threatened with debt collectors

jackster77

not sure if anyone can help me but i signed up for a two year course two years ago in the dublin business school, with fees of €4250 per year. i paid the first years installment when i registered but struggled to have the money to pay the second years installment. then i lost my job last may so i decided not to pay for the second year of the course despite completing all modules.
i have been getting letters stating that i owe €4250 but i dont have the money to pay. this morning i got a letter stating that failure to pay in 14 days will result in my name being forwarded to debt collectors. ive ony just got a job but its only a six month contract and i still have to pay a bank loan which is manageable but cant pay out any more.
what is the consequence of ignoring this? will it affect my credit rating?

looksee

It may seem from your point of view that you have done all you can and now its just not possible to pay, but whatever your problems, you owe them money and there will be consequenses, not least of them being the effect on your credit rating.

You need to negotiate with them to pay it back even at a reduced rate. I suggest you go and see Citizens Advice or MABS to try and work something out. You can't just ignore it.

Nody

It would only have an affect on his credit rating if it goes to court but yes, you do owe them money and just ignoring them is a fools mistake. Contact them, set up a payment plan and explain why you could not pay earlier.

chris85

it will not affect credit rating as no colleges are members of the ICB. This is irregardless of court action.

http://www.icb.ie/membership.php

Try contact the college and come to some arrangment to pay this. be upfront about your situation.

Grumpypants

jackster77 wrote: »

i decided not to pay for the second year of the course despite completing all modules.

This is the key. You do owe them the money so don't ignore it, give them a call im sure they would prefer to work something out than to drag it through court only to get the same result.

jackster77

thanks for advise, nearly got sick when i saw the letter. anyway, will call them tomorrow to try and work out some sort of payment scheme.

Our man in Havana

Debt collectors have no more powers than you or me to collect money. Don't be frightened by a letter head.

Tarakiwa

Haddockman wrote: »

Debt collectors have no more powers than you or me to collect money. Don't be frightened by a letter head.

Really? Is this true???

jor el

Tarakiwa wrote: »

Really? Is this true???

Yes, however they can take it to court, and for €4250 it would be worth the time, cost and effort to do this. For small amounts, court is just an idle threat to make people pay up. It's not worth doing for anything under a few hundred euro.

If you do go to court then the judge will see that you just walked away from the debt and made no effort to contact or pay the debt, which will more than likely not go well for you.

Contact the college immediately, and try and come to some arrangement.

antoinolachtnai

It's true that they have no special powers, but if you owe the money you really should pay. I'd say that they will eventually go to court. What about your certificates and qualifications from the course? You won't have the benefit of them until you pay them or make an arrangement, right?

I would go down there and ask to speak to someone in the accounts department in DBS and explain your situation. You are going to have to work something out with them. Maybe you can pay the bank back a little less each month? Even 40 euros a week would make good inroads into that bill.

Our man in Havana

Realistically anything under 1000 Euro is not worth going to court for as the creditor can only claim scaled costs (€50) and not the true cost of bringing the case which is not recoverable from the debtor.

For 4 grand odd it is worth their while. It won't be the debt collectors taking legal action but the original college that the debt belongs to.

TheDriver

I am curious how a college allowed you to complete modules even though you haven't paid them, usually I thought they withhold results/certification until payment is settled?

looksee

TheDriver wrote: »

I am curious how a college allowed you to complete modules even though you haven't paid them, usually I thought they withhold results/certification until payment is settled?

You have answered your own question - he said he had finished the modules, he didn't say he had got his certificates.

91011

On a lighter note...

would a situation like this not have been covered in the business course itself?


On a more serious note,
offer payment by monhtly standing order over 3 years. They'll say one year and you'll both agree to 2 years.

chris85

debt collectors have no more powers but they would be seeking to enter into an arrangment to pay this usually. Its a last resort for the college to do so. They dont want to do this but they feel they have no other option.

Boggles

Contact the college.

Tell them your situation.

Offer to pay them off monthy.

Keep all corrrespondance.

If they refuse, let it go to court. The judge will look more favourably at you since you did offer to pay the money back.