Rule committee launches consultation on debt protocol after complaints from creditors

[Amethyst]

Rule committee launches consultation on debt protocol after complaints from creditors

“Mediation may settle any dispute any dispute more quickly and cheaply”

The Civil Procedure Rule Committee (CPRC) has launched a consultation on a new pre-action protocol for debt claims, following complaints from creditors.
In a letter to consultee organisations yesterday, the committee said it was not “made aware” that there had been no consultation on the proposed protocol until June this year.
The CPRC said it did not, as a rule, carry out consultations but only “on a selective basis with key stakeholders” and on details of the drafting.
“Having seen letters from a number of organisations representing creditors, CPRC decided at their July meeting to consult on the debt protocol, but only on the content not the principle, and with organisations that represent both creditors and debtors.”
The committee said that creditors particularly objected to a requirement that details of the contract and full statements of account should be included in every letter of claim in every case, even though many were not defended.
Creditors also objected to allowing defendants at least 28 days to seek advice. The committee argued in the letter that “reductions in public funding mean waiting times for appointments for advice can be significant, and advice should help settle the case or to narrow the issues
http://www.litigationfutures.com/new...ints-creditors

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

http://blogs.lexisnexis.co.uk/dr/deb...nt-your-views/

What are the key features?

the Debt PAP applies to any business (including a sole trader) claiming payment of a debt from an individual (including a sole trader). It is expressed not apply to business to business debts unless both parties are sole traders (para 1.1)
it stipulates what information the claimant should provide to the defendant in the letter of claim (which must include notice in the form set out in the PAP itself) and what documentation should be enclosed (paras 3.1-3.3). It is likely that creditors, particularly volume creditors, will consider that these obligations are too onerous
a debtor-defendant is required to use a standard form of reply, as set out in Annex 1 to the Debt PAP, for the purposes of responding to the creditor’s letter of claim (para 4.1)
the claimant-creditor is required to allow the defendant ‘sufficient time’ to seek legal advice and, in any event, 28 days (para 4.3)
the Debt PAP makes provision for the disclosure of documentation where any aspect of the debt is disputed (other than terms of any payment arrangement) (para 5)
there are stipulations regarding the use of ADR (para 6)
it provides guidance on how the court will approach non-compliance with the Debt Protocol (para 7)
it includes an obligation on the parties to ‘take stock’ if they have been unable to settle the dispute before the claimant commences proceedings, including an obligation on the claimant to give the defendant 14 days’ notice of an intention to commence proceedings (para 8)

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

3.2 The claimant should enclose with the letter copies of— (a) this Protocol (the Pre-Action Protocol for Debt Claims); (b) a full statement of account, including details of— (i) all interest and charges included on the outstanding balance of the debt, explaining how they have been calculated; (ii) any payments already made by the debtor; (c) the contract or agreement between the parties; and (d) the defendant’s reply form in the annex to this Protocol, together with a self- addressed envelope.


Some VERY good stuff in there, not surprised creditors are up in arms..... full draft here http://blogs.lexisnexis.co.uk/dr/wp-...nsultation.pdf

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

Participating in the consultation

Those wishing to participate in the consultation should note the following:
written responses are to be provided on the content of the Debt Protocol, rather than the underlying principle
the deadline for all responses is 5:00 pm on Tuesday 30 September 2014
written responses should be sent by post to Mrs Jane Wright, Post Point 4.32, Ministry of Justice, 102 Petty France London SW1H 9AJ or by email (subject: PAP Debt Claims Consultation)
representative groups are asked to give a summary of the people and organisations they represent when they respond
in relation to the confidentiality of any response, see the document attached to the CPRC’s letter setting out their position

[EXC]

Re: Rule committee launches consultation on debt protocol after complaints from credi

The committee said that creditors particularly objected to a requirement that details of the contract and full statements of account should be included in every letter of claim in every case, even though many were not defended.

I bet they did.

I think that debt claims should have stringent PAPs as defendants are almost by definition vulnerable and often unsophisticated.

But do the courts take that much notice of PAPs?

Are you going to respond to the consultation?

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

Too right I am responding...

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

List of consultees Advice Services Alliance Advice UK Age UK Association of HM District Judges Bar Council Brachers British and Irish Ombudsman Association Bryan Carter Centre for Effective Dispute Resolution Citizens Advice Civil Court Users Association Civil Justice Council Consumer Council for Water Council of HM Circuit Judges CPR Committee Stakeholder Group Credit Services Association Department for Business Innovation and Skills Finance and Leasing Association Financial Conduct Authority Her Majesty’s Courts and Tribunals Service Institute of Credit Management
Institute of Money Advisors Judiciary Law Centres Federation Law Society Ministry of Justice Mortimer Clark Money Advice Service National Debtline Ofcom Ofgem Restons Shoosmiths StepChange Debt Charity The Trades Union Congress UK Cards Which?



Bryan Carter's response should be very interesting ....

[EXC]

Re: Rule committee launches consultation on debt protocol after complaints from credi

Presumably they're the list of people that get sent the consultation by default.

If they don't publish the responses in full you can ask for specific firms' responses under FoIA if they haven't asked for it not to be disclosed. I remember doing it for the BBA response to some consultation with OFT.

[righty]

Re: Rule committee launches consultation on debt protocol after complaints from credi

In other words the DCA's want to be able to continue their shoddy practices to submit a money claim without supporting evidence

[ncf355]

Re: Rule committee launches consultation on debt protocol after complaints from credi

Quite intrigued by the timing of this, as I wrote to my MP in early June with a detailed letter questioning the fact that MCOL allow the submissions of CCA 74' related claims without documentation, when ordinarily such a claim would require the contract and related documents (Default notice, etc).

My MP took it on and wrote to Chris Gayling

A few weeks back I had 'wonder what happened, haven't heard' pop into my head on the same day another letter dropped through the door informing me he had chased it up, but was still awaiting a response.

I put the letter across from both the debtor and courts POV, stating that invalid claims (those where the Creditor/Debt Purchaser was unable to substantiate once challenged via CPR 31 or 18) appeared to be clogging up the MCOL system and that there were numerous examples where once the debtor challenged they (or the courts) had no further contact from the Claimant, with the claim left to 'time out' to the 28 days.

I would like to think this is more than just coincidence, but I will be finding out

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

The new debt protocol has been under discussion since Lord Woolf’s report on access to justice in 1996, and the issue was revisited by Lord Justice Jackson is his recommendations for reducing civil litigation costs. ( Jackson Reforms)

But it's nice to think you might have given them a kick into action xx

[ncf355]

Re: Rule committee launches consultation on debt protocol after complaints from credi



LOL, can but hope!

[Amethyst]

Re: Rule committee launches consultation on debt protocol after complaints from credi

''I can confirm that the CPRC did receive unsolicited correspondence prior to the consultation being undertaken. This correspondence does not form part of the basis of any decision making process-either to launch the consultation or form part of the consultation itself. However at this juncture this correspondence will not be disclosed for the reasons set out below.

One letter was addressed personally to a committee member and may be subject to privilege. The other correspondence was sent to the committee as a whole but was, as mentioned above, not acted upon. In any event permission of all parties would have to be granted prior to releasing the correspondence. ''
(response to my FOI request for the letters)

doesn't really scan with

''The CPRC said it did not, as a rule, carry out consultations but only “on a selective basis with key stakeholders” and on details of the drafting.
“Having seen letters from a number of organisations representing creditors, CPRC decided at their July meeting to consult on the debt protocol, but only on the content not the principle, and with organisations that represent both creditors and debtors.”''

does it ?

[PAWS]

Re: Rule committee launches consultation on debt protocol after complaints from credi

The only word I can think of is not ‘legal speak’ or Latin. It is usually preceded by a ‘a load of..’
Fair play to you Amethyst, you are putting a lot of sweat into this.

[ncf355]

Re: Rule committee launches consultation on debt protocol after complaints from credi

Indeed, well done Ame!