DCA Charges

[fightinghard]

Hi

My apologies as I am sure this has been dealt with elsewhere.

 

I have just had a row with Buchanan Clark & Wells about an old Southern Electric Bill of mine. I was paying it off monthly but due to financial constraints had to stop - when I stopped I owed £480.

 

Buchanan's now say I owe £552 which they say are charges they are entitled to. I offered £20 per month which they refused. When I pointed out that a court would order no more and probably less they advised they would add more charges and then send round a door step collector!

 

Are they legally entitled to add charges to my account? Obviously this was not a CCA matter as it was just an unpaid bill?

 

Many thanks

[mr.ton]

They dont like it when you know how the law works

The fools wont send anyone round as they can just be told to go away.

Should have just offered a £1 per month as thats what a court can order as well after all essntial outgoings are taken into account

[fuzzybobble]

You can claim back DCA charges just like with credit card charges.

The only time a DCA can add interest and charges on a debt is if the original agreements terms and conditions state they can.

[fightinghard]

I assume as this was an electricity account there will be no agreement that they can add on charges? Where will I find out?

[PGH7447]

send a to the sar the electricity supplier

[Kraken1]

OFt Debt guidance says that:

 

2.9 Charges should not be levied unfairly.

2.10 Examples of unfair practices are as follows:

a. claiming collection costs from a debtor in the absence of express

contractual or other legal provision

b. misleading debtors into believing they are legally liable to pay

collection charges when this is not the case, for example, when there

is no contractual provision

c. not giving an indication in credit agreements of the amount of any

charges payable on default

d. applying unreasonable charges, for example, charges not based on actual

and necessary costs

e. applying charges which are disproportionate to the main debt.

'Legal provision' - the fluffy bit.

There is a legal argument that would say that they are entitled to recover any costs they incur as a result of a breach of contract, but such charges must be reasonable, not amount to a penalty (although cf with oft v banks case?). So standard £50 charges 'because it is a tuesday' probably won't wash but actual issue costs would. If they could objectively justify other costs (huge if) and show that they were simply passing on the actual costs incurred then they might be able to get away with them.

[fightinghard]

Thank you very much for your help. They havent issued and have written one letter and harrassed us on the phone - I will resist any attempts to recover the charges and let you know how I get on.

[Kraken1]

I will resist any attempts to recover the charges and let you know how I get on.

 

Why? You gotta at least ask what they are about. Bet they are generally Tuesday charges.

[fightinghard]

Ok - I will write to them - might be good to reiterate my offer in writing in any event.