Credit collection agency question

Credit collection agency question

Author
Discussion

milesgiles

Original Poster:

2,291 posts

44 months

Thursday
quotequote all
Company A is found by a court to owe client B money. Company A has no uk address so no way for the client to collect.

Subsequently company A makes a different claim against client B over money owed on a separate matter. Since this amount is for less than the amount found by the court to be owed by the client, the client advises the company to stick their claim somewhere uncomfortable

This subsequent claim gets passed / bought by a collection agency off of company A who then start harassing the client for that amount.

If, for the sake of argument, that smaller amount is owed by the client to the company, what’s the likely upshot here? Is it possible for the client to have to pay the second smaller claim whilst having no hope of collecting the first (larger) amount of money?

Panamax

6,157 posts

49 months

Yesterday (08:11)
quotequote all
Google "right of set-off".

MustangGT

13,133 posts

295 months

Yesterday (09:35)
quotequote all
milesgiles said:
Company A is found by a court to owe client B money. Company A has no uk address so no way for the client to collect.

Subsequently company A makes a different claim against client B over money owed on a separate matter. Since this amount is for less than the amount found by the court to be owed by the client, the client advises the company to stick their claim somewhere uncomfortable

This subsequent claim gets passed / bought by a collection agency off of company A who then start harassing the client for that amount.

If, for the sake of argument, that smaller amount is owed by the client to the company, what s the likely upshot here? Is it possible for the client to have to pay the second smaller claim whilst having no hope of collecting the first (larger) amount of money?
How did a court find company A to owe money, surely a UK address must have been used somewhere in the paperwork to be served?

milesgiles

Original Poster:

2,291 posts

44 months

Yesterday (10:46)
quotequote all
MustangGT said:
milesgiles said:
Company A is found by a court to owe client B money. Company A has no uk address so no way for the client to collect.

Subsequently company A makes a different claim against client B over money owed on a separate matter. Since this amount is for less than the amount found by the court to be owed by the client, the client advises the company to stick their claim somewhere uncomfortable

This subsequent claim gets passed / bought by a collection agency off of company A who then start harassing the client for that amount.

If, for the sake of argument, that smaller amount is owed by the client to the company, what s the likely upshot here? Is it possible for the client to have to pay the second smaller claim whilst having no hope of collecting the first (larger) amount of money?
How did a court find company A to owe money, surely a UK address must have been used somewhere in the paperwork to be served?
Just a postal address

milesgiles

Original Poster:

2,291 posts

44 months

Yesterday (10:47)
quotequote all
Panamax said:
Google "right of set-off".
The complication is that the collection agency has bought the smaller debt. So youd be setting off two different companies

paul_c123

790 posts

8 months

Yesterday (10:55)
quotequote all
How can company A make a valid claim for money (ie, credit) without a UK address? Credit is regulated in the UK.

Simpo Two

88,957 posts

280 months

Yesterday (10:56)
quotequote all
milesgiles said:
MustangGT said:
milesgiles said:
Company A is found by a court to owe client B money. Company A has no uk address so no way for the client to collect.

Subsequently company A makes a different claim against client B over money owed on a separate matter. Since this amount is for less than the amount found by the court to be owed by the client, the client advises the company to stick their claim somewhere uncomfortable

This subsequent claim gets passed / bought by a collection agency off of company A who then start harassing the client for that amount.

If, for the sake of argument, that smaller amount is owed by the client to the company, what s the likely upshot here? Is it possible for the client to have to pay the second smaller claim whilst having no hope of collecting the first (larger) amount of money?
How did a court find company A to owe money, surely a UK address must have been used somewhere in the paperwork to be served?
Just a postal address
But who said the money has to be collected?

There are two issues going on here. One is a court judgement, I presume a CCJ, which can be enforced, best by the High Court. So you can do that as you have a postal address. Let HC bailiffs worry about the rest.

The 'counter claim' is likely a play out of spite; you wonder why it wasn't part of the original defence. Maybe they didn't defend, but only woke up when the CCJ arrived. Did it go to court? The defendant would have had a summons and the chance to defend. More likely it never went to court, it's not a CCJ and the collection agent is just a chancer.

Let's have some more facts.