statutory demand

[trish22]

hi all thank you for taking the time to read this and i hope you can help me!ive recieved a statutory demand from first credit as the account was assigned to them from bank of scotland, it basically says i have 18 days to get it set aside or they may present a bankruptcy petiton ,it also says i have to present my own bankruptcy petiton to my local court but if i feel i have grounds to get it set aside to contact first credit.i have never had one of these before and dont know what to do,also it was sent by courrier and has no court stamp on it

[teaboy2]

Re: statutory demand

Ok first things first:

1. How much was the debt for?
2. When was last payment made towards the debt?
3. Was the Statutory demand delivered by hand or was it by the postman, was it recorded delivery where you had to sign for it?
4. Are you in scotland or england (inlcuding wales)
5. Had you heard anything by way of letters of phone calls from First Credit prior to receiving this demand?
6. What type of account was this (Bank, Credit Card, Loan, Hp Agreement etc)?

If you can answer as best as you can that would be great.

[trish22]

Re: statutory demand

hi and thanks,the debt was for 2,192.14
1 ive got myself into financial difficulties and cant remember when last payment was made
2 came home from work and it was in a courriers bag and no-one had signed for it
3i live in england
4i have moved house recently and they sent it to my new adress
5it was a credit card debt

[teaboy2]

Re: statutory demand

How long ago roughly do you think it was since you last made any payment?

Had you requested a copy of the credit agreement previously?

[trish22]

Re: statutory demand

roughly about 2yrs ago,and no havent asked for copy of credit agreement,is that what i need to do if so do i ask bank of scotland?

[teaboy2]

Re: statutory demand

No

You need to apply for a setaside using the following forms:

http://webarchive.nationalarchives.g.../forms/6-4.pdf
http://webarchive.nationalarchives.g.../forms/6-5.pdf

Your grounds are that no prior communication was received by you from the claiment prior to receiving the statutory demand and the demand was issued in breach of OFT debt Collection guidelines section 3.7 N, as a debt collection ploy where it has not been proven or ascertain if the claimant is entitled to enforce the alleged debt or that the defedant is liable for it. Further more the defendant would like to point out the requirements of the OFT imposed on 1st Credit in febuary 2009 which is attached to this set aside application.

Further more, no notice of assignment, as with no previous communication, has been sent to the defedant by the claiment. The defendant is of the view that this statutory demand was issued simply as an alternative to the claiment knowing they do not have sufficent documentational evidence (valid Default notice and true copy of original signed credit agreement bearing defendants signiture) to support any court proceedings issued by them in the small claims court, which would be the correct course of action when enforcing an alleged regulated consumer credit agreement. In other the words the defendant is of the believe that the claimant is simply abusing the insolvancy procedures to cut corners in their attempt to collect on this alledged debt.


Staple a copy of the following to the set aside application.

20/09 25 February 2009
The OFT has taken action against 1st Credit Ltd requiring the company to improve its debt collection practices.
The OFT has imposed 'requirements' on 1st Credit using consumer credit powers, after an investigation found that some of its business processes and procedures failed to meet satisfactory standards. As a result, 1st Credit Ltd and its associated companies must:

• refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated
• not discuss legal action with consumers unless it is likely that such action will be taken
• ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and
• ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.
Failure to comply with the requirements could lead to a fine of up to £50,000 for each occurance and/or possible revocation of 1st Credit's consumer credit licence.
In 2008, following receipt of an application to vary an associated company's licence, the OFT carried out an in-depth investigation into the business practices and procedures employed by companies operating under the 1st Credit banner. In assessing the companies' competence to carry out consumer credit activities, the OFT conducted on-site visits and reviewed complaints received about 1st Credit Ltd's debt collection practices via consumers, Citizens Advice, CCCS and Consumer Direct.
The OFT raised concerns about its dissatisfaction with 1st Credit's behaviour and confirmed that it was looking to impose requirements to improve some of the company's business practices. 1st Credit acknowledged the problems and, as allowed under the Consumer Credit Act, proposed necessary changes to address the OFT's concerns.

Ray Watson, OFT Director for Consumer Credit, said:
'The OFT welcomes the constructive approach that 1st Credit has taken in responding to the OFT's concerns about its activities.
'Debt collection firms have a clear legal obligation to deal fairly and proportionately with consumers. This is more important than ever given the current economic climate, when people may already be suffering as a consequence of debt problems. We will continue to use our licensing powers to take firm action to protect consumers where debt collectors engage in oppressive behaviour or practices that fail to comply with our guidance.'
NOTES
1. The Consumer Credit Act 1974 (the Act) requires debt collectors, businesses that offer goods or services on credit and/or are involved in activities relating to credit or hire, to be licensed by the OFT.

2. In 2003 the OFT issued the Debt Collection Guidance which sets out minimum standards for those intending to collect debts. Failure to comply with the Debt Collection Guidance may call into question the fitness of a business to hold a consumer credit licence.

3. Following implementation of the OFT's new powers under the Consumer Credit Act 2006 on 6 April 2008, where the OFT is dissatisfied with any matter in connection with a business, a proposal to carry on a business or any other conduct by a licensee, associate or former associate, the OFT may impose 'requirements' on the licensed business. Requirements may require a business to do or not to do (or to cease doing) anything specified for the purposes connected with addressing the OFT's dissatisfaction, or securing that matters of the same or a similar kind do not arise.
4. If a single requirement is not complied with, the business concerned could be subject to a financial penalty of up to £50,000. The OFT may also refuse or revoke a licence if it decides that a trader is not fit to hold one.
5. Decisions to refuse or revoke a consumer credit licence or to impose a requirement or financial penalty are made by an adjudicating officer for and on behalf of the OFT. Before a decision is made, the adjudicating officer issues a notice to the trader. The trader is then given the opportunity to make representations to the adjudicating officer. In the event that the determination is adverse, the trader has the right of appeal against the determination to the Consumer Credit Appeals Tribunal.
6. Alternatively a business may make a proposal to address the OFT's dissatisfaction pursuant to section 33D(4) of the Act. In these circumstances the OFT is not required to issue a notice that it is minded to impose requirements if the proposed determination is in the same terms as the proposal made by the business. This was the process followed by 1st Credit.
7. The Consumer Credit Act 2006 requires the OFT to take into account 'credit competence' when assessing applications. Businesses operating in a high risk part of the market such as the debt collection sector are now subject to greater scrutiny at the licence application stage and greater monitoring throughout the life of the licence.
8. The fact that requirements have been imposed on 1st Credit Ltd appears on the consumer credit register. Download the requirements imposed (pdf 2.44 Mb). We will monitor 1st Credit Ltd's compliance with the requirements. Any complaints about non-compliance should be sent to:
Enquiries
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX
Enquiries@oft.gsi.gov.uk
9. OFT advice for those being pursued by debt collectors is: don't panic or ignore the problem, seek help and advice from your nearest Citizens Advice Bureau and contact those who you owe money to as soon as possible.
10. On 6 April 2007, the jurisdiction of the Financial Ombudsman Service (FOS) Alternative Dispute Resolution scheme was extended to cover consumer credit. This provides consumers with an effective means of resolving consumer credit disputes which have occurred since the scheme's start date if the consumer has failed to satisfactorily resolve the matter directly with the consumer credit licensee itself. The FOS can be contacted at:
The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR
Telephone: 0845 080 1800

Also inform the OFT of 1st Credits actions too as they will be interested to here how they sent you an statutory demand without having any prior communication with you.

Others may wish to add or admend slightly what i have put above so please wait for others to post what they think.


Once you send the forms off, you can then issue a request for a copy of the consumer credit agreement though you will need to send a £1 postal order along with it to 1st credit. They will no doubt reply saying they are seeking a copy from the original creditor, so take that letter to the set aside hearing as evidence they have no prove that you are the debtor or that the debt is even enforceable in a court of law.

[trish22]

Re: statutory demand

thank you for all the guidance you have given your knowledge is amazing,just one more thing there is no court date on the documents theyve sent me,from what they have said they want me to call them if i intend to get it set aside.

[teaboy2]

Re: statutory demand

Can you scan and post a copy of what they claim is a satutory demand - Minus your personal details of course?

As i suspect that since they are asking you to contract them and even advising you to file your own bankruptcy petition, that this may just be a ploy by them to get you to contact them. Though eitherway, its vitally important we know for sure, because if it is legit, then it needs setting aside asap.

Although they must provide details of a person within their organisation for you to contact. Did they provide a persons name for whom you can contact? if not its invalid on that point.

I you don't want to post it on the public forum, simply let me know here on the thread an i will PM you my email address. Don't worry it will be handled with strictest level of confidentiality and privacy.

If its not legit then we will turn the tables on these scumbags just enough to make them need to change their underwear, trust me!

[teaboy2]

Re: statutory demand

Better still, did the statutory demand look like this http://www.bis.gov.uk/assets/insolve...w/form4-01.doc

Also did it state form form 6.1 6.2 or 6.3 in the top right hand corner of page 1 or form 4.1?

Edited as i got the the forms that companies must sent to individuals confused with ones that should be sent to companies. You should have received form 6.1, 6.2 or 6.3

[trish22]

Re: statutory demand

sorry teaboy that ive not got back to you weve had no internet connection,anyway ive tried to post up the statutory demand and i cant do (sorry bit of a techno retard) but its a 6.1 form and yes theyve given a name of someone to contact the insolvency manager and they have also said to contact this person if i want it set a side.thank you once again for all your help

[Meagainindisguise]

Re: statutory demand

Trish, have you started working on the set aside. Make sure you get it in by the close of court on the 26th just to be sure. If you need a hand just shout up. I am sure we will get it sorted between us all. I know it's nearly two weeks away but it will soon come around.

Maid

[trish22]

Re: statutory demand

yes ive managed to print off the documents but part c on the 6.5 asks why the demand should be set aside?can you go through it with me please as want to make sure its right,and do they have to give me an actual court date?thanks for your help

[miliitant]

Re: statutory demand

I think its best if you scan and post the 6.5 affidavit onto your thread
google a program called photo bucket to post but deleate personal details

if you have problems you can email it to me and i will post it onto your thread for you

[Nikolai]

Re: statutory demand

Not much for me to say - you've already had excellent advice. Just be sure to make application to the court within the 18 day time limit. That's important. You'll get a hearing date from the court telling you where and when to attend.

[Meagainindisguise]

Re: statutory demand

yes ive managed to print off the documents but part c on the 6.5 asks why the demand should be set aside?can you go through it with me please as want to make sure its right,and do they have to give me an actual court date?thanks for your help

under c you would normally use the "I do not admit to the debt because"..... and go into why. hopefully someone will be along soon to help you out as I am about to go to bed. (early shift tomorrow) I will check what's happened tomorrow. If nobody pops in to help and I don't reply, PM me to remind me. With regard to the court date, you will get that in the post after you submit the set aside.

Maid