Clarity working for CitiCard, now cabot !! - **You really couldn't make this up!!**

[removalman]

This will amuse and at the same time may infuriate...

In an attempt to settle a large and long outstanding credit card debt, I recently sent a full and final settlement cheque/letter to the DCA of 10p in the £. (A mob called Clarity working for CitiCard). It was slightly a tongue in cheek attempt as I didn't really expect it to work.

I also notated the cheque as well as making it clear in my letter that this was a full and final settlement payment. Obviously I retained copies.

Anyway, to my surprise and delight, they banked the cheque and it cleared my account last week.

Now this is the great bit...

They phoned me two days ago to say they made a mistake and shouldn't have banked the cheque and they're going send me back the money (direct into my account) and continue chasing me for the debt in full.

Am I going mad?

Anyone (especially those on here with some legal training) care to comment?

Tony.

[postggj]

Well They Banked The Cheque And Accepted

 

Ime Unsure But In Court They Will Be On A Sticky Wicket

 

There F$"k Up

 

Not Yours

[JonCris]

Did you state your payment was also in 'consideration' of an early settlement

 

If presenting a creditor with a full & final fait accompli it's important to also include a 'consideration' which can be either £1 or early settlement.

 

In the meantime maintain your position, debt paid & if they attempt to renege on the deal come back here

Edited February 27, 2010 by JonCris

[removalman]

My letter made it clear that it was a "Full and Final Settlement". I didn't mention the word "consideration".

What should I do if the money finds its way back into my account? It could just end up going backwards and forwards between us. Should I just hang onto it?

[JonCris]

additIn that case whilst I would maintain my position with them 'debt paid' I doubt a court will support you. The court will say you left them no choice but to accept your payment hence the need for a 'consideration' (additional benefit) for you to overcome any court objection

[gezwee]

One to read with regard to 'consideration' and its effect in F&F's

 

http://www.hmcourts-service.gov.uk/judgmentsfiles/j2880/bracken-v-graham_billinghurst.htm

 

Gez

[removalman]

Many thanks to you both for your input. Of course, I didn't force them to bank the cheque.

Anyway, I also need a view as to what I should do if they return the money to me?

[gezwee]

I think its one to test if they return payment and continue to chase the debt.

 

Sorry I can't offer you more than recent case law.

 

Out of interest, how long ago did you send the cheque, how long before they presented it and how exactly did you word the settlement offer?

 

I have a feeling that they may have shot themselves in the foot, if they were of the belief that they had acted correctly they'd still be pursuing the balance prior to returning funds.

 

Gez

[removalman]

The cheque was pretty much presented for payent immediately.

Obviously an inexperienced employee saw the money and banked it.

[JonCris]

I think its one to test if they return payment and continue to chase the debt.

 

Sorry I can't offer you more than recent case law.

 

Out of interest, how long ago did you send the cheque, how long before they presented it and how exactly did you word the settlement offer?

 

I have a feeling that they may have shot themselves in the foot, if they were of the belief that they had acted correctly they'd still be pursuing the balance prior to returning funds.

 

Gez

 

 

I agree. It may be that (mistakenly) they think they have boobed cos if they didn't they would as Gez states be simply chasing you for the balance

 

Also having banked the cheque they cannot now return the original which means you can return their cheque whilst continuing to argue F&F;)

[removalman]

I suspect they'll return the money via bank transfer rather then cheque.

Then what shall I do?

[removalman]

The tale continues...

Some nine months after the DCA accepted my offer of payment (Clarity on behalf of CitiCard) and banked the cheque, I've had a letter from Cabot who have acquired the debt and are chasing me for the full sum due. They've also entered a default on my credit record.

I've sent them copies of the correspondence showing that the DCA accepted my offer.

Is there anything else I should be doing?

[the_shadow]

The tale continues...

Some nine months after the DCA accepted my offer of payment (Clarity on behalf of CitiCard) and banked the cheque, I've had a letter from Cabot who have acquired the debt and are chasing me for the full sum due. They've also entered a default on my credit record.

I've sent them copies of the correspondence showing that the DCA accepted my offer.

Is there anything else I should be doing?

 

If Cabot have fully purchased the debt they are entitled to take over the default on your account, just make sure the date hasnt changed.

 

If you've maintained your position that the debt has been paid then we need to see what Cabot come back with, it might be worth raising a complaint with cabots local trading standards as if the debt is settled then its a breach of the oft debt collection guidelines to chase for more money, send trading standards the same letters you have cabt as proof.

 

S.

[Surfer01]

As the debt was in dispute, it should never have been poassed on so I think that they may have breached regulations.

[dx100uk]

slight rename and move to citi forum.

 

dx

siteteam

[Bosund]

Hi,

 

Followed the link at 6 but cannot find the details.

 

Any ideas?

 

Regards,

 

Bosun.