Debt Collection Company

[Deleted member 39899]

We have a trade dispute with a supplier and would really appreciate anyone's advice on this matter.

Our dispute is with a supplier who we've signed a 12 month contract with to have our website optimised. Their service has been nothing short of terrible as they won't return calls or emails. So, after complaining to them and explaining that we would cancel our contract with them if they don't improve we eventually decided to do just that.

We owe around £600 to them (remaining two months of the contract) which isn't a huge amount but we have dug our heels in as it's the 'principle' that's the issue.

We received a letter from a debt collection company today threatening legal action and informing us that we now owe just short of £1000 due to their costs! They have threatened that their costs will increase, our credit rating will be affected and even suggested the director's of the company can have their credit rating tarnished.

A legal advisor friend-of-a-friend told us that the only way they can enforce this debt is through the small claims court and only if successful will adverse credit be registered against us.

Can anyone confirm if this is true or not? Is this just bully tactics or do these people have the power to keep heeping huge costs onto the bill and register anything on our credit file?

Has anyone got the authority to collect monies from us without going through court action first?

Any help would be greatly appreciated.

 

[credit control service]

Hi Apex

The collection company has the right to charge interest and late payment charge under the late payment act. See useful tools on our website or google search it for more details.

You are disputing your debt, so you should send copies of any emails/letters you sent to the SEO company to the debt collection company. They will go back to the SEO company and tell them you're disputing the debt. It's then up to the SEO company to decide whether they'd like to take it down a legal route.

Hope that helps!

Jeremy
TAK-Outsourcing
Credit Control and Debt Recovery

 

Are you a limited company? If you are then it would only go against the company not individual unless in the contract you personally guaranteed the contract?

I would write (ensure you send it recorded), explaining that they have in effect broken the contract and therefore you believe it to be null and void. Send all proof of the calls / emails etc. If they are just trying to scare you they will back off. The worst that they can do would be issue a CCJ against the company, when this is issued you will recieve a claim form where you can dispute the debt. Ensure that you complete this within the 28 days given and send all evidence and also send this recorded delivery.

Hope this helps xx