Please help ABN AMRO Bank debt sold to blagstone usa

[calvinhobbes]

Hello I would really appreciate any advice.

My son was a student in holland and tbh it all went pear shaped mostly because he failed to get a student loan (different story:-(). As a result he ended up owing ABN AMRO Bank money. He is now back in uk and is unemployed (trying hard though). Anyway he tried to pay the bank a little each month but it wanted more than he got in benefits then they passed the debt on to this Blackstone crowd in the USA. They sent him a letter, he replied (before I had seen some of the threads on here) and they have sent this reply. The thing is his offer really is the VERY most we could get together and he is really worried about his credit reference. He doesn't want it to effect future employment.

How do you think he should answer their letter, there is no chance on this earth he has 1000! He is on £50 per week and has to eat.

Dear Mr G,

 

Thank you for speaking with me today regarding your outstanding ABN AMRO Bank NV HSBC Account, with reference number 57xxxxx. The amount due is €1,468.02 EUROS, with an exchange rate of 1.35000, which is $1,981.83 USD?

 

Monthly payments of €495.45 must be made on the full balance for 4 months to close the account in full. With these arrangements, “NO FEES OR INTEREST" will be applied to the balance if the payments are made on time. The first payment is due on November 21st.

 

Also, the Client is willing to settle for €1,190.00 EUROS to close the account in full. The payment is due on or before November 25th.

 

"IF THE PAYMENT IS NOT RECEIVED ON OR BEFORE NOVEMBER 25TH, THE SETTLEMENT OFFER IS NULL AND VOID.”

 

The wire instructions are attached above for payment. Please send a copied receipt or a confirmation number to confirm when payment is made.

 

Please let me know if we can move forward, so I can advise the Attorney and Client immediately.

 

"WE ARE NOT OBLIGATED TO RENEW THIS OFFER.”

 

Thank you

 

 

ooooooo

Account Representative

Bluestone Recoveries International

4405 East-West Highway

Suite 402

Bethesda, MD 20814

USA

XXXXXXXXXXXXXXXXX

 

To Blackstone

 

....

 

I write with reference to the money which you are claming on the above account.

 

I can confirm that I am unable to offer to pay the money which we owe in full. I am currently unemployed and on state benefits receiving sterling £50 per week, with little prospect of a change in circumstance.Therefore, I can only afford to make a payment of 5 usd per week. However, I can raise 510 USD and I want to offer this as an ex−gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

This offer is being made by selling the little possessions I own and as a matter of courtesy I would like it noted that I am officially homeless and using the above address for mailing purposes.

 

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

 

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

 

I look forward to receiving your reply.

 

 

 

XXXXXXXXXXXXXXXXX

23/11/2011

Dear Mr. G,

 

I just received an email from the client advising me of the following;

 

ABN AMRO Bank advise they will accept €1,000.00 EUROS to close the account in full. The payment is due on or before December 12th.

 

"IF THE PAYMENT IS NOT RECEIVED ON OR BEFORE DECEMBER 12TH, THE SETTLEMENT OFFER IS NULL AND VOID.”

 

The wire instructions are attached above for payment. Please send a copied receipt or a confirmation number to confirm when payment is made.

 

Please let me know your position, so I can reply back to the client with your response.

 

"WE ARE NOT OBLIGATED TO RENEW THIS OFFER.”

 

Sincerely,

 

 

ooooooo

Account Representative

Bluestone Recoveries International

4405 East-West Highway

Suite 402

Bethesda, MD 20814

USA

 

 

Thing is did Blackstone buy the debt or not? I am confused I think my son said the bank manager said they did!

 

As I said any advice welcome.

Edited November 24, 2011 by calvinhobbes

[cerberusalert]

Doesn't matter whether they bought it or not they are not registered in the UK to collect debts nor are they licenced through either the OFT, FSA or the ICO.

 

They cannot mark his UK credit file as it is not a UK debt.

[calvinhobbes]

Thanks, the original debt was dutch so I thought the way they claimed to be talking to the bank may be a lie to get him to settle..thinking dutch/european law would be easier to chase in the uk. So basically paying this money will do nothing? What if he ever goes to live in holland again? (met a lovely dutch girl)

Do you think they could mark the dutch report?

Edited November 24, 2011 by calvinhobbes

[cerberusalert]

There are reciprocal agreements between EU member states and cross border action can be taken, however this does not allow a US DCA to stick their oar in particularly when they are probably in breach of the Dutch data protection laws.

 

There was a case a little while ago where a US DCA tried to obtain a court order in Canada against a UK resident for an EU debt... they lost because of jurisdiction. Any action would have to be brought in the UK against a UK resident.

[calvinhobbes]

Sorry, I feel so stupid, this is hard for me to understand...does that mean paying it will accomplish nothing and that it is unlikely that Blackstone can do anything to pursue - they won't chase in a uk court?

[cerberusalert]

In theory if they own the debt they could try to pursue in a UK court but given the amount they are trying to recover they would have to determine whether it would be financially viable for them to do so, particularly if they are unaware of whether your son has any assets or is capable of paying any judgement.

 

Given his financial situation even if this were to go to court a judge would be unlikely to award a repayment more than your son could comfortably afford to repay... this could be as little as £1 per month.

 

If the bank has sold them this alleged debt they have done so in the knowledge that they would not have gained equitably had they pursued themselves. The debt would have been sold at a fraction of it's face value and this US DCA will be trying their luck.

[calvinhobbes]

Thank you so much. I really appreciate your explanation and know he will too.

[cerberusalert]

You could email them back and tell them that he is unemployed of limited income and has no assets & that if they were stupid enough to try and pursue through a UK court even if they were to win it would be unlikely that an order for more than £1 per month would be made. You could threaten them that if they did win your son would immediately apply for a debt relief order and not only would they receive nothing but they would have to bear the costs of a useless CCJ they'd obtained.

[calvinhobbes]

Oooh that sounds good:whoo: