Your views and questions.

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By choristar
#137992 I have been in a DMP with PayPlan for a few months now and most creditors have accepted payments but a few havnt - one is Intelligent Finance, with whom I took out a loan for £10k with and still owe around £1400.

They wont accept payments and refered the arrears to a company called Bridge Collections in Manchester. They have threatened legal action on behalf of Intelligent Finance if arrears remain unpaid.

I sent them a letter refering them to PayPlan and explained the circumstances but today they said they had refered it to a solicitor for legal action, whatever that means.

Will sent the letter to PayPlan - any comments from anyone?

Companies like Northern Rock, HSBC, Barclaycard, Halifax, Cahoot have all accepted the plan - Mint have not and Lloyd TSB have not along with IF - will never use this company again - been with them 6 years with perfect repayment record and current account but they are not nice to deal with.

Cheers,

John
By SirPercyBlakeney
#138069 The letter is undoubtedly a standard template, designed to scare you into thinking that they don't have to deal with Payplan. They cannot refuse to deal with Payplan, and they know it, but ignoring letters like yours is common practice. The number of letters to DCAs that are 'lost in the post' would be a huge scandal for Royal Mail - if only it were true. They are remarkably careless people - they lose lots of taped telephone conversations too, especially when they are referred to in Court.

If you didn't send your original letter by recorded delivery, send a copy with a covering note stating that it appears from their latest letter that they did not receive yours. Send a copy to Payplan, too.

Bridge Collections don't come up on Google, and don't appear to be registered at Companies House, but I wouldn't be surprised if Bridge turn out to be IF's inhouse DCA.
Last edited by SirPercyBlakeney on Fri Feb 23, 2007 2:08 pm, edited 1 time in total.
User avatar
By WilliamTDLX
#138096
SirPercyBlakeney wrote:The letter is undoubtedly a standard template, designed to scare you into thinking that they don't have to deal with Payplan. They cannot refuse to deal with Payplan, and they know it


Percy, you are completely wrong, no creditor has to deal with Payplan or the CCCS etc. Most do so because these free DMP organisations are respected enough for the majority of creditors to realise tha what is offered is likley to be as good as it gets. However if a creditor decides to take legal action, then being in a Payplan or CCCS DMP offers no legal protection what so ever.

PS I do agree that the letter is almost certainly a standard scare tactic. I would not worry unless actual court papers arrive.
By SirPercyBlakeney
#138126
WilliamTDLX wrote:Percy, you are completely wrong, no creditor has to deal with Payplan or the CCCS etc. Most do so because these free DMP organisations are respected enough for the majority of creditors to realise tha what is offered is likley to be as good as it gets. However if a creditor decides to take legal action, then being in a Payplan or CCCS DMP offers no legal protection what so ever.

PS I do agree that the letter is almost certainly a standard scare tactic. I would not worry unless actual court papers arrive.


I fear I must disagree. The OFT Debt Collection Guidelines, by which all DCAs are bound, states that the following are 'unfair practices':

refusing to deal with appointed or authorised third parties, such
as Citizens Advice Bureaux, independent advice centres or money
advisers

contacting debtors directly and bypassing their appointed representatives

operating a policy, without reason, of refusing to negotiate with
debt management companies


This is taken from the Dec 2006 update, and seems clear enough to me. In what way do you think I am wrong?

You are right in saying that a DMP does not offer protection against being taken to court by a creditor. However, the Courts expect legal action to be a last resort; a creditor who has refused to discuss a DMP may win because the legality of the case is clear, but the Court may well order payments equal to those proposed under a DMP.

The issue here is that many creditors and almost all DCAs think the rules don't apply to them. They also rely upon debtor's lack of knowledge. It's reasonable to say that the OFT have not enforced their guidelines sufficiently robustly (this may be because few complain - have you tried to find the complaint form on their website?).This is likely to change when the responsibility for regulating DCAs passes to the FSA later this year, and those who fail to comply will be financially penalised.
By choristar
#138387 Thanks for the replies you two - will keep you updated via this thread

John
By Scrooge
#138558 They would still have given it to BRIDGE whether technically they're accepting it or not. Saying they're not is just a scare tactic to try and get you to pay more. I've had letters a year after being on a DMP saying they're not accepting the repayment, its just a load of horse manure. Bridge Collections, as SIR says............are probably just the recovery arm of IF :roll: