First of all, don’t panic. Despite what the collection agency says and the threats they make, you must remain calm and collected. Their attempts to scare you are part of a well rehearsed mechanism to get you to part with money quickly. In many cases, they have bought your debt from your creditor for a fraction of it’s value. For them, this is a simple game. Winning is measured in pounds and pence extracted from you. Despite how heated they may sound on the phone or in their letters, you are just the 20th person they have exploited today. When they get off the phone with you, they probably can’t even be bothered to tell their colleagues about having made you scream/cry/swear/drink. This is just routine.
If the debt is legitimate, you owe the money and have the means to pay, pay it. If you have the option to pay your creditor directly without passing money to the debt collection agency, pay your creditor directly. There is no reason to line the pockets of the collection agency.
If you do not have the means to pay, write a letter explaining your circumstances and include a proposal to pay in installments. Include your first installment with the letter (as a cheque or postal order). Send your letter and payment by registered post to your creditor or the collection agency. If the payment is not returned to you, it can be taken as defacto agreement to your installment proposal.
If you believe you should not have to pay anything:
- Do not send any payment for any amount.
- Do not enter into a verbal or telephone discussion with the collection agency.
- Write a letter to your creditor. Address it to the most senior director you are able to obtain a name for. Explain that you dispute the amount of the debt. Explain why you believe you should not have to pay. Ask them to put collection of the debt on hold until an agreement is reached. Send the letter by recorded delivery and retain your proof of posting.
- Write a letter to the debt collection agency. State that the amount of the debt is in dispute and that you have entered into correspondence with the creditor directly. You do not need to explain why it is in dispute or engage them in any way. Ask them to place their collection effort on hold until the matter is resolved with your creditor. Ask them to refrain from contacting you until the matter is resolved between you and the creditor. Send the letter by recorded delivery and retain your proof of posting.
- If the debt collection agency contacts you verbally or on the telephone, before a resolution has been reached, either record the conversation or explain that you are not prepared to engage in any unrecorded dialogue and terminate the conversation immediately. If they write to you, file the correspondence and do not respond.
- At this stage you must wait for the creditor to either absolve you of responsibility for the debt or file a claim with the County Court.
- If they file the claim in court, attend the hearing, bring all your correspondence on the subject. Dress smart. Explain to the court why you dispute that you should have to pay. Provide evidence to support your case. If you have suffered as a result of the tactics employed by the creditor or the debt collection agency, present evidence to support this.
- If the court decides that you must pay, then you must pay. Most courts in the UK are presided over by human beings who will look at the case objectively. If your reasoning is sound and you present your case well, it is likely that they will rule in your favour.
Disclaimer: I am not a lawyer. Do not complain to me if my advice does not work or makes your cat sad. The opinions given here are intended as just that and should be weighed against your own judgement and common sense.
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