collection agency - what powers do they have?

[humanheart]

I have had a longstanding dispute with John Lewis, who charged me late payment fees when the error was theirs. this has rumbled on for a few years, and the admin etc fees have spiralled to twice the original bill, despite my repeated efforts towards a resolution and requests that the account is frozen until the dispute is settled. The account has now been passed to a collection agency who are threatening the usual dire consequences etc.

Here are my queries:

1. does this debt belong to John Lewis, or have they sold the debt to the collection agency, who will get what they can.

1. what powers do the collection agency have to retrieve the debt.

I have just drafted a very detailed letter as I have kept notes throughout the dispute. In the letter (not yet sent) I admit liability for the amount I believe I owe, providing documented evidence; and stating that I do not accept liability for the amount I am being charged.

any advice?

John Lewis have sold your debt to the collection agency o get rid of it.

The good thing is you have everything you need to get this resolved

If an account is under dispute it must not be sold. Hopefully if the collection agency is reputable this will be resolved very quickly.

Call them and advise it is under dispute and over to send copies never originals of any proof they need. They will then have to get John Lewis to buy back the debt, John Lewis are totally in the wrong.

If you haven't taken this up with the financial ombudsman I suggest that you do now.

Have John Lewis defaulted you?

Have John Lewis defaulted you?

what does that mean honeydragon??

A few different 'authorities' have tried to pursue this debt - once a solicitors (I think?). I told them that I disputed the bill and from then on they said they were no longer dealing with it. (is that bcs it had to go back to John lewis bcs I was disputing it?) That was over 2 years ago and I haven't heard about it since - until this latest letter (and LOTS of calls) from a collection agency. Are John Lewis being less than honest to sell it to an agency when they know I am disputing the bill?

Also,

1. should I send the detailed letter to the agency? or should I write to say I am disputing the bill and nothing else? My letter admits liability for blah blah (with sums!) - I am prepared to pay but not until JL accept the dispute and work it out, subtracting ALL the fees etc I am disputing.

1. I have also paid bits and pieces (with my eye on what I do owe - not paying over that!) to these various agencies (to get them off my back, basically) - thankfully kept auth codes etc of all payments. Do those payments count toward the original bill or could JL feign ignorance?

1. If I don't quickly play ball with this latest agency, can they - as they are threatening - send the bailiffs, or pursue legal action? Their number is also an 0844 number - I would rather write than call - do I have the time? I did speak to them tonight - they called me (again! I have not been taking their calls but am responding to their dire-warnings letter). I said I was drafting a letter and they said they would freeze the account until they received the letter. They are very pushy - but I didn't let them push if that makes sense - I didn't enter into any discussion with them and their erroneous facts.. I repeated I was drafting a letter to them with copies of docs etc

1. Yes, financial ombudsman... where they? It's not a huge debt - was about £400 (which I accept I owe) is now closer to £800).

thanks for your advice btw. Financial stuff is just NOT my thing.. which is why I keep such detailed notes!

You need to go to financial ombudsman those charges if correct are unlawful. John lewis have defaulted your credit file. The monies you have Paid this far probably haven't been applied to the account, this will keep getting sold on and rejected because you have all the proof that it is a dispute. I'd find out who the lender behind the credit card is as well.

A default shows you as a bad payer on your credit file. I think the only way you can get this resolved is through the ombudsman. Do you have all your original credit card statements that show where the error or the dispute you have was? If you are in the right the financial ombudsman will rule in your favour.

I am also willing to bet that the so called soliciter you spoke to was a front by a collection agency, if the debt was worth going to court over this would have happened by now. Do not pay anything to a collection agency they are aware that they can't pursue the debt but will still try and make money from you. John Lewis need to get this resolved for you so you can pay what you asap.

The account btw is frozen they cant freeze something that is void. To send bailiffs round they have to go through the courts to get an attachment order on you, they cannot apply to the court for this unless they can prove the balance you owe is correct, this is under dispute you have proof the court won't touch it.

Just thought re: the default, you need a copy of your credit file, check the date of the default as you may have the option of "playing the system2 and paying this off once and for all for less than you owed, or you can pursue John Lewis. In your paperwork they have sent you they should have issued a default notice. If they have not, and one is registered on your credit file this is another reason why you should not have the debt sold on. If you stopped payments four years ago this is when it should have been issued.

You have time to write, they won't be sending bailiffs anytime soon as they would have to go to court first.

General rule with collection agency's is the less they can actually DO, they nastier they are, it's the only thing they have to get money out of people (by basically frightening them). If you watch what happens if someone defaults on their council tax there are no silly letters and harassing phone calls, just one or two letters followed by a court summons. It's quick and fast because they have the authority, where as the people you are dealing with do not.

The Consumer Credit Counselling Service would give you some advice (and reassurance that the bailiffs are not imminent). The website mainly advertises debt advice etc, but they are really good at helping with this sort of thing too. They have a free phone line, better than an calling and 0844 number for ages and helping the debt collection company make even more money.