Credit Resolution Services (CRS) Extortionist!

[Netyard]

I was a member of Golds Gym for about 3 months when I moved out of the area and sent a letter to say so to cancel my membership, a little while later I received a letter from a company called CRS Credit Resolution, the text in red is my main issue as I can't see how they can do this, isn't this extortion?

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22 Jan 2007

 

We write to advise you that a debt of £150.00 has been passed to us by Golds Gym.

 

This debt has arisen as you did not fully comply with Golds Gym cancellation procedure. You have also now become responsible for our fees in recovering this outstanding amount. Our standard charge of £80.00 has therefore been applied bringing the full outstanding balance to £230.00

 

You can only speak to us about this debt. Gold Gym will simply refer you back to us if you contact them.

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I then phoned them and said that I could only afford to pay £10.00 per month which they did not feel was enough, I then asked about the £80.00 fee added to the debt and said I wanted a breakdown of the costs so I received this letter:

 

21 Feb 2007

 

We refer to our telephone conversation today

 

As requested, the breakdown of your debt is as follows:

 

£150.00 Membership Fees, due under the terms of your contract.

£50.00 Recovery Fee, Incurred as your file was passed to CRS.

£30.00 Trace Fee, charge incurred in tracing you to your new address

 

£230.00 TOTAL DEBT

 

We are prepared to accept repayments of your outstanding balance by instalments, however, additional amounts would be added. These depend on the method of payment and number of instalments to be collected.

 

Payment by Direct Debit £10.00 set up fee, £2.25 - £2.75 handling fee per instalment

Payments by any other method £25.00 set up fee, £2.75 - £3.25 handling fee per instalment

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I can't believe it!! are they trying to rob me or what??!

 

can they do this??

[kennyparkroad]

send the debt collection a CCA.

 

Did you sign a form when you created your membership?

 

I would send them the CCA recorded delivery AS SOON AS POSSIBLE, then they are not allowed to chase you for the debt until they can prove the debt actually exists.

 

Hope this helps, and hang in there, somone else will be along shortly to help u out.

[whats a mook?]

Firstly don't talk to them on the phone.

 

Tracing fee?

Direct Debit set-up fee?

3.75 Handling fee?

 

Utter tosh!

 

There's obviously a written agreement, most gyms will hurry you through the small print on the membership form. (I got stung with Fitness first but that's a whole new story.) Have you still got the membership form you signed when you joined? If not, could you obtain a membership form from whatever means possible?

 

I'd be inclined to let them take you to court for £150 and see what the judge makes of all these bogus charges, but that's just my hot-headed unprofessional opinion!

 

There are however more calm members who will hopefully give their thoughts.

[Netyard]

Thanks for the advice, I have the original agreement which I have signed, yes I do owe 150 as I cancelled my membership within 6 months, should I send them a CCA anyway in the hope they can not find my agreement?

[Netyard]

03/03/2007 - Sent CCA

 

 

 

[lookinforinfo]

Netyard, what you should be looking for in the agreement is the section that deals with your current situation. What is supposed to happen when you are

handed over to a DCA. Do you know if they have bought the debt?

When a debt is assigned, the new creditor is entitled to charge the same

amount of ineterest as the original owner. They are not allowed to introduce

new charges to the collection of the money. IT is also contrary to the

guidance on debts issued by the OFT.

[Netyard]

Hi, I have read the small print on the back of the contract and it does not state what hapens if it is passed on to a DCA, I will try and scan in a portion of the small print to put on the forum.

[Netyard]

OK I had a reply regarding my CCA. The letter I received from these pirates (CRS) stated that Golds Gym does not come under the consumer credit act and I had signed an agreement with them and that they will obtain a copy then sent it to me.

Any more tips? I just hope that they no longer have the agreement

[pmhcfc]

OK I had a reply regarding my CCA. The letter I received from these pirates (CRS) stated that Golds Gym does not come under the consumer credit act and I had signed an agreement with them and that they will obtain a copy then sent it to me.

Any more tips? I just hope that they no longer have the agreement

 

All you can do is wait me thinks.

[ODC]

All you can do is wait me thinks.

I think their bluff has been called. Even if you do owe them 150 for gym fees. There does not appear to be any way in this world they can justify their charges.

[lookinforinfo]

Netyard, it seems that it may be difficult to avoid the £150 payment-though

you may be able to get value for it by going there and using the facilities.

Do not pay any of CRS' charges however.

Write to them pointing out that there is no mention in the agreement that

these fees will be charged, nor do you have a contract with CRS. In addition,

if they persist in demanding these unlawful fees, you will complain to the

OFT that they are unfit to hold a Consumer Credit Licence.

 

In their guidance notes for collectors the OFT say that it is an unfair practice to claim collection costs from a debtor in the absence of express contractual or other legal provision..

[kennyparkroad]

good shout

[ODC]

If you can afford it go directly to Golds Gym, pay the money you owe them. Get a receipt for it and let CRS go whistle.

[doo]

Netyard, have you any updates yet on this gym problem?

[Netyard]

I have not received anything from CRS as of yet, if they can not supply me with my original signed contract then CRS and Golds Gym can go whistle lol.

[Greendeco]

I am bumping this post to see if anyone knows what happened as these are the people after me (CRS)

Anyon else had dealings with these people?

[beanie86]

Hi all (first post here!)

 

I have received a letter from these people this morning regarding a debt with ROKO gym.

 

I had unfortunately fallen behind with 2 months membership (£58.00) due to health problems and losing my job and I have received 2 letters from ROKO in the past 2 months asking that I pay what I owe.

 

I stupidly, ignored these letters and concentrated on getting better with the help of my doctor and my medication and I have opened my mail this morning to find that;

 

Credit resolution services

 

IMPORTANT: PLEASE READ VERY CAREFULLY

 

Your debt of £310.00 has been passed to us for collection.

 

In accordance with your terms and conditions of your contract with ROKO you have now also become responsible for our fees in recovering this outstanding amount. Our standard charge of £108.50 has therefore been applied bringing the full amount to £418.50.

 

You can now only speak to us regarding this debt. ROKO will simply refer you back to us if you contact them.

 

________________________________________________________________

 

I phoned ROKO this morning (I was going to call anyway to ask to clear the original outstanding debt of 2 months membership (£58.00) and was told that they will no longer speak to me regarding this. I did explain to them that I am unable and unwilling to deal with a debt collection company because my debt is with ROKO and not with Credit resolution services.

 

I was repeatedly told to deal with the debt collection company even when I explained that the choice is either; I can arrange to pay the outstanding amount to ROKO direct, or pay nothing to CRS.

 

I want to know where I stand with this because I refuse to pay the extortionate fees added by these people.

 

I am happy to pay the debt to ROKO, but not through CRS.

 

Help!! B.

[Greendeco]

Hi

Just managed to sort my issue out, I have paid £47 to CRS and matter closed. Just a pity they didn't accept my offer over 2 months ago.

Get in touch with your local trading standards, mine in Manchester were superb, the gym has been told to sort out it's contract which was misleading and unfair and stop trying to charge people £100 for cancelling! I also attached something from consumer direct which appeared to support my case. They wrote back saying they would accept my £47 and didn't have to send CCA as not a credit agreement.

 

This is the text of the letter I sent that seemed to stop CRS and the gym in it's tracks.

Dear Mr Knight

RE: CRS Ref No: xxxxx

Your Gym Ref No: xxxxxx

I DO NOT ACKNOWLEDGE THIS DEBT AND THEREFORE REQUIRE YOU TO SUBSTANTIATE IT THIS BY PROVIDING THE FOLLOWING DOCUMENTATION AS REQUIRED BY OBLIGATION, WHETHER YOU ARE THE ORIGINAL CREDITOR OR NOT, UNDER SECTION 189 OF THE CONSUMER CREDIT ACT 1974.

1. True copy of original credit agreement

2. Statement of account

3. Copy of the executed deed of assignment from (put your gym name in here) to credit resolution services.

I enclose a postal order to the value of £1 which represents payment of the statutory fee payable under the consumer credit act. I understand that a copy of my credit agreement should be supplied within 12 working days from the date of this letter. The sum supplied should not be used to reduce any debt, indeed to do so is unlawful.

I am disappointed you have again refused my reasonable offer to conclude this dispute.

I note you do not accept my points as to why your charges are not valid and I understand you are commencing legal action against me. At this stage, any legal action you may contemplate will be both vigorously defended and contested and consider this matter to be in dispute. The court will want evidence that all steps to seek a resolution have been taken before proceedings commence and I do not believe that (your gym name) or CRS have fulfilled their obligations to this end.

Please also note as part of my defence in any court action you will be asked to justify this charge giving a complete breakdown of the costs.

In a previous letter you stated that the cancellation form from GL-14 allowed you to levy your charges. This is incorrect, the form allows GL-14 to charge a fee for non adherence to the cancellation policy. However, I believe Trading Standards in Manchester have contacted GL-14 and advised them that this form is legally unenforceable as the fee is a penalty. Indeed GL-14 made no effort to enforce this fee which suggests they knew it was unlawful. GL-14 will also be advised that their contract document is misleading and that it needs to be amended, therefore it would appear at least two of my previous points are valid and have been independently verified by trading standards.

My offer to pay £47 still stands, but due to your intransigence and that of your clients, it seems that we can only achieve a reasonable outcome to this matter by allowing the courts to decide, although this will involve us both in extra expense and time wasted with court proceedings.

I will be making a counter claim for misrepresentation as GL-14 misrepresented both the contract and the cancellation procedure to me and provided me with a cancellation notice that was legally unenforceable under current consumer law and also against CRS for misrepresenting your charges as a debt I am liable for in the absence of any contractual obligation on my part. I draw your attention to the OFT guidelines on debt collection:

Charging for debt collection

 

2.9 Charges should not be levied unfairly.

2.10 Examples of unfair practices are as follows:

a. Claiming collection costs from a debtor in the absence of express contractual or other legal provision.

b. misleading debtors into believing they are legally liable to pay collection charges when this is not the case, for example, when there is no contractual provision

d. applying unreasonable charges, for example, charges not based on actual and necessary costs

e. applying charges which are disproportionate to the main debt.

I consider your charge of £60 to be disproportionate to the main debt and not based on actual and necessary costs.

I look forward to receiving your summons. Your assurance that you ‘would be successful if this goes to a hearing’, is purely speculative on your part and therefore was written solely with the purpose of intimidating me into paying this disputed charge.

Indeed I believe you may be in breach of the:

 

Malicious Communications Act 1988. This deals with the sending of letters or articles for the purpose of causing 'distress or anxiety'. A person found guilty can be fined in the magistrate’s court. To prosecute successfully the letter or article sent would have to convey:

 

1. a message which is indecent or grossly offensive;
   
2. a threat; or
   
3. information which is false and known or believed to be false by the sender.
   

I believe you cannot know whether or not your claim will be successful until a Judge decides, so you have sent me information which is inherently false and thus constitutes a threat. If you continue to harass me in this manner I will be forced to take action under the protection from harassment act 1997.

I look forward to receiving the information requested within the statutory time limit.

This seemed to do the trick along with getting trading standards involved. Still a bit miffed that I ended up paying anything but was worth the £47 to get this sorted and as I had offered to pay this several times it seemed better to fulfil my obligation.

 

Hope this is helpful. Good luck

[cruxifix]

my husband and me signed an agreement with Roko after being pressured into this at the gym,the very next day we went into the gym with our membership cards and a letter to cancel in writing, we were told we could not have out £120.00 joining fee back which was annoying to say the least but we accepted that and we were assured that we had cancelled, this was on 31st march 2006, we have just recieved a letter telling us we owe roko gym £1279.70 this letter is from CRS , i phoned rokos head manager and he told me he has evidence that we handed in our cards the next day and that we never used the gym once. what can we do, can someone please help. thankyou

[gurisingh]

@Netyard

 

I'am now in the same trouble and would like to know the outcome of your dispute?

 

Did you still have to pay the fees ?

[mr.ton]

Please relax - they have no power/authority over you whatsoever & can simply be told to get lost.

Demand that they take you to a county court, were the matter can be sorted properley & officially and were all your essential outgoings will be taken into account - that way you can pay the fools £1 per month & they cant do a darn thing about it.

They wont take you there anyway as it will cost them money to do so...so until they do, just keep tellling them to get lost & keep giving them the run around

[mr.ton]

Oh & also demand that all communication with you stops with immediate effect.

Should they not comply with that demand...then inform them that they are breaking anti harrassment laws & the police (not 999) will be informed.

They will soon vanish

[postggj]

well said mr ton

let them explain those fees in front of a judge if they dare

i had this sinario with a dca called clarity

i refused to deal with them over a payday loan and the charges levid by clarity

in the end they sent me a letter saying i pay just what was owed and that will be the end of the matter

 

these charges are bogus and will not stand up to scrutiny

just tell them you will pay only the original ammount, not any charges and tell them to issue a claim otherwise

[gurisingh]

What about the deathline until the 4th December? They threatened me to apply more charges if I don't pay until that day. I've requested my contract and cancellation form from the GYM today. I am just nervous that in case I have to pay that amount now, it will be more later. Is there any law which stops them from increasing the amount until the matter is settled or something?

[Greendeco]

my letter along with pressure from local trading standards about the poor contract from the gym helped and I ended up paying only the £47 I originally offered and CRS didn't get the fees.

I suggest anyone uses the letter I sent and also get trading standards involved. These people pray on those who don't know the law and who will pay up for a quiet life.

They don't want to go to court as their case wouldn't stand up particularly regarding fees.

The gym I joined was told to change their contract and to desist from making cancellation charges so they lost out big time.