Paragon seem to have a problem understanding a few basic facts, like the debt is unenforceable, not to mention they had spoken to me at least 14 times in the past couple of weeks.
Saturday, 13 June 2009
Paragon threaten home visit
Today I received a telemessage from Paragon saying as they had tried to contact me without success (I guess talking to me every day on the phone for two weeks wasn't good enough), they would be sending a representative to my home to discuss my account. They would charge £89 for this.
Monday, 8 June 2009
Reply from OFT in regards to my complaint against Paragon.
I had a reply back from the Office of Fair trading regrding my recent complaint about Paragon.
Complaint Against: Paragon Finance plc
Licence No: 189829
Thank you for your email. I apologise for the delay in responding to you.
I am very sorry to hear about the difficulties you have been experiencing, however, the Office of Fair Trading (OFT) has no authority to become involved in disputes between consumers and traders, so we cannot offer you any direct help with the complaint or advise you directly in this matter. Our role is to protect the collective interests of consumers.
The above mentioned Act established a licensing system to protect the interests of consumers in the credit area. If a business wishes to undertake the collection of debts that arise from consumer credit agreements then the Act states that they are required to hold a consumer credit licence; this is issued by the OFT. The above trader holds a consumer credit licence. Under the Act, the OFT has a duty to consider the fitness of all traders who hold consumer credit licences.
In considering fitness we take into account whether a business has engaged in improper business practices. Where we receive complaints about the business practices of licensees, we investigate them and where appropriate we take enforcement action; that action depends on the evidence and circumstances. Action the OFT can take includes revoking, refusing or suspending a licence; or placing conduct requirements on the licence of the company or business in question (failure to comply with a conduct requirement can result in a financial penalty being levied).
The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat debtors fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices
I have noted the details of your complaint, and we will consider this alongside any other complaints we have received with a view to any licensing action we may decide to take. If we do take any licensing action against this trader, it is likely that we would need to disclose your identity to this trader along with details of your complaint. I should therefore be grateful if you could sign the attached consent form and return it to me. Unfortunately, we cannot disclose any details about any action we may take, due to restrictions on the OFT relating to disclosure of information (Part 9 of the Enterprise Act 2002).
Providing copies of agreements regulated by the Act
As you may know, s63 of the Act covers how and when lenders must provide consumers with a first (and where appropriate second) copy of a regulated agreement. It is clearly in the lender’s best interests to retain details of the original agreement and any subsequent variations or changes made to it, particularly as consumers can request a subsequent ‘true’ copy of most types of agreement under ss77 and 78 of the CCA (and on payment of the appropriate fee). There are rules about what is likely to constitute a ‘true copy’ under these sections of the Act. Further, if a consumer does make a valid request for a copy of their agreements under these provisions and the lender does not comply with the request, the agreement may not be enforceable in the Courts, subject to any other mitigating factors.
Should you require specialist advice or assistance on the circumstances of your complaint (including in relation to the above provisions about copy requirements), you may wish to contact your local Citizens’ Advice Bureau (CAB) or seek advice direct from a legal advisor.
The Financial Ombudsman Service (FOS) can help with most complaints about consumer-credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the financial institution itself.
FOS can be contacted at: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; telephone number, 0845 080 1800, or Financial Ombudsman Service
We would like to thank you once again for writing to us and bringing this matter to our attention.
Yours sincerely
Samit Patel
Enquiries and Reporting Centre (ERC)
Office of Fair Trading (OFT)
Licence No: 189829
Thank you for your email. I apologise for the delay in responding to you.
I am very sorry to hear about the difficulties you have been experiencing, however, the Office of Fair Trading (OFT) has no authority to become involved in disputes between consumers and traders, so we cannot offer you any direct help with the complaint or advise you directly in this matter. Our role is to protect the collective interests of consumers.
The above mentioned Act established a licensing system to protect the interests of consumers in the credit area. If a business wishes to undertake the collection of debts that arise from consumer credit agreements then the Act states that they are required to hold a consumer credit licence; this is issued by the OFT. The above trader holds a consumer credit licence. Under the Act, the OFT has a duty to consider the fitness of all traders who hold consumer credit licences.
In considering fitness we take into account whether a business has engaged in improper business practices. Where we receive complaints about the business practices of licensees, we investigate them and where appropriate we take enforcement action; that action depends on the evidence and circumstances. Action the OFT can take includes revoking, refusing or suspending a licence; or placing conduct requirements on the licence of the company or business in question (failure to comply with a conduct requirement can result in a financial penalty being levied).
The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat debtors fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices
I have noted the details of your complaint, and we will consider this alongside any other complaints we have received with a view to any licensing action we may decide to take. If we do take any licensing action against this trader, it is likely that we would need to disclose your identity to this trader along with details of your complaint. I should therefore be grateful if you could sign the attached consent form and return it to me. Unfortunately, we cannot disclose any details about any action we may take, due to restrictions on the OFT relating to disclosure of information (Part 9 of the Enterprise Act 2002).
Providing copies of agreements regulated by the Act
As you may know, s63 of the Act covers how and when lenders must provide consumers with a first (and where appropriate second) copy of a regulated agreement. It is clearly in the lender’s best interests to retain details of the original agreement and any subsequent variations or changes made to it, particularly as consumers can request a subsequent ‘true’ copy of most types of agreement under ss77 and 78 of the CCA (and on payment of the appropriate fee). There are rules about what is likely to constitute a ‘true copy’ under these sections of the Act. Further, if a consumer does make a valid request for a copy of their agreements under these provisions and the lender does not comply with the request, the agreement may not be enforceable in the Courts, subject to any other mitigating factors.
Should you require specialist advice or assistance on the circumstances of your complaint (including in relation to the above provisions about copy requirements), you may wish to contact your local Citizens’ Advice Bureau (CAB) or seek advice direct from a legal advisor.
The Financial Ombudsman Service (FOS) can help with most complaints about consumer-credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the financial institution itself.
FOS can be contacted at: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; telephone number, 0845 080 1800, or Financial Ombudsman Service
We would like to thank you once again for writing to us and bringing this matter to our attention.
Yours sincerely
Samit Patel
Enquiries and Reporting Centre (ERC)
Office of Fair Trading (OFT)
Paragon - No CCA
From my various phone calls with Paragon it has become apparent they don't have the original Consumer Credit Agreement from Universal Credit, instead the version they sent me last year is a made up copy of the terms and conditions. This is of course totally unenforceable.
I also came across some interesting reading on the internet -
This seems to suggest Paragon are fully aware that many Universal Credit CCA's are non enforceable.
Friday, 5 June 2009
Complaint made against Paragon.
I was advised to make a complaint about Paragon's constant phone calls under some fairly new regulations which protect consumers from unfair trading. It's worth a try. I sent this to the Office of Fair Trading.
4th June 2009
Dear Sir/Madam
Consumer Protection from unfair trading regulations 2008 (CPUT)
Formal complaint against Paragon Finance for harassment
I write to complain under the above regulations. I am receiving persistent phone calls from Paragon in respect of a purported debt for which an original Consumer Credit Agreement does not exist.
I have asked Paragon to stop telephoning me and to communicate by letter as the calls are interfering me with my family life. Despite this the calls continue. I have logged the calls over the past few days along with a summary of content, I have listed these at the end of the page.
Although I agree the DCA are entitled to take reasonable care to pursue a debt if they feel there are outstanding issues, I consider the level of calls to be above what I can reasonably expect. The debt is in dispute as no Consumer Credit Agreement exists and Paragon have been made aware of this.
I notice that Paragon are prepared to carry out a campaign of constant harassment rather than bring legal action against me, which in my view is the proper and reasonable course of action. I have raised these issues with Paragon who admit they do not have the original consumer credit agreement and have no intention of stopping the phone calls or taking any legal action.
I consider Paragon are operating an unfair commercial practice and this is the reason I am bringing the complaint to you. At Present Paragon are calling me on a daily basis and I think this is totally unreasonable in the circumstances .
Yours Faithfully
Recent calls from Paragon -
4th June 2009. Paragon “I see we have called you a lot recently”.
3rd June 2009, 9.46am. Paragon said they would continue to call on a daily basis despite my protests.
2nd June 2009, 10.38am (busy so didn’t answer), 10.40am (they called back 2 minutes later).
1st June 2009, 9.43am. Paragon asking for payment, admit they don’t have the CCA , say they will continue to call despite my asking not to, claim they are within the FSA guidelines to call as often as they want.
28th May 2009, 12.02pm. Paragon asking for payment, I asked not be called, they say they will continue to call. I ask why they have called me twice in one day, they say they need payment. I say debt in is dispute and ask they take me to court, they refuse .
28th May 2009, 8.25am. Paragon leave message on answer phone. I call them back, they ask for payment. I tell them account is in dispute. I ask them to write to me instead of calling.
27th May 2009, 10.50am. Paragon call and ask if I would like to make a full and final offer or make a payment. I ask for original CCA, which they say they don’t have.
Thursday, 4 June 2009
Constant phone calls from Paragon
Paragon have been calling me every day (sometimes twice) pestering me to pay the debt they claim I owe.
Recent calls from Paragon -
4th June 2009. Paragon “I see we have called you a lot recently”.
3rd June 2009, 9.46am. Paragon said they would continue to call on a daily basis despite my protests.
2nd June 2009, 10.38am (busy so didn’t answer), 10.40am (they called back 2 minutes later).
1st June 2009, 9.43am. Paragon asking for payment, admit they don’t have the CCA , say they will continue to call despite my asking not to, claim they are within the FSA guidelines to call as often as they want.
28th May 2009, 12.02pm. Paragon asking for payment, I asked not be called, they say they will continue to call. I ask why they have called me twice in one day, they say they need payment. I say debt in is dispute and ask they take me to court, they refuse .
28th May 2009, 8.25am. Paragon leave message on answer phone. I call them back, they ask for payment. I tell them account is in dispute. I ask them to write to me instead of calling.
27th May 2009, 10.50am. Paragon call and ask if I would like to make a full and final offer or make a payment. I ask for original CCA, which they say they don’t have.
Monday, 25 May 2009
Out of the blue letter from Paragon.
The story so far (to save you scrolling through previous posts). I took out a Universal Credit loan back in 1995. I paid for four years and then ran into problems. I contacted CAB who arranged for reduced payments until I could afford to pay the full monthly amount again. Part of the agreement was for interest to be frozen to prevent the debt getting any bigger, this is a standard practice (I had another debt with Barclays who did freeze the interest and it was paid off in full years ago).
Paragon brought UC and agreed to the monthly payments, they forgot to mention they would add interest back to the point when CAB made the agreement. Over the years I increased my payments and actually paid back around £15,000 on a debt of £4200. Paragon being greedy wanted another £12000 in compound interest!
Last year I stopped paying. I felt I had no moral obligation to pay back even more money as I had already paid back the debt with considerable interest. Paragon phoned a few times after I stopped paying, but then I heard nothing for several months.
I received a letter from Paragon saying -
I refer to previous communication in connection with the above account.
Following a review of the account, i confirm the company is not willing prepared to write off the balance and whilst the account is outstanding it will affect your credit rating.
I can confirm the company are prepared to negotiate on the balance by the way of a full and final or capped term offer that you might decide to put forward.
If you choose to make an offer please put it in writing.
Following a review of the account, i confirm the company is not willing prepared to write off the balance and whilst the account is outstanding it will affect your credit rating.
I can confirm the company are prepared to negotiate on the balance by the way of a full and final or capped term offer that you might decide to put forward.
If you choose to make an offer please put it in writing.
Monday, 15 December 2008
More comments about Paragon
This is from a thread on the Consumer Forums (http://www.consumeractiongroup.co.uk/forum/general-debt-issues/148293-paragon-finance-enough-enough.html)
" In Dec 1997 my ex-wife and I took out a loan with Paragon for appx £7,500,
the APR was 28.9% payable over 10 years. A year later we seperated. I changed
profession at this time and advised Paragon that the account would fall into
arrears and that my ex-wife would assist with the monthly payments of £162.34 by
paying half. This happened for a few months and then She stopped paying and the
account ran into arrears (I continued to pay £81.32). I anticipated the
situation occuring and told Paragon that I would bring the account up to balance
as soon as I could. Remembering back it seems they did nothing, and 6 or so
months later payed up the arrears and I was back to paying the £162.34 a month
(incidently the loan is a joint and several liability loan and I have been
paying this amount on my own since the
seperation). This has since continued
uninterupted.Two years ago I looked into
paying off the final amount
expecting to only have a few hundred pounds left to
pay I was a MORTIFIED to
find I had a resettlement figure of £9,500 left to pay.
On contacting
Paragon they informed me that the interest would be frozen, I had
asked them
to do this as a mark of good faith (the word sucker springs to
mind!!!). It
seems that I now have £9,700 to pay. I`m not a maths genius but it
looks to
me that I'm increasing the debt by a few pounds each month, so this
loan
will never be paid off "And it's not the only post about Paragon.
"we took out a loan with paragon 10 yes ago for £15000 unfortunately we found
ourselves is financial difficulty and had to turn to a debt mamagement co called
payplan..(which i have to say have been fantastic in my experiance).......we
were paying off the debt with paragon on a reduced and agreed rate for about 6
yrs..............last yr we got together the money to settle all our
creditors.............and when we asked paragon for a settlement
figure.........we were shocked to find that by our calculations it was about
£3500 and they are saying it is £13500 i obviously queried this and was told
that it was interest on the account as we had not stood by the
agreement"And even more....
"In 1997 I took out a personal loan with Universal Credit for £10,000. I maintained the payments without any problems for a couple of years, but then got into financial difficulties as a result of my business collapsing and the breakdown of my marriage.In this period, the debt was purchased by Paragon Finance, who I was led to believe bought the entire loan book of Universal Credit.I agreed with Paragon to make reduced payments at a level that I could afford after a meeting with an external representative that Paragon out-sourced, who I visited at their house. He agreed that, due to my financial circumstances, interest would be frozen. This surprised me as I believed that my original agreement had been a fixed personal loan and not a monthly charge account.Last November, having first found this site, I sent a Data Protection Act letter to Paragon asking for a breakdown of my account. I was disturbed to find that interest had continued to be charged on my account at the full rate. Despite having paid back in excess of £13k to Paragon/Universal, my balance now stood in excess of £14k."
And yet more...
"hi i am also peed off with paragon borrowed 9000 quid 6 years ago. lost my job so they directed me to the c.c.c.s. we have paid aprox 6ooo back to them. but received a letter stating debt passed on to arrow receivables, the amount was for over 14,000. "
"About 14 or 15 years ago I got a loan for £3500, due to certain circumstances I had to go on to reduced payments for a while. While I was on reduced payments the company I got my loan from was taken over by Paragon Finance, I was never advised of this either in writing or by telephone. A couple of years ago I wrote to Paragon Finance asking them how much I would have to pay to clear this debt and was gobsmacked - to say the least - when they told me they wanted over £14,000 back because of interest accrued. I immediately asked them for an itemised accounting of this which they sent. When I looked at it they had been charging me over £400 per month in interest - my original monthly payment had only been £127! I have now had to go into an IVA to try and clear this debt."
" took out a £5,000 loan with Universal Credit in 1996, which unfortunately due to circumstances defaulted on after paying the bulk off. I heard nothing until approx two years later when I started receiving letters from Paragon Finance (they had apparantly bought the debt - but I didn't get to the bottom off this until recently). Having had no previous dealings with Paragon I asked them to supply details of the debt so I knew what I was being asked to pay. I heard nothing for a further year, when a bailiff turned up. Once again I contacted Paragon asking for details, and again heard nothing. Things continued in a similar vein until March this year when out of the blue I received a letter from them informing me that it was for the loan I had with Universal (although they provided no copy of the agreement) and that they had already taken the case to court and obtained a charging order on my property.I requested a statement and balance (as until this point various figures had been bandied about - going up and down like yo-yo's) and started making payments of £30 a month as a goodwill gesture, however I heard nothing from them until today.Had a letter from them this morning - written in some form of financial jargoneeze:"I can confirm that the balance outstanding under the Judgement Order is £4617.24 and the balance outstanding under the contract is £22107.21 to date."
Subscribe to:
Posts (Atom)