Debt collection company failed to pass on collected monies

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J
JackP
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I employed a DC company in Nov06 to collect rent arrears from a previous tenant. Despite repeatedly asking them for an update as to how much they collected, I kept getting fobbed off, I was initially told that the case was 'in progress', then a few months ago, I was told that the debtor had gone off the radar and was placed on 'debtwatch' - i.e. they were still trying to trace him.

Having suspected something was wrong I successfully traced the tenant myself and he confirmed he had payed this DC firm all owed monies between Dec06 and May08 ! He subsequently sent me copies of all statements/receipts etc to prove this therefore this DC firm have withheld this money now for nearly two years.

The agreement I have with them is a no collect no fee basis, they take 60% commission, (collected monies 2600, therefore about 1000 owing to me) - the reason for the high commission is that they include for insolvency proceedings if necessary.

How do I go about suing them ? I could go to moneyclaim.gov.uk but I am not sure how much to sue for because surely they owe me interest given that they should have paid me this money 2 years ago, if so how much interest can I claim ? Also are there any other damages I could sue for given that they appear to have deliberately held on to this money and only now are admitting they have to give me something now they have been found out - surely this is some kind of fraud!

02/03/2010 00:00

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