Enforcement notice received - help please

[Complex]

Hello everyone,

I've received an enforcement notice today from Lloyds TSB served under S76(1) of the Consumer Credit Act 1974.

Basically they're demanding immediate repayment of an "unplanned overdraft" which I cannot repay.

The letter mentions applying to Court for an Order allowing more time. They haven't taken me to Court so what are they talking about?

I'm in a lot of debt due to job loss and maternity leave (long story, big big mess) and have been negotiating reduced payments with creditors for the past couple of years so I'm used to getting these kinds of letters but I wanted to double check they actually have to take me to Court first before the paragraph in their letter about applying to Court for more time comes into play! I've dealt with statutory demands and default notices but not an "enforcement notice" before.

I plan to propose a monthly repayment plan to clear the debt because that's how I've successfully (so far) dealt with other creditors. I will be surprised if they take me to Court because at the present time I don't have a 'job' as such because I've just started working for myself, (although I do have a limited income from self employment - not guaranteed). I am a tenant not a homeowner. I have three young children and have to pay childcare fees of over £70 a day before I feel the benefit of working if I have a "normal" 9 - 5 job, (hence the decision to work for myself). Basically I have nothing for them to secure repayment of the debt against. Taking me to Court wouldn't be financially viable. That's what I'm hoping anyway but I'm ready for anything!

I hope all that makes sense.

Any advice on how best to respond to this Notice will be very much appreciated.

Thanks.

Complex.

[FunkyFox]

Hi, If what you'ver received is similar to this Consumer Credit Act 1974 s76 then what I think they are saying is you can apply to court for a time order. This effectively means you can vary the repayment terms and period over which you pay. More info here http://www.cas.org.uk/FileAccess.aspx?id=948 Hope this helps? FF

[Complex]

Hi, the letter I received is exactly the same as the one in the link you gave me thank you. What I don't understand is why I would apply to Court for a Time Order? I understand the principle behind them but why would I need to apply to the Court at this stage when no action has been started/taken against me (yet)?

What can Lloyds do to me now they have sent this notice? What powers does this Section of The Act give them? I'm certainly not going to ignore the notice but I need to be prepared and know what it means in terms of what action they're likely to take next.

Thanks again.

[FunkyFox]

Hi, Sorry, that fact seeht I linked to was mainly a Scotish perspective. There is more general help here Debt Factsheets - Time Orders

As I understand overdrafts are dealt with differently to credit cards and loans. I hope someone will pop in and give you some concrete advice. I would be inclined to write to them and make an offer of what you can afford and explain you circumstances. It does seem that pehaps the time order is not appropriate in your case.

I hope you get the advice you need. FF

[Complex]

Thanks FunkyFox, the link to the fact sheets has really helped.

Applying for the time order seems to assume the creditor is going to take action and the time order is a preventative measure on my part?

Considering it costs £150 to make the order, it would make more sense to pay Lloyds £150 and reduce the debt than give the money to the Court!

It's all very confusing.

[I've got no money]

Don't forget that, providing you qualify financially, you can apply to the County Court to have any court fees waived. There's a useful form on the Court Service Website

[42man]

Are there any excessive fees to be reclaimed too ?

[Complex]

There are fees to be reclaimed now, but I haven't started that process yet. I'm going to contact LLoyds with my payment proposal and hopefully avoid having to apply to Court for a time order.

[42man]

ok....well if you claim for the fees (ASAP) it will put the debt into dispute, and they can't (although they might try) enforce it.....

[Complex]

I'd be grateful if anyone could let me know what action the bank are likely to take following the issue of an enforcement notice. I don't know what the notice means. Does it mean they are simply enforcing their right to demand immediate repayment of a sum of money owed to them? And if that sum is not paid, what then? That enforcement notice gives them the right to do what? Start the debt collection process against the debtor? Is it standard procedure to issue one of these notices? Is it like a default notice? Help please!