Centrica/CST claimform - Industrial Training Bond ***Claim Discontinued***

[BadMojo]

Hi everyone.

 

I joined British Gas (Centrica) in 2015, but left in 2017. There was a three year, sliding scale, training bond linked to my employment (they paid me an apprenticeship salary whilst under training, which there was no direct itemized charge for). If I left in first year after qualifying they would ask for £9000, 2nd year £6000 and 3rd year £3000. I was in the 3rd year.

 

My final wage was reduced to zero as they collected the training bond. I assumed we were all clear as I heard nothing further from BG.

 

Fast forward to yesterday and I've received a letter from Credit Style Ltd claiming I have an "outstanding balance from previous employment' of just over £2700, with Centrica. I've also received a text message.

 

I'm looking for advice on how best to proceed. I have no money. I'm in debt and have nothing spare. They have included no detail in the letter. Just that I owe the above.

 

I don't recall signing any finance agreements when I joined, or anything else for that matter.

 

There's nothing in my credit file, that I can see, relating to this 'debt'.

 

Should I respond by letter or call?

Edited January 7, 2020 by BadMojo

[BadMojo]

The requested payments details are the account number and sort code for Credit Style, not Centrica. This suggests they have bought the debt, does it not?

 

Does that mean they have the power to take it further and take me to court? If so, ignoring won't then be an option will it?

Edited January 7, 2020 by BadMojo

[BadMojo]

The reasons I said it 'suggest that..' was that that pearl of wisdom was written on another website offering help on debt matters.

 

Theletter starts with 'Our Client: Centrica PLC' and the main body of the letter begins, 'We have been asked to contact you by Centrica PLC...'

 

I was working on the assumption Centrica have added some interest over the last two years and now Credit Style have possibly added their fees too. Are either of those scenarios permissable?

 

I guess the only way to find out would be to contact them and ask for proof the debt is mine, with a breakdown.

Edited January 7, 2020 by BadMojo

[BadMojo]

They have my correct address and telephone number.

[BadMojo]

Thanks for all the advice. It is worrying me though. 

[BadMojo]

Someone is chasing me for money and worried ignoring them will just make it worse in the end.

[BadMojo]

That's the problem; what can they do? Start court proceedings, with all the issues that go with it? Effect my credit file? And making it worse by not acting on it? It's stress and worry.

 

Interesting reading about it when it's someone else; just a little different when it's you.

 

But coming here to discuss it is helping.

[BadMojo]

I received another letter today. Tone slightly more forceful. Claiming they don't want the matter to escalate.

 

I appreciate I may well be going over ground that's been covered before in this forum, so if there are any links to information about what they can and can't do I'm keen to read up.

 

My worry is they keep pushing it, either because they've bought the debt and want to add fees, etc and do what they can to make me pay; or act at the bequest of Centrica and go all the way to court etc. You see TV shows about debts growing  ten-fold because people bury their head in the sand and ignore letters they shouldn't.

Edited January 16, 2020 by BadMojo

[BadMojo]

Is the importance of them having my correct address so that I receive any letters regarding court action, if it were to be taken? I've learnt a few of my old colleagues that left just after me have also received letters, but one hasn't as he's moved house twice. He's working on the assumption, 'If they can't find me I'll be alright'.

[BadMojo]

Another letter arrived today advising me that as they've heard nothing from me they're now considering passing the matter into their solicitors for a CCJ review. And if legal action is taken, costs and fees may be added to the amount they claim I owe.

[BadMojo]

Credit Style Limited on behalf of their client Centrica.

[BadMojo]

Thank you. So it's all bark and no bite until Centrica's legal representation issues a letter before action...ok.

[BadMojo]

Best mates with Elon Musk? Then I'd believe it!

[BadMojo]

Nothing to report since last post. But I'll keep updating, so keep coming back.

Edited February 5, 2020 by BadMojo

[BadMojo]

I've received a new letter with a CST Law letterhead.

They say they've been passed my account for review.

They are now assessing my account for possible legal action in order to recover the alleged debt.

 

If they issue legal proceedings and it results in a CCJ the amount will increase (they itemise court fees and solicitor's fees).

 

If I do not pay the amount or contact they within seven days legal action may commence to recover the balance without further notice to me.

 

looking for comment and advise again please?

[BadMojo]

Thank you both.

[BadMojo]

Nothing since my last post.

[BadMojo]

Good Afternoon Everyone

 

Well, after a period of silence, today I received a letter from the County Courts. Centrica are now pursuing me for 'overpayment of salary/expenses full particulars of which have been previously supplied.' The grand sum of £3404.34. Which includes interest and court fees.

 

Bit of a shock tbh.

 

So I'm back here asking for some advice please. Tell me what you need to know...

 

Up to this point I have not been responding to the collection agencies letters and there has been a long period of time since the last letters. I do not recall every receiving documentation fully explaining what and why I owe them any money.

 

I have spoken with an old work colleague that left just before me and he hasn't heard anything recently, nor has the person he's been in touch with. However, they have previously responded to the letters and disputed they owed any money, saying they have signed nothing, or been provided with no documentation to show/prove they do. That's the only difference (I haven't replied to dispute anything.)

Edited July 14, 2021 by BadMojo

[BadMojo]

Name of the Claimant ? Centrica PLC

 

Date of issue –  13 Jul 2021

 

Date  to acknowledge) = 30.07.21

 

date to submit defence = 13.08.2021 (33 days in total) -

 

 

Particulars of Claim

 

What is the claim for – the reason they have issued the claim? 

 

1.The Claimant's claim is in respect of an overpayment of salary/expenses, full particulars of which have been previously supplied.

 

2.And the claimant claims 2781 GBP, Account No. xxxxxx, 339 GBP,

interest thereon in accordance with Section 69a of the County Courts Act 1984 at the rate of 8.00% p.a calculated from the date upon which payment became due to the date hereof as set out below.

Further interest at the rate of 0.61 GBP per day (8.00% p.a.) to judgement or payment.

 

What is the total value of the claim? £3404.34
 

Have you received prior notice of a claim being issued pursuant to paragraph 3 of the PAPDC (Pre Action Protocol) ? I have not received a 'letter of claim'. The only letters I have received are from DCA threatening potential legal action and court proceedings.
 

Have you changed your address since the time at which the debt referred to in the claim was allegedly incurred? No
 

Did you inform the claimant of your change of address? n/a

Is the claim for - a Bank Account (Overdraft) or credit card or loan or catalogue or mobile phone account? No
 

When did you enter into the original agreement before or after April 2007 ?  Employment commenced, any paperwork signed, 2015
 

Do you recall how you entered into the agreement...On line /In branch/By post ? Signed offer of employment via email and then perhaps some further paperwork at their premises (training academy Leeds) during induction Nov 2015
 

Is the debt showing on your credit reference files (Experian/Equifax /Etc...) ? No. I cannot see any reference to this alleged 'debt'.
 

Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim. Unsure. Claimant is Centrica. 'Address for sending documents and payments' is CST LAW, Sheffield.
 

Were you aware the account had been assigned – did you receive a Notice of Assignment? Unsure how to answer this.
 

Did you receive a Default Notice from the original creditor? I received several letters claiming I owed them money. Unsure if any of those count as a 'Default Notice'
 

Have you been receiving statutory notices headed “Notice of Sums in Arrears”  or " Notice of Arrears "– at least once a year ? n/a
 

Why did you cease payments? n/a
 

What was the date of your last payment? n/a
 

Was there a dispute with the original creditor that remains unresolved? I dispute owing them any money, but have not written to them (after receiving advice here).
 

Did you communicate any financial problems to the original creditor and make any attempt to enter into a debt management plan? No. But I may have to.
 

What you need to do now.

 

Answer the questions above

[BadMojo]

@BankFodderThe training bond was some sort of contractual agreement whereby Centrica claim back, on a sliding scale, their 'training costs' if you leave business within 3 years. I admit, I was aware of it.

 

My last payslip was November 2017, but 100% of it was deducted as payback for this training bond. (As I recall. I need to dig out the actual payslip, but I've checked my bank account and no money went into my account that month.) There was no credit agreement. It wasn't a loan. It didn't need 'paying back' during my time with the business. It was just something they claimed was their in-house training costs, which they would claw back if you left within 3 years. All training was in-house. They had their own academy and staff.

 

After the last payslip deduction I heard nothing for a while (until I created this thread) and I considered the matter closed. On leaving I was advised by the union rep that I shouldn't raise the subject and that he was unaware of anyone, ever, being approached for the money after leaving the company. So when they took all my wages that last month, I left it at that, as I was well into my 3rd year and regarded the matter closed with the money they reclaimed.

Edited July 14, 2021 by BadMojo

[BadMojo]

I found my final payslip and amongst the final deductions was an amount of £3000. This sent my final payslip into negative, -£2797. I received no other correspondence from BG regarding the training bond, demands to pay it back and/or instructions on how to do so. I regarded the matter as closed and waited for them to contact me. They didn't, until....

 

A period of time passed and then I started to received DCA demands, posted here, and followed the advice to ignore.

 

I never regarded it as a debt, as I did not borrow any money, or sign a credit agreement, or anything along those lines. I regarded it as a penalty, which they would not pursue and time passed...

 

I 'm finding it difficult to imagine the estoppel approach would work, bearing in mind the DCAs started to write to me saying I owed them the money - which I ignored.

Edited July 14, 2021 by BadMojo

[BadMojo]

I've re-read the letter I received on 22nd June 2021 (letter dated 8th June 2021). It would appear this was their 'pre-action' letter and gave me 30 days to respond from the date of their letter, or they may proceed with legal action. Note how long the letter took to get to me. I took this to be another empty threat, like all the other letters, but it would appear I was wrong.

 

The letter refers to an overpayments of wages, but that is not the case. They are trying to reclaim the training 'penalty' which they could not take in full when I left (as my wages did not cover it).

 

The form they included gives me many options, from acknowledging the debt is mine and paying it in full, offering part payment, or disputing the whole amount. It also gives me the opportunity to ask for paperwork from them, e.g. a copy of any written contract. I am wondering if I should fill this in now.

 

Bottom line is, I do not have the money. I have significant credit card debt and can show this and that I cannot afford to pay them anything. I could probably find £1 per month, as per some of the info I've seen here.

 

I will answer any further questions to the best of my ability and would appreciate any advice on how best to proceed. Presumably, the court papers are the most important and I need to respond in a timely manner, but is it worth filling in CST Law's paperwork and requesting Centrica's contracts on the 'debt'? Or are we past that point now?

[BadMojo]

I have attached the Letter of Claim. 

 

They continue to refer to it as an overpayment of wages. It is not.

 

I have the envelope, but there's no post mark, or date. Just a QR code and some sort of reference number. I hand wrote on the envelope the date I received it, as it shocked me how long it had taken to get to me.

 

So is my next step to call Centrica/BG and tell them what's happening and discuss a resolution? If I am, do I need to be careful with my words and not acknowledge any debt? Should I be asking for a copy of their contracts to show that I do/dont owe anything?

 

The money (£3000) wasn't taken in full, as my wage was not large enough to cover it. The final amount on the payslip was a minus amount! There was no supporting paperwork at the time, or afterwards, explaining anything to do with the training bond or monies owed. Until I started to receive DCA letters much later (start of thread).

LOC_08-07-2021.pdf

Edited July 15, 2021 by BadMojo

[BadMojo]

Sorry, I may not have been clear regarding the final wageslip as I've been concentrating on the training bond of £3000.

 

They attempted to deduct £3000 along with other deductions, like tax, NI, pension, but they also took £1000 which was a retention bonus paid at the start of the year (on the understanding that it would be recovered if you left within 12 months.

At the time, I had no intention of leaving, so accepted it.)

 

I wasn't actually paid enough that month to cover all these deductions, so my wage was displayed as a negative amount on my slip. -£2,797.08.

 

they've attempted to recover £4000, but were only able to get their hands on £1200.

 

 

[BadMojo]

I called Centrica People Services, which is said to handle calls from current and ex-employees.

 

They gave me a number for Centrica Collections, but that number is 'not accepting calls right now'.

I called People Services back and got an email address.

 

The guy on the phone was able to look up my file and suggested, from the limited details he has access to, that it was for the training bond. For a better response I need to email collections so they can refer to payroll.

 

Shall I pen them a brief email asking to explain CST's impending court action and/or ask for copies of any documents they have in support of their claim?

Edited December 3, 2021 by dx100uk
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