# debt collection agency gone bust



## whatatodo (8 Mar 2012)

Hi,

I am looking for some advice regarding a debt collection agency that I have been repaying a debt through.

I found out earlier today, that they ceased trading in December 11, but the failed to notify me of this. 

My payments have left my account each week by standing order, but they have not been passed on to my creditor. My bank have told me that because it was a standing order, they can do nothing, the financial regulator told me that it is a matter for the Gardai, as their company registration number was bogus, and naturally they were not registered with them either. 

Has anyone had a similar experience, any advice would be great.


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## Wishes (8 Mar 2012)

Where they collecting the debt on behalf of a bank?


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## whatatodo (8 Mar 2012)

Hi,no they were collecting the money on behalf of an individual,whose solicitor recomended them to his client,my creditor.my creditor and their solicitor were sent a letter in December,informing them of the companies imminent closure,but nobody told me..and the most recent payment left my account last Friday.


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## Brendan Burgess (8 Mar 2012)

If this debt collection agency was acting on behalf of the client, then any payments to the debt collection agency would presumably be treated as paid to the client. 

If you owe me money and I tell you to pay it in instalments to Johnny, but Johnny doesn't pass it on to me, then you are in the clear.


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## whatatodo (12 Mar 2012)

Hi, thank you for your reply, that is what I thought too. I have kept up the repayments, I am now paying my creditor directly, but now they want me to increase my repayments or pay the debt in full asap. I am already paying 25% of my income each week, and I really cannot afford anymore, can the goalposts be moved like this, if I have been paying the requested amount,?


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## Bronte (19 Mar 2012)

You need to write to them and say you cannot afford to pay anymore. Is there any reason why they think you can pay more than the previously agreed amount?


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## whatatodo (20 Mar 2012)

No,none at all,they are now threatening court action,with talk of a judgment order,would this only be used if payments were missed,I will know more when the solicitors letter arrives.


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## Bronte (20 Mar 2012)

So you are paying back your debt as agreed but now they are going to bring you to court.  There must be a reason.  Or is it just that that bank/lender is getting tough?  It costs them to take you to court.  You mention judgment, do you mean judgment mortgage.  Do you have a home with equity?

How did your agreement to pay back the debt by instalment come about?  Can you name the bank?


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## whatatodo (20 Mar 2012)

It 's not a bank, it is a friend, I was repaying the loan through a debt collection agency until I found out that they had ceased trading, I have now been paying them directly with no gaps in payment. at this stage until I receive the letter from their solicitor, I am unsure if the judgment will only be brought in if I default,  they did say I would be liable for any legal costs if and when we go to court. what I am unsure about is if a judgment can be placed on my home if I am repaying the agreed amount.


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## elcato (20 Mar 2012)

The new debt collectors are trying to see if you will budge on repayment. Just hold firm, tell them you are sticking by the original deal (put this is writing and keep all corresponadance)  and even if they do persue you to a court appearance, I can assure you a judge will not be impressed wth their attitude. All debt collectors have the same process. They go through this every now and then to see if they can get a better deal.


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## randomers (20 Mar 2012)

Which agency was it that went bust? There's been a few high profile ones lately?


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## Bronte (20 Mar 2012)

Sorry I missed the fact it was a loan from a friend.  What does the solicitors letter state?


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## whatatodo (20 Mar 2012)

Hi Bronte,I have not received the letter yet,just a phone call outlining their plans.I do have equity on my home,but the banks will not lend to me due to I'll health.


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## elcato (20 Mar 2012)

I'm confused. You got a loan from a friend and he used a debt collection agnecy to pay it back. They went bust and now your friend is threatening legal action ? or is there another debt collection agency after taking over the debt ?


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## Bronte (20 Mar 2012)

whatatodo said:


> Hi Bronte,I have not received the letter yet,just a phone call outlining their plans.I do have equity on my home,but the banks will not lend to me due to I'll health.


 
So you have equity in your home and you owe someone some money. That person is not happy with the way you are paying them back, so much so they have now hired a solicitor. The costs of persuing debts is very high, so they must be very vexed. And they must think you can pay more, and it does seem you have equity so I guess they are going to go for a judgment mortgage. Otherwise they would be foolish to pursue you. 

If there any other solution in your power to repay them?  The costs could end up being horrendous for you.


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## whatatodo (20 Mar 2012)

What I am hoping for,is that the judgement is more of a guarantee for them that I continue to pay as I have been,just waiting for the letter now,to see what's next.


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