Credit Resolution Services - Help needed!

[Gaz_Libertines]

Hello all!

 

First time poster here so forgive if i appear a bit dim about this whole situation.

 

Basically, i have today received a letter from CRS demanding i pay £123 to them, £60 being their standard charge.

 

The story is basically i was a member of Gym and Trim. I paid £33 a month on a 3 month contract starting in March 2008. Come the end of March 2009 I had lost interest, so subsequently sent a cancellation letter and cancelled direct debits.

 

Gym and Trim then sent a letter stating i needed to give 30 days notice. There was only one further letter before they passed my details to CRS.

 

Somehow though CRS are stating my debt is £63, is this a typo surely?

 

I admit i was foolish in not replying though it's hardly been a great couple of months with a couple of family deaths taking priority. I am prepared to pay the £33, however i do not want to pay this standard charge, is there any help i can get on this?

 

Thanks in advance,

[harrassed senior]

You say that this was a 3 month contract in March 2008, was it the type of self renewing 3 monthly contract after that date? It would depend on the small print in the contract, as to whether a 30 days notice for termination is correct.

 

My only suggestion would be to write to the Original Creditor and offer the £33 in full and final settlement. Make sure that you get their agreement in writing before you pay.

[Gaz_Libertines]

It turned into a rolling monthly contract from this point on. My understanding was that rolling contracts can be terminated at any point, however i assume this is incorrect?

[cds]

How much notice did you give them, have a look at section 8.1, I used it against virgin and arc credit services, haven't heard from them since.

 

If you search the forum you won't find anyone who as been to court by a gym, their contracts generaly are in breach of utccr

 

cds:)

utccr 8.1 gym membership.pdf

[Gaz_Libertines]

They take a payment 1st of every month, the direct debit was cancelled on 18th March and letter sent on 21st. I am writing a letter anyway to argue that £63 is not my debt, £33 is the initial amount. I am not clued up on the legal side but i know one thing for certain is that it to randomly add £30 is illegal.

 

Shall i offer to pay the £33 only or dispute all charges?

[cds]

Don't pay anything they will go away

 

cds

[mr.ton]

Tell CRS to get stuffed..they have no legal powers whatsoever.

[Bazooka Boo]

They take a payment 1st of every month, the direct debit was cancelled on 18th March and letter sent on 21st.

 

If the DD is taken from the first of the month and you sent the formal request in writing on the 21st? Then the 30 days notice would be taken from then, so yeah your right, all the gym would need is £33, however, having only just signed a new 12 month contract with my local gym today, I did take an interest in who the signed agreement is with, and it comes under the CCA 1974. My obligations to pay don't lie with the gym, I sign up to the gym, they get paid in full by another 'bank' for the years membership, I am then in debt to this other credit organisation, should i cancel my contract early!

[Gaz_Libertines]

Ok guys, thanks for the help so far! I have recently received a response from the shysters at CRS, allegedly Gym & Trim have added £30 admin fee on top for sending 3 letters, which is scandalous!

 

And they claim their £60 fee is standard recovery and is not broken down in anyway.

 

They have agreed to cut the debt down to £100 if I pay in the next 10 days, however i am still refusing to do this, no way can 3 shoddy template letters justify an admin fee!

 

Any further advice? Is it best I speak to a solicitor or what not?

 

Thanks

[Bazooka Boo]

So is it just £33 for a months membership that they were originally crying about?

[Gaz_Libertines]

Yep £33, which they have now somehow inflated to £123!

[Bazooka Boo]

Yep £33, which they have now somehow inflated to £123!

Well I know exactly what I would do, pay the gym the £33 get a receipt and tell Mickey Mouse CRS to take you to court for their charges:D

 

Firstly, they won't, secondly, they won't, and thirdly, they won't!

 

A DCA is not allowed to levie charges unfairly for debt collection

The Office of Fair Trading: Debt collection practices

 

Charging for debt collection

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.

 

So they can go whistle:D

[Gaz_Libertines]

You're an absolute star mate! That is grand, now typing up my response which is in a word gonna tell them to do one! Shall let you know any further outcome.

 

Thanks again!