Additions

[winner12]

Hi there
After having a reduced payment scheme for 6 months Shop Direct decided to up my payments and started adding interest and charges again even though my circumstances have not changed I carried on paying the reduced amount and sent off a CCA request.

They sent a present T&Cs so obviously have no original agreement I sent an account in dispute letter to hopefully stop them passing me to a DCA and to keep the account with them after having so many problems with Cap 1 and their CCA.

Shop Direct replied they would not be cancelling my agreement (never asked them to only stated they had no original agreement)and has I had ordered goods continuously they take this as acceptance of the agreement (not ordered for about 2 years now and with all the charges the balance is now £3500 ) they also stated that because of the change in unenforceability I have to pay £880 to clear the arrears or £3500 to settle the account.
What would my best course of action be now
Thanks

[Crispybacon]

Re: Additions

Hi Winner

Shop Direct it would seem have an internal policy which seems to be pretty rigid.

The next course of action for them will be to hand your account to their internal DCA - NDR Money.

You will then get a load of letters threatening the usual tripe. Over a course of several months (their end goal is to issue a default notice) you may then get several 'special offers' where they propose a payment plan over 3 years starting off at a reduced rate of interest finally at 0% interest.

In the meantime they will continue to slap charges and interest on your account to bump up the balance.

They will finally issue you with a default notice, and after which will sell the account onto either Lowells or Capquest or some other DCA.

So what should you do next?

As the balance is quite significant, I would be tempted to continue paying what you can afford, but, on a regular basis keep writing letters of complaint asking for them to cease interest and charges. Then IF things got to court you could show that you have been reasonable in trying to sort this out.

However, as they have decided to resume adding interest and charges which may negate your monthly payment, or even cause your balance to go up, and as they have not complied with your CCA you could play hardball and choose to stop payments and wait for the account to be defaulted and handed over to a DCA.

You may then find a DCA more likely to accept a DMP payment than Shop Direct.

Best

Crispy

[basa48]

Re: Additions

Hi Winner

.............I would be tempted to continue paying what you can afford, but, on a regular basis keep writing letters of complaint asking for them to cease interest and charges. Then IF things got to court you could show that you have been reasonable in trying to sort this out.

Crispy

I think Winner has already demonstrated his reasonableness by making payments. Why should he continue throwing good money after bad when it is obvious SDFC are trying to get as much money as quickly possible out of him?

I don't know how old this account is but if more than around 7 years it is likely SDFC don't have a copy of his agreement and could not enforce payments anyway.

I would write to them and point out that without an agreement there is no liability to make payments.

[winner12]

Re: Additions

Hi Basa and Crispy
They have no copy of a CCA just a load of stuff about current T&Cs at present I have not paid them and are now getting NDR statements but have had no threats since sending them a letter about lack of CCA
I did get a letter about interest being reduced to 9% but the payment would still be more than my DMP so im still waiting for a better offer would they be able to go to court

[Crispybacon]

Re: Additions

Hi Basa and Crispy
They have no copy of a CCA just a load of stuff about current T&Cs at present I have not paid them and are now getting NDR statements but have had no threats since sending them a letter about lack of CCA
I did get a letter about interest being reduced to 9% but the payment would still be more than my DMP so im still waiting for a better offer would they be able to go to court

Take a look at my thread on sample DCA letters. The next couple of letters where will be your interest being dropped finally to 0% interest.

Of course by this time the interest and charges they will have added to the account will offset the benefit of taking up the offer.

What is your aim from this? What you do next depends entirely on what risks you're prepared to take.

Crispy

[WendyB]

Re: Additions

How much of the balance is charges? Can these not be reclaimed, thus reducing the balance and therefore making your monthly payment have more of an impact on the amount outstanding?

[basa48]

Re: Additions

................ they also stated that because of the change in unenforceability I have to pay £880 to clear the arrears or £3500 to settle the account.

I don't understand what this means?

[winner12]

Re: Additions

Hi Basa
They are saying because of the Carey case unenforceability is not valid in my case and all sums are due
I know I have a moral duty to pay but legally they are not able to enforce without a properly executed CCA
At present negotiations have stalled I have asked them to reconsider but they continue to ignore my letters so where do I stand
I had so much hassle with CAP1 and its still ongoing (they came up with a reconstituted agreement) I am determined not to give in to shop direct

[basa48]

Re: Additions

Hi Basa
They are saying because of the Carey case unenforceability is not valid in my case and all sums are due
I know I have a moral duty to pay but legally they are not able to enforce without a properly executed CCA
At present negotiations have stalled I have asked them to reconsider but they continue to ignore my letters so where do I stand
I had so much hassle with CAP1 and its still ongoing (they came up with a reconstituted agreement) I am determined not to give in to shop direct

Ah the usual BS some (all?) DCAs spout to convince debtors to pay up.

Carey changed nothing, except that creditors can produce a 'reconstituted' agreement in response to a CCA request under section 78.

Carey goes on to clearly define what is required for enforcing debts and it must be a clearly enforceable document containing all the terms in a homogeneous form containing your signature. And usually it must be "a copy of the executed agreement in its original form" to comply with Reg 7.

SDFC are BS'ing you.

[Shepherdess]

Re: Additions

BSing to the extent they're flirting with transgressing CPUTR 2008.

I personally wouldn't pay them anything else.
I would write and say thankyou for your letter in which you appear to state that due to changes in enforceability you do not need to produce a compliant agreement in order to enforce this debt. However as you and I are both aware Carey only applies to section 77-79 requests.
I am concerned that you seem to be infering that the Carey case exempts you from producing an original agreement in order to legally enforce a debt.
I feel your statement is very misleading and calculated to cause me to make a transactional decision based on misinformation - in contravention of CPUTR 2008.

I would therefore be most grateful if you would clarify your statement.