Bank Smart notice of possible CCJ

[Betty52]

We have received a letter from Bank Smart dated 31/10/2023 stating that they are considering taking legal proceedings against us through the small claims court to recover monies for success fees owed to them. It has an enclosed reply pack to be completed and returned within 14 days
The amount they are claiming we owe them is £1,334.18 or £733.18 if settled within 30 days.
We do not consider that they are owed anything from us and the letter has caused us a great deal of stress and worry.
We unfortunately engaged with them in October 2012 to investigate if we had any PPI claims from 4 companies and they duly issued letters to these companies, only one, Black Horse upheld the claim but refused to deal with Bank Smart as they regarded them a disreputable company and dealt directly with us. We received a total of £1,726.53 on the 12th March 2013. This is the claim that Bank Smart have referenced in their letter. We had received correspondence from them in previous years but have not heard anything for 6 years and assumed we would hear no more from them
We are now both in our 70's and not in the best of health and have no means of paying what they ask. We are now in rented accommodation and have no assets which they could take to settle their claim.
We are very concerned and worried about this situation and hoping someone can advise of what we should do next.

tag EXC

[echat11]

Hi Betty

Welcome to LB

Try not to worry.

Wait for EXC to respond, but if you haven't made any payments in the last 6 years or there hasn't been any written acknowledgement of the debt in that period, then it's statute barred.

[Betty52]

Thank you for your reassuring reply. I'm not sure whether I should respond to their correspondence as this could be construed that I am acknowledging their claim.

[echat11]

Thank you for your reassuring reply. I'm not sure whether I should respond to their correspondence as this could be construed that I am acknowledging their claim.

After EXC has responded, dependent on the further advise, what you will be sending is a Statute Barred Letter, which can be found on this site.

[EXC]

We have received a letter from Bank Smart dated 31/10/2023 stating that they are considering taking legal proceedings against us through the small claims court to recover monies for success fees owed to them. It has an enclosed reply pack to be completed and returned within 14 days
The amount they are claiming we owe them is £1,334.18 or £733.18 if settled within 30 days.
We do not consider that they are owed anything from us and the letter has caused us a great deal of stress and worry.
We unfortunately engaged with them in October 2012 to investigate if we had any PPI claims from 4 companies and they duly issued letters to these companies, only one, Black Horse upheld the claim but refused to deal with Bank Smart as they regarded them a disreputable company and dealt directly with us. We received a total of £1,726.53 on the 12th March 2013. This is the claim that Bank Smart have referenced in their letter. We had received correspondence from them in previous years but have not heard anything for 6 years and assumed we would hear no more from them
We are now both in our 70's and not in the best of health and have no means of paying what they ask. We are now in rented accommodation and have no assets which they could take to settle their claim.
We are very concerned and worried about this situation and hoping someone can advise of what we should do next.

tag EXC

Hiya

Sorry for the late response, been travelling.

From what you've said so far it sounds like any legal action would be time barred as 6 years has passed since the so-called fee became 'due'. That would be an absolute defence.

But to avoid getting a court claim you should make a formal complaint to them, on the basis that as Black Horse refused to deal with them, they couldn't provide the claims management services that they're charging you for. If they reject it you can then take it to the Financial Ombudsman.

Do you have the correspondence from Black Horse stating that they wouldn't deal with Bank Smart?

I would like to see the letter before claim from them, could you post it up redacting any personal info? Alternatively you could email it to me at nick@legalbeaglesgroup.com

[Betty52]

Thank you for your reply I will make a formal complaint as advised. Unfortunately the decision by Black Horse to not deal with Bank Smart was relayed via a telephone conversation. I do still have correspondence from them confirming that they were upholding our complaint and there is no mention of Bank Smart or any third party involvement and these letters are dated March 2013 and December 2013.

[Betty52]

I can send you by email copies of correspondence from Black Horse including one where they state they have not received a valid letter of authority from us to allow Bank Smart to deal with our complaint. Would this help? . Is there a template I can use for my formal complaint letter to Bank Smart?

[EXC]

I can send you by email copies of correspondence from Black Horse including one where they state they have not received a valid letter of authority from us to allow Bank Smart to deal with our complaint. Would this help? . Is there a template I can use for my formal complaint letter to Bank Smart?

Yes if you could forward me that it would be helpful, then I can advise on the complaint.

[Betty52]

I have emailed copies of Black Horse correspondence and await your response. Many thanks for your assistance

[EXC]

Got them, thanks, but it would be really helpful if you could send me the whole pages of the letters so tt's clear who they are from and the dates. Dates matter!

Also while we're at it can you send me the letter from Bank Smart dated 31/10/2023 please? I just need the letter, not the reply pack. Once I have these I can help you draft a complaint.

[Betty52]

Thanks , No problem will do that now.

[Betty52]

Emailed to you now.

[EXC]

Thanks. I'm a bit confused as it seems you were originally offered a refund amount for the agreement ending in 902 in 2013 but that it was reconsidered in 2017.

Either way, for the purposes of the complaint the letter from BH saying the LoA was invalid is probably sufficient. Bank Smart will almost certainly reject the complaint but then you can take it to the Financial Ombudsman.

On your point about the time barring limit being 5 years in Scotland, like many CMCs Bank Smart have a clause in their contracts that says any legal dispute would be be within the jurisdiction of England and Wales, which would be 6 years. The 6 year clock would begin ticking (I think) after the invoice payment term has expired (30 days?) so technically we're hovering around 6 years now.

Do you have a copy of the invoice please? Or any correspondence which indicates what date it was issued?

We need to get the complaint in soon before they issue a court claim as the Financial Ombudsman won't accept it once legal proceedings have begun. I'll try and draft something up in the morning.

[EXC]

I've emailed you a draft complaint.