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Original poster

Debt collection - what are my rights?

16 replies

Ireallywantsomechips · 09/02/2023 10:59

I’ve been sent an email by a debt collection agency to advise I owe an insurance company £41 which I have failed to pay and now need to pay and have it affect my credit score.

I asked for more information and this is for a
contents insurance policy I had cancelled in March 2018. Apparently this is the cancellation fee.

My issue is this is the first time I have been made aware of this debt. The insurance company never emailed or telephoned me to chase the payment.

Of course I could just pay it and be done with it but it’s the principal. Why am I being penalised for the insurance companies administration error? Surely if they are chasing a debt they try more than just writing to you?

Does anyone have any experience of this? I’ve asked for proof they tried to contact me but it feels like I’m talking to a robot and not sure if
its going to be worth the stress for just £41

OP posts:
NCcantthinkofanewone · 09/02/2023 11:50

I totally understand that it's the principal. It would piss me off too.
But, I would just pay it and be done with it.

They should have made contact several times for the payment.

TallulahBetty · 09/02/2023 11:52

Debt Advisor here. If the principle matters that much to you, ask for a SAR which will show the times they've allegedly tried to contact you.

Or just pay it so it doesn't affect your credit file (the 'score' means nothing btw)

purplecorkheart · 09/02/2023 11:52

Honestly I would just pay it. They will claim that they sent a letter or that they sent an email that went into your spam folder. You will only get scripted answers. Life is too short.

Oblomov23 · 09/02/2023 11:56

Painful. Id pay. I'd still ring the original insurance company to complain though.

Original poster
Ireallywantsomechips · 09/02/2023 12:51

Thanks everyone, that’s what I was thinking. If I paid myself the time and annoyance that it will take me to contest this it would probably be over £41 wouldn’t it!

Shan’t be using that insurance company again!

OP posts:
corcaithecat · 09/02/2023 14:04

As an ex debt adviser, I definitely wouldn't pay until I'd seen written evidence that I definitely owed this money.

Too many companies sell off bad debts that are not debts at all but mistakes arising from poor administration.

Roundandnour · 09/02/2023 14:33

Do a check with Experian. They have a free trial.
Unpaid shows on there even before it gets sent to a debt collector iirc.

Also double check the date you cancelled the insurance.

Contact both companies and ask for written evidence. I did this on something less. Neither company could provide anything to validate their claim. Original company on further questioning (email never called) couldn’t provide anything to show they had sent any reminders etc. Took months for them to recall the debt and cancel it.

People said then and will do now that I had too much time on my hands. Maybe, however I don’t pay for things I don’t have to.

MrsDanversGlidesAgain · 09/02/2023 14:35

Ireallywantsomechips · 09/02/2023 10:59

I’ve been sent an email by a debt collection agency to advise I owe an insurance company £41 which I have failed to pay and now need to pay and have it affect my credit score.

I asked for more information and this is for a
contents insurance policy I had cancelled in March 2018. Apparently this is the cancellation fee.

My issue is this is the first time I have been made aware of this debt. The insurance company never emailed or telephoned me to chase the payment.

Of course I could just pay it and be done with it but it’s the principal. Why am I being penalised for the insurance companies administration error? Surely if they are chasing a debt they try more than just writing to you?

Does anyone have any experience of this? I’ve asked for proof they tried to contact me but it feels like I’m talking to a robot and not sure if
its going to be worth the stress for just £41

Money Saving Expert debt board has a lot of people who can advise and they will say that first step should be a 'prove it' letter and for any documentation they hold. Stick to the 'I have never received any notification of this before' line and DON'T pay it for a quiet life.

MrsDanversGlidesAgain · 09/02/2023 14:38

*Too many companies sell off bad debts that are not debts at all but mistakes arising from poor administration8

And debt collector has probably bought it for a lot less than £ 41.

TallulahBetty · 09/02/2023 15:18

MrsDanversGlidesAgain · 09/02/2023 14:38

*Too many companies sell off bad debts that are not debts at all but mistakes arising from poor administration8

And debt collector has probably bought it for a lot less than £ 41.

Less than 1p in the £1 for many!

RiktheButler · 09/02/2023 15:25

I had one of these and I made them jump through hoops for the money (£25 I think). I insisted on copies of bills from the original supplier and then paid it back at £5 per month, so I am certain that they lost money by chasing me!

I had a second one (both were cancellation fees) but the second company were awful, so I threatened them with harassment complaints, FCA complaints, asked them for their full names on the phone to name them in legal papers (that gets their attention!), stop answering their "security questions" - they seem to have given up on me now!

Yes, its petty and I do believe in paying debts - but there are ways of going about it. Funnily enough when I had genuine debt problems the companies handling those were far more sympathetic and professional

FenghuangHoyan · 09/02/2023 15:27

Go to money saving expert forums. Those lot just saved me paying out £75.

MrsDanversGlidesAgain · 09/02/2023 15:29

FenghuangHoyan · 09/02/2023 15:27

Go to money saving expert forums. Those lot just saved me paying out £75.

Seonded. A lot of very good advice on there. I used their suggestions when I was dealing with debt collectors trying it on at exjob.

Original poster
Ireallywantsomechips · 09/02/2023 20:13

I’ve already checked my credit file because I’ve literally just remortgaged and had to provide some data to the mortgage advisor, there is nothing on there about outstanding debts.

I may check out moneysavingexpert, you’ve all put the wind back in my sails!

They are requesting proof of monies owed. Buts what’s frustrating is I have no idea what date I cancelled the insurance because I did it over the phone. To me the onus is on them to prove they told me when they payment would be taken for cancellation fees on that call!

OP posts:
Roundandnour · 09/02/2023 21:02

The original company might also fob you off that they don’t have some details.
They tried with me saying they were destroyed.
Reminded them they have to keep them for 6 financial years 😂

They also got a bit pushy about it being quicker to talk over the phone. I declined this option and said no easier for my records to keep emailing.

I didn’t want to waste one penny on them hence I emailed and didn’t write. Plus harder for them to loose emails 😂

MrsDanversGlidesAgain · 10/02/2023 18:54

Ireallywantsomechips · 09/02/2023 20:13

I’ve already checked my credit file because I’ve literally just remortgaged and had to provide some data to the mortgage advisor, there is nothing on there about outstanding debts.

I may check out moneysavingexpert, you’ve all put the wind back in my sails!

They are requesting proof of monies owed. Buts what’s frustrating is I have no idea what date I cancelled the insurance because I did it over the phone. To me the onus is on them to prove they told me when they payment would be taken for cancellation fees on that call!

If they say you owe the money then the onus of proof is on them. If you can deal with them in writing/email rather than by phone so you have an audit trail. Depending on how much effort you want to make you if you think you probably do owe the money then you could offer a full and final reduced amount.

www.nationaldebtline.org/fact-sheet-library/full-and-final-settlement-offers-ew/

I had this at exjob - debt collectors trying to rinse us without providing proof. A lot of them rely on people not fighting back.

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