1st Credit Demanding Payment

[cluedup]

Hello everyone,

 

This is my first post and so I really hope someone can offer me some advice.

 

Yesterday I received a letter from 1st Credit stating that I owe circa £10.5K to a creditor and that the full amount is due immediately. The background is that I had a staff loan with a previous employer. Part of the terms and conditions were that if I leave employment payments will continue to be taken direct from my bank account every month until the loan was paid off.

 

I left the company in November 2006 (when the last payment was made via my salary). Since then I have never checked if payments were coming out as I knew adequate funds were available and presumed the payments were coming out. It transpires that no payments have been requested and now, this letter is the first contact I've had to notify me that I haven't been paying!

 

I called 1st Credit today and explained the situation. They began by taking details such as what my salary was, job title, how long I've lived in my house etc... (all to do a credit check I presume but I was never informed of this and was just told it was 'to update our solicitors records'). The lady I spoke to then said that she had read the solicitors notes and they would be prepared to close the account for £8K but payment would be needed today. I find this very strange given that if they truly believed I have purposely not made monthly payments why would they be willing to write off £2K?!

 

I then said that if my previous employer never made an attempt to take payment nor notified me that payments weren't being made, it must have been an administrative error and given that this will now adversely affect my credit rating I don't want to go down that route. She then said she would speak to the solicitor. After a short while she came back and told me that they were now prepared to accept £6.5K to close the account saving me nearly £4K. She said that if I paid £3K today they would give me until the end of the month to find the outstanding balance. When I sounded unsure she then said that her manager had now told her she could give me until the middle of July to pay the remaining amount. She said that my credit rating would be ok as it would show that the debt was settled in full so that wouldn't be a problem (is this in itself true?!).

 

I said I wanted to seek further advice before doing anything and her parting comment was that she will call me at 4.30pm today and they do require a payment today.

 

Help!!

 

I probably can raise the £6.5K by mid July and it will be a relief to just have the matter closed but something doesn't feel right in the way they just slash the debt when I challenge it.

 

Any speedy advice anyone could provide would be most appreciated.

[KeefG]

Phone 1st Credit back and ask them to confirm their offer of settlement amount & dates in writing to you.

 

If they're offering to save you some £4k and you can afford to pay it then my advice is do it!!

 

Just make sure you get it in writing what this woman has told you before you agree to pay anything, if they post the letter today you should recieve it tomorrow, tell the woman you will be in a position to pay some/all tomorrow.

[cluedup]

If they're offering to save you some £4k and you can afford to pay it then my advice is do it!!

 

Thanks for your advice. I just wondered whether anyone coul dclarify what this will do to my credit rating?

[Josie8]

Hello everyone,

 

This is my first post and so I really hope someone can offer me some advice.

 

Yesterday I received a letter from 1st Credit stating that I owe circa £10.5K to a creditor and that the full amount is due immediately. The background is that I had a staff loan with a previous employer. Part of the terms and conditions were that if I leave employment payments will continue to be taken direct from my bank account every month until the loan was paid off.

 

I left the company in November 2006 (when the last payment was made via my salary). Since then I have never checked if payments were coming out as I knew adequate funds were available and presumed the payments were coming out. It transpires that no payments have been requested and now, this letter is the first contact I've had to notify me that I haven't been paying!

 

I called 1st Credit today and explained the situation. They began by taking details such as what my salary was, job title, how long I've lived in my house etc... (all to do a credit check I presume but I was never informed of this and was just told it was 'to update our solicitors records'). The lady I spoke to then said that she had read the solicitors notes and they would be prepared to close the account for £8K but payment would be needed today. I find this very strange given that if they truly believed I have purposely not made monthly payments why would they be willing to write off £2K?!

 

I then said that if my previous employer never made an attempt to take payment nor notified me that payments weren't being made, it must have been an administrative error and given that this will now adversely affect my credit rating I don't want to go down that route. She then said she would speak to the solicitor. After a short while she came back and told me that they were now prepared to accept £6.5K to close the account saving me nearly £4K. She said that if I paid £3K today they would give me until the end of the month to find the outstanding balance. When I sounded unsure she then said that her manager had now told her she could give me until the middle of July to pay the remaining amount. She said that my credit rating would be ok as it would show that the debt was settled in full so that wouldn't be a problem (is this in itself true?!).

 

I said I wanted to seek further advice before doing anything and her parting comment was that she will call me at 4.30pm today and they do require a payment today.

 

Help!!

 

I probably can raise the £6.5K by mid July and it will be a relief to just have the matter closed but something doesn't feel right in the way they just slash the debt when I challenge it.

 

Any speedy advice anyone could provide would be most appreciated.

 

 

If you're going to going to go down the settlement route then be warned marked paid in full if they have issued a default against your name will still seriously adverseley damage your credit rating - to all lenders a Default is the same as a CCJ. So any condition of payment must be that they will lift the Default notice on receipt of payment. You need to check your CRA file Equifax and Experian offer a free checking service (just remember to cancel before months free trial is up). Also might be useful asking them to produce a copy of the original agreement you signed.

[KeefG]

That depends on wether the company who you took the loan out with have defaulted you (which they probably have).

 

You could try approaching the company nicely and explaining that it was their fault the payments were not taken and as you have now cleared the debt in full will they remove the default (if there is one) from your credit file. The problem being that only the company who registered the default can remove it.

 

Obtain your credit file from Equifax & Experian (look hard enough on the site and you'll find the way to get them by sending off £2 postal orders instead of paying £6 per month i think it is - if you cant find them i can pm you the link) and see what your credit file throws up.

[cluedup]

That depends on wether the company who you took the loan out with have defaulted you (which they probably have).

 

You could try approaching the company nicely and explaining that it was their fault the payments were not taken and as you have now cleared the debt in full will they remove the default (if there is one) from your credit file. The problem being that only the company who registered the default can remove it.

 

Obtain your credit file from Equifax & Experian (look hard enough on the site and you'll find the way to get them by sending off £2 postal orders instead of paying £6 per month i think it is - if you cant find them i can pm you the link) and see what your credit file throws up.

 

Hi there,

 

I have just bought my credit file and it is not showing any defaults. it is only showing missed payments and the status is showing as 'in arrears'. Does this mean that if I get 1st Credit to confirm the settlement offer in writing and state that this will result in no default being logged on my credit file and they respond to acknowledge this they will not be able to add a deafult after I have settled?

 

Thanks for all your help

[KeefG]

Does this mean that if I get 1st Credit to confirm the settlement offer in writing and state that this will result in no default being logged on my credit file and they respond to acknowledge this they will not be able to add a deafult after I have settled?

 

I believe so, they cant default you for paying it off can they? lol

 

When did you obtain your credit file though? Just seems strange that the original loan company pass on your debt to a DCA without defaulting you!

[cluedup]

I believe so, they cant default you for paying it off can they? lol

 

When did you obtain your credit file though? Just seems strange that the original loan company pass on your debt to a DCA without defaulting you!

 

I literally got it about 10 minutes ago so am presuming it is completely up to date.

[KeefG]

Yeah it will be then

 

Back to plan A then, get 1s Credit to confirm the amount and dates in writing, and tell them that once you recieve the letter you will call them to make a payment immediately.

[cluedup]

Yeah it will be then

 

Back to plan A then, get 1s Credit to confirm the amount and dates in writing, and tell them that once you recieve the letter you will call them to make a payment immediately.

 

What do you think to this? I am going to e-mail it to them and send recorded delivery today:

------------------------------------

1st Credit,

PO Box 278,

Reigate,

RH2 7WB

Sent via e-mail and recorded delivery post.

Dear Sir / Madam,

Re: 1st Credit Reference No. xxxxxx

Further to my telephone conversation with xxxxx xxxxx in your Collection Department at 08:34 today, I write to confirm details of the conversation and advise you of my decision regarding the settlement offer made.

After explaining the details of my situation to xxxxx she advised that your solicitors would be prepared to close the account for the sum of £xxxx.xx. I was advised that an initial payment of £xxxx.xx could be made immediately and the outstanding balance would be due by mid-July. xxxxx also stated that my credit file would show this credit as ‘settled’ so no default would appear on my record. I advised that I wished to seek further advice and would notify 1st Credit of my decision later today.

Since this conversation I have obtained my credit file from Equifax and note that this credit is not showing as a default, but instead as ‘in arrears’. Providing that this remains the case and no default is marked on my credit file, I am prepared to settle the account for the sum of £xxxx.xx. As discussed with xxxxx I will be able to make an initial payment of £xxxx.xx and then will make a final payment of £xxxx.xx in mid-July.

Please could you provide details of your settlement offer in writing, confirming:

• The settlement figure of £xxxx.xx to close the account, to be paid in two instalments. The first of which will be for £xxxx.xx upon receipt of your letter confirming settlement details, and a final payment of £xxxx.xx due by no later than Monday 16th July 2007.
  
• You will ensure that no default will be recorded on my credit file in relation to this account and upon final payment the account will show as ‘settled’ on my credit file.

Upon receipt of the above mentioned letter I will telephone you immediately to make a debit card payment for the initial instalment of £xxxx.xx.

I look forward to hearing from you shortly.

Yours faithfully,

------------------------------------------------------

[KeefG]

Spot on!

 

Dont forget to call them back though if you agreed to do so and tell them what you've put in the letter and what you require from them.

[cluedup]

Spot on!

 

Dont forget to call them back though if you agreed to do so and tell them what you've put in the letter and what you require from them.

 

I have just e-mailed them the letter and sent it recorded delivery. I also have phoned them and explained the content of my letter.

 

The person I spoke to explained that they hadn't bought the debt from the company yet and have just been asked to seek the funds so they won't put a default on my credit file. I have made it quite clear in the letter that I will pay of they guarantee they won't put a default on so fingers crossed with all the details recorded, and call recording it should be okay.

 

Thanks so much for your advice and support. The whole ordeal has been really stressful but hopefully will now be resolved. Is there anything else you think I should do?

[KeefG]

Not a thing, just sit and wait for their letter to turn up and pay the debt off, then sit back and be happy as you're effectively £4k better off

[ODC]

I have a different idea. Its shown on your credit record as in arrears. Contact the company the arrears are with. Pay the arrears to them and either set up a new DD with them or ask them for an early settlement quote.

[cluedup]

Hi there,

 

I just wanted to give an update on what has happened today.

 

I received a phone call from 1st Credit (which I missed so a voicemail was left) at 09:08 this morning. The voicemail was very abrupt saying I needed to call them urgently regarding the conversations we had yesterday. I called them back and explained I was returning their call. The 'advisor' I spoke to told me that there was a payment outstanding so that's why they were calling me.

 

I explained to her that I had written, e-mailed and called them requesting the settlement offer etc. in writing and was awaiting that before any payment was made. She then started to get quite stroppy and told me that an offer letter had already gone out. I asked her when and she said on 21st June (yesterday!). I calmly explained that this was only yesterday and it was 9am the following day and that my post will not have even arrived by this time!

 

She then went on to tell me that the call was to check if the letter had arrived to which I re-emphasised the above. She then said something along the lines of "well what happens if the letter never arrived?" to which I have no idea what she was trying to get at! By this time she was getting rude and I felt really presured / harrassed (I know that word is probably oevrused but it was really nto a nice feeling) so I asked if she could not be rude to me as I was a customer. She then revelled in telling me in her most rude voice that I was NOT their customer and that the company the loan was with was! To this I calmly but firmly told her I was nto prepared to talk to her and advised I was terminating the call.

 

I was so wound up that I decided to then call the company (my old employer) directly to talk to them and hopefully get further than I have with 1st Credit. I eventually got to speak to the Collections department who told me the debt had been handed over to 1st Credit and so they could not discuss it. I said that I used to work for them and would really appreciate it if she would listen to what I had to say. I explained the whole situation to her and her responses were:

• It was my fault as I had not chased them for not requesting the payments.
  
• They had written to me several times stating payments were missed. When I explained that I have not received any letters I was told this was irrelevant! I then probed as to what address they were sent to and they went to my old address!!! The infuriating part was that in the data protaction check at the beginning of the call I had given her my new address! When I suggested she had broken data privacy laws she told me to not even go down that route. I told her that they definitely have my new address as all my payslips etc were sent to my new address (which I moved in to in Feb 2006!), and even more obvious that they have it, is the fact that the letter from 1st Credit came to my new address!
  
• I had been defaulted on 28th March but it may take 28 days to appear on my credit file. I said I requested this yesterday and no default was on there but the status was 'in arrears'. She then revelled in telling me that I WILL be defaulted on my file for 6 years.
  
• They were not prepared to change anything as I have had ample opportunity to contact them to notify them they weren't requesting payments. Her exact words were 'it is your finances and your responsibility to manage them.'

The whole thing just has become ridiculous and it feels like I'm banging my head against a brick wall. I have therefore booked an appointment with a solicitor on Monday morning with a view to pursuing it as far as I can.

 

I have just got home from work an indeed there is no letter from 1st Credit here. I have e-mailed them to confirm the letter has not arrived and asked them to update their records to this effect. I've also asked for all further communication from them to come via e-mail or post, and for this to be effective immediately.

 

Sorry for the long post - just wanted to update in case anyone has any thoughts / further advice.

[ODC]

Hi there,

 

I just wanted to give an update on what has happened today.

 

I received a phone call from 1st Credit (which I missed so a voicemail was left) at 09:08 this morning. The voicemail was very abrupt saying I needed to call them urgently regarding the conversations we had yesterday. I called them back and explained I was returning their call. The 'advisor' I spoke to told me that there was a payment outstanding so that's why they were calling me.

 

I explained to her that I had written, e-mailed and called them requesting the settlement offer etc. in writing and was awaiting that before any payment was made. She then started to get quite stroppy and told me that an offer letter had already gone out. I asked her when and she said on 21st June (yesterday!). I calmly explained that this was only yesterday and it was 9am the following day and that my post will not have even arrived by this time!

 

She then went on to tell me that the call was to check if the letter had arrived to which I re-emphasised the above. She then said something along the lines of "well what happens if the letter never arrived?" to which I have no idea what she was trying to get at! By this time she was getting rude and I felt really presured / harrassed (I know that word is probably oevrused but it was really nto a nice feeling) so I asked if she could not be rude to me as I was a customer. She then revelled in telling me in her most rude voice that I was NOT their customer and that the company the loan was with was! To this I calmly but firmly told her I was nto prepared to talk to her and advised I was terminating the call.

 

I was so wound up that I decided to then call the company (my old employer) directly to talk to them and hopefully get further than I have with 1st Credit. I eventually got to speak to the Collections department who told me the debt had been handed over to 1st Credit and so they could not discuss it. I said that I used to work for them and would really appreciate it if she would listen to what I had to say. I explained the whole situation to her and her responses were:

• It was my fault as I had not chased them for not requesting the payments.
  
• They had written to me several times stating payments were missed. When I explained that I have not received any letters I was told this was irrelevant! I then probed as to what address they were sent to and they went to my old address!!! The infuriating part was that in the data protaction check at the beginning of the call I had given her my new address! When I suggested she had broken data privacy laws she told me to not even go down that route. I told her that they definitely have my new address as all my payslips etc were sent to my new address (which I moved in to in Feb 2006!), and even more obvious that they have it, is the fact that the letter from 1st Credit came to my new address!
  
• I had been defaulted on 28th March but it may take 28 days to appear on my credit file. I said I requested this yesterday and no default was on there but the status was 'in arrears'. She then revelled in telling me that I WILL be defaulted on my file for 6 years.
  
• They were not prepared to change anything as I have had ample opportunity to contact them to notify them they weren't requesting payments. Her exact words were 'it is your finances and your responsibility to manage them.'

The whole thing just has become ridiculous and it feels like I'm banging my head against a brick wall. I have therefore booked an appointment with a solicitor on Monday morning with a view to pursuing it as far as I can.

 

I have just got home from work an indeed there is no letter from 1st Credit here. I have e-mailed them to confirm the letter has not arrived and asked them to update their records to this effect. I've also asked for all further communication from them to come via e-mail or post, and for this to be effective immediately.

 

Sorry for the long post - just wanted to update in case anyone has any thoughts / further advice.

 

As you have now seent the true side of 1st Credit I suggest never speak to them on the phone again. Send them the CCA letter (Template N) Make them prove that you have a debt and they have the right to collect it. The call you had from them today is typical.

[cluedup]

As you have now seent the true side of 1st Credit I suggest never speak to them on the phone again. Send them the CCA letter (Template N) Make them prove that you have a debt and they have the right to collect it. The call you had from them today is typical.

 

Thanks. Where do I find the template letters?

[cluedup]

Oh my god! Have now just had another call from 1st credit - again I didn't answer - but the voicemail was the same woman again telling me I need to call then urgently.

 

I'm going to forward my e-mail again highlighting this piece of legislation:

 

"Section 40 of the act [ADMINISTRATION OF JUSTICE ACT 1970] provides that a person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under contract, he or she: (a) harasses the other with demands for payment which by their frequency, or the manner or occasion of their making, or any accompanying threat or publicity are calculated to subject him or his family or household to alarm, distress or humiliation;

[cluedup]

Here is a copy of the e-mail I have just sent them. Does it sound ok?

 

-------------

 

Further to my e-mail below I have received another telephone call from xxxx xxxx asking me to urgently contact her. It is clear that when I did call back this morning following her original voicemail left at 09:08 this morning (22nd June 2007), no update was made to my account. I called at 09:20 to advise that as explained on my call to xxxx yesterday at 12:10, I would not take any further action until the settlement letter (as detailed in my request sent to you via e-mail and registered post yesterday) had arrived.

 

Please ensure that your records are updated immediately to reflect that I have not received the settlement letter as requested and I am NOT to be contacted by telephone any further. All communication should be made in writing via e-mail or post. Should I continue to receive telephone calls at such frequency I will speak to my solicitor with a view to pursuing legal action under section 40 of the Administration of Justice Act 1970 which states:

 

"... a person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under contract, he or she:

(a) harasses the other with demands for payment which by their frequency, or the manner or occasion of their making, or any accompanying threat or publicity are calculated to subject him or his family or household to alarm, distress or humiliation;"

 

Yours faithfully,

 

xxxxx xxxxxx.

*************************

Dear Sir / Madam,

 

With reference to my e-mail below I can confirm that I have not yet received this letter from you. Please could you update your records to reflect this?

 

I would also like to request that further communication from you is conducted in writing either via post or e-mail to this e-mail address ([email protected]). Please could you confirm this will be actioned immediately?

 

Yours faithfully.

 

xxxx xxxx.

[KeefG]

Well done for sticking up for yourself and sticking to your guns, dont let the b******s grind you down!!

 

If i was you i'd start playing hardball with them now, dont let them have it all their own way the easy way, as ODC said, you should CCA them.

 

Letter N here - http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

 

Keep us posted........

[Josie8]

As you have now seent the true side of 1st Credit I suggest never speak to them on the phone again. Send them the CCA letter (Template N) Make them prove that you have a debt and they have the right to collect it. The call you had from them today is typical.

 

 

Absolutely CCA them immediately and also SAR them for statements etc because if they've imposed penalty charges & you reclaim them (which they will have) then the default is invalid but also you want to see the paperwork trail and see if they followed the proper default procedure.

 

If default is going to stay on for 6 years then you may as well pay them (if they have a valid agreement) over the next 6 years. Don't give them it all upfront or they win all ways..............

 

A

[cluedup]

Absolutely CCA them immediately and also S.A.R - (Subject Access Request) them for statements etc because if they've imposed penalty charges & you reclaim them (which they will have) then the default is invalid but also you want to see the paperwork trail and see if they followed the proper default procedure.

 

If default is going to stay on for 6 years then you may as well pay them (if they have a valid agreement) over the next 6 years. Don't give them it all upfront or they win all ways..............

 

A

 

 

Thanks for all your advice everyone. Is much appreciated. The last 24 hours have been awful. I've felt constantly sick, not eaten really and couldn't sleep. Is horrible

 

I'm going to take everything with me to my solicitor on Monday and talk through the advice you've mentioned so hopefully things should feel more positive then.

[ODC]

There is also a telephone harassment letter on there too

[KeefG]

If default is going to stay on for 6 years then you may as well pay them (if they have a valid agreement) over the next 6 years. Don't give them it all upfront or they win all ways..............

 

I see your point Josie, but looking at the bigger picture cluedup will be better off to the tune of some £4000 if she accepts and pays the settlement figure. I know we dont like to see DCA's "winning" but would it not be best all round to just pay it off, get it out of the way and be £4k better off for it?

 

Obviously wait and see what the CCA throws up first, make it as difficult as possible for them!!

[Josie8]

I see your point Josie, but looking at the bigger picture cluedup will be better off to the tune of some £4000 if she accepts and pays the settlement figure. I know we dont like to see DCA's "winning" but would it not be best all round to just pay it off, get it out of the way and be £4k better off for it?

 

Obviously wait and see what the CCA throws up first, make it as difficult as possible for them!!

 

 

Yes but if its put to them if you don't remove the default you can wait for the money or get the default removed and I'll pay you a nice lump sum.............saying after all I've nothing to lose.................

 

If he plays it well I think they'll back down - I've seen it on other threads