BW LEGAL/PRAC (Loans2go) Claim

[dasher123]

Good evening,

I could do with some advice on a claim.

Claim Received on: 08 January 2020
Claimant: Prac (Loans2go original)
Representatives: BW Legal
Amount: £1960
Original Debt: £400

Current Situation:

-Acknowledgement of service completed.
-CPR31 Request issued to BW Legal by recorded mail and received on 22/2/2019. Agreement, Default Notice and Notice of assignment.
-Section 77-79 Request sent to Prac for original credit agreement.*
-Have lodged an affordability claim directly with Loans2go.*
I have received the following back from BW Legal to date;
-Copy of Credit Agreement.
-Letter explaining that they have requested other documents from their client and the case is currently on hold. I have followed this up with a CPR15.5 request requesting agreement to the 9th March 2020. They have replied again stating that the case is on hold until the document have been received by their client and that the notice of assignment has be forwarded in todays post.

Any help to defend against these sharks would be appreciated. The loan was for a huge APR at 989.9% !!!!!!.* I was completely desperate at the time with major borrowing issues from multiple lenders. They issue these loans to the vulnerable and take advantage. My situation as somewhat improved but there is no way I am giving these sharks £1960 for a £400 debt.* I understand the APR is non compliant with the FCA rules? Now I actually remember the debt if I remember correctly the loan was issued before the credit agreement.




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[MIKE770]

if a claim has been issued no case is on hold the court system rules

[dasher123]

if a claim has been issued no case is on hold the court system rules

Should I write to the court because BW Legal despite my letter requesting CPR 15.5 extension are replying with the stock "Claim on hold". Or alternatively do I send that letter to the court service?*

[MIKE770]

sit on your hands, await next court instruction!* Amethyst*

[Amethyst]

Sounds like you are on top of things

Unless the claimant or their solicitors reply to you saying they consent to a formal extension under cpr 15.5 continue to file your defence before the deadline ( 12th Feb ?) based on the standard lack of documents example.*

You are correct that the on hold till we get documents letter is just a stock letter.

do you know when you took out the debt ?

good to hear you have made an affordability complaint to the original lender.

Have they given you are breakdown of the debt ?

[dasher123]

Thanks for all your replies. So I am getting towards the date I need to submit my defence. So they have provided to-date Credit agreement, Notice of assignment but no default notice. I have chased this but I will not hold my breath. Any ideas on defence on this one? I am thinking that the non-complaint APR but not sure how to word this. I have copied this from another site;

Miss R borrowed £900 and was due to repay about £3,700, so about £2,800 in interest – she complained this was too high. She didn’t make an affordability complaint. Does the loan breach the price-cap?

The Ombudsman points out that some respondents to the FCA’s consultation on the price-cap rules wanted the definition to be more specific, warning that loans of up to 24 months could potentially be caught by it. But the FCA said the definition was broad in order to prevent firms from trying to avoid the rules.

The Ombudsman was concerned that:

the potential harm to a consumer – as a result of having to pay such excessive charges over a longer period – is arguably greater [than for a loan of less than 12 months].

I think that last point is exactly right.*If Miss R had taken a payday loan she would have paid a lot less each month and for a much shorter period than taking the L2G loan. The interest rate was outrageous

The Ombudsman decided he didn’t have to rule on whether the loan broke the payday loan price cap because the interest rate was in any case simply too high:

this loan had an interest rate so outrageous (i.e. one which works out at well in excess of 100% per annum) that I think a court may well have found it grossly exorbitant and that the agreement grossly contravened ordinary principles of fair dealing.
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[dasher123]

Can anyone help with my defence?

[dasher123]

Can anyone help with my defence which I am going to try and submit tonight. Guidance on how I would word the interest rate in regards to fair lending principles.*

[MIKE770]

*Amethyst

[dasher123]

Ok first draft. Any comments??

1.The Defendant received the claim GXXXXXX from the Northampton County Court Business Centre on 10 January 2020
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2.Each and every allegation in the Claimants statement of case is denied unless specifically admitted in this Defence.
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3.This claim is for a Loan agreement regulated under the Consumer Credit Act 1974.
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4.It is admitted that the Defendant has previously entered into an agreement with Original Creditor Loans2Go Ltd for provision of credit although an explanation of the credit being offered was not in line with the consumer credit act 1974 Section 61 being term and conditions of loans were only sent to the defendant after the loan was processed. *
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5.The Claimants statement of case fails to give adequate information to enable me to properly assess my position with regards the claim.
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6.It is denied that Original Creditor or the claimant served any Default notice on the Defendant pursuant to s87 Consumer Credit Act 1974. The Claimant is required to prove that a compliant Default Notice was served upon the Defendant. The Claimant is required to prove that the any Default notice relied upon complied with the requirements of s88(4A) Consumer Credit Act 1974 and that the notice was in the prescribed form as required by The Consumer
Credit Enforcement Default and Termination Notice Regulations 1983.
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7.On the 21/01/2020 The Defendant sent a request for inspection of documents mentioned in the claimant’s statement of case under Civil Procedure Rule 31.14 to Claimant’s Solicitor BW Legal. I requested the Claimant provide copies of the Agreement, Default Notice and Notice of Assignment.
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8.BW Legal has not sent the default notice to the Defendant.
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9. The Defendant have asked the Claimant if we may agree to extend the time period allowed for filing of the defence pending receipt of documents (as allowed under CPR 15.5), but they have declined.
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10. The original loan was grossly exorbitant and the agreement grossly contravened ordinary principles of fair dealing. The original loan also breaches the price cap outlined by the Financial Conduct Authority Regulation under policy statement PS14/16.
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11. The defendant has an ongoing complaint with the financial ombudsman regarding the Interest Rate for the loan (being 989.9% APR) for the reasons set out in paragraph
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12. The defendant has an ongoing complaint with the original creditor for a data protection breach. *
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13.Under Civil Procedure Rule 16.5 (4) Where the claim includes a money claim, a defendant shall be taken to require that any allegation relating to the amount of money claimed be proved unless he expressly admits the allegation. Therefore, it is expected that the Claimant be required to prove the allegation that the money is owed as claimed.
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14.The Defendant respectfully requests the court orders the Claimants to provide the necessary documentation in order for The Defendant to fully plead his case else the Claim should stand struck out.
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15.In the event that the relevant documents are received from the Claimant, the Defendant will then be in a position to amend his defence, and would ask that the Claimants bear the costs of the amendment.
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16.It is denied that the Claimant is entitled to the relief as claimed or at all.
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