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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am harassed every day by Red Star Financial who say I owe

Resolved Question:

I am harassed every day by Red Star Financial who say I owe them money. They pushed me into a PPI enquiry even though I told them that I had been bankrupt.
They had a 'successful' claim against a catalogue company(JD Williams) that I had an account with many years ago. After all the paperwork was signed and I was told to accept the offer they told me that JD Williams were entitled to keep the PPI refund.
The catalogue company knew in 2011 that I had been made bankrupt but they weren't listed on the list of creditors that went to the receiver. They have never asked me to pay the balance on the account and have told me that they have no intention of asking me for any payment.
My question is this: AS my agent shouldn't Red Star have advised me NOT to accept the refund since I was never going to receive the money? Having told me to accept it, are they entitled to demand their 35% fee plus VAT from me? Bear in mind I have been absolutely straight with them from the start with regards ***** ***** my past bankruptcy and my present financial situation e.g widowed and unable to pay anything?
As it stands I have had to tell them to put everything in writing to me and I am about to be passed to their legal department for them to recover the alleged debt of £111.86
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know on what basis if they didn't actually recover anything, are they entitled to 35%?!!!

Customer:

Hi

Customer:

They say they have recovered money but JD Williams are entitled to keep it and transfer it to the catalogue account

Customer:

are there 3 of us in this chat?

Alex Watts :

Ok - but they knew about this beforehand as I understand your question

Alex Watts :

2 of us. Me and you

Customer:

yes they knew that JD could keep the money but I didn't know about that until I started to question why I hadn't received a cheque

Customer:

(OK thanks - it was the coded name that you are using for me that confused me for a second)

Alex Watts :

Ok, then you dont need to worry. If you told them then you dont owe anything

Alex Watts :

If they try and take you to Court, then you can defend the claim on the basis you have disclosed all the information

Customer:

my point is that, in my opinion, I should have been told that JD could keep the money ad tht Red Star , as my agent, should have checked it out that the balance outstanding on the JD account was greater than the refund and advicsed me not to accept the offer because the only benefit was to THEMSELVES

Alex Watts :

Indeed I agree.

Alex Watts :

However you have done nothing wrong - its not your fault.

Customer:

I told them everything at the start.....I told them that I had been bankrupt between feb 2011 and 2012 and that I could not afford to pay any fees but was assured that if they didn't get money for me then I would have no fees to pay

Customer:

they have since asked me was JD included in the bankruptcy..that is an odd question for me to answer and I told them No, but JD knew I was bankrupt and their details had just been omitted from the list

Customer:

do you think that since JD had and have no inyentions for asking me for payment of the account that actually JD WAS included in the bankruptcy?

Alex Watts :

You thought they would have clarified the position before doing any real work

Customer:

yes...and to top it all, they haven't even sent me an invoice

Alex Watts :

Oh really!

Alex Watts :

Well I would not worry about it.

Alex Watts :

You havent done anything wrong.

Alex Watts :

You dont have to pay them and do not be bullied into doing so

Customer:

they sent me a letter yesterday with an income and expenditure form which I have not done anything with...then today I received a letter dated 28th, same as yesterdays correspondence, saying that since there has been no contact it has been referred to legal department

Alex Watts :

Ignore everything. Write once and set out the position. They failed to make basic checks despite you telling them of the bankruptcy.

Alex Watts :

On that basis you do not owe them anything

Customer:

perhaps they expected me to complete the forms and fly over to Manchester all in the space of 2 hours!

Alex Watts :

They failed to act with all reasonable skill and care pursuant to section 13 of the sale and supply of goods and services act 1982

Customer:

I should reply in writing and state my position?

Alex Watts :

Yes I would and say you wont be responding further

Customer:

Oh thanks very much, I appreciate this advice very much, I will write to them today

Alex Watts :

Happy to help. Can I clarify anything for you about this today please?

Customer:

No thank you I completely understand everything you have told me and will act upon it

Alex Watts :

Great. Can I help with anything else today?

Customer:

No Im fine thanks

Alex Watts :

Great, if I could ask you to rate my answer before you go today - the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

Customer:

yes I will rate..i was just printing it off so I get all the technical stuff correct when I quote it

Alex Watts :

Of course!

Customer:

bye and thank you

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