Old Debt - New Demand
We have had an interesting few weeks dealing with two queries from our visitors asking for help with debt recovery agencies trying to collect old debts that one said was genuine, but years old, and another who had no idea as to what the debt was for. But what makes these circumstances disturbing is the tactics used by the debt agencies. The following two examples reflect the majority of enquiries we have and continue to receive in respect of debt agency tactics.
Case 1 (GBP is GB Pound)
The 'debt' was for GBP110.00 for a mobile phone contract that was cancelled five years ago. The customer remembers the problem at the time with the termination clauses (three months notice - no minimum period) that were eventually outlawed. The mobile company (five years ago) agreed to call it quits and not to pursue the 'debt' for the sake of customer relations.
Case 2
The 'debt' was for GBP60.00 for music CD's that the customer received through one of the mail order clubs (buy 3 for GBP3.00 each, and then one per month at the 'normal'). The customer cancelled the 'membership' after completing the first year and buying all she was obliged to buy. CD's continued to be sent and were always returned with a plea to stop sending further CD's: eventually the CD's stopped arriving and nothing more was heard until now.
In both cases (not connected) a letter was sent from different debt recovery agencies (we have copies) with the name of the creditor, account number and the balance outstanding: neither had any date other than the date the demands were sent. Both said that the debtor had ignored previous recovery attempts. Both threatened the use of a local debt collector to call at their home, court action and a debt recorded against the debtor. Finally, one stated, "you have had the benefit of goods/services supplied for which you have not paid".
We (BizHelp24) took over the responsibility to contact the creditors/debt agencies to hopefully get these two 'debts' quashed. We made a dozen calls to both debt agencies without getting through on any occasion. We finally conceded that telephone contact was not what the debt agencies wanted which left communication by letter alone (visiting was impossible with one agency as it used a PO Box number, and the other was too far away to contemplate a visit).
We sent a similar letter to both agencies, in the name of the debtors, as follows:
BY RECORDED DELIVERY
Dear Sirs
Re: Account Number 458712 Balance Outstanding GBP60.00
In response to your letter of 2nd August 2001
I have tried to contact you by telephone almost every day since receiving your letter. On all occasions, bar one call when I got through automatically to piped music, your telephone was not answered which mocks your comment on your letter that reads "calls may be monitored for security and training purposes".
The balance you claim is an error. The supplier of the goods (CD's through a members club) continued to send CD's to my home despite my numerous requests by letter and telephone to terminate my membership (terminated in April 1996. I subsequently sent all CD's back, unopened and at my personal expense.
After a few deliveries the CD's stopped, a few months after that the statements also stopped. From then, until now, I have assumed the matter to be closed. As such, you must contact the creditor and inform them of my position, being, the matter is settled, the balance is nil as no goods remain unpaid.
Please take note, you must accept my position in writing or commence legal action which I will vigorously defend. If you fail to send a specific response to this letter by the 20th August 2001 I will assume the matter is closed.
END
The Law
The law allows creditors up to twelve-years to collect debts, however, if for a spell of six-years (anywhere within the 12-years) the debtor is not contacted the debt is automatically quashed. There has also been quite a bit of press coverage on this subject but with mortgage short-fall debts: more info:
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