A frugal life is an easy life!

This is how Shoosmiths (debt collection) treat clients of companies, when attempting to recover an outstanding debt from them, via their debt collection office. (Details of course have been removed to protect our friend of the site):

"We are instructed by our client in relation to the above liability and we have taken action against you for recovery of the outstanding sum."
- They did indeed, it went to court after 11 months of threats to take it to court and Shoosmiths tried to force through a charging order on my friend's property, causing severe distress to my friend.
Shoosmith's said that they would accept the payment offered, only with a charging order in place as security, if this was challenged, Shoosmith's stated that it would claim via the court, for an extra £3000 expenses. As you can imagine, my friend was even more stressed at this.

On meeting Shoosmith's solicitor outside my friend's local court, immediately prior to a district judge ruling on the case, Shoosmith's solicitor stated that the charging order was "just a formality" and added that "once in place, it won't be enforced until the account fell into arrears or the house was sold." - Shoosmith's solicitor lied to my friend!

Once in front of the district judge, Shoosmith's told the judge that he was instructed to action the charging order with immediate effect and would seek payment of the full amount or enforce the selling of my friend's home.
Luckily, my friend defended against the charging order and provided a good case for it being refused, the district judge found in favour of my friend, did not grant a charging order and instructed Shoosmith's that they had to accept the minimal payment offered by my friend. Shoosmith's also lost their claim for expenses and were instructed to remove unenforceable charges for reminder letters from the balance.

This was more than a year ago and still my friend is trying to have the court costs and solicitor's fees removed from the overall balance. Apparently, Shoosmith's ignore court orders/rulings issued by district judges?
Either that or they haven't told their client that they lost the case in court?

"We note that you have been paying £xx per month for some time now and this offer is now open to review."
- No, there is no "offer" and any payments made are subject to a court ruling. Unless of course Shoosmiths don't take any notice of court rulings issued by district judges?
There will be no "review," understand that Shoosmiths?

"Our client now requires that you increase the sum of your monthly payment."
- Is that right?
To increase the monthly payment, Shoosmith's would be required to apply to the court for a district judge to review the "final order" that the district judge issued.
You would think that Shoosmiths, a "well respected legal company representing businesses" would already be aware of this?
You would also think that Shoosmiths were aware that without good reason, questioning a judge's decision is a serious matter indeed and could, in extreme cases, lead to the entire case being thrown out. This would leave my friend with nothing further to pay at all!

I don't care what your "client requires" my friend will not be paying a penny more than the court's ruling, until they choose to do so. Do you understand that Shoosmiths?

The letter then goes on to "urge" my friend to call their offices within the next seven days to discuss the matter.
To add to the unprofessionalism of the letter, it is signed with a signature of "Shoosmiths" as if Shoosmiths is a real person.

Options:
- Report the matter to Shoosmiths directly, in which case they would explain it away as a standard template letter and/or "training issue"
- Report the matter to the district judge who made the ruling, in which case it would waste more of the court's time.
- Or highlight on the internet, how Shoosmith's treat clients that have a debt, so that others can see for themselves

We can only hope that Shoosmiths show the same vigour in reporting to their "client" that their attempts to force a charging order on my friend's home, to pay off a minimal debt, failed and that they were also NOT awarded costs and solicitor's fees. Shoosmiths should also insist that these fees be removed from my friend's total debt.

Debt companies are always communicating in this way. Factually inaccurate information and asking things of the individual that are not legally required.
Some things to remember when dealing with a debt collection company;

• ALL dealings with them should be in writing only
• Only promise a payment you can afford - there is no point promising a higher payment, if it is beyond your means.
• Keep up all payments that you have promised, regardless of how many times you are told "your payment is too low" - the old "we can only accept a minimum payment of [insert any amount here]" is rubbish. (If you are in any doubt, SEEK HELP/ADVICE!)
• Ask for the company's account number and sort code, then pay your promised payment in each month without fail. By law, they cannot refuse any payment of any amount (NOTE: this may not stop the company bringing civil proceedings against you, but it will help your case should it come before a district judge!) By law they have to provide their information to allow you to make payments.
• Give the debt collection company no information about your personal circumstances. They send you a form to fill in or question you on the phone, tell them nothing!
  I have yet to come across a single debt collection company that doesn't use the information given to push up monthly repayments.
• Some debt collection companies, will tell you "their client wants..." in truth, many have bought your debt (Often paying only about 10% of it's worth) so try to collect the full amount as quickly as possible and will try everything to get you to pay more!

I should really do a seperate post about this, please be aware that frugalways cannot accept any responsibility for this post, in that, it is a post about my experiences and what I have been told.
If in any doubt you should SEEK HELP/LEGAL ADVICE!
These experiences ONLY refer to unsecured debts - for debts secured against your home I would always advise seeking legal advice.

Be careful out there friends....