Debit Finance Company

[Kris]

I've just had a letter from a debit finance collections company saying I owe them £80 and have 10 days to respond before the matter is passed on to the debt recovery department. Apparently I've had numerous letters about the matter but they all went to an address I no longer live at.

As far as I know, I owe nothing. I have a feeling it's to do at a gym I was a member at which I cancelled the membership at and then cancelled the direct debit. This was months ago though.


I have no intention to pay. Is this going to affect by credit rating? Cause it sounds a lot like the gym didn't cancel my membership and was left to continue!

 

[nohidingplace]

how long was the gym membership? you probably closed it think it was all over but there maybe a minimum contract thereby they're still allowed the DD.

Happened with me son, he had to pay up as that was the agreement.

 

[digicol]

Can't really help you mate but I just want to ask a question in here as it is to do with the subject.

I know debt collection agencies buy dent from companies but how much does it cost the debt collection agencies to purchase this debt?

After all I hear of them chasing up silly bills like £18 and £40 odd quid and so on. Surely they can't buy a debt of £18 from a company and make a profit on it? It costs them more than that in letters, staff and phone bills.

I know they could subby the debt on a contract basis but this subby is just my assumption, never have I heard anyone say the subby the bill on a no win no fee basis.

Do the dent agencies actually buy the debts or do they sub contract them?

If they sub contract them then that could well leave the gent with the PayPal and eBay problem in the clear from any bad credit history as the subbies will not actually own the debt thus leaving PayPal with no leg to stand on regarding spoiling his credit history. (Someone did state that PayPal are not registered with a certain body, thus resulting in them unable to affect your credit rating?)

 

[Kris]

how long was the gym membership? you probably closed it think it was all over but there maybe a minimum contract thereby they're still allowed the DD.

Happened with me son, he had to pay up as that was the agreement.

Was supposed to be 6 months but they let me cancel because I only used it once and cancelled within a week of opening it because I was leaving the area.

 

[DOOBIE]

@ DIGICOL debt collectors buy up old debt on how old the the debt is ie if a couple of years oldthe it will be say 20p per pound if a new debt then maybe 50p per pound if its a very old debt then these can be bought for pennies in the pound as if they can get back only 10 % of a very old debt then there quids in m8 £1 purchase of a £100 debt if you see what i mean m8 at least thats how i think it happens

 

[Jooooles]

My uncle got bailiffs at his door for a £36 mobile phone bill it ended up him paying the £36 plus a £100 extra for the bailiffs call out I turned up with a baseball bat and we tried to chase him but he was a stubburn litttle stocky fella who just called the police hence i nearly got charged with carring a offensive weapon and provoking violence

In the end we settled on paying the £36 and the bailiff took £50 instead of a hundred you just can win in these situations as the bailiff and the police stick together pay the £80 it will keep your credit rating and good bye to the gym.

have you phoned the gym and explained you moved and still plan on using there chain in a different area they might stop the debt just a thought

 

[phawk754]

1st thing i would do is phone them and ask for proof of the debt to be sent to you as you have no clue about it then you can find out who sent them and why

 

[daveballs]

Can't really help you mate but I just want to ask a question in here as it is to do with the subject.

I know debt collection agencies buy dent from companies but how much does it cost the debt collection agencies to purchase this debt?

After all I hear of them chasing up silly bills like £18 and £40 odd quid and so on. Surely they can't buy a debt of £18 from a company and make a profit on it? It costs them more than that in letters, staff and phone bills.

I know they could subby the debt on a contract basis but this subby is just my assumption, never have I heard anyone say the subby the bill on a no win no fee basis.

Do the dent agencies actually buy the debts or do they sub contract them?

If they sub contract them then that could well leave the gent with the PayPal and eBay problem in the clear from any bad credit history as the subbies will not actually own the debt thus leaving PayPal with no leg to stand on regarding spoiling his credit history. (Someone did state that PayPal are not registered with a certain body, thus resulting in them unable to affect your credit rating?)

hi
ive also heared that they buy a job lot of debts, so they might buy say 30-40 different debts from one place.so if you ring them up m8, and say you will pay it but you can only aford say £5 a month. they will proberly try and bully you for more but dont back down. then when they agree ask them how much it would cost to settle the debt in full .they normal give you a reduced rate eg[ they may say if you pay £50 in a weeks time that the debt settled }.

dave

 

[Kris]

Well I contacted the finance company and it was to do with my old gym. They told me to sort out the cancellation with them and they will write off the debt if all is ok with the cancellation.

Rang the gym but the bloody boss isn't in so have to wait for the boss to ring me now!

 

[DiamondGeezer]

Was supposed to be 6 months but they let me cancel because I only used it once and cancelled within a week of opening it because I was leaving the area.

Looks like they didn't keep to their word, Have you got anything in writing that they was going to allow you out of the 6 month contract?

 

[Kris]

Looks like they didn't keep to their word, Have you got anything in writing that they was going to allow you out of the 6 month contract?

Nope No one has got back to me either.

 

[dopeydog]

have a look below m8 there's loads of peeps with lots of experience in this sort of thing.

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[nohidingplace]

the only option left is to personally visit the gym amd sort it.

 

[Sylvester]

If you establish how much you really owe and to who?then you can decide what to do and how long you will pay this in installments. If you don't pay?? they will take you to court. A solicitor will act onm your behalf for about 200.00 pounds??? and you will still have to pay the debt?? a debt never dies in law. Also you will be liable for the debt agencys representative expenses for the day in court or anyone else they bring along. pay it off bit by bit you'll never miss it. Long term it may cost you a lot more than you bargained for.