liz40's creditor problem

[Guest]

Re: liz40's creditor problem

Hi

If you can just reproduce exactly what it says on the N1 that will be fine.
If you have access to a scanner copy to your PC. Click the go advanced buton on the reply box then scroll down to the attachment buttin(i think that is right).

There are a few issues here, but it wou.d be nice to see the agreements before i comment..

Peter

[liz40]

Re: liz40's creditor problem

The copy for the £3,000 loan is the same as attachment apart from amount.

The N1 says
the name of creditor then go's on to say " provided a loan of #8000 in december 2008 and a further loan #3000 in october 2009 to "me" trading as then my business name, where payments are no longer being received. As such, we seek a county court judgement in our favour.

The claimant claims interest under section 69 of the county courts act 1984 at the rate of 8% a year from 18/04/2011 to 23/04/2012 on #13,417.72 and also interest at the same rate up to the date of judgment or earlier payment at a daily rate of #3.68

hope I have covered everything

Thank you

[Guest]

Re: liz40's creditor problem

HI

Thanks for that. Is it possible to know the name of the creditor.

The agreement is none compliant to the cca, it is enforceble but only with an order of the court, in other words you could challenge the enfoceability and the court would have to consider the defects on the agreement and may ammend its terms. In addition te APR does not seem t be correct i calculate it to be about 12% .

It seems to me like a very ammeturish agreement to be honest. Which is what makes me wonder about the creditor, i couldnt see any license number on the agreement if the creditor is not licensed by the OFT the agreement is unenforceable, so it would be an idea to check the name against he regiser , you can do this on line.

THe next thing is. He cannot just say, the debtor has missed payments so we are reclaiming the loan. The consumer credit act says that before the creditor can take you to court he has to properly terminate the contract(otherwise you would still be entitled to repay at the monthly intervals) before he can do this he must send you a default notice containiing details of what you owe and giving you a chance to pay.
This is a statutory requirement he cannot take you to court before he has done this.

Next the claim is not correctly particularised, he cannot just say there are two loans, you need to know when they were terminated what payments had been made the inital amount of the loans etc.

I know this is a lot to take in, but in short, you have cause to challenge this claim if you wish.

Can i ask if any attempt has been made to re-schedule these loans, how helpoful has he creditor been to your problems?

Peter

[liz40]

Re: liz40's creditor problem

Gosh there is a lot to take in. Firstly I will check their license then go from there.

Regarding monthly payments they did agree for me to pay £50 off each loan per month but that was a struggle for me they have tried to help me but am a bit shocked they decided to go this root.

As soon as I find out regarding license will get back to you mean while will take on board your other comments from last post.

Thank you so much for your time and help

regards

Liz

[Guest]

Re: liz40's creditor problem

HI
Dont forget that you must respond to the N1 within 28 days or they will obain judgment by default.

If you want to obntain a holding defence you can just say that you are defending on the grounds that. "No default notice was issued under section 87 of the consumer credit act 1974 and therfore the claimant is not entitiled to enforce the agreements".

Peter

[liz40]

Re: liz40's creditor problem

They do have a loan licence, so to next option!

Regarding the default letter before action. I dont recall receiving this but have two concerns?

1, If they hadn't sent one and admit they didn't where would this stand in court? Could the court over ride this small matter?

2, If they sent but I didn't receive it where would this stand in court, if the court agrees no default letter was sent what happens next?

Does the default letter have to come in the post or can it be emailled?



Liz

[Guest]

Re: liz40's creditor problem

HI

A defult notice is not a small matter, it is a statutry reqirement unde the consumer credit act.(nor is i a letter before action)

It cannot be emailed.
It would have to go to the same addres as the N1 was sent to.

In addition to giving you an exact figure that you owe it should also have given you 14 clear days to repay that figure before commencing proceedings.

In addition it should have contained a leaflet issued by the OFT explaining your options.

Without this the Consumer Credit Act says that they cannot enforce the agreement.
They should have sent two one for each agreement.

See section 87, 88, 89 of the consumer credit act 1974.

Peter

[Guest]

Re: liz40's creditor problem

HI

Are you 100% sure they have a credit license?
have you seen it on the OFT database?

Peter

[liz40]

Re: liz40's creditor problem

So if they cant enforce the agreement what happens next?

Liz

[Guest]

Re: liz40's creditor problem

Hi
They have to start again.

They have to send you two sepperate notices conaining all the correct deails and giving you 14 dys to pay your arrears before the commence proceedings.

Also the OFT information sheet should give yhou information of how you can apply for a time order, which permits the court to give you exra time to pay.

BUt the main thing is that it gives you extra time to contact the creditor and see if you can arrange a new repayment schedule, or contact a free debt management company that can negotiate a payment arrangement for you, that you can afford.

I will ask our expert on thes to drop in and give some imput.

Importantly it will give you a chance to avoid having a CCJ against you.

Pete

[liz40]

Re: liz40's creditor problem

okay thanks Peter appreciate all your help

liz

[labman]

Re: liz40's creditor problem

Hi Liz,

Forgive the personal questions, have you been trying to sort anything out with this company or have you buried your head in the sand and it has come to this?

You say you own your own house, is there equity in it?

Why do I ask, well, wosrt one first - your house (don't panic!). They MAY try to go for a 'Forthwith' judgment which lets them get a second charge against your house. This effectively turns an unsecured loan into a secured one, but as long as you keep up any repayments ordered, which would be affordable, you would be fine. You have a CCJ, but your credit is likely to be wrecked for 6 years anyway, and believe me, that is not the end of the world.

Now the better bit, if you have buried your head and not contacted the company, you could go to a third party debt adviser, complete an income and expenditure form called a Common Financial Statement (CFS) and make an offer of payment. If you have other debts, this would be an excellent time to tackle those as well so things are sorted once and for all. They may, given the contact, put a stay on any action they're taking. I have no doubt that we can find a suitable, licensed, FREE debt charity to help you, even given the very short time constraints.

If you could answer these two questions first please, I'll look in again in a couple of hours after taxi'ing my wife around, and see where we're at.

Above all, please try not to worry, there are things we can try to do, and if they don't work, as long as you keep paying affordable repayments, you'll be fine anyway, so it really isn't that bad.

I'll look back in a couple of hours - and thanks Peter for pointing me to the thread.:tinysmile_grin_t:

[Guest]

Re: liz40's creditor problem

Hi

Yes so the ideal scenario would be to stall this claim and avoid a judgment, then make them reconsider re-fileing this claim by presenting them with an approved (by a debt management agency) offer of affordable repayment on the loan.


Does that sound OK to you lizy?

Peter

[liz40]

Re: liz40's creditor problem

Yes I believe it would Peter.

To answer Labman's questions.

I suppose its a bit of both I have tried to make smaller monthly payments thinking my business will improve and I suppose because I couldn't really afford to do it have buried my head in the sand. The loan company did agree to the smaller monthly payments but even this I was struggling with and fell behind.

Since I spoke with the loan company regarding smaller payments by email I have closed my retail shop so my income is almost 0, its hard to honer payments when from one week to the next not sure how much money is coming in being self employed can be difficult some times.

Yes I do have equity in my home but it is in joint names not sure if they will make any difference.

Liz

[Guest]

Re: liz40's creditor problem

HI
Yes i think thier intention will be to get their money secured by getting a charge on your property.
This is not always a bad thing as Labman says so dont lose any sleep over it, but it is best avoided if possible.

I think what you need, is to get in touch with a debt adviser that can help you construct a financial satement to present to them and confirm that you are offering a sum that you can maintain.
From what you say they are unlikely to accept your word on another offer , but if the offer comes from a third party they should find it difficult to refuse.

I understand that these things are difficult to discuss on the open forum, and i hope that everyone will forgive me when i suggest you PM Labman, he will be able to help you in private, he is a very nice chap and has been there himself so he has a realistic and sympatheric perspective.

If you only recieved the N1 on Friday you have a little while before you need to respond, so we will have a think about what you are going to put on your response, i think we should challenge the action on the grounds that no default notice was issued to prevent the forthwith judgment in any event.

Peter