Debt Advice Required Please

gjrc

gjrc

gjrc

Soldato
Joined
18 Oct 2002
Posts
6,830
Location
London
hi all,

just need some advice.... i have just got a letter threatening court action over an unpaid invoice dating from July 05.

this invoice was for some work i had done by a structural engineer on my flat. from memory i am sure i paid the invoice. I have not heard anything from the company since i used them. now it seems the company have gone into liquidation and some debt collection company has gone through their records and said i never paid this invoice....

where do i stand with regard this debt? any help would be much appreciated.

thx
 
The debt company will need to prove you haven't paid it, and that it's outstanding.

If you can remember roughly how you paid (I'm guessing cheque or card), you can go through your old bank and card statements from around that time:)
If the work was done in 05 your bank should be able to produce duplicate statements for your account from then for a small fee.
 
i cant remember if i paid cash or not.... i have moved banks and house since too..

don't they have to prove i haven't paid it? surely just producing an invoice isn't enough?

isn't the fact i have never been contacted before now by the company proof that it was paid?
 
As Werewolf says, check old bank statements. Even if you paid cash I'm guessing you don't keep those amounts stuffed under the mattress and had to make a withdrawal?

Also don't pay more than £10 for a copy of your entire statement history from a bank. The "£5 per sheet" charge is a rip off and you don't need to pay it. Just file a one-line subject access request under the Data Protection Act and you'll get a complete account history print-off for a maximum statutory fee of £10.

Until then it's the debt collector's obligation to (1) ensure you do owe the money (2) prove it and (3) not harass you over it.
 
gjrc said:
hi all,

just need some advice.... i have just got a letter threatening court action over an unpaid invoice dating from July 05.

...

thx
Click to expand...

Can't help with the rest of the stuff but on this i can say one thing, "don't panic"

A debt collection company is just a scary name for "invoicing dept", they aren't acting as court bailiffs, they can't damage your credit rating, they can't remove goods from you home, etc, etc. The most they can do is send you scary letters (some have red ink and semi-legal lookings headed paper!)

The letters are designed to worry you into paying up quickly (same as the private parking invoice scam). You've got nothing to actually "worry" about until you get small claims track paperwork in the post (and even then they need to actually prove you owe the money), if they go to court, prove you owe the debt and win the case, you still have 28 days to pay before it becomes the dreaded CCJ.
 
I can't see how a company can contact you in the first instance about a 5 year old invoice. Surely there's a rough procedure they must follow before a debt collector is allowed to be involved? Instances of contacting you etc. I would say that it's perfectly resonable to say that you paid it at the time but you can't remember how you paid it. I've had quite a few credit cards in the past 5 years (balance transfer, cancel) and I'd struggle to name the companies of cards from 5 years ago, nevermind the account number etc.
 
they haven't proved it they have just provided a copy of the old invoice....

pain in the butt getting old bank statements etc

oh well will see what i can dig out.

thx
 
SB118 said:
Can't help with the rest of the stuff but on this i can say one thing, "don't panic"

A debt collection company is just a scary name for "invoicing dept", they aren't acting as court bailiffs, they can't damage your credit rating, they can't remove goods from you home, etc, etc. The most they can do is send you scary letters (some have red ink and semi-legal lookings headed paper!)

The letters are designed to worry you into paying up quickly (same as the private parking invoice scam). You've got nothing to actually "worry" about until you get small claims track paperwork in the post (and even then they need to actually prove you owe the money), if they go to court, prove you owe the debt and win the case, you still have 28 days to pay before it becomes the dreaded CCJ.
Click to expand...

They can damage your credit if they haven't already done so. Unsettled debts can be shown on Experian etc. They can also fairly easily issue the legal action so while saying don't panic is correct, do nothing is not advised.

Everything else is fairly true, chances are if they are chasing now it means they have got a good reason to believe this money is still owed. They provide the proof of the debt e.g. an invoice/agreement and show they have received nothing to satisfy it.

Pre-empt their actions and provide proof before they choose to escalate.
 
The statute of limitations applies after 6 years, if you don't aknowledge the debt then it becomes void after this time. Do some googling on it.
 
mattyfez said:
The statute of limitations applies after 6 years, if you don't aknowledge the debt then it becomes void after this time. Do some googling on it.
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Its from the last date it was acknowledged.

That only applies if they haven't contacted him in the 6 years as well I believe. Meaning a company can't come along 15years later and say you still owe this.

All they will do is issue proceedings before the 6years is up so this is quite irrelevant.

I believe this 6 years is if they don't act and you don't acknowledge. By him claiming to have made payment he is acknowledging the debt anyway. If he doesn't claim he made payment they will issue it to the courts.

He has to sort this out, ignoring it is not really an option.
 
The debt agency probably bought £100,000 of debt off the company's bank for about £10,000 and are just sending out 'feelers' to any vague lead of debt that the books show.
 
mame said:
The debt agency probably bought £100,000 of debt off the company's bank for about £10,000 and are just sending out 'feelers' to any vague lead of debt that the books show.
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If he's paid it then it shouldn't be a problem only an annoyance.

It will be a bigger pain if he lets it hit the courts.
 
Gornall said:
Its from the last date it was acknowledged.

That only applies if they haven't contacted him in the 6 years as well I believe. Meaning a company can't come along 15years later and say you still owe this.

All they will do is issue proceedings before the 6years is up so this is quite irrelevant.

I believe this 6 years is if they don't act and you don't acknowledge. By him claiming to have made payment he is acknowledging the debt anyway. If he doesn't claim he made payment they will issue it to the courts.

He has to sort this out, ignoring it is not really an option.
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I don't believe that is the case, (them chasing) its only if you aknowledge, but would have to look it up.

Op should certainly read up before he even considers contacting them, as said, after such a long time they are just putting out feelers. they are highly unlikely to issue a claim.

Have a read on consumer action group forums.
 
mattyfez said:
I don't believe that is the case, (them chasing) its only if you aknowledge, but would have to look it up.

Op should certainly read up before he even considers contacting them, as said, after such a long time they are just putting out feelers. they are highly unlikely to issue a claim.

Have a read on consumer action group forums.
Click to expand...

Definitely seek proper advice.

My point was though its catch 22. He doesn't respond they can push further if they are adamant he hasn't paid. He does respond stating he paid its an acknowledgement.
 
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