Help needed - Stat Demand from 1st Credit

thewardrobe · 18th July 2008, 15:42

Hi there - wonder if anyone can help me..

I had a credit card debt which I fell behind with the repayments and was passed to 1st Credit. This morning I've received thru the post a 'Statutory Demand under section 268(1)(a) of the Insolvency Act 1986. Debt for Liquidated Sum payable Immediately' for £2382.33.

I don't dispute that I know I owe the money, I don't know if the amount is 100% correct - but I have tried to tell John Lewis - who I originally owed the money to why I was having problems and I also then discussed this with First Credit.

My partner died suddenly 2 years ago leaving me as a single parent with a 13 month baby and I contacted them to explain my situation. I was plunged into financial difficulties. We survive on benefits and tax credits, and I don't own any assets.

What should I do next? I have tried to call them but I get incredibly upset trying to talk about these things over the phone and I have written to them so many times showing I don't have any income or spare cash to give them. How do I respond to this Stat Demand?

p.s. Two other debts I had (Egg and a loan with RBOS) as soon as they read my original letters in summer 2006 explaining the details around my partners death, which I've not gone into here, wrote off the debts which were for considerably more than this credit card debt.

rippedoffagain · 18th July 2008, 15:46

Have they obtained a County Court Judgement for the debt?

thewardrobe · 18th July 2008, 15:51

Hi there - thanks for replying! No they haven't - this Stat Demand just landed through the post this morning.. previously all their letters just asked for payment..

rippedoffagain · 18th July 2008, 19:31

I am not an expert on SD, but I would have thought that a set aside could be obtained on the grounds that the debt has not been proved. A SD is not to be used as a debt collection tool.

thewardrobe · 18th July 2008, 20:33

So what would you recommend I do next?

Michael Browne · 18th July 2008, 20:56

You do need to apply to set it aside using forms 6.4 and 6.5 which you can download here:
England and Wales Forms

SD's are explained here:
Legal Issues Explained - Statutory Demand

1st Credit are issuing SD's like they're going out of fashion at the moment, but they don't often issue actual petitions. On the other hand you've nothing to lose applying for a set aside.

Quote:

We survive on benefits and tax credits, and I don't own any assets.

I assume this means you don't own your house, which means that it is even more likely that the SD from 1st Credit is bluff, since it would cost them to present a bankruptcy petition with little hope of their being paid.

thewardrobe · 18th July 2008, 23:08

Thanks Michael for that! My daughter and I live in a privately rented house so no even if they made me bankrupt they'd not gain anything..

The Stat Demand says -

''...the appropriate court is (YOUR LOCAL COUNTY COURT.) Any application by you to set aside this demand should be made to that court. FOR CONFIRMATION OF YOUR RELEVANT COURT,OR IF YOU BELIEVE YOU HAVE GROUNDS TO SET ASIDE THIS DEMAND PLEASE CONTACT OUR OFFICE ON 02082530343''

I really do not want to call them to 'discuss' this as I have spoken to them on the phone before and never gotten anywhere except in tears!Does it cost money to apply for 'set aside'? And what does this actually mean?

If I don't contact them about this demand, which they have no proof I've actually received it, what will their next step likely to be? They know I rent, on benefits etc etc..

Thank you again for your help!

rippedoffagain · 18th July 2008, 23:55

I believe you can claim costs from them, for your time etc. I don't think it costs to apply for a set aside.

thewardrobe · 19th July 2008, 12:16

Thanks guys for your replies - on what grounds could I say its disputed?

Should I do the Subject Access Request & CCA letters which I've seen on many posts? Would these mean that I'd acknowledged receipt of the Stat Demand?

Apologies for all the questions! I really haven't a clue...

Michael Browne · 19th July 2008, 16:55

Quote:

Originally Posted by thewardrobe

Should I do the S.A.R - (Subject Access Request) & CCA letters which I've seen on many posts?

Yes, ASAP. See letter N here:
Creditors and DCAs - Consumer Wiki
If they don't supply this within 12 days, this is grounds to have the SD set aside

Quote:

Originally Posted by thewardrobe

I don't dispute that I know I owe the money, I don't know if the amount is 100% correct

The chances are that there are charges and additional interest.

If the amount claimed in the demand includes-

(a) Any charge by way of interest not previously notified to the debtor as a liability of his, or
(b) Any other charge accruing from time to time.

Then the amount or rate of the charge must be separately identified, and the grounds on which payment of it is claimed must be stated, which I assume they haven't done. This is further grounds

This thread may be of help:
Lowell Statutory Demand - can they do this?

Tiber · 19th July 2008, 17:47

I have also received a Statutory Demand, dated 15 July, from 1st Credit - signed by Mr D. Silcock - which I found quite worrying.

Reading these posts has been quite helpful so, sorry for butting in on the wardrobe's post but thanks everybody for the info.

By the way, in case it's of any help, I sent a CCA letter to 1st Credit on 2 April and although no CCA has been sent to me - nor did they return my £1.00 - I do have a letter from them, dated 2 May stating, "... I agree that this debt is unenforceable at this time. Once our client has provided a true copy it will of course be payable in full".

I shall be sending a copy of this to Mr Silcock and would certainly advise theardrobe to issue the CCA and S.A.R letters as 1st Credit do not always follow the correct procedure before issuing these demands.

The UK Insolvency Helpline website has a really helpful section all about Statutory Demands. It set my mind at rest, have a look at it.

Michael Browne · 19th July 2008, 17:55

Tiber, you should still ask to have the SD set aside, using forms 6.4 &6.5 here:
England and Wales Forms

Here is a sample grounds, which you can amend to suit:

Quote:

I apply for the statutory demand to be set aside as the creditor has failed to comply with its obligations under the Consumer Credit Act, and I believe that the creditor issued this statutory demand as an abuse of process intended to pressure me into paying the full amount of a disputed debt contrary to the OFT Debt Collection Guidelines.

The creditor has defaulted under section 78 of the Consumer Credit Act 1974 for failing to provide a copy of the alleged agreement on request within the prescribed period. Under the provisions of s78 (6), the creditor is not entitled to enforce the alleged agreement while this default continues. My request under s78 of the Consumer Credit Act 1974 was sent to First Credit Limited, who claims to be dealing with the alleged agreement and have raised the statutory demand. This request was received and signed for on xx/xx/xx

Further, I believe that the amount of £XXXX referred to in the statutory demand includes a substantial sum of unlawful penalty charges. First Credit Limited have not provided further information regarding the charges they have added to the account, and still have not provided a statement of account (as requested under s78 CCA 1974).

Tiber · 19th July 2008, 18:46

Quote:

Originally Posted by Michael Browne

Tiber, you should still ask to have the SD set aside, using forms 6.4 &6.5 here:
England and Wales Forms

Here is a sample grounds, which you can amend to suit:

Thanks for that. I have tipped your scales accordingly.

thewardrobe · 19th July 2008, 21:26

Thanks everyone for your replies - Mr Silcock has odviously been a busy guy recently signing all these Demands hey Tiber?

So Tiber - are you doing the set aside?

thewardrobe · 19th July 2008, 21:43

Do I have time to send both CCA and Subject Access Request before the 18 days and then apply to set aside? Or do I send them off and apply for set aside at the same time disputing the amount?

Again apologies for alll the questions but everyone's help is greatly appreciated! x

thewardrobe · 19th July 2008, 21:49

Sorry another questions - I currently using one of the templates asking for CCA and Subject Access Request - and I'm trying to work out what address to send it to =

The sta demand has an address in Guernsey as 1st Credit being the creditor but then further down states that Mr D Silcock of Connaught Collections UK Ltd in Croydon is the DCA..... so who do I send the CCA/Subject Access Request request to then??

thewardrobe · 20th July 2008, 21:15

Do I have time to send both CCA and S.A.R - (Subject Access Request) before the 18 days and then apply to set aside? Or do I send them off and apply for set aside at the same time disputing the amount?

I'm currently using one of the templates asking for CCA and S.A.R - (Subject Access Request) - and I'm trying to work out what address to send it to =

The sta demand has an address in Guernsey as 1st Credit being the creditor but then further down states that Mr D Silcock of Connaught Collections UK Ltd in Croydon is the DCA..... so who do I send the CCA/S.A.R - (Subject Access Request) request to then?? The original debt was to John Lewis - so now I'm really confused as to who I should send the letters to?

Many thanks for your help with this.

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