Debt Recovery Agencies
Discussion
A very good friend of mine just recently went through a divorce and a consequential job loss and major depressive phase. I'm going through his huge pile of unopened mail and trying to sort out the wheat from the chaff and get the major stuff out of the way first.
His BT line has been disconnected and the last bill before his line was cut was 120 pounds. The debt was subsequently passed to a company called Westcot who have very kindly added 80 pounds charges to recover the money for BT. Now I know these guys won't be interested in any hard luck stories, they just want the money.
I'm going to pay this bill for him but I'm buggered if I want to give these bozos 80 quid. Bottom line is they're not going to get a bean out of this guy even if they take it to court, he's got nothing left practically.
Should I make them an offer ? BT won't talk to me, they just refer me to Westcot.
His BT line has been disconnected and the last bill before his line was cut was 120 pounds. The debt was subsequently passed to a company called Westcot who have very kindly added 80 pounds charges to recover the money for BT. Now I know these guys won't be interested in any hard luck stories, they just want the money.
I'm going to pay this bill for him but I'm buggered if I want to give these bozos 80 quid. Bottom line is they're not going to get a bean out of this guy even if they take it to court, he's got nothing left practically.
Should I make them an offer ? BT won't talk to me, they just refer me to Westcot.
Refer to the Consumer Credit Act.
www.clear-your-debt.co.uk/Harassment.htm - "CHARGES SHOULD NOT BE LEVIED UNFAIRLY
Examples include:
- Claiming collection costs when the original credit agreement didn’t allow this to happen and making you think you are legally liable for the costs
- Not putting the specific amounts that can be added for collection costs in the original credit agreement
- Adding unreasonable charges. "
Did the original agreement allow charges for unpaid bills? How much is the outstanding amount, is the £80 'reasonable' ?
Call BT, dont speak to a monkey ask for a supervisor (if they ask why just say you dont want to shout at someone who is unconnected with the problem but thats what supervisors are for)
Explain to senior monkey that you are more than willing to pay the bill (explain the circumstances) but not the recovery charge.
If they have sold the debt (which they may have depending on time distressed (the debt, not him)) then you'll get nowhere, if they are still in scare mode they'll probably accept the £80
But its an accounts department supervisor that you want.
Explain to senior monkey that you are more than willing to pay the bill (explain the circumstances) but not the recovery charge.
If they have sold the debt (which they may have depending on time distressed (the debt, not him)) then you'll get nowhere, if they are still in scare mode they'll probably accept the £80
But its an accounts department supervisor that you want.
dieseljohn said:
It is worth making them an offer I think. They will have bought the debt from BT for less than it's face value so even without the £80 they should make some profit.
I am fairly sure they don't 'buy' the debt, they simply take a percentage of it.
I am also fairly certain it's worth making an offer in the knowledge that there's no way on earth they would take you to court over £80.
Jared_m said:
Refer to the Consumer Credit Act.
www.clear-your-debt.co.uk/Harassment.htm - "CHARGES SHOULD NOT BE LEVIED UNFAIRLY
Examples include:
- Claiming collection costs when the original credit agreement didn’t allow this to happen and making you think you are legally liable for the costs
- Not putting the specific amounts that can be added for collection costs in the original credit agreement
- Adding unreasonable charges. "
Did the original agreement allow charges for unpaid bills? How much is the outstanding amount, is the £80 'reasonable' ?
Why would he have signed a CCA Agreement with BT? What credit have they advanced him? Why would the CCA apply to this situation?
But agree that the debt will probably have been factored to Westcot so they may accept a lesser amount. They are however able to charge their reasonable costs for recovering an unpaid debt, and £80 is probably not far off.
>> Edited by Nevin on Tuesday 22 November 17:02
>> Edited by Nevin on Tuesday 22 November 17:05
The charge may well be an unenforceable penalty. At 2/3 of the original debt, I would give tehm a very low chance of recovering it in court. He never entered into a contract with the debt recovery cowboys, but his debt was assigned to them. The notification to him of the assignment means that he owes them the original debt, but not the extra £80. Get him to pay the £120 or offer a lower amount, but ignore the extra £80.
>> Edited by Zod on Tuesday 22 November 17:16
>> Edited by Zod on Tuesday 22 November 17:16
Debts are bought. I know someone that worked for more than one agency, imagine a £2000 barclaycard bill that has been unpaid for ages, but isn't fraudulent. Barclays will try various collection methods, and if unsuccessful, then sell this debt to a recovery agent for maybe 10-20p in the pound, who will then try different recovery methods to get it back. Wonder why they offer discount? Thats why! anything over the original cost 100-200 in this case is profit, clever huh?
You need to find out if they own the debt, or are working as agents for the source.
Anothe note to remember is that if you receive letters from such companies, find out if they are the same company as who the debt originally was.
Keep this quiet, but a most major banks, for loans and CC's will send you a letter from a big scary company like Big Daves Bailiffs, threatening to take your granny if you don't ring us NOW, whereas, in fact, its just a different phone in the office, answered by the same normal debt recoverers, but on a different line. Its true I tell you!!
You need to find out if they own the debt, or are working as agents for the source.
Anothe note to remember is that if you receive letters from such companies, find out if they are the same company as who the debt originally was.
Keep this quiet, but a most major banks, for loans and CC's will send you a letter from a big scary company like Big Daves Bailiffs, threatening to take your granny if you don't ring us NOW, whereas, in fact, its just a different phone in the office, answered by the same normal debt recoverers, but on a different line. Its true I tell you!!
Zod said:
The charge may well be an unenforceable penalty. At 2/3 of the original debt, I would give tehm a very low chance of recovering it in court. He never entered into a contract with the debt recovery cowboys, but his debt was assigned to them. The notification to him of the assignment means that he owes them the original debt, but not the extra £80. Get him to pay the £120 or offer a lower amount, but ignore the extra £80.
>> Edited by Zod on Tuesday 22 November 17:16
Potentially, although it depends on whether it is indeed construed as a penalty (with some correlation to the level of debt) or a standard administration charge, Although the courts could construe it either way.
In any case, without wanting to get into legal chat, offer them the £120 and then wait and see what they do about the £80. In reality, probably not a lot.
Zod said:
The charge may well be an unenforceable penalty. At 2/3 of the original debt, I would give tehm a very low chance of recovering it in court. He never entered into a contract with the debt recovery cowboys, but his debt was assigned to them. The notification to him of the assignment means that he owes them the original debt, but not the extra £80. Get him to pay the £120 or offer a lower amount, but ignore the extra £80.
>> Edited by Zod on Tuesday 22 November 17:16
Even if it goes to court the guy has nothing left, he's about 15K in debt with no job at present, I really just want his phone line reconnected without having to pay the debt recovery cowboys the extra 80 pounds which I think is a bit scandalous.
I need these guys to tell BT it's all square before they'll re-connect I guess.
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