Brilliant Gift shop/Reliable collections £2 debt turned into £xxx.xx

[starfusion]

Hey all,

 

Looking for some advice, i'm not sure where to start.

 

The story short :

 

I purchased a item from the brilliant gift shop for around £40 literally about 8 month ago, this was via online.

 

I made a few small payments and then had completely forgot about the account as this is a place i don't really shop from, i orignally thought i had paid the full £40 off but i had only paid £38, which i then heard nothing from the brilliant gift shop for 6 months up til now.

 

I'm recieving up to 10 calls a day from the brilliant gift shop/reliable collections, each phone call saying they are one of these places, everytime they phone i refuse to answer any security questions they ask, one has phoned me today saying that i am breaking the data protection act for not answering the questions, he spouted i've spoke to 100+ customers all giving there details.

 

Now they have slapped charges on up to well over £100+, now i'm currently in financial trouble due to my business going bust as i was self employed. So i have not got the money to throw and pay £100+ charges over something that is so small.

 

When i first bought from online they sent me a agreement which i had to sign, but i never signed this and sent it back.

 

I'm constantly being harrassed at all times of the day via phone. i have verbally asked for them to stop the phone calls and deal everything in writing, but i am at lost on what to do next.

 

What letter should i first write them? any help will be much appreaciated.

[unclebulgaria67]

If you have had a letter from them and would write back asking for an up to date statement, plus copy of any agreement, together with the terms and conditions. If you have not signed up to anything either online or in writing, then they are not entitled to anything extra, other than the £2 you didn't pay them.

 

Check your credit record to make sure they have not added anything.

[starfusion]

My post has just been delivered and speak of the devil, i've just had a letter with a statement saying i now owe the sum of £143.76, this is literally all made up of £12 charges and something i'm not sure what it is but there is a credit charge of £2.20 and also a service charge of £0.98, a little confused on what these are.

 

The letter states the account is now with reliable collections and that i should make a payment of £25.00 within 14 days or another £12 is added.

 

I never signed anything, i never sent the agreement back which they asked me to sign. I've checked my credit record and can't see anything added by them on there.

 

They keep ringing up it's 4th time today on a saturday, each time telling them i'm not answering there questions, and everytime something different is told i'm breaking certain rules. The guy who has just been on the phone has just told me that i have answered there security questions before therefore i should answer them again.

 

I know for a fact i have never ever answered any security questions.

 

Every time they phone up i get a guy asking for myself, then transferring me to a accounts manager of some kind.

 

How to stop the phone calls?

[unclebulgaria67]

Debt collection guidelines from OFT. See link here

 

They are not allowed to keep phoning you as this is deemed to be harassment. If you read section 3, it states some areas which Reliable collections should be following.

 

I would suggest that you write back asking for all communications to be made in writing. Make a complaint quoting some of the OFT rules. Ask Reliable for the last statement of account from Brilliant Gift Shop, together with any consumer credit agreement with them, including the terms and conditions of the account.

 

Suggest that you get proof of sending the letter from the post office. I wouldn't bother sending by recorded, if you only owe £2.

 

Having just read the Brilliant Gift Shop terms, they do state the following.

 

6. If you fail to make a payment (including if any credit or debit card payment is rejected, any cheque you submit is dishonoured, or a direct debit is not paid) and we or someone acting for us have to remind you, we reserve the right to make a reasonable administration charge. The current charge is £12.00 but this is subject to variation. You will be given reasonable notice of a change in our administration charges.

 

It is up to you whether you challenge Brilliant about £12 being reasonable and for each £12, plus other charges they keep adding. You could write to Brilliant making a complaint and threaten to go to the FOS re unfair charges on the account. If they are providing credit, then they are I believe covered by the FOS.

 

Here is another thread. http://www.consumeractiongroup.co.uk/forum/showthread.php?315167-Reliable-Collections-Brilliant-Gift-Shop

[Halibutt]

I agree with Uncle B. but would certainly challenge the charges. £100+ on an outstanding balance of £2 is ridiculous. If they'd simply sent a reminder and maybe added a few pounds for admin, that would be sensible and good business practice. From what you've said, I would imagine you'd have thought, "Oops, forgot that, fair eough" and paid up. As it is, the charges are disproportionate.

 

The letter template to stop harassing calls is in the library (top left in green) and you need to send that to whoever is calling. Keep everything in writing.

 

H. x

[twofoot]

Dear DCA,

Thank you for your letter dated .......... I must stress that I have no knowledge of the alleged debt you refer to and I DO NOT ACKNOWLEDGE ANY DEBT TO YOURSELVES OR ANY COMPANY YOU CLAIM TO REPRESENT.

I have no intention of avoiding any debt i owe and I therefore require proof that the debt exists. In order to prove the debt exists I require a signed copy of any agreement made and a full itemised statement of the account. Anything less will not be entertained.

Yours.....