O2 & Wescot

[monkeymad1]

Hi all,

 

I wonder if anyone out there can help me with a problem I have with O2?

 

In May 2008 I was made redundant from my job and I advised O2 of the situation and that I may have difficulties maintaining payment of my contract (18 Months due to end June 09), At first O2 were sympathetic and helpful, but when I missed a coulpe of payments their attitute changed and this eventually resulted in them terminating the contract and adding a punitive charge of £80 to the account.

 

In March 09 I sent to them a bank cheque for £100 ( £163 claimed by O2) and in my covering letter I made it quite clear that if they accepted payment then it was in full and final settlement of all money owed to them. I also requested that they send the payment back if this offer was not accepted,

 

To cut a long story short, O2 cashed the cheque but did not reply to me. I heard nothing further for a couple of months and then started receiving demands for payment of the balance from Wescot Credit Services Ltd. I advised Westcot of the situation and after much correspondance they have stated as follows "...our client (O2) have advised they did not agree a settlement of £100 on this account. The reason the payment was cashed is because O2 accept payments that they receive towards the balance owing. The balance is correct and due".

 

Is this just a "try on" by Wescot or am I correct in my assumption that a valid binding agreement has been entered into by virtue of the fact that there has been an offer, acceptance and consideration paid?

 

What do you recommend that I do next? is it worth applying for a SAR? Your advice will be appreciated.

[locutus]

1st Welcome to CAG

 

It's always better to deal with the original creditor (o2). Write to westcot telling them you refuse to deal with them as you have a dispute over this with o2. Modify this letter http://www.consumeractiongroup.co.uk/resources/templates-library/86-debt-collectors/574-letter-when-account-has-been-passed-on-whilst-agreement-request-is-in-dispute (take out the CCA stuff as it's not applicable on mobile contracts) and send it to Westcot

 

Your issues with them accepting the payment of £100 should be raised with o2.

 

Now you say they added a "punitive charge". Was that to pay for the remainder of a minimum term?

 

In my experience the worst they will do is send DCA's after you and threaten court action (and trash your credit rating for the 6 years after your last bill). I trust that you have a copy of the letter you sent with the £100 cheque, just in case they do take it to court. I'm not sure how binding your agreement is with them cashing the cheque but on the £63 I can't see them doing anything other than blowing hot air.

 

Just my thoughts and a bump to the top of the forum.

[monkeymad1]

Thanx lucutus,

 

Luckily, I kept a copy of my offer letter enclosing £100. the "punitive charge" relates to a sum added to the contract by O2 on termination. They said that they would credit my a/c with this sum on payment of balance!

 

I will send the suggested letter to O2 and will post an update in due course. I also believe that Wescot are "blowing hot air"

[monkeymad1]

Following advice from lucutus I sent the amended "account in dispute" letter to both O2 and Wescott. Surprise, surprise, I did not receive a reply from O2 and Westcott sent me a "Final Notice " letter in red ink demanding payment of £63.48!!

 

I subsequently sent Wescott a letter reminding them of their breach of the OFT debt collection guidelines on unfair business practices July 2003 (updated December 2006) and insisting that they stop all enfocement action.

 

I then received a letter in reply from their "compliance" team advising me that instructions were being sought from O2 and and a subsequent letter stating that although O2 received my offer letter and payment they "accept any payment towards the debt where there is a balance owing"!!!

 

Quite clearly they have been caught out as they did not read my letter and by accepting my offer and not returning the payment to me they have created a legally binding contract. I have today written to Wescott to advise them of this fact and remind them of their obligations under s.28 of OFT guidelines.

 

Will update again when I receive the next letter!!!!

[locutus]

Thank you. Look forward to it being in your favor!

[buzby]

Their action ()2) is par for the course. They are of course quite correct, the payment methods are separated and processed, which is a massive inconvenecne to them - especially as they haven't a legt to stand on.

 

Whilst you are waiting for a response, this is a good time to check your credit file to see if there is anying untowars showing - like saying there is still a final balance due when your F&F cheque should have cleared it. It is important you to this as you have their attention and THIS is the time to ensure they resolve any issues outstanding.

[monkeymad1]

Thanks locutus and buzby,

 

I expect to receive yet another letter from Wescott stating that O2 accepted the payment but deny it was in full and final settlement and again threatening bailiff action. When this happens, I will lodge a complaint with OFT.

 

I have suggested to O2 that they take legal action against me so that the County court can decide on this matter. For some reason, O2 don't want to follow this course of action. I wonder if they are affraid of losing and setting a precedent!!!!!!

 

Anyway, I will follow buzby's advice a check my credit file and send the appropriate CAG letter to remove any incorrect entries.

 

Will let you know what happens. Thanks everyone for all the advice.

[buzby]

Some misconceptions - the OFT do not deal with individuals. In your case, if they do not agree to your version of events, they take you to court and you provide evidence of their bad faith. They'll lose.

 

Any contact from a DCA should be countered with the 'account is in dispute'. They may not take you to court, which is why you must ensure they do not lodge adverse data - if they do, you may have to take THEM to court to enforce removal.

[monkeymad1]

buzby,

 

Thanks for your advice. I have already sent the CAG template letter for "account in dispute" to Wescott. and have asked them for a full explanation as to why they are attempting to collect on a disputed debt. I have also made a complaint to them as I believe they have breached the OFT guidelines on debt collection and asked for details of their complaint resolution proceedure.

 

Am I right that if this situation continues, I can refer them to Trading Standards for breach of the OFT guidelines, and CPUTR?

 

Sorry for asking so many questions!!!!

[buzby]

You could indeed, but this relies on your local council TS, remembering to take this up as an issue for referral to the TS management meetings to raise the matter with the OFT. I take the view 'why bother'? I'd have better thing to do with my time. Keep your actions short and sharp, and protect your interests above all else. At the end of the day, when all a firms has to do is apologise for a 'staff error' and then get away with it, makes a mockery of the time and effort in pursuing it. (So I don't bother!)

[monkeymad1]

buzby,

 

thanks for the advice. this has now been going on for nearly a year and it would be good to "turn the tables" and put some pressure on them!

[buzby]

If you have the time and the energy, by all means. Just don't make yourself a basket case doing it!

[monkeymad1]

UPDATE - have today received another "standard" letter from Wescot in reply to my CAG "account in dispute" letter. Instead of providing a copy of their complaints procedure as requested, Wescot have provided me with a copy of the Banking Code.

 

Before I email the FOS, can anyone confirm whether DCA's are covered by the Banking Code or some other regulatory body?

 

Also, Wescot have not provided a timescale to deal with my complaint and have stated that they will contact me in "due course" Am I right in my belief that without a timescale Wescot have only 8 weeks to reply before I can lodge a formal complaint with the FOS?

 

Any advice will be gratefully received.

[monkeymad1]

I have just spoken with the consumer advice line at the Financial Ombudsman Service. They have advised me that DCA's chasing telecommunications debts are NOT covered by the ombudsman service.

 

So, it would appear as though Wescot have lied to me again and have failed to comply with the CAG "acount in dispute" letter by not supplying details of their complaints procedure. I think it is time to write them another letter!!!

 

By the way, all complaints have to be feferred to OFCOM or OTELO and not FOS.

[locutus]

I think that's refering to complaints about the mobile provider, not the DCA.

[monkeymad1]

Locutus, I believe that you are right.

 

Do you know who I can lodge a complaint with? Quite clearly, the DCA is not covered by the FOS eventhough Westcot believe that they are!!!!!

[locutus]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/195265-complaining-oft.html

If it's from a financial insitution the FOS do take the complaint I believe, which is probably what is confusing the westcot brain cell.

[monkeymad1]

Hi locutus,

 

As always, thankyou for your very valuable advice.

 

I will today complete and send off the OFT debt collection complaint form. It will be interesting to see what happens next!

[monkeymad1]

UPDATE - I have today received a reply from Office of Fair Trading. As expected, they are unable to deal with my complaint. However, they have stated that they will "consider my complaint alongside other complaints that they have or will received with regard to any consumer credit licensing or other action we may decide to take"

 

In view of this I would strongly recommend that anyone facing poblems with Wescot should download the OFT complaint form from CAG and complete and submit it to the OFT asap. The more complaints they receive, the more chance that action will be taken against this DCA.

 

In the meantime, Westcot have been surprisingly quiet since my last correspondance to them!!!!!

[monkeymad1]

I have today received the standard "we are looking into your complaint" letter from Westcot. This is now the 4th letter I have received from them in the last couple of months saying the same thing!!! I wonder why they are finding it so difficult to contact O2 to obtain instructions!!!!!

[monkeymad1]

Result - Yesterday I received a really grovelling letter from Wescot in reply to my numerous letters pointing out to them the breach of contract law carried out by O2. Basically Wescot have said that they were only following instructions from O2 in pursuing this matter! (I recall from my history lessons at school that Nazi war criminals said much the same thing at the Nuremberg trials about exterminating jews!!!!).

 

Wescot have stated that they will not take any further action, have closed their file stating that I contact O2 in the future.