First Direct current account assigned to CL Finance

[mfpa]

I recently received a letter from CL Finance Limited (CL) saying they have bought my First Direct current account, which I have been paying off via Metropolitan Collection Services (MCS) at £1.00 per month.

 

In the same envelope was a letter purporting to be from HSBC telling me the same. Both letters got my name wrong - example Mr N Other instead of Mr A N Other.

 

The "HSBC" letter states that payments made to the HSBC account after 10th October 2008 will be forwarded to CL and deducted from the balance shown. Accordingly, the balance they quote would have been correct for 10th October but is incorrect for the assignment date of 15th December.

 

As the balance is incorrect, surely the assignment isn't kosher?

 

As the letter isn't correctly addressed to me, I plan ignore it and continue paying MCS. HSBC can forward my payments to CL should they wish. I acknowledge no debt to CL.

 

Any thoughts/observations?

 

Edited January 24, 2009 by mfpa
spelling correction

[BankFodder]

They are also likely to give you an additional default on the dbt

[mfpa]

They are also likely to give you an additional default

I don't recall seeing a default recorded for this account, although it's several months since I last got my credit files from the CRAs.

 

Definitely not received any default notice from first direct - moved to a parachute account elsewhere and reached agreement to token payments after they suddenly removed my overdraft facility and demanded immediate repayment about 18 months ago.

 

First direct had previously told me the unsecured debt would be written off provided I kept up agreed payments towards my mortgage arrears.

[mfpa]

Received another set of letters today, this time with my name correct. Wonder what made them notice? I have not contacted them.

[mfpa]

Received a letter from "Howard Cohen & Co Solicitors" stating that CL Finance have instructed them to "prepare court papers."

 

It doesn't quite look kosher:-

 

1. adverts for an online payment portal.

 

2. a statement that I can stop the action by paying NOW (in capitals, and also untrue as I don't have the money).

 

3. they look forward to hearing from me by the stated deadline; no deadline stated.

 

I have never written to or spoken to CL Finance. I have paid £1.00 per month to First Direct via MCS most months since I agreed to do so in late 2007. CL Finance have never attempted to "review" this arrangement.

 

Is this genuine, what is the best way to proceed?

 

[ims21]

Hi

 

I've asked for your thread to be moved to the debt collection forum as you will get plenty of help there

 

Regards

 

ims

[cerberusalert]

Moved to debt collection forum.

[mfpa]

Thank you, ims21 and cerberusalert.

 

Does anybody have any suggestions for a reply to this letter?

 

My thoughts are to state that I do not acknowledge any debt to their client, and that there are absolutely no circumstances under which I will pay any costs incurred by their client or themselves in taking frivolous and vexatious court action in regard to a First Direct account that is being repaid to First Direct (via Metroplitan Collection Services).

[mfpa]

Is it worth taking the time to reply to them at this stage?

[brokebutnotbeatn]

Thank you, ims21 and cerberusalert.

 

Does anybody have any suggestions for a reply to this letter?

 

My thoughts are to state that I do not acknowledge any debt to their client, and that there are absolutely no circumstances under which I will pay any costs incurred by their client or themselves in taking frivolous and vexatious court action in regard to a First Direct account that is being repaid to First Direct (via Metroplitan Collection Services).

 

That's what I'd do too.

[consumeredge]

Hi mfpa

 

I'm unable to read the letter you received from CL Finance titled "notice of assignment" because it is to small, however, does the letter have 2 paragraphs as follows:

 

"We are aware that Bla Bla bank has previously agreed a concessionary payment arangement with you in relation to your Account. We can assure you that this arrangement will not be affected in any way and you should continue to make payment in accordance with the terms of that arrangement.

 

We understand that you currently make payments vis a third party Debt Management organisation and you should continue to make payments to them. We will make arrangements to contact the company concerned so that they can send payments to us."

 

If the wording is the same as above this is a standard format of letter CL Finance Limited issued when they were in the process of purchasing a debt from the original creditor pursuant to S136 Law of Property Act, during the transitional "qualifying period" any payments made to the original creditor, the original creditor was obliged by contract to forward on to them.

 

All you need do at this stage is email Howard Cohen & co and state whilst you acknowledge receipt of their letter dated xx/xx/2011, you have not breached the terms of their previous letter dated xx/xx/2009.

 

I would simply leave it at that at this stage and see if you receive a reply, continue making the payments to MCS as you have done.

 

Have either First Direct, MCS or CL Finance Limited sent you any statements of account?

 

The other question is when you say you have mostly made the payments, how many have you missed and when?

 

Kind regards

 

Clive

[mfpa]

Hi mfpa

 

I'm unable to read the letter you received from CL Finance titled "notice of assignment" because it is to small

Sorry about that. In my browser, clicking on the small image opens a life-sized image in a new tab.

 

however, does the letter have 2 paragraphs as follows:

 

"We are aware that Bla Bla bank has previously agreed a concessionary payment arangement with you in relation to your Account. We can assure you that this arrangement will not be affected in any way and you should continue to make payment in accordance with the terms of that arrangement.

 

We understand that you currently make payments vis a third party Debt Management organisation and you should continue to make payments to them. We will make arrangements to contact the company concerned so that they can send payments to us."

 

It has the first paragraph, then contradicts it by telling me to pay direct to them (obviously they have no hope in hell as I acknowledge no debt to them). Then it says the concessionary arrangement is subject to review of my financial circumstances and they'll contact me at the appropriate time to undertake this review.

 

 

If the wording is the same as above this is a standard format of letter CL Finance Limited issued when they were in the process of purchasing a debt from the original creditor

Looks like I got a different template letter.

 

All you need do at this stage is email Howard Cohen & co and state whilst you acknowledge receipt of their letter dated xx/xx/2011, you have not breached the terms of their previous letter dated xx/xx/2009.

Except that I do not acknowledge their previous letter dated xx/xx/2009, since First Direct have never contacted me themselves to say they were assigning the account to CL Finance.

 

Have either First Direct, MCS or CL Finance Limited sent you any statements of account?

No.

 

The other question is when you say you have mostly made the payments, how many have you missed and when?

Not entirely sure on this. My payments to anything tend to be late rather than missed completely. I was unemployed for over a year following redundancy in 2009, and my wife has recently been unemployed for several months. My finances are still shot from that, with hundreds of pounds of arrears on my mortgage and utility bills. I tend to end up missing some creditors one month and different ones the next.