosh!

There's obviously a written agreement, most gyms will hurry you through the small print on the membership form. (I got stung with Fitness first but that's a whole new story.) Have you still got the membership form you signed when you joined? If not, could you obtain a membership form from whatever means possible?

I'd be inclined to let them take you to court for £150 and see what the judge makes of all these bogus charges, but that's just my hot-headed unprofessional opinion!

There are however more calm members who will hopefully give their thoughts.

[Netyard]

Thanks for the advice, I have the original agreement which I have signed, yes I do owe 150 as I cancelled my membership within 6 months, should I send them a CCA anyway in the hope they can not find my agreement?

[Netyard]

03/03/2007 - Sent CCA

Credit Resolution Services
1st Floor
41-43 Perrymount Road
Haywards Heath
West Sussex
RH16 3BN

Saturday 3rd March 2007

Dear Sir/Madam
Re: CRS Ref No: XXXXXX / Golds Gym Ref No: XXXX


With reference to the above account, I request that you send me a true copy of this credit agreement, relating to your last letter dated 22nd January 2007, signed by Rob Knight and entitled “IMPORTANT: PLEASE READ CAREFULLY”.


I understand that this is my right under the legislation contained within section 77 (1) and section 78 (1) of the Consumer Credit Act 1974, and am entitled to receive a copy of my credit agreement on request.


Your obligation also extends to providing me with a statement of account. I enclose a £1 postal order which represents payment of the statutory fee payable under the Consumer Credit Act. I understand that a copy of my credit agreement should be supplied within 12 working days from the date of this letter.


I understand that under the Consumer Credit Act, creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.


Also, since you are a Debt Collection Agency, I would also ask that you supply a signed true copy of the executed deed of assignment for the above referenced agreement. This is an obligation, whether you are the original creditor or not, under section 189 of the Consumer Credit Act 1974.


In summary, I DO NOT ACKNOWLEDGE THIS DEBT AND THEREFORE REQUIRE YOU TO SUBSTANTIATE THIS BY PROVIDING THE FOLLOWING DOCUMENTATION BEFORE I CORRESPOND FURTHER :


1. True copy of original credit agreement
2. Statement of account
3. Copy of the executed deed of assignment from Golds Gym to Credit Resolution Services


As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.


Take note at this stage, that any legal action you may contemplate will be both vigorously defended and contested and consider this matter to be “in dispute”.


Thanks in advance and I hope to hear from you within the statutory time limit.


I look forward to hearing from you.


Yours faithfully,
Netyard

[lookinforinfo]

Netyard, what you should be looking for in the agreement is the section that deals with your current situation. What is supposed to happen when you are
handed over to a DCA. Do you know if they have bought the debt?
When a debt is assigned, the new creditor is entitled to charge the same
amount of ineterest as the original owner. They are not allowed to introduce
new charges to the collection of the money. IT is also contrary to the
guidance on debts issued by the OFT.

[Netyard]

Hi, I have read the small print on the back of the contract and it does not state what hapens if it is passed on to a DCA, I will try and scan in a portion of the small print to put on the forum.

[Netyard]

OK I had a reply regarding my CCA. The letter I received from these pirates (CRS) stated that Golds Gym does not come under the consumer credit act and I had signed an agreement with them and that they will obtain a copy then sent it to me.

Any more tips? I just hope that they no longer have the agreement

[pmhcfc]

Originally Posted by Netyard

OK I had a reply regarding my CCA. The letter I received from these pirates (CRS) stated that Golds Gym does not come under the consumer credit act and I had signed an agreement with them and that they will obtain a copy then sent it to me.

Any more tips? I just hope that they no longer have the agreement

All you can do is wait me thinks.

[ODC]

Originally Posted by pmhcfc

All you can do is wait me thinks.

I think their bluff has been called. Even if you do owe them 150 for gym fees. There does not appear to be any way in this world they can justify their charges.

[lookinforinfo]

Netyard, it seems that it may be difficult to avoid the £150 payment-though
you may be able to get value for it by going there and using the facilities.
Do not pay any of CRS' charges however.
Write to them pointing out that there is no mention in the agreement that
these fees will be charged, nor do you have a contract with CRS. In addition,
if they persist in demanding these unlawful fees, you will complain to the
OFT that they are unfit to hold a Consumer Credit Licence.

In their guidance notes for collectors the OFT say that it is an unfair practice to claim collection costs from a debtor in the absence of express contractual or other legal provision..

[kennyparkroad]

good shout

[ODC]

If you can afford it go directly to Golds Gym, pay the money you owe them. Get a receipt for it and let CRS go whistle.

[doo]

Netyard, have you any updates yet on this gym problem?

[Netyard]

I have not received anything from CRS as of yet, if they can not supply me with my original signed contract then CRS and Golds Gym can go whistle lol.

[Greendeco]

I am bumping this post to see if anyone knows what happened as these are the people after me (CRS)
Anyon else had dealings with these people?