Debt collector hired by Stomper to recover $600k learns Stomper owes another client $130k
Ask Credit Collection has responded in greater detail to allegations made by an unhappy client.
Stomper NL, who was the client, had hired Ask Credit Collection to recover more than $600,000 from two companies for him, but the debt collection agency had failed to do so.
The agency was taken to Small Claims Tribunal and was ordered to pay $13,486 to the Stomper, who hired another debt collector to get his money, reported Stomp on Aug 21.
After the article was published, Ask Credit Collection told Stomp: "This client initially engaged us to assist in recovering funds from two separate parties. Throughout the process, there were significant changes in instructions, with repeated requests to initiate and then pause actions, which complicated the recovery process.
"Despite this, we continued to work in good faith and even facilitated the engagement of a lawyer to assist him with legal proceedings, which he eventually pursued."
In response, the Stomper said: "Referring me a lawyer is irrelevant to debt recovery, but it is true they helped."
Ask Credit Collection continued: "In one of the cases, the company involved provided evidence that they were not in a financial position to repay the claimed investment. While we made every effort to resolve this, the circumstances were ultimately beyond our control."
The Stomper disputed this, claiming: "I have not been provided such evidence at all and, in fact, was promised by them that they would negotiate for installment payments, which resulted in none."
The issue of a potential conflict of interest also arose, claimed the Stomper.
Ask Credit Collection explained: "In the course of handling other clients' matters, we received information that linked this former client (the Stomper) to an unrelated watch transaction dispute. Upon engaging him, he acknowledged the issue and agreed to a repayment arrangement, which remains partially outstanding."
It turned out that the Stomper owed one of Ask Credit Collection's other clients $130,000.
The Stomper said: "In the middle of this engagement with Ask, they took on a client after me that sought to recover money from me and I paid $100,000 on a pure goodwill basis as this guy was my ex-business partner. But I decided to not pay the remaining $30,000 as there was essentially zero obligation for me to do so. I have the contract to prove this.
"Because of this major conflict of interest, they caused me severe mental stress as they were prioritising the other client instead."
The Stomper also claimed he was told by his ex-business partner that he had not received the $100,000 the Stomper paid to Ask Credit Collection.
As for the Small Claims Tribunal, Ask Credit Collection said a court order was issued due to its representative arriving late to the hearing.
The Stomper pointed out that he took the agency to the Small Claims Tribunal twice.
He said: "The second time the owner showed up almost 20 minutes late and told the magistrate he was in the toilet. A default judgment was passed that day."
Ask Credit Collection said: "This procedural issue is being addressed, and a subsequent hearing is scheduled for September. We believe the additional court date reflects the magistrate's understanding that there are further details worth considering."
The agency added: "We also understand that the client engaged another debt recovery agency to follow up with us. Our team has since made contact with this agency, and to our knowledge, they are no longer actively pursuing the matter."
Regarding this, the Stomper said: "I have no understanding of this matter."
Ask Credit Collection concluded: "As a company, we remain committed to resolving disputes fairly and respectfully, and we are open to continuing dialogue with the client through the appropriate legal or mediated channels."
