1st Credit chasing Lloyds Overdraft

[hairbear]

Hi Beagles
Received a letter today from Judge and Priestly regarding an alledged debt

The alledged debt was for a £2292 Lloyds overdraft that Defaulted in 2011

The debt has passed from DCA to DCA, In 2013 Capquest through Lowells tried to persue it with a Statutory Order but failed (Many thanks to the wonderful Kate, I cant thank her enough).

Lloyds have assigned the alledged debt over to 1st Credit who have sent out begging and maybe we will go legal letters.. I think they will try some legal action, time will tell.

I know as the alledged debt is a current account overdraft that a CCA is not applicable but should I still send a CPR to the Solicitors any thought or suggestions please

Take Care HB

[FlamingParrot]

Re: 1st Credit chasing Lloyds Overdraft

As that's a letter from solicitors threatening legal action, you should definitely take it as a formal letter before action and reply accordingly. Even though their letter does not comply with the practice direction, it is your duty as a prospective defendant, to comply with the Pre-Action Conduct by replying to their letter before action.

The letter should be sent recorded delivery so you can track it. In many cases, a suitable and timely response to a solicitors letter stops them on their tracks and keeps them away from the MCOL website. :thumb:

Dear Sirs,

Ref: xxxxxxxx

Thank you for your letter dated 26th of February 2015. As the letter contains a threat of litigation, it is being treated as a formal letter before action. As such, I refer you to paragraph 1 of the Practice Direction Pre-Action Conduct, which states the purpose of such a letter is to “enable the parties to settle the issues between them” and to encourage the parties to “exchange information”.

Paragraph 2.2 (1) of Annex A states you have an obligation to “list the essential documents on which the Claimant intends to rely”. I could not identify such a list in your letter, please list the documents so I can see your case against me and request copies of anything that I may need.

Paragraph 3.2 (3) of Annex A allows me to “request further information to enable me to provide a full response”. My request is a request for documents as the information I require would come from those documents. Paragraph 5.1 of Annex A states that you should “provide the documents requested within as short a period of time as is practicable or explain in writing why the documents will not be provided”.

I require copies of the following:

1. The original account agreement;
2. The Default Notice;
3. The Termination Notice;
4. The Notice of Assignment;
5. Statements of account;

These documents would be expected to be supplied if proceedings were issued and would likely be in your possession if you were issuing a claim. If you consider that there is difficulty in providing a copy of a document, please identify that document and the reason.

I shall be able to provide you with a full response to your letter within 14 days of receipt of the documents listed above and also reserve the right to refer to the contents of this letter if proceedings are issued without first providing copy documents to me.

Yours sincerely,

[hairbear]

Re: 1st Credit chasing Lloyds Overdraft

Hi Flamming Parrot,
Thank you for taking the time to reply to my post and for the template letter. I have sent the reply to the solicitors today and it will be interesting to see if they proceed.

Again thanks for all your good work and ill post if I hear anything

Cheers HB

[FlamingParrot]

Re: 1st Credit chasing Lloyds Overdraft

Hi Flamming Parrot,
Thank you for taking the time to reply to my post and for the template letter. I have sent the reply to the solicitors today and it will be interesting to see if they proceed.

Even more interesting to see if they just go away as many others have done in the past, upon receipt of something similar. ray: ray: ray:

Best of luck! :thumb:

[pacluc27]

Re: 1st Credit chasing Lloyds Overdraft

Very interested to see how this one progresses, as I am, or will be in a similar boat soon I feel. I have 1st Credit at me for 5k of o/draft with Lloyds. I haven't had a solicitors letter yet, but I have asked them for a copy of the agreement, which due to the 10 year old o/draft, I don't think exists.
Tell me Flaming Parrott, if the solicitor fails to provide any of the items in your letter, will this deem the case unenforceable?

[hairbear]

Re: 1st Credit chasing Lloyds Overdraft

Hi everyone
After six months I have received a reply to my request (see attached) although from 1st Credit and not their Solicitors. It is interesting that they state as the overdraft is on an account taken out before 2011 there is no credit agreement,
but it is nice of them to invite me to give them any spare cash that I have!!

I would be grateful for any response to this letter
HB

- - - Updated - - -

Hi I see that you replied to my post six months and I have just had a reply to my request check out the main board for responses

[FlamingParrot]

Re: 1st Credit chasing Lloyds Overdraft

Unfortunately they are right to say there would be no credit agreement as such as it would just be your current account agreement with an overdraft facility attached to it. It's also true that there is no need for a DN under s.87 of the CCA for an overdraft. :mmph:

They took so long to respond that the letter I posted back in February is now out of date, the Annexes I referred to on the PD pre-action conduct have since been removed. :ohwell:

[hairbear]

Re: 1st Credit chasing Lloyds Overdraft

Thanks for the reply Flaming Parrot, it seems that I have little choice then to negotiate with the debt collectors. What suprises me is why Lloyds did not just seek legal action in the beging rather try a Statutory order or sell the debt.

I will read through the forum but if you or any one else has any suggestions how I might approach the creditors to pay the alledged debt I would as always be grateful
Many Thanks
HB

[nemesis45]

Re: 1st Credit chasing Lloyds Overdraft

Thanks for the reply Flaming Parrot, it seems that I have little choice then to negotiate with the debt collectors. What suprises me is why Lloyds did not just seek legal action in the beging rather try a charging order or sell the debt.

I will read through the forum but if you or any one else has any suggestions how I might approach the creditors to pay the alledged debt I would as always be grateful
Many Thanks
HB

1st Credit may agree to payments secured by a Consent (Tomlin) Order, meaning no CCJ is registered as long as the terms agreed between yourself and 1st Credit are maintained. You should be aware that any missed or late payment could result in1st Credit applying for summary judgement.

nem

[FlamingParrot]

Re: 1st Credit chasing Lloyds Overdraft

Thanks for the reply Flaming Parrot, it seems that I have little choice then to negotiate with the debt collectors. What suprises me is why Lloyds did not just seek legal action in the beging rather try a Statutory order or sell the debt.

If you look around you'll find the original lenders hardly ever take the debts to court, preferring instead to sell them for peanuts and write them off as a loss for tax purposes. I get the impression there used to be more claims issued by banks a few years ago, I'm not sure if the £50k costs awarded against Santander in 2012 when they lost against Mayhew scared them all away from going to court, it seems all claims are now issued by debt purchasers. :confused2:

I will read through the forum but if you or any one else has any suggestions how I might approach the creditors to pay the alledged debt I would as always be grateful

1st Credit may agree to payments secured by a Consent (Tomlin) Order, meaning no CCJ is registered as long as the terms agreed between yourself and 1st Credit are maintained. You should be aware that any missed or late payment could result in1st Credit applying for summary judgement.

From what I can see on this thread, no claim has been issued, just a letter before action over six months ago, to which they replied only recently. I'd leave the Tomlin Order option until a claim has been issued.

[hairbear]

Re: 1st Credit chasing Lloyds Overdraft

Thanks very much for the reply FlamingParrot
You are right that no claim has been issued, but wondered if it would be better to negotiate the alledged debt before a claim was issued. I quite happy to sit tight and wait and see what happens
As always I am grateful for your time and help
HB

[Kafka]

Re: 1st Credit chasing Lloyds Overdraft

Thanks very much for the reply FlamingParrot
You are right that no claim has been issued, but wondered if it would be better to negotiate the alledged debt before a claim was issued. I quite happy to sit tight and wait and see what happens
As always I am grateful for your time and help
HB

It's usually better to try to cut a deal before a court claim if you don't think you can fight it successfully, and with overdrafts your options are usually much harder than with regulated accounts.

The other thing is what the likelihood is that it will go as far as a court claim. If you hold out and they file you'll probably wish you had settled, but if you settle early you won't know if they really intended to file! I usually prefer to sit it out, but maybe that's because I'm awkward?

[FlamingParrot]

Re: 1st Credit chasing Lloyds Overdraft

It's usually better to try to cut a deal before a court claim if you don't think you can fight it successfully, and with overdrafts your options are usually much harder than with regulated accounts.

In that case you'd do a F&F settlement rather than a Tomlin order though, which is used to stay proceedings and in this case they've not been issued.

The other thing is what the likelihood is that it will go as far as a court claim. If you hold out and they file you'll probably wish you had settled, but if you settle early you won't know if they really intended to file! I usually prefer to sit it out, but maybe that's because I'm awkward?

That is always a tough decision especially when you've not paid in years, :decision: making an offer would just reset the clock and it looks like this was defaulted four years ago. Of course with the O/Ds you never know when the clock really starts ticking unless you've got your final demand handy so you can see the date the O/D was recalled.

If they accept a low F&F then you'd be rid of this debt whilst if you let it go to court you' have to settle for the full amount even if spread out in monthly instalments as per the Tomlin. However, if they don't agree to a low F&F you've just reset the clock.

In this case 1st Crud took over six months to reply to the OP's response to their LBA, however, they have supplied the documents requested and they are right about there not being a requirement for a DN. Technically they are free to issue a claim. Will they? My crystal ball is looking a little cloudy!