Bankruptcy being threatened by Wilson Rose over unpaid I-Smart 'fees'

[Geoff66]

Good morning,

 

Just a quick spot of advice required.

 

I used a company called I-smart to chase a credit card for a PPI claim a few years ago.

 

They were successful and I received a payment into my bank account.

 

I understood that I-smart would deduct their fee from my final payment

but apparently they messed up and did not take the payment.

 

I spent the money almost immediately when I received it paying off another credit card,

now I do not have the £904.81 that Wilson Rose are chasing me for.

 

I have received a letter this morning from Wilson Rose

stating that unless I pay immediately they will start bankruptcy proceedings against me.

 

Is this legal and can they do this was my initial question please?

 

I am trying to get the money together in order to pay,

but do not wish to be threatened with something like this if it is not right.

 

many thanks in advance for your advice if possible,

 

Geoff66

[unclebulgaria67]

Did I-smart chase you for their fee, before Wilson Rose got involved ?

 

Did you receive clear documents stating what you were to receive for the PPI refund, so you would have known that the £904.81 extra was I-smarts fee ?

 

If the answer to these questions is yes, then I don't think you have much choice, but to make a payment arrangement. If you brought the debt below £750, which is the bankruptcy threshold, then at atleast that threat is removed. Then it is a question of making affordable repayments over a relevant period. As long as you make payments, it should remove any likelyhood of any court action against you.

 

If you ignored this, you are taking a gamble. Very risky if you own property, as it would be at risk followng bankruptcy.

[Alloyz1]

It may be prudent to check the original terms and conditions under which you engaged I-Smart and under which they would provide you with the proceeds.

 

Does it say they will credit you with the full amount and after which you will pay them (doubtful).

 

Or does it say they will deduct their fee and transfer you the rest (probable).

 

If it is the first one, you need to pay them, as agreed.

 

If it is the second one, you have a better standing to consider the bankruptcy threat unreasonable and negotiate a payment plan.

 

Either way you owe it so correspond with them.

[dx100uk]

how much did you get back?

 

that's one hell of a fee!!

 

dx

[gerson]

According to thier own T&Cs (1.4 and 2.5) they will deduct fees prior to sending the compensation cheque to you unless payment was sent direct from the OC

 

As they did not follow thier own T&Cs then IMHO this should be mentioned to them and negotiate a resonable repyament plan, with no additional interest and no sharing information with CRAs and to call off Wilson Rose. Also request a full and complete breakdown of how they came to the figure requested

 

As Alloyz1 said (If it is the second one, you have a better standing to consider the bankruptcy threat unreasonable and negotiate a payment plan.)

 

The fees charged are 25% (+20% VAT) - OUCH!

 

So if you know how much you received then you can work out if the fee now mentioned is correct

 

Good luck

[The Mould]

Good morning,

 

Just a quick spot of advice required.

 

I used a company called I-smart to chase a credit card for a PPI claim a few years ago.

 

They were successful and I received a payment into my bank account.

 

I understood that I-smart would deduct their fee from my final payment

but apparently they messed up and did not take the payment.

 

I spent the money almost immediately when I received it paying off another credit card,

now I do not have the £904.81 that Wilson Rose are chasing me for.

 

I have received a letter this morning from Wilson Rose

stating that unless I pay immediately they will start bankruptcy proceedings against me.

 

Is this legal and can they do this was my initial question please?

 

I am trying to get the money together in order to pay,

but do not wish to be threatened with something like this if it is not right.

 

many thanks in advance for your advice if possible,

 

Geoff66

 

I find it hard to believe that you (or indeed any other) could possibly be held as legally responsible for another's administrative errors.

 

Contact them and point out their error(s) and that you do not accept liability for such, however, as a gesture of good will, you are willing to negotiate a settlement to this matter without any admission of liability for the sum claimed.

 

Godzilla

 

Kind regards

 

The Mould

[oleg]

Before gesturing so-called goodwill and negotiating settlements, I would be demanding they send within x days a copy of my signed contract and statement of account.

Remember they can't just petition for your bankruptcy at the drop of a hat. They would need to serve a statutory demand first and then you have 18 days to respond with a statement of intent to defend.

They have forsaken due process in going straight for the jugular.

In any case, in the event that they did issue an S D you could, as already stated, bring the balance down to £750 to prevent BR.