being ripped off by debt collection agency

[Enricogassolini]

Hi First post so I hope it is in the correct section? I am looking for advice relating to a problem I have with a debt collection agency which I foolishly employed.

My company doesn't have many bad debtors (fortunately!) and when we do get the odd one, we normally manage to work things out with them or put it to county court which normally does the trick.

However last September we took an order from a company who have since failed to pay.....research showed that this company is adept at dodging their resonsibilities and in desperation I employed the services of a Liverpool based debt collection agency....this is my first experience of these people....I gave them the job because their main sales pitch was that they provide quick action...this appealled to me because I am concerned the debtor will fold.

We paid our up front fee which we were told covered them setting up the claim, writing a letter before action letter and if needed putting the matter to county court.

Since then (March 09) we have had no evidence from them that they have done anything at all.....they claim to have sent a letter but have consistently failed to provide any proof or tangeable results at all...we are now at a stage where when we call we get put through to some obnoxious man who is obstructive and just goes off at tangents.

The debt is still ours, it has not been assigned to them so I could just write off the fee and fire them...but I have a feeling that is what they want and how they make some of their money.

Any advice of what to do or who to report them to?

[maxine]

Probably trading standards or if it is a consumer debt it might come under the terms of their consumer credit license but it is more a problem with their commercial arrangement with you rather than how they have if at all attempted to collect the debt.

There are a lot of DCA's out there who don't charge set up fees and just work on a pay-per-results basis only. Paying upfront for court fees is a bit different but not their fees for sending letters, making phone calls.

Ask for a file history of all activity that has taken place to date so that you can decide whether to leave the debt with them or place elsewhere. The longer you leave a debt with them the harder it will become.

If they have breached the terms of their contract with you then put your claim into them for a refund.

good luck

[GRDCredit]

The other issue is of course you still have not been paid! Are the company who owe you still trading?

If you would like to PM me the company name I will see what can be found out. In the meantime I am sure you will have a number of people along in a minute offering to collect on a no cost basis!

What sort of value are you talking?

[maxine]

Like your sig GRD :)

[GRDCredit]

Thank you - it's true though isn't it.

[maxine]

Completely true! :)

[Enricogassolini]

Thanks for the comments...value is just under £3500 due in November 2008. Company (which is not ,limited) is still trading. They have never disputed the debt and in fact did at one time send in a load of post dated cheques...the first one for £500 cleared and then the rest were cancelled.

I have since found out from other companies in my trade that whilst the owners have a lavish lifestyle, they have a history of this sort of thing....eventually paying up but hoping suppliers will get fed up of chasing and give up.

[MiniAndrew]

This may work in your favour that they are not a Limited Company as the proprietor will be responsible personally for the debt. Issue a 21 day notice filing for bankruptcy on the individual - that'll focus his attention or stick a caution or charging Order on his property, so you get your money if he sells his house..you have an interest as he owes you money. I used to be able to access business details of companies or directors, but not anymore. Maybe the credit chap above from Somerset can do it for you, but find the owner and his/her address and issue then you won't be waiting forever to get paid, he'll be hopping mad! Good luck.

[Enricogassolini]

Thanks....that is exactly what the debt collecting agency was suggesting they were going to do!

I don't have many bad debtors, but have normally either put it to county court or used Thomas Higgins on line sevice...and have always got some kind of possitive result.....you can imagine I am kicking myself for breaking my own rules this time!

[GRDCredit]

Thanks for the comments...value is just under £3500 due in November 2008. Company (which is not ,limited) is still trading. They have never disputed the debt and in fact did at one time send in a load of post dated cheques...the first one for £500 cleared and then the rest were cancelled.

I have since found out from other companies in my trade that whilst the owners have a lavish lifestyle, they have a history of this sort of thing....eventually paying up but hoping suppliers will get fed up of chasing and give up.

Two things you need to do.

Firstly tell the Liverpool based debt collector in writing that they are no longer instructed in this matter. Whilst you are pursuing the partnership by other methods the last thing you need is for them to suddenly wake up and take action and possibly try and charge you more! Also push them hard for refund of what you have paid so far.

Secondly as suggested above go hard after the partnership. Do you still have the cheques? This will work in your favour as it will prevent them subsequently disputing the debt. Don't get fed up like other suppliers!

There are several debt collectors on here who will act for you on a no fee basis - I have no direct experience but hear goods things about Steve from Thornbury Collections.

Good Luck!

[MiniAndrew]

Thanks....that is exactly what the debt collecting agency was suggesting they were going to do!

I don't have many bad debtors, but have normally either put it to county court or used Thomas Higgins on line service...and have always got some kind of positive result.....you can imagine I am kicking myself for breaking my own rules this time!

It's not difficult to do it yourself you know, just get a Statutory demand form from the net. The debt has to be crystallised and there be NO dispute over the debt if you wish to issue a 21 day winding up or bankruptcy notice.

[GRDCredit]

and there be NO dispute over the debt

Hence the importance of those post dated cheques