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Debt consisting of entirely charges sold to debt collection agency...how to proceed
Hello,
I have just stumbled across this site and am hoping it will help me get out of a situation that I got myself into but feel has spiralled out of control into disproportionate costs.
I've looked at the FAQ and other threads and haven't worked out what I need to do so any advice would be very much apppreciated.
In January 2005 I split up with a boyfriend and moved out of the flat we shared, there was quite a lot of admin/paperwork etc and I stupidly didn't update the bank with new details. Over the few months I had 2 or 3 (i think - need to confirm) direct debit phone bills refused by my bank (RBS) as I had insufficent funds. The bills weren't paid but charges were issued (£28 a time I think). This took me overdrawn...
... after getting a message on an old phone in April 2005 I called them, charges had been made on top of charges as it meant i had an unauthorised overdraft and it was up to £180. I agreed to pay £35 a month till it was paid back. I paid once over the internet and the payment apppeared back in the acct i was paying it from and I very stupidly left it and didn't follow it up. (or make more payments )
Anyway - didn't hear from them ttill last week when i gat a message on the same old phone number from debt collection agency. I called them and was told I owe £430. I called RBS and they sent me statements from minus £250 till now. I'm going to ring them on monday and get a breakdown of charges since i was last on £0.
Assuming they send this to me where do i go ffrom there, am i right to think that all these subsequent charges that brought the debt up to £430 are unfair as thay are based on an unlawful charge. I didn't spend a penny of this debt and it seems a rather unreasonable punishment??! If so.. do i arrange repayments with debt collection people and try and claim the money back from RBS, refuse to pay at all, or what?
I know that compared to some people this debt isn't huge, but I don't earn much and it is weighing very heavily on my mind.
If anyone would be kind enough to talk me through where i stand i wouldbe very grateful indeed,
Re: Debt consisting of entirely charges sold to debt collection agency...how to proceed
Any charge that isn't a service (ie: a charge for setting up an overdraft) is unlawful, therefore claimable.
Please please read the forum 1st, as all these questions are answerable on here. We have so many people asking the same things, we do not have the resources to answer everyone im afraid...
Re: Debt consisting of entirely charges sold to debt collection agency...how to proceed
Hi Milly,
As Lueeze said, there's a lot of reading to be done but don't be put off by that, you'll be amazed at the facts you find out.
In short though (as I'm guessing your probably climbing the walls about this), you dont have to come to any arrangement regarding paying back the funds as they are in (or going to be when you start your claim) dispute. The Banking Code clearly states that bank will not seek recovery of funds which are in dispute. I've had a similar thing:
The 1st thing to do when you're clued up & have read the FAQ's is to write to the collections agency (don't phone) putting a stop to recovery activities & then get the ball rolling making your claim.
If you get stuck feel free to PM me as I can let you have a template for the letter to the collections folk but you'll definitely find loads of help on this site.
Take care,
Trunny
Yorkshire Bank £2201.24 - Settled in full
My Abbey £731.34 - Settled in full
Hubby's Abbey £1239.49 - Settled in full
Re: Debt consisting of entirely charges sold to debt collection agency...how to proceed
Hello again,
Thank you very much for your replies. I'd already spent hours looking through the forums and have learnt so much useful and relavant information but was just feeling somewhat overwhelmed by all the information, and quite how to apply it to my situation!
Thanks though for taking the time to reply, trundlecat - I now know how to take the first step to to getting out of this siuation - thanks for your offer of help, as you say hopefully i'll be able to find everything here, I've downloaded some sample leters already. Hopefully i'll be able to help someone else in my situation when i've sorted this out!
Re: Debt consisting of entirely charges sold to debt collection agency...how to proceed
Hi Milly,
Just sorting the letter out for you but can you let me know if it's a collection agency you're being nagged by or the banks' own collections dept? It makes a difference to the letter.
Cheers,
Trunny
Yorkshire Bank £2201.24 - Settled in full
My Abbey £731.34 - Settled in full
Hubby's Abbey £1239.49 - Settled in full
Re: Debt consisting of entirely charges sold to debt collection agency...how to proceed
I understand I understand that you have a debt which is comprised entirely of charges and which has been sold to a DCA.
Have you been defaulted on the credit register? Does it matter to you if you get defaulted on the credit register?
The best advice is to stop paying anybody and to begin a claim for the full amount that you have actually paid against the bank.
The situation with debts which have been sold is that if you want to claim, you claim against the original creditor. On the other hand if you are sued by the DCA then you would defend on the basis that the charges are unlawful and if you have actually paid anything you would set that figure off as part of your defence.
If you haven't been defaulted then one effect of you ceasing to pay is likely to be that they will default you. However from the sounds of it you have already been defaulted. If it is correct, if you have been defaulted purely for the charges then you can try and take an action in respect of this as well.
Have you read the FAQ? Have you read the forum material? You should do so you should take at least three days to read as much as possible and you will start to understand far more what you're doing. This will give you confidence and help you to claim a far more effectively.
Believe me it is worthwhile
.
Do that and then come back here
Please don't pm me about specific questions unless you have posted and it has not been dealt with or unless the matter is confidential. Please include a link to the post you want me to look at. If you have received a defence, contact me.
Advice & opinions of BankFodder, The Consumer Action Group and The Bank Action Group are offered informally, without prejudice & without liability. Use your own judgment. Seek advice of a qualified insured professional if you have any doubts.
Debt consisting of entirely charges sold to debt collection agency...how to proceed
/paperwork etc and I stupidly didn't update the bank with new details. Over the few months I had 2 or 3 (i think - need to confirm) direct debit
)
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