CCJ Advice

[Main man]

Quite a while ago I received a CCJ on a businesss overdraft, this was a result of the Bank reducing my overdraft instantly and without notice which has caused no end of problems for me personally.

A payment arrangement was agreed and all payments have been paid on time up until last month where due to a 'glitch' in the system the payment was not taken

I then ring up to pay this months payment and was told they could not take payment due to arrears on the account and that I would have to speak to the Litigation Dept, which I did and paid everything up to date.

Today I received a letter from Northampton Bulk informing me the case had been passed to my local Court for enforcement

Technically I have broken the arrangement so is there anything that they can do even though the payments are now up to date??

[Amethyst]

Re: CCJ Advice

Was the glitch your fault or their fault ?

Was the payment arrangement set by the court or agreed with bank following forthwith judgment ?

[Main man]

Re: CCJ Advice

Yes was their fault, I was told the system froze at the point of payment so he was not sure if it had gone through or not?

The payment arrangement was agreed between the Bank and myself before Judgement.

[Judge mental]

Re: CCJ Advice


As the matter has now been passed to your local court, contact them to inform them that all payments are up to date and the claimant has no right to pursue enforcement, and provide copies of anything showing that payment was made.

You could also ask the court for an application to set aside the CCJ on the grounds of no legal right of action as no notification was given for the reduction in credit which caused the initial default. There are provisions within the Consumer Credit Act for notices before taking certain actions, I will try to find some time to locate them (unless someone else can point you there first)

You might want to take a look at these decisions by the FOS (59/6 and 59/7) on complaints about ‘credit facilities withdrawn in a way that was unfair’

http://www.financial-ombudsman.org.uk/PUBLICATIONS/ombudsman-news/59/59-banking.htm

It is clear complaints are upheld where inadequate notice was given.

A Subject Access Request should include references to such a letter informing you of the withdrawal of credit facilities(If one existed)


In addition, if the Bank point to terms within the contract which allow them to do this, sections (j) and (k) of Schedule 2 of the UTCCR may help you as such actions may be regarded as unfair and therefore unenforceable.

(j) enabling the seller or supplier to alter the terms of the contract unilaterally without a valid reason which is specified in the contract;

(k) enabling the seller or supplier to alter unilaterally without a valid reason any characteristics of the product or service to be provided;

What constitutes a valid reason is open to debate but it would be up to the Bank to show their reasons were valid (he who claims must prove)

[Guest]

Re: CCJ Advice

As the matter has now been passed to your local court, contact them to inform them that all payments are up to date and the claimant has no right to pursue enforcement, and provide copies of anything showing that payment was made.

You could also ask the court for an application to set aside the CCJ on the grounds of no legal right of action as no notification was given for the reduction in credit which caused the initial default. There are provisions within the Consumer Credit Act for notices before taking certain actions, I will try to find some time to locate them (unless someone else can point you there first)

You might want to take a look at these decisions by the FOS (59/6 and 59/7) on complaints about ‘credit facilities withdrawn in a way that was unfair’

http://www.financial-ombudsman.org.uk/PUBLICATIONS/ombudsman-news/59/59-banking.htm

It is clear complaints are upheld where inadequate notice was given.

A Subject Access Request should include references to such a letter informing you of the withdrawal of credit facilities(If one existed)


In addition, if the Bank point to terms within the contract which allow them to do this, sections (j) and (k) of Schedule 2 of the UTCCR may help you as such actions may be regarded as unfair and therefore unenforceable.

(j) enabling the seller or supplier to alter the terms of the contract unilaterally without a valid reason which is specified in the contract;

(k) enabling the seller or supplier to alter unilaterally without a valid reason any characteristics of the product or service to be provided;

What constitutes a valid reason is open to debate but it would be up to the Bank to show their reasons were valid (he who claims must prove)

Aside from the opening line, none of the above is going to matter because as the OP stated, this was a "business overdraft", therefore the bank are entitled to withdraw an overdraft facility and demand its repayment. The Consumer Credit Act does not apply for two reasons, (1) it was a business overdraft and (2) it does not apply to overdrafts in any case. The reference to the FOS is also ambiguous as in the first instance, 59/6 the complaint was rejected, notwithstanding that again, this concerned a personal account and not a business account and the second reference, 59/7 concerns only a personal account.

The UTCCR does not apply for the same reason that the Consumer Credit Act does not - this action concerns a business overdraft and for the same reason again, a SAR will reveal nothing because the Data Protection Act applies to living individuals, not companies.

Returning now to the issue of whether or not enforcement action may be granted on the judgment debt, since you agreed a payment plan with the bank prior to the judgment being granted, did you agree to a Judgment by Admission? If this is the case and you have maintained the payments, irrespective of whether or not one failed but has since been rectified, then it is doubtful that a warrant of execution would be granted. If it is, you will not have much difficulty in having this stayed, given that the payments are up to date and you can show that the failure to make one payment was not your doing.

I would not consider attempting to have the original judgment set aside a good use of your time. You do not state how long ago it was granted, but you state it was "Quite a while ago..." which suggests to me you would be out of time. Notwithstanding this if you agreed to a Judgment by Admission, you can hardly claim it was unfair and attempt to have it set aside.

[Main man]

Re: CCJ Advice

Returning now to the issue of whether or not enforcement action may be granted on the judgment debt, since you agreed a payment plan with the bank prior to the judgment being granted, did you agree to a Judgment by Admission? If this is the case and you have maintained the payments, irrespective of whether or not one failed but has since been rectified, then it is doubtful that a warrant of execution would be granted. If it is, you will not have much difficulty in having this stayed, given that the payments are up to date and you can show that the failure to make one payment was not your doing.

I would not consider attempting to have the original judgment set aside a good use of your time. You do not state how long ago it was granted, but you state it was "Quite a while ago..." which suggests to me you would be out of time. Notwithstanding this if you agreed to a Judgment by Admission, you can hardly claim it was unfair and attempt to have it set aside.

Thanks for the replies

Well I have rung and they have admitted again the payment not going through was their fault and is on their systems to say so, I was also told as long as payments are up to date no enforcement action would be taken in the future.

I have no problems in paying off the amount but would hope in the future (that in the very least) I would be able to reduce the amount owed once the issue of business claims is settled.

This was Judgement by Admission, although I now know I shouldn't have filled the form in and put up more of a fight, this all came about unfortunately at a really bad time when there were health issues within the family.

[Judge mental]

Re: CCJ Advice

[quote=Cetelco;124407]Aside from the opening line, none of the above is going to matter because as the OP stated, this was a "business overdraft", quote]

I stand corrected.

Note to self ...... pay more attenion to detail.