Lowell/Overdale Court Claim - can I negotiate a settlement at this stage?

[scohu21]

I have received a court claim from Lowell/Overdale for a debt from 2018 for around £540.
Over the last few months, there have been various communications threatening this (pre-action letters). I have asked them multiple times for information regarding the debt, most of which they have provided.
My financial position is much improved since this debt was incurred and I am able to pay it.
I have seen threads where people have been able to negotiate a much-reduced settlement amount.
Given the stage we are at with the court claim letter, am I in a position to negotiate it down? And if so, how do I go about it?

[echat11]

Hi scohu21

Welcome to LB

What you need to do is write 'Without Prejudice' on the Full and Final Settlement Offer letter, that way they can't use your Offer letters in Court. If it gets to Court.

They bought the debt for 'pennies', start low, something you feel comfortable with e.g. 5%, 10% etc.

Amend the following, remove anything that's not factual, add your personal circumstances, e.g. health, job etc

Make sure you get Proof of Postage.

https://nationaldebtline.org/sample-...tlement-offer/

[scohu21]

Thanks Echat11, that's very helpful.

And how should I respond to the claim form? It says I must respond within 14 days and gives multiple options. Is a settlement negotiation to them considered as a response to the claim form?

[echat11]

As they've lodged a Court Claim, I don't think they'll accept Offers, unless they can't provide the requested documents.

Fill in the following, copy and paste back to this thread, leave out personal details.

Received a claim? Yes/No:
Issue Date:
Have you Acknowledged the Claim?:
Total Amount Claimed : ( approximately please do NOT use EXACT figure given on the claim form, round up to next £100 or £1000)
Claimant’s Name:
Solicitors Firm:
Original Creditor:
Original Debt (eg. Credit card/Loan/Overdraft) :
Particulars of Claim: ( Please type out in full excluding names/account numbers/exact amounts ):
Is the debt Statute Barred (have you had any contact with the creditor or claimant over the last 6 years?):
List any letters you have sent (eg: CCA/ CPR ):
Any Other Information or Background Details:

As they've lodged a court claim against you, you need to deal with it, best think to do is Defend it. As some of the paperwork you requested is outstanding. You might also have the option of mediation.

a) First Acknowledge the Claim, you can do this online via MCOL, this will give you 28 days (plus 5 days postal) in total to work on your defence, you've done this.

https://legalbeagles.info/library/gu...ledge-a-claim/

b) Send a SAR request to the original creditor, they have 30 days to provide all the data they hold on the account. Make sure you get Proof of Postage.

https://legalbeagles.info/library/gu...ccess-request/

c) Send a CCA request to Lowell, they have 12 days to provide a copy of the original agreement. Make sure you get Proof of Postage.

https://legalbeagles.info/library/gu...etter-example/

d) Send a CPR 31.14 request to their Overdales, they have 7 days to provide all the documents they are relying on to make the claim against you, again get Proof of Postage.

https://legalbeagles.info/library/gu...-of-documents/

e) This is an example Defence, start looking at it, don't fill or file it with the Court or their solicitors yet.

https://legalbeagles.info/library/gu...-court-claims/

Don't speak to creditors, solicitors etc over the phone, everything in writing. Keep on top of this, especially dates for filing defence etc. Workout when your Defence is due, 28 days from the date on the claim form. If you can post on the thread 5 days before it's due we can help with your Defence.

[scohu21]

Thanks Echat11,

Received a claim? Yes/No: Yes
Issue Date: 22/04/2024
Have you Acknowledged the Claim?: Not yet
Total Amount Claimed : £600
Claimant’s Name: Lowell Portfolio Ltd
Solicitors Firm: Overdale Solicitors
Original Creditor: PayPal
Original Debt (eg. Credit card/Loan/Overdraft) : Credit Card
Particulars of Claim: ( Please type out in full excluding names/account numbers/exact amounts ): The claim is for the sum of £600 due by the defendant under an agreement regulated by the Consumer Credit Act 1974 for a PayPal account with an account reference [account number]. The defendant failed to maintain contractual payments required by the agreement and a Default Notice was served under s.87(1) of the Consumer Credit Act 1974 which has not been complied with. The debt was legally assigned to the defendant on 01-09-2021, notice of which has been given to the defendant. The claim includes statutory interest under S.69 of the County Courts Act 1984 at a rate of 8% per annum from the date of assignment to the date of issue of these proceedings in the sum of £0.00. The Claimant claims the sum of £600.
Is the debt Statute Barred (have you had any contact with the creditor or claimant over the last 6 years?): Last communication from PayPal was April 2020.
List any letters you have sent (eg: CCA/ CPR ): All I have sent so far is response to the pre-action letter prior to the claim form. In that I requested:
A copy of the written contract for the debt; A full statement of account, including details of all interest and charges included on the outstanding balance of the debt, explaining how they have been calculated, and any payments already made toward the debt; a calculation of the interest claimed; the annual or daily rate of interest; a description of the nature and amount of any administrative charges included in the debt; a copy of the notice of assignment of the debt. A copy of the default notice.
Any Other Information or Background Details:
So far, all the information that they have provided is:
- 6 x PayPal Sum of Arrears letters
- 4 x PayPal Notice of Default Sums
- Copy of the PayPal credit agreement with Jan 2019 agreement date
- A copy of a letter from Lowell 2021 stating that they had bought the debt
- A plain un-letterheaded letter that appears that is apparently PayPal stating that they have transferred the account and any outstanding balance to Lowell. This letter has no PayPal branding whatsoever and could have been typed up by anyone. In addition the letter states that the agreement with PayPal started in December 2018 despite the copy of the credit agreement being dates Jan 2019.
- Also they have sent what looks like an excel print out of transactions. It contains just transaction amounts and no cumulative balance. Assuming this is their attempt to provide a statement of account?
- In their covering letter with all that paperwork they stated "We would also like to note that we are unable to comment on interest added by the original creditor"
- I also received a letter from Overdales yesterday dated 26/04/24 stating "Our client can help you avoid a CCJ on the condition that the outstanding balance is paid in full within four months from 22-04-2024. To take advantage of this offer and to agree to the exact terms of agreement, please contact us on [phone number], within the next 10 days.
However, if you dispute all or part of the amount claimed, you should respond to the County Court by the date set out in the Claim Form.
If you do not contact us to resolve the matter or respond to the County Court Claim within the time specified, we may enter a CCJ against your default. This means that the CCJ will be entered for installment amount(s) stipulated by our client.
We want to assure you that wherever possible we will work with you to ensure a suitable solution to your situation, but we cannot help you to resolve this matter if you do not engage with us."

Do you think that considering the lack of all documents and questionable documents as well as this latest 'offer' letter gives me good grounds to try and negotiate a reduced settlement with them?

Be glad of any advice on how to proceed.

[echat11]

The Courts encourage parties to try and settle the matter without the need for a Hearing.
So if you want to make Settlement Offers, then write 'Without Prejudice' on the Offer letter, that way the letter can't be used against you in the case. Remember you'll have the opportunity to mediate a settlement i.e. make Offers with the Mediation Service etc.

Because they've lodged a Court Claim that needs to be dealt with (don't ignore it).

What you need to do 100% now, is Acknowledgement of Service (that can be done via MCOL), that gives you time to send out the letters and lodge your Defence.

[scohu21]

Thanks Echat11,

So just to confirm, once I have done the AOS I should send CCA and CPR?
And once I have done the AOS I can send them a settlement offer? Is it ok to send settle offer by email?
Very sorry for my ignorance but what is the settlement mediation that you also mentioned?

[echat11]

a) So just to confirm, once I have done the AOS I should send CCA and CPR?

Correct, make sure you get Proof of Postage.

b) And once I have done the AOS I can send them a settlement offer? Is it ok to send settle offer by email?

The AoS gives you an extra 14 days, so 28 days in total, to lodge your Defence, do other things you want to get done. The Settlement Offers aren't dependent on you doing the AoS. Yes you can email the Settlement Offers.

c) Very sorry for my ignorance but what is the settlement mediation that you also mentioned?

https://www.gov.uk/guidance/small-cl...iation-service

[scohu21]

Thanks Echat11,

Sorry more questions but this is all rather new to me, so please excuse my ignorance.

I have been traveling the last couple of days so I am sending the CCA and CPR letters today.

On the CCA template where it says account number, should I put the Lowell reference number to the original PayPal reference number?

[scohu21]

We are now on day 24 since the claim issue date and 16 days since I sent the CCA and CPR requests. I am obviously preparing my defense as we just have a few days left of the 28 days! Today from Overdales I have received some documentation in response to my CPR request. Well past the 7 days! This is what I have received:

- An opening letter outlining that they are responding to my letter dated 30/04/24. Their opening letter is dated 16th May yet today is 16th May! Pretty sure we don't have same-day postal service!
- 6 x PayPal Sum of Arrears letters
- 4 x PayPal Notice of Default Sums
- Copy of the PayPal credit agreement with Jan 2019 agreement date
- A copy of a letter from Lowell 2021 stating that they had bought the debt
- A plain un-letterheaded letter that appears that is apparently PayPal stating that they have transferred the account and any outstanding balance to Lowell. This letter has no PayPal branding whatsoever and could have been typed up by anyone. In addition, the letter states that the agreement with PayPal started in December 2018 despite the copy of the credit agreement being dated Jan 2019.
- Also they have sent what looks like an Excel printout of transactions. It contains just transaction amounts and no cumulative balance. Assuming this is their attempt to provide a statement of account?

I have also had nothing from Lowell in response to my CCA request.

In preparation for my defense, I have some questions I would be very appreciative of some help with please.

1 - I can see that they signed for my CPR request on 2nd May, and we received it on 16th. Considering I did not receive a response to my CPR request within 7 days, should any of the documentation that they have sent me today even be referred to in the defence?

2 - If the documentation received today is referred to in my defense should the date discrepancy with the credit agreement and the shady default assignment be highlighted? As well as the shady attempt at a statement?

Be glad of any assistance please.

[echat11]

We are now on day 24 since the claim issue date and 16 days since I sent the CCA and CPR requests. I am obviously preparing my defense as we just have a few days left of the 28 days! Today from Overdales I have received some documentation in response to my CPR request. Well past the 7 days! This is what I have received:

- An opening letter outlining that they are responding to my letter dated 30/04/24. Their opening letter is dated 16th May yet today is 16th May! Pretty sure we don't have same-day postal service!
- 6 x PayPal Sum of Arrears letters
- 4 x PayPal Notice of Default Sums
- Copy of the PayPal credit agreement with Jan 2019 agreement date
- A copy of a letter from Lowell 2021 stating that they had bought the debt
- A plain un-letterheaded letter that appears that is apparently PayPal stating that they have transferred the account and any outstanding balance to Lowell. This letter has no PayPal branding whatsoever and could have been typed up by anyone. In addition, the letter states that the agreement with PayPal started in December 2018 despite the copy of the credit agreement being dated Jan 2019.
- Also they have sent what looks like an Excel printout of transactions. It contains just transaction amounts and no cumulative balance. Assuming this is their attempt to provide a statement of account?

I have also had nothing from Lowell in response to my CCA request.

In preparation for my defense, I have some questions I would be very appreciative of some help with please.

1 - I can see that they signed for my CPR request on 2nd May, and we received it on 16th. Considering I did not receive a response to my CPR request within 7 days, should any of the documentation that they have sent me today even be referred to in the defence?

2 - If the documentation received today is referred to in my defense should the date discrepancy with the credit agreement and the shady default assignment be highlighted? As well as the shady attempt at a statement?

Be glad of any assistance please.

Well done going through the documents received and anomalies found.

1 - I can see that they signed for my CPR request on 2nd May, and we received it on 16th. Considering I did not receive a response to my CPR request within 7 days, should any of the documentation that they have sent me today even be referred to in the defence?

If you look at it, 14 days, take away the weekends. that leaves 10 days, probably in their internal post, then Royal Mail post for 3 / 4 days. This is something for your Witness Statement, If you want to write that it was sent on 2nd June and received on 16th June, then do so.

2 - If the documentation received today is referred to in my defense should the date discrepancy with the credit agreement and the shady default assignment be highlighted? As well as the shady attempt at a statement?

All you are addressing in your Defence is the 6 / 7 paragraphs in the Claimants Particulars of Claim. You don't want to point out anomalies in their claim, until you get to writing your Witness Statement. You know they are capable of rehashing stuff.

[scohu21]

Thanks Echat11 - that's very helpful.

Based on what you have said, am I correct in understanding that the witness statement is something that happens after the defence submission?

[echat11]

Thanks Echat11 - that's very helpful.

Based on what you have said, am I correct in understanding that the witness statement is something that happens after the defence submission?

Yes, a brief summary of Timetable -

a) Claimant lodges a Claim with Court.
b) You request documentation.
c) You file Defence.
d) The Claimant has 28 days to respond to your Defence.
e) Both Parties are sent a Direction Questionnaire, fill in and send to Court and the other party.
f) Providing you receive the documentation, you can consider Mediation (opportunity to resolve Claim).
g) If not resolved during Mediation, the matter goes to Hearing.
h) Parties exchange Witness Statements, normally 14 days before Hearing.
i) The Hearing.

Also, you are encouraged to settle the matter by the Court, you can send Without Prejudice letters, but write 'Without Prejudice' on the offer letter, so that can't be used in the case by the Claimant.

[scohu21]

Thanks again Echat11 for your help.

Be glad of any feedback or guidance on my defence before I upload it!

DEFENCE

1. The Defendant received the claim xxx from the Northampton County Court on 22^nd April 2024.

2. Each and every allegation in the Claimants statement of case is denied unless specifically admitted in this Defence.

3. This claim appears to be for a Credit Card Account agreement regulated under the Consumer Credit Act 1974.

4. It is admitted that the Defendant has previously entered into an agreement with PayPal for provision of credit.

5. The Claimants statement of case fails to give adequate information to enable me to properly assess my position with regards the claim.

6. The Claimant’s Particulars of Claim fail to state when the agreement was entered into.

7. The Claimants statement of case states that the account was assigned from PayPal to Lowell Portfolio Ltd on 15-09-21. The Defendant does not recall receiving notice of this assignment.

8. It is denied that PayPal 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.

9. On the 30^th April 2024 The Defendant sent a request for inspection of documents mentioned in the claimant’s statement of case under Civil Procedure Rule 31.14 to Overdales Solicitors. I requested the Claimant provide copies of the Agreement, Default Notice and Notice of Assignment.

10. Overdales Solicitors has not sent any of these documents to the Defendant.

11. On the 30^th April 2024 The Defendant sent a formal request for a copy of the original agreement to Lowell Portfolio Ltd pursuant to section 78 of the Consumer Credit Act 1974 along with the statutory £1 fee.

12. The Claimant has failed to comply with section 78 (1) Consumer Credit Act 1974 and by virtue of section 78 (6) Consumer Credit Act 1974 cannot enforce the agreement.

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.

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.

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.

16. It is denied that the Claimant is entitled to the relief as claimed or at all.

Statement of Truth
I believe that the facts stated in this Defence Document are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.

[echat11]

Can you edit the Claim No?