Reliable Collections

[edduk1981]

Hi there, I have just come across this forum and am looking for advice.
In 2009 I took out an account with Jacamo clothing, in 2011 I split with my long term partner and had a 12.5% pay cut at work meaning money issues.
Anyway I continued to pay Jacamo until the end of 2011 and I just couldn't afford the full payments any longer, long story short I made an agreement with Reliable Collections to pay £41 per month, I was told 2 things as long as I continued to pay each month I would not fall into arrears and the interest and fees would be frozen.

Fantastic I thought, I even sent them a letter in February 2012 agreeing to the payment plan and I quote "As discussed with yourselves please stop all interest and fees on my account to help me during my financial difficulties". I then started my plan in march 2012 paying via Jacamo website as I was advised to.
Anyway on 31st January 2014 I receive a letter from Reliable Collections (first correspondence from them in almost 2yrs) saying I was not sticking to plan and therefore needed to call them.
I called them straight away saying what did they mean I have not missed one payment I was told I should be paying every 28 days. I said I was never told this and also when I paid my Jan payment I happen to notice my statement and realised I was charged £12 fee. I ask them why this was only to be told it would be passed to another dept.
Anyway 4 days letter I receive something in the post it was my statement since I first opened my Jacamo account until 31st Jan 2014. I read through this and was shocked to see that I had been charged fees and interest since the payment plan was put in place (the balance of 31st March 2102 was £1300 the current balance was now £1100) I was sick to my stomach I worked it out I had paid them 23 payments at £41 per month £943 in total yet they had charged me just over £700 in fees and interest and my balance in fact only reduced by just over £150.

I immediately got on the phone and was told to email them the statement and highlight my charges with letter they would look into. I get an email today saying payments need to be made 28 days and if my account is in arrears £12 fee will apply until arrears are cleared and therefore no reimbursement of fess will be actioned. I thought no I am not taking this I owe them just over £300 not almost the same when I started out. I called them only to be told yes payments are every 28 days.
I explained I was never told this and then I was informed Reliable Collections had ceased trading about 1 week ago and debt had been passed back to Jacamo hence where I was calling and the guy proceeded to tell me they stopped long term payment plans approx. 3yrs ago and I would have only been on plan for 6 months. I said I was never told this I have received no letters or emails or phone calls for almost 2yrs yet they still accepted my payment.

I explained I feel I have mis-sold so to speak the payment plan as I was told no interest or fees would be applied and If anything I should be almost be paid up. I told them I would be making no further payments to them until this issue was resolved, if they wanted to take me to court then feel free cause I have bank statements showing £41 being made every month since the plan started and I have the letter I sent to them in February 2012 agreeing to the plan and the part about the interest and fees.
I told them I am not disputing money is still owed but only approx. £350 not what they are saying.

Sorry for the long post but wanted to get the facts out what are peoples advice. I assumed Reliable Collections was a debt recovery agency not an internal part of the JD Williams group am I correct in thinking this?

Thanks for reading and all advice is appreciated.

[ken100464]

Re: Reliable Collections

Did not want to read and run

Your assumption is correct. Its the in house mob of Simpley Be

You have in writing that they would not charge you interest and penalty fee's? If you do keep that safe.

Next you need to do everything in writing. Debt collectors tell you anything on the phone as you have learnt to your cost.

Others will be along soon am sure.

[edduk1981]

Re: Reliable Collections

No this is the thing they never replied back confirming confirmation of payment plan or the interest/fees my one down fall looking back. However my argument to that would be if I was on short term payment plan and if they would not freeze the interest/fees why have they not contacted me they have accepted my payment for nearly 2yrs. I forgot to mention also that looking at my statement they sent me interest stopped being applied to my account in April last year but they continue to charge me fees yet when I asked them today why that was they said they could only look 6 months back.

I am thinking of contacting the Financial Ombudsman for advice as I am really not happy over this.

[Undercover Elsa]

Re: Reliable Collections

Hi Ed,
As Ken says, this is why we drill home to everyone to keep everything in writing with these people and never ever discuss anything on the phone.

I think they're telling you a load of rubbish here. No one makes/takes payments ever 28 days as far as I know. Standing Orders/Direct Debits are set up for a date in each month.

Before going to the FOS you will need to make a Formal Complaint in writing to Jacamo, clearly stating what happened, and see how they respond. If you cannot reach a satisfactory conclusion they will then give a Final Response, at which point you can escalate it to the FOS.

Elsa x

[Never-In-Doubt]

Re: Reliable Collections

Complain to the firm properly, outlining your reasons then dependant upon what they say contact the FOS. You must give the business a chance to put right their errors first.

Bear in mind a lot of businesses and DMP providers agree that interest will be frozen when in fact it was never agreed, a lot of folks have paid a dmp for many years to then find at the end they got hit with a huge bill comprising years of interest..... One as recent as last week on here, AAD.

[Never-In-Doubt]

Re: Reliable Collections

JD Williams group is unique in that if you pay by DD or SO then payments are every 28 days, ie 13 payments a year. This is clear when you take their crappy catalogue out, it's no secret with N Brown & Son.....

[Undercover Elsa]

Re: Reliable Collections

PS: Hope you don't mind but I've edited your first post a little, to put in paragraphs so it's easier for the short sighted amongst us to read

[Undercover Elsa]

Re: Reliable Collections

JD Williams group is unique in that if you pay by DD or SO then payments are every 28 days, ie 13 payments a year. This is clear when you take their crappy catalogue out, it's no secret with N Brown & Son.....

I didn't know that Niddy..how bizarre!

[edduk1981]

Re: Reliable Collections

I received this email on Saturday in reference to my 2 page complaint letter

Thank you for taking the time to write to us.

Just to clarify.

We request a payment once every 4 weeks rather than every calendar month,
therefore the date for your payment to reach us will vary. We do understand
that this can be less convenient for customers who are paid monthly, but
we're unable to change this on an individual basis; it's part of the terms
and conditions for all customers who use the credit facility on their
account. Referring back to previous conversations, I can see that a similar
query was raised and addressed on 01/05/12. At which point you were made
aware again how the 28 day cycle.

When your account falls into arrears, due to late or missed payments, we
will attempt to contact you by letter or telephone. Every time an attempted
contact is made a charge becomes payable.

During the 28-day account cycle, we will make 2 attempts to contact you
regarding the missed payments. The 2 X £12 charges are added to your
account when the second attempted contact has taken place.


You will therefore see 2 x £12.00, administration charges on your statement
on the same date.


In order to avoid future charges please ensure that payments are made in
line with the due dates detailed in your statement.


Due to this the charges will stand on your account.


If you set up a direct debit your payment will always reach us on time,
however these will also be every 4 weeks; we'll automatically deduct the
required amount from your bank account two weeks after your statement is
issued.

It's quick and easy to set up a direct debit online - just sign in and
select 'Setup Direct Debit' from the 'My Account' menu. You'll be asked to
enter your bank details and confirm how much you'd like to pay.

If you'd prefer to set up your direct debit over the phone, please call us
on 0871 231 2000 (calls cost 10p per minute plus network extras). You'll
need to provide the name of your bank, your account number and your sort
code.

Alternatively, if you'd like me to post a direct debit mandate form for you
to fill in, please let me know.

Please ensure you keep your payments up to date as we can only set up a
direct debit if your account is not in arrears.

I hope you find this information helpful. If I can be of any further
assistance please feel free to contact us on 0845 074 2029.

I just don't know what to do, I understand when I took the account out with Jacamo payment was every 28 I did this for almost 3yrs no issues, then it was only when the payment plan was set up with Reliable Collections they told me to make payment every month to avoid the repayment plan being cancelled. I work it out I should only have 8 more payments to make, if they continue the way they are it could take me another 13yrs to payback (if my calculations are correct)

[SaltnVinegar]

Re: Reliable Collections

I think they're telling you a load of rubbish here. No one makes/takes payments ever 28 days as far as I know. Standing Orders/Direct Debits are set up for a date in each month.

Unfortunately JD Williams Group (and Shop Direct Group), have this written into their consumer credit agreements that payment terms are every 28 days. It catches loads of people out (because they pay, for example, on the 1st day of the month), and these companies make a lot of money from the application of late payment charges just because the customer (understandably) have assumed that payments are monthly.

They make it more confusing by stating that if you have a credit account that the minimum payment for the goods will start at 1/12th of the cash price, so yet again the assumption is that payments will be made the same time every month (not every 28 days).

[edduk1981]

Re: Reliable Collections

PS: Hope you don't mind but I've edited your first post a little, to put in paragraphs so it's easier for the short sighted amongst us to read

Sorry I was just in writing mode didn't think.

Apologises.

[SaltnVinegar]

Re: Reliable Collections

During the 28-day account cycle, we will make 2 attempts to contact you regarding the missed payments. The 2 X £12 charges are added to your
account when the second attempted contact has taken place. You will therefore see 2 x £12.00, administration charges on your statement on the same date.

I'm wondering if this is a possible avenue to challenge the charges. What do they mean by they will make 2 attempts to contact you? So they are saying they will charge you £24 for effectively making 2 phonecalls? I'm wondering if they have applied charges when they have made contact with you (for example if you have sent them an email but they charges you because they 'could not contact you'?

[ken100464]

Re: Reliable Collections

Have you been getting statements from them during the time that you were on this so called payment plan? Or is it all done online?

If online do you still have access to your online account?

Those agreed payments look pretty high. By that I mean they look over and above what might have been the minimum payments for the account. If so it will look like the account is being run normally bar you not paying on their silly 28day cycle. Therefore they wouldnt be contacting you until some computer monitoring system has picked up your account is getting loads of charges and looks like its in distress. And I dont reckon these are very sophisticated so I may be crediting them with more than they really have.

For me it looks like the telephone conversation when you set up this plan is key to this. What were you told and could that have been mis interpreted.

[edduk1981]

Re: Reliable Collections

From agreeing the payment in Feb 2012 until 31st Jan 2014 I have received no statements from Jacamo and no letters from Reliable Collections, they informed me that statements have been sent but I never received nothing once the plan was in place.

I was paying around £80 per month upto November 2011 then I paid reduced payment for 3 months something I did without speaking to them then agreed payment plan to start 31st March 2012.

I checked with them that by me agreeing to payment plan do I still incur interest and fees and was told these would stop/freeze hence agreeing to payment plan.

[ken100464]

Re: Reliable Collections

So it is really coming down to what was said in that telephone conversation then.

And you can bet your bottom dollar if it incriminates them then you are going to have a devil of a job to extract it.

Does anyone know since when companies had to record conversations and how long they have to keep them for?