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Debt Collector Trouble
6 Answers
Dave moves out of his rented property (22 Acacia Ave) and informs the utility company of his new address - Flat 6. Unfortunately it gets recorded wrongly as 'Flat 8' instead of 'Flat 6' by the utility who promptly sends the final bill to the wrong address. The owner of Flat 8 doesn't know Dave so the request for payment goes nowhere.
Eventually the utility company sells the debt onto a collection company who tracks Dave down at a new addresss and sends a demand for payment, including an additional £60 fee for their trouble. The debt company insist that the debt relates to Flat 8, where Dave has never lived, not 22 Acacia Ave.
Dave contacts the utility company directly, believing the debt might relate to Flat 6, but finds out that the debt actually related to 22 Acacia Ave. The utility company aren't interested in receiving payment now from him - having sold it on.
Dave asserts to the debt collector that he has never lived at Flat 8.
He doesn't mind paying the original debt off, but objects to paying the debt collector, who has his facts all muddled in any event.
How best to do this?
Dave doesn't mind paying the original debt
Eventually the utility company sells the debt onto a collection company who tracks Dave down at a new addresss and sends a demand for payment, including an additional £60 fee for their trouble. The debt company insist that the debt relates to Flat 8, where Dave has never lived, not 22 Acacia Ave.
Dave contacts the utility company directly, believing the debt might relate to Flat 6, but finds out that the debt actually related to 22 Acacia Ave. The utility company aren't interested in receiving payment now from him - having sold it on.
Dave asserts to the debt collector that he has never lived at Flat 8.
He doesn't mind paying the original debt off, but objects to paying the debt collector, who has his facts all muddled in any event.
How best to do this?
Dave doesn't mind paying the original debt
Answers
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Not often we see a question from you, buildersmate.
I think I understand this although I'm not sure how it turned out teh debt related to 22 Acacia Avenue not Flat 6 assuming no payments were ever made for the utility service at Flat 6.
Anyway, the utility company may dispute that they were ever given Flat 6 as teh address - is there a written record or recording of phone call of the original change of address notification? And the utility company might say Dave should have queried the fact that he wasn't getting any bills or paying anything whilst at Flat 6.
If it can be shown to have been a utility company error I think it's their responsibility to call off the debt collectors. I would try again with the utility company (maybe enclosing a cheque) and say Dave will go to the regulator- or his MP if it isn't sorted.
There may be a legal letter you could write to the debt collectors to stop harassing Dave but they will just say they have bought the debt correctly so it's not their problem.
I think I understand this although I'm not sure how it turned out teh debt related to 22 Acacia Avenue not Flat 6 assuming no payments were ever made for the utility service at Flat 6.
Anyway, the utility company may dispute that they were ever given Flat 6 as teh address - is there a written record or recording of phone call of the original change of address notification? And the utility company might say Dave should have queried the fact that he wasn't getting any bills or paying anything whilst at Flat 6.
If it can be shown to have been a utility company error I think it's their responsibility to call off the debt collectors. I would try again with the utility company (maybe enclosing a cheque) and say Dave will go to the regulator- or his MP if it isn't sorted.
There may be a legal letter you could write to the debt collectors to stop harassing Dave but they will just say they have bought the debt correctly so it's not their problem.
Dave does know (now) that the debt does in fact relate to 22 Acacia Ave - he has found this out by talking to the utility company. It is a valid debt.
However the debt collection company doesn't realise this - they think it is related to Flat 8, where Dave has never lived. The debt collection company have written to him asserting a debt - and Dave has written back asserting he has never lived there - which is true.
I guess I'm trying to find out whether there is a way of clearing the debt by paying off the utility company, once they have sold the debt on.
Dave's difficulty is that he no longer has any evidence that the forwarding address he gave the utility company was the correct one.
(this is not a story - it is true)
However the debt collection company doesn't realise this - they think it is related to Flat 8, where Dave has never lived. The debt collection company have written to him asserting a debt - and Dave has written back asserting he has never lived there - which is true.
I guess I'm trying to find out whether there is a way of clearing the debt by paying off the utility company, once they have sold the debt on.
Dave's difficulty is that he no longer has any evidence that the forwarding address he gave the utility company was the correct one.
(this is not a story - it is true)
I agree with Factor30 in the first instance - contact the regulator. They won't be long in getting things moving in the right direction. But if not?
Give the creditor a full written explanation in the first instance - just as you have done here - that you acknowledge you owe a bill for power used at #22. I assume that your bill for #6 is up-to-date. It will do no harm to CC in your energy provider (the original creditor). Thus giving the creditor the opportunity to correct the mistakes made by both them and the energy provider so that you are being billed for the correct amount for the correct address. Make sure you send the correspondence with proof of postage. Also inform them that unless their errors are corrected you will not pay and will defend any subsequent Court action that may be taken against you.
The ball is then firmly in their court - pardon the pun.
If they continue to pursue payment for money that isn't owed (the £60 addition) and for energy attributed to an address you have never resided at, then fine. You will eventually end up in Court. They will claim you owe a debt for energy used at #8. You will then explain that you never lived there. The onus then switches to them (on the balance of probability) to prove that you did live there. They will be unable to do this and therefore you will then claim that there is no case to answer. You win, and better still, you pay nothing.
If they then come back with a demand for the correct amount for the correct address then ok, pay it.
Alternatively, you could protect your credit rating by paying what is owed and then raise an action against the creditor for 'unjustified enrichment' - or whatever the equivalent is in England/Wales (Beneficial Trust??). Might be less hassle than going to Court for owing debt and then having to get your credit rating corrected after winning your case.
Give the creditor a full written explanation in the first instance - just as you have done here - that you acknowledge you owe a bill for power used at #22. I assume that your bill for #6 is up-to-date. It will do no harm to CC in your energy provider (the original creditor). Thus giving the creditor the opportunity to correct the mistakes made by both them and the energy provider so that you are being billed for the correct amount for the correct address. Make sure you send the correspondence with proof of postage. Also inform them that unless their errors are corrected you will not pay and will defend any subsequent Court action that may be taken against you.
The ball is then firmly in their court - pardon the pun.
If they continue to pursue payment for money that isn't owed (the £60 addition) and for energy attributed to an address you have never resided at, then fine. You will eventually end up in Court. They will claim you owe a debt for energy used at #8. You will then explain that you never lived there. The onus then switches to them (on the balance of probability) to prove that you did live there. They will be unable to do this and therefore you will then claim that there is no case to answer. You win, and better still, you pay nothing.
If they then come back with a demand for the correct amount for the correct address then ok, pay it.
Alternatively, you could protect your credit rating by paying what is owed and then raise an action against the creditor for 'unjustified enrichment' - or whatever the equivalent is in England/Wales (Beneficial Trust??). Might be less hassle than going to Court for owing debt and then having to get your credit rating corrected after winning your case.
Thanks to both of you.
Given that Dave recognises he owes the original amount (but resents the 'extras' being added on by the debt collector), is it an alternative option to write to the debt collector enclosing a cheque for the original amount 'in full and final settlement of the debt? If the debt collecting organisation then cashes the cheque, that's the end of the matter in law. Did I dream that on here somewhere earlier?
Given that Dave recognises he owes the original amount (but resents the 'extras' being added on by the debt collector), is it an alternative option to write to the debt collector enclosing a cheque for the original amount 'in full and final settlement of the debt? If the debt collecting organisation then cashes the cheque, that's the end of the matter in law. Did I dream that on here somewhere earlier?
I believe what you say in this last post is correct BUT the debt collector will keep the money as payment for a debt on Flat 8. This would be OK provided the original supplier doesn't later try to claim the money in relation to 22 Acacia. Incidentally, are you 100% certain the debt collector has bought the debt & is not still acting for the supplier? If they have bought it, they will have paid only a small % of the face value & so ought to be willing to accept what you propose.
In my view a better approach is to write to the supplier (copy the debt collector) setting out all the facts & asking them to sort it out with the debt collector. If it isn't sorted, go to the Energy Supply Ombudsman (if it is gas or electricity) or Ofwat.
In my view a better approach is to write to the supplier (copy the debt collector) setting out all the facts & asking them to sort it out with the debt collector. If it isn't sorted, go to the Energy Supply Ombudsman (if it is gas or electricity) or Ofwat.
Thank you Themas. I was hoping someone of your ilk might respond.
I did a bit more checking and found that one actually has to do more than I suggested. One has also to add in the letter words to the effect that 'if you cash my cheque it will be regarded as acceptance of my offer' or alternatively 'if you decline to accept my cheque then please return it'.
I did a bit more checking and found that one actually has to do more than I suggested. One has also to add in the letter words to the effect that 'if you cash my cheque it will be regarded as acceptance of my offer' or alternatively 'if you decline to accept my cheque then please return it'.
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