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WA Bill Payments - Collecting Debt Even Though Bill is Being Paid?

Discussion in 'Debt and Bankruptcy Law Forum' started by Natasha82, 19 June 2015.

  1. Natasha82

    Natasha82 Member

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    I currently have a $600 vet bill in which no payments arrangements were made other than them advising me to use vet pay (a line of credit) to pay. I started paying $50 a month (not much I know) by direct deposit as that's how I've always paid my bill with the vet. They have now sent it to debt collectors and slapped another $300 on top of it. I didn't think they could debt collect if bill is being paid.
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi Natasha82,

    1. When the vet told you to pay using vet pay, did they know you would be paying $50 a month, or by monthly instalments? Was this an option presented to you?

    2. Did you notify them at all that (1) you request payment in instalments, or (2) you were under financial difficulties and need a payment arrangement?

    3. How long were you paying $50 a month before you became aware of the referral to the debt collectors?

    4. Did they send you a reminder notice or letter before they referred the debt to the debt collectors?

    Give the Financial Ombudsman Services a call on 1300 78 08 08 (and if they cannot help you, try Fair Trading QLD). Both these services offer free advice and assistance in resolving disputes between consumers and businesses. The FOS specialises in disputes with financial institutions (so referral to a debt collector) while Fair Trading deals with general consumer disputes.
     
  3. Natasha82

    Natasha82 Member

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    1 - yes
    2- yes
    3- the two mo ths because it took them that long to send me the bill, received 'thank you for payment' invoices. Then I received the debt collector letter.
    4- no
    Thank you I'll ring the above
     
  4. Tracy B

    Tracy B Well-Known Member

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    Hi Natasha82,

    The "thank you for payment" receipt is helpful. Do you have the payment arrangement ($50 a month arrangement) recorded anywhere in writing (e.g. email correspondence, letter correspondence) or do you remember the person with whom you spoke when entering into the payment arrangement?

    If they agreed/offered to enter into a payment arrangement with you, then they should not have sent your debt to the debt collectors. Contact the debt collection agency (in addition to the FOS) and alert them to the fact that the debt is under payment arrangement which you have being complying with (I assume you haven't breached the payment arrangement terms). This will alert them to either sell the debt back to the vet or stop collection procedures until the matter is resolved.

    If you have breached a term of the payment arrangement (e.g. skipped a payment) then that may be an issue.
     

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