They found the documents!

[Rgy3250]

Hi, I received court papers for a debt a couple of years ago and they couldn’t provide any of the documents I requested. As a result, it was stayed and I heard nothing from them. Now, 6 months before its statute barred, I have received all the paperwork and they are going to proceed in 30 days. The letter says they are keen to sort the matter and to make contact but if not, it will proceed in court in 30 days.

I contacted them, explained my mental health isn’t good at the moment and I’d like to sort things out so I proposed a payment arrangement. They said they couldn’t approve any token payments (what I offered was a lot more than a token payment) and it would proceed through court to finalise due to the debt owed (around £5k). What was the point in asking me to contact them before court, when they only wanted the full amount?

I have now had a letter from them to back this up, saying they won’t consider token payments but can I supply all the documents I have regarding my mental health and any debt help I’ve had regarding my budgeting. Frankly, it seems a cheek as they’re not willing to negotiate and I don’t really want them to have my personal information. I don’t have any letters regarding my mental health anyway and it would cost me £40 to request one (I called and asked my GP). I also haven’t been in touch with a debt charity. They mentioned also sending bank statements but again, I don’t feel comfortable doing that.

Does that mean it will be an automatic CCJ now? I didn’t know what the process was now as they say they will be lifting the stay. Does it then go to court and will I be required to attend? Can anyone attend on my behalf? Would there be mediation offered?

Sorry for all the questions, I’m just really anxious and wasn’t expecting them to find all the paperwork after nearly 2 years.

[PallasAthena]

Preliminary question, do you dispute the debt? Or do you agree you owe it but are unable to pay it?

[Rgy3250]

No, I don’t dispute it and want to pay it but in instalments. As it had been stayed for nearly 2 years, I presumed they hadn’t got the documents to proceed, so this has now come as a shock.

[echat11]

When you make offers of payment, mark the letters 'Without Prejudice'.

Have you actually checked whether the documents are compliant?,
as they were previously unable to find them,

Are they original copies? or have they 'reconstructed' them?

You really need to know what you have in front of you. They could send anything, but what they should send.

How old is the account?

What type of debt is it?

You are a long way from a CCJ.

There is a Hearing, then if you don't comply with the Judgement, then the Creditor has to apply for a CCJ, then again you can engage with the Court and Creditor.

Fill in a Income and Expenditure form, take into account the 'cost of living', energy, food etc. If at the end you are left with £1 each month, then the Court will only ask you to pay what you can afford, which is the £1.

[Rgy3250]

Hi,

I have been trying to negotiate with Mortimer Clarke but they said their client Cabot will not agree to token payments and although they won’t expect me to pay more than I can afford, they want the Court process finalised before discussing a payment plan. They suggested they may consider a full and final offer, which I also made but they rejected. It seems they want the CCJ before they will discuss repayments.

The debt was for a HSBC credit card and it’s 5 years old. I’m not a legal person but the documents all look correct that they’ve sent me. The agreement is the original, albeit photocopied, with my signature and date on it. They’ve also sent the other paperwork I requested, along with every bank statement for the account.

Given they won’t negotiate, what do I do now? As they’ve sent the documents in, will I get the CCJ added now? I’m really panicked at the moment as I’m trying to deal with all my debts and when you don’t really understand the process, it’s quite stressful.

[PallasAthena]

I suspect the reason for their refusal to negotiate until they have a CCJ is because there is now barely 4 months until it is statute barred (assuming you recent correspondence with them doesn't amount to an acknowledgement) and they think you might try to run the clock down in extended negotiations until it is statute barred.

[echat11]

Stay calm.

a) I have been trying to negotiate with Mortimer Clarke but they said their client Cabot will not agree to token payments and although they won’t expect me to pay more than I can afford, they want the Court process finalised before discussing a payment plan.

The Court process won't include a CCJ, if you comply with a Judgement, if they win their case.

The Court Process is they lodge a claim with the Court. You lodge a Defence, then there might be Mediation, then Witness Statement, then a Hearing, then a Judgement.

A CCJ only happens if you ignore the Judgement. They have work to do to get a CCJ.

b) They suggested they may consider a full and final offer, which I also made but they rejected. It seems they want the CCJ before they will discuss repayments.

As above.

c) The debt was for a HSBC credit card and it’s 5 years old. I’m not a legal person but the documents all look correct that they’ve sent me. The agreement is the original, albeit photocopied, with my signature and date on it. They’ve also sent the other paperwork I requested, along with every bank statement for the account.

Does the agreement have the prescribed terms?
Did they send a copy of the default notice?
Have they sent notice of assignment?

d) Given they won’t negotiate, what do I do now?

What you need to do, keep sending them 'Without Prejudice' offers. Email them, even if they 'reject' them, after the Hearing, you can show the Judge that you tried everything to settle the claim.

e) As they’ve sent the documents in, will I get the CCJ added now? I’m really panicked at the moment as I’m trying to deal with all my debts and when you don’t really understand the process, it’s quite stressful.

Read 'A'.

Here is an Income and Expenditure form - https://nedcab.cabmoney.org.uk/

Just be honest, tell them you have 'Mental Health issues, you haven't sort help because of .............. Speak to your Doctor, i.e. 'Talking Therapies' etc.

[Rgy3250]

echat11 Thank you. I feel a bit better now I understand what to expect. I will get on with doing my income and expenditure and in the meantime will continue to offer without prejudice, as suggested!

[echat11]

echat11 Thank you. I feel a bit better now I understand what to expect. I will get on with doing my income and expenditure and in the meantime will continue to offer without prejudice, as suggested!

Make sure you write 'Without Prejudice' on the letters so they can't be used in Court against you.

[Rgy3250]

I am just in the process of emailing my income and expenditure, along with my payment proposal for each creditor. Is it wise for me to say that we pay a mortgage rather than rent as I didn’t know if this would make them more likely to go back to court for a charging order? I don’t want to be deceitful but wanted to ensure I’m giving them the right info and not penalising myself. Thank you.

[echat11]

I am just in the process of emailing my income and expenditure, along with my payment proposal for each creditor. Is it wise for me to say that we pay a mortgage rather than rent as I didn’t know if this would make them more likely to go back to court for a charging order? I don’t want to be deceitful but wanted to ensure I’m giving them the right info and not penalising myself. Thank you.

I think you need to be upfront, if you write something that's not truthful, you'll get yourself in an almighty 'pickle'. Plus they have ways of checking.

Has your Doctor referred you to Talking Therapies, you should get a letter that you can provide as evidence.