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Do reclaimed charges have to be paid direct into account?
...My dad has been offered a settlement of £600, on charges of about £1100, the problem is the account it relates to is in arrears, and they are advising that the money will be paid direct to the account. Is it at all feasible to request a cheque, or payment to another account, or will they see through this?
If not, we might as well hold out for the full amount! Any advice would be greatly appreciated.
Re: Do reclaimed charges have to be paid direct into account?
Can anyone help me on this please, I've seen a few other threads where people are in debt, and have requested payment by cheque instead of direct into bank, is this a reasonable request and how likely is this to be agreed?
Re: Do reclaimed charges have to be paid direct into account?
If I understand it correctly, UTCCR specifically excludes the right of offset against legal claims. You are perfectly entitled to insist that money that you are owed is paid in a method of your choosing - this is no different to where someone refuses to accept payment by card.
What they are offering is essentially to reduce the debt by £600, which is not the same as actually paying you £600. If you want to hold out for the full amount, you can - at which point you can insist on specific payment methods. As always, you should do your own research into the risks that may be associated with this.
Re: Do reclaimed charges have to be paid direct into account?
Originally Posted by meagain
If I understand it correctly, UTCCR specifically excludes the right of offset against legal claims. You are perfectly entitled to insist that money that you are owed is paid in a method of your choosing - this is no different to where someone refuses to accept payment by card.
What they are offering is essentially to reduce the debt by £600, which is not the same as actually paying you £600. If you want to hold out for the full amount, you can - at which point you can insist on specific payment methods. As always, you should do your own research into the risks that may be associated with this.
My dad will happily settle for the £600 I think, this close to xmas - so if I just write a letter out for him, requesting a cheque for £600, this is a reasonable request?
Re: Do reclaimed charges have to be paid direct into account?
Well, received a letter this morning, saying that as its a goodwill gesture, they will not be able to pay the £600 by cheque, it has to be into the account.
What now? Should we argue the issue with the cheque, or say "ok, lets have the full amount then?"
Re: Do reclaimed charges have to be paid direct into account?
As i read the UTCC it doesn't preclude the offset unless the supplier is at fault and trysd to withold some of your rights in some way. As much as we can argue about the issue of 'fault' I think that the issue of a claim for unlawful charges falls outside of the scope of the contract and therefore the UTCCR has no relevance.
This has been debated at length and i don't think that the 'for' or 'against' parties have agreed.
It seems to me that unless someone can provide case law supporting the right to a cheque where a debt is in force then at best its open to debate.
I think you need to be prepared to go to court because the bank are unlikely to give your father cash without a fight when there is a debt.
If you are going to court then you should ask for the lot and make sure you put in the particualrs of claim that you want payment by cheque, that way its part of the settlement.
JMHO
Glenn
PS good luck whatever you do.
Kick the shAbbey Habit
Where were you? Next time please
Abbey 1st claim -Charges repaid, default removed, interest paid (8% apr) costs paid, Abbey peed off; priceless
Abbey 2nd claim, two Accs - claim issued 30-03-07 Barclaycard - Settled cheque received
Egg 2 accounts ID sent 29/07 Co-op Claim issued 30-03-07
GE Capital (Store Cards) ICO says theyve been naughty
MBNA - Settled in Full
GE Capital (1st National) Settled
Lombard Bank - SAR sent 16.02.07
MBNA are not your friends, they will settle but you need to make sure its on your terms -read here Glenn Vs MBNA
Re: Do reclaimed charges have to be paid direct into account?
Originally Posted by Glenn UK
As i read the UTCC it doesn't preclude the offset unless the supplier is at fault in some way. As much as we can argue about the issue of 'fault' I think that the issue of a claim for unlawful charges falls outside of the scope of the contract and therefore the UTCCR has no relevance.
This has been debated at length and i don't think that the 'for' or 'against' parties have agreed.
It seems to me that unless someone can provide case law supporting the right to a cheque where a debt is in force then at best its open to debate.
I think you need to be prepared to go to court because the bank are unlikely to give your father cash without a fight when there is a debt.
If you are going to court then you should ask for the lot and make sure you put in the particualrs of claim that you want payment by cheque, that way its part of the settlement.
JMHO
Glenn
PS good luck whatever you do.
Hi Glenn, thanks for the advice, I really appreciate it. I think our best route is to take it all the way, is there a standard letter for this?
Re: Do reclaimed charges have to be paid direct into account?
Hi
i don't think there is a template for this, what i would advise is that if you do want to force this through then dont accept any further partial settlements since this may reduce your ability to negotiate with the bank.
If they settle all the money issues then you would end up in court arguing simply for a cheque and the court could be unsympathetic and probably would in my view.
Also there is no risk for the bank since they have nothing to loose on this issue other than a few bob for defence costs and arguably could win costs against the claimant if the court thinks there has been any unreasonable behaviour (some will argue this is unlikely in small claims and they're probably right)
Since you have already sent the letter of partial acceptance I'm not sure if you can undo this but its done now.
i suggest that you start your own thread in the relevant forum and perhaps put a link up so anyone who wants to can find it from here.
JMHO
Glenn
Kick the shAbbey Habit
Where were you? Next time please
Abbey 1st claim -Charges repaid, default removed, interest paid (8% apr) costs paid, Abbey peed off; priceless
Abbey 2nd claim, two Accs - claim issued 30-03-07 Barclaycard - Settled cheque received
Egg 2 accounts ID sent 29/07 Co-op Claim issued 30-03-07
GE Capital (Store Cards) ICO says theyve been naughty
MBNA - Settled in Full
GE Capital (1st National) Settled
Lombard Bank - SAR sent 16.02.07
MBNA are not your friends, they will settle but you need to make sure its on your terms -read here Glenn Vs MBNA
Do reclaimed charges have to be paid direct into account?
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Originally Posted by Bookworm
