Companies using debt collectors

Can anyone please tell me when a company is legally allowed to sent in the debt collectors?

I ask because last night I received a letter from a debt collector which came as something as a surprise. I had not received any invoice or correspondence of any kind from the company I owe the annual payment to. I did of course know the payment was coming up and had the funds to settle the bill as I have done for the past number of years. But not having received any kind of reminder of the payment due date or getting so much as a gentle reminder I got very angry to have this 3rd party letter thrown at me out of the blue.

The money is for a small sum for an ongoing service I've had with the same company for the past 6 years. However, their customer service leaves a lot to be desired and I very nearly changed companies last year because of their attitude. This year they seem to have decided to bypass any niceties or means of contact and gone straight for the jugular.

Is the company legally obliged to contact me asking for payment or can they just go ahead and send in the dogs without any recourse? Surely there is a safeguard against this kind of thing.

They should have been pursueing you for the outstanding payment before sending in the debt collector.

But is sould like the company is very unorganised and that it was an error on their behalf.

Not sure what recourse you have though.

Have you contacted the company and pointed out that payment was not yet even due? Have they sent any invoices? It may well be a mistake on their part - so I'd be inclined in the first instance to give them the opportunity to apologise and invoice you correctly.

The payment was due at some point this month or next month, that I knew. What I didn't know was the actual date when payment was expected and the actual amount. But as I mentioned, I had factored it into this month's budget and put money aside. The problem with this place is that it's the third time I've had a problem with their accounts dept. The first time out they somehow 'lost' the direct debit mandates I had sent them. On the second occasion their first contact was a gruff 'pay up now or else' email which I responded to and paid but not before telling them what I thought about their alleged customer service. Both these things happened at different times of the year and there was no way to actually tell when I'd be hearing from them regarding payment. So for them to resort to a debt collector without any other contact is probably a logical progression of their 'service'. It's definitely not an error on their part, it's more like contempt.

No invoices have been sent to me either by post or email. No contact from them whatsoever. The first I knew about it was last night when that letter arrived.

I've since sent them off 2 emails telling them to get in touch with me asap and so far they haven't responded. I'm getting to the point of threatening legal action if they don't get it together.

AngelOfDebt said:

Can anyone please tell me when a company is legally allowed to sent in the debt collectors?...

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This is just a wild guess, but are you located in the UK or are you dealing with a UK-based company operating in Ireland with no base here?

Nope, I'm in Kildare, they're in Louth. The debt collector's operating from Navan Road.

So the money is due and they have outsourced collection. Just call the 'debt collectors' and tell them you will send the money and ask for a receipt. If you dont like the service, walk away.

AngelOfDebt said:

... I'm getting to the point of threatening legal action if they don't get it together.

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What complaint would you be bringing to the court?

"But... but.. judge, I didn't like the way he looked at me."

Very amusing. Why do you think I posted the question here in the first place?

Would you actually have some advice instead of just trying to be a smartarse?

They are doing the same to me, no bills etc, and ignoring me. see my post in askabout law. We need to stop this practice.

See elcatos post. Follow that advice. End of story.

mf

AngelOfDebt said:

Very amusing. Why do you think I posted the question here in the first place?

Would you actually have some advice instead of just trying to be a smartarse?

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I'm not just trying to be a smartarse. You mentioned threatening to take legal action. I was drawing attention to the weakness in your position, that you hadn't identified any complaint that a court would take seriously.

Debt collectors have no legal powers and no more power than you or I have. They are just used as a scare device to frighten the uneducated. Professional debtors light the fire with such correspondence.

Certainly pay the company direct and go elsewhere in future. Let them know why.

I think they can employ the debt collectors at any time.

But i think it's unusual that they would do this becuase for one the payment isn't due yet. Normally you would get a letter telling you that a payment is due then a couple of letters to say that your payment is late, and then finally call in the debt collectors.

It could be that there was a mistake in your account, or that letters were issued and you just haven't recieved them. Post does go missing, i think everyone has not recieved something they were meant to.

Pure laziness on their behalf. Obviously they can't be bothered collecting accounts. IJ will charge them a pretty penny for using them to simply collect non overdue accounts.

I bet they try and pass on this expense to the op.

Isn't that the way that it usually works, if a company needs to employ a debt collector they tell you that you have to pay these costs?

Not usually.

Debt collectors usually charge a % of the debt or in the case of big clients they are on a fixed retainer.

It is when they go to court that costs are normally added.

OP you have received a single solitary letter stating that you owe x, so what if it's a debt collector that sent it, you owe it, you have the money ergo you pay it, I don't see what all the fuss is about?

Accounts department or debt collection agency so what. Letter or invoice so what. It amounts to the same thing.

On a separate point I assume some companies in Ireland outsource accounts/debt collection/salaries/payments/customer service/repairs what difference does it make to anyone.