Hello

I am writing on behalf of a friend regarding an outstanding debt (overdraft) with Halifax Bank.

Since 2015, this has gone through Wescot Credit Services, Cabot Financial and is now with Restons Solicitors.

They were out of work for a time but are now employed and wondering how to handle the Letter of Claim sent from Restons on behalf of Cabot.

They are asking for payment of the sum £1,261 by 18 May and this just isn't possible. They say if it's not paid they have instructions to issue a Claim in the County Court for the full balance plus fees and costs.

They then say Cabot is prepared to accept payment by instalments and ask that a financial statement be filled-in and returned by 18 May - but they don't want to engage with Restons in this way.

Is this likely to escalate to County Court any time soon (this is the first letter received from Restons) or will they likely come back with some sort of offer?

Do you have any advice on how to proceed.

Thank you to everyone who takes the time to reply

Is it a PAP letter, Pre Action Protocol?

How old is this?

How did the OD come about, has there been any correspondence with the bank?

How much of that figure is made up of the banks charges and fees, including interest? Has anything been reclaimed?

Yes sounds like a PAP letter

Read here [and it's post 6]

https://www.consumeractiongroup.co.uk/forum/showthread.php?481827-The-Pre-Action-Protocol-for-Debt-Claims-is-made-by-the-Master-of-the-Rolls-as-Head-of-Civil-Justice.-1st-Oct-2017

Thread title updated also

Hello

Apologies, I've not had an opportunity to reply to this thread as I had to go away to look after my dad.

A Claim Form arrived on 25 May (Date of Service 30 May, so they must reply by 13 June).

This has added another £150 to the Amount claimed - £1262 bringing the new total to £1412.

My friend is in a panic over this and would like to find a solution but doesn't have the wherewithal to pay the initial claim let-alone the new total.

The account goes back to 2007 with the last activity in 2015.

To understand what fees and penalties have been added, they have written to Halifax with a Subject Access Request for a copy of all data held by them as they would like to try and settle for the original amount owed minus any fees.

In this instance should they complete the Acknowledgement of Service form in the first instance?

Many thanks

Thread moved to Financial Legal Issues forum in view of the claim form....please continue to post here to your thread.

Please read the following link and then copy and paste the Q,s and your responses back here for further advice on how to respond to the claim.

https://www.consumeractiongroup.co.uk/forum/showthread.php?419198-You-have-received-a-Claim-What-you-need-to-do.-**UPDATED-2018**

Thread title amended.

Regards

Andy

Name of the Claimant: Cabot Financial (UK) Ltd

Date of issue: 25 May 2018

What is the claim for:

The Claimant claims payment of the overdue balance due from the Defendant(s) under a contract between the Defendant(s) and Halifax dated on or about Aug 07 2007 and assigned to the Claimant on Feb 27 2017

PARTICULARS a/c no xxxxxxxxxxxxxx

DATE: 17 04 2018

ITEM: Default Balance VALUE: 1262

ITEM: Post Refrl Cr VALUE: NIL

TOTAL: 1262

Have you received prior notice of a claim being issued pursuant to paragraph 3 of the PAPDC (Pre Action Protocol)?

Yes, but I believe there was one letter only prior to the Claim from Restons Solicitors Limited

What is the value of the claim?

£1262

Is the claim for - a Bank Account (Overdraft) or credit card or loan or catalogue or mobile phone account?

Bank Account (Overdraft)

When did you enter into the original agreement before or after 2007?

Around Aug 07 2007

Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim.

It is the debt purchaser, Cabot Financial (UK) Limited, through Restons Solicitors Limited

Were you aware the account had been assigned – did you receive a Notice of Assignment?

Received a letter on Mar 11 2018 saying they were reviewing the account for legal action and that contact was needed within 28 days to avoid this.

Received a letter on Mar 18 2018 titled: Your outstanding balance - potential legal action/What legal action could mean/ Next Steps - stating that if contact was not made within 14 days they would instruct a solicitor to issue a claim and make an application for a CCJ

Did you receive a Default Notice from the original creditor?

Doesn't have this information

Have you been receiving statutory notices headed “Notice of Default sums” – at least once a year?

Doesn't have this information

Why did you cease payments?

Ceased payments due to change of circumstances and sporadic employment/unemployment

What was the date of your last payment?

Doesn't have this information, but believes it was in 2015

Was there a dispute with the original creditor that remains unresolved?

Not officially, but the charges applied to the initial amount owing kept escalating and they feel this was a significant factor in not settling earlier, making it increasingly impossible to deal with

Did you communicate any financial problems to the original creditor and make any attempt to enter into a debt management planicon?

No, they didn't

Thanks....

Now refer back to that link and send a CPR 31.14 (Current Account version) request to the Solicitor.

Did your friend respond to the PAP questionnaire?

Next you will have to acknowledge service of the claim..this can be done on line instructions are contained within the response pack.

You have 19 days to AoS from and including 25th May..if you wish to defend the claim in full you have a further 14 days to submit a defence...33 days in total.

We use a standard holding defence for overdrafts so dont concern yourself with that just yet.

Get the above done..let us know about the PAP..post if your unsure of anything else.

Regards

Andy

Thanks Andy

No, I don't think they responded to the Pre-Action Protocol.

We'll get the CPR 31.14 to the solicitor, do the AoS, and come back when that's done.

Thanks again

Hi again

Just a quick question.

What if they don’t want to defend the whole thing but agree to pay the initial debt minus any fees, charges, or penalties?

Trouble is, they don’t know how much that is because they don’t have the paperwork.

Do they still acknowledge the claim as though defending in full?

I’m concerned that if they admit to any part the solicitor will just get a CCJ in the court for that part automatically.

They automatically get a CCJ for the part they dont admit...defend all initially

Great, thanks

Hello again

The AoS is done and a 31.14 sent to the solicitor. My friend also wants to send a Subject Access Request directly to Halifax – is that okay?

There do we go from here?

The holding defence you mentioned?

Thank you for your continued advice and help with this.

Really appreciated.

Just a thought

Was the overdraft renewed annually? If so was there a renewal after 2012, if so you could also send a S78 request as I understand from 2012 there was a requirement for annual renewals

As I said, just a thought

No harm in ringing Halifax and asking last payment date....

There are 100's of OD defences here

Use the search CAG box

OD claimform defence

Hello again

I can't find the standard holding defence, can you help point me in the right direction thank you

1000,s here......

https://www.consumeractiongroup.co.uk/forum/forumdisplay.php?190-Legal-Successes

already detailed in post 14

did you ring Halifax and findout last payment date?

as that might negate the need for a holding defence totally!!

Hello again

My friend has now received a letter from Restons solicitors after their request for information. It lists "relevant facts" about the case and suggest they check their own personal records as the documentation requested has previously been provided throughout the lifetime of the account.

It also states:

"Paragraph 5.2A of Practice Direction 7E specifically states

'The requirement in paragraph 7.3 of Practice Direction 16 for documents to be attached to the particulars of contract claims does not apply to claims started using an online claim form unless the particulars of claim are served separately in accordance with paragraph 5.2 of this practice direction'.

And that: "...we believe that the Particulars of Claim contains sufficient information in order for you to understand what the Claim relates to...'.

Would it be helpful if I put the entire letter on here? It's quite long!

Thank you

Std response ructums send to every cpr 31:14

In just about every reston claimform thread on cag

Safe to IGNORE

Thanks dx100uk What is likely to happen next?

At the end of the letter they say:

'In view of the information set out in this letter, we do not believe your Defence has any real prospect of success and we therefore recommend to our Client that an application be made to strike out the Defence and to enter Judgement against you for the full amount claimed, together with legal fees and costs.

Should you wish to avoid these further costs being incurred then we invite you to withdraw your Defence by completing the enclosed Form N9A and returning it to this office within 14 days.'

It's been just over two weeks since the letter was sent.

Thanks again

What was your defence?

ignore the letter!!

Hello again

So they received a letter on October 8th 'in a bid to resolve the matter without further delay, our Client is willing to accept the sum of £705.99 (inclusive of fees and costs) to conclude the Court proceedings and will agree not to pursue any remaining debt.' The Current Balance is £1,411.99, so this is half. Restons gave today (November7) as the deadline and say this settlement figure 'will be automatically withdrawn if not accepted by this date.'

The letter also says that 'If you are unable to raise the sum, we confirm our client is still prepared to accept payment of the debt by instalments.' There's a financial questionnaire attached to be returned by COP today as well. They suggest a Tomlin order may be filed depending on the offer of payment preferred and the length of time it will take to clear the debt.

They end by saying 'If you have any queries regarding the content of this letter or wish to discuss any settlement proposals, please do not hesitate to contact this office on the above telephone number.'

So, my friend has not responded and wonders if they may still accept an offer after today? And they would also like advice on what you all feel is the best way forward.

Thank you for letting me pick your brains once again and thanks for any and all advice and help given.

Best

begging letters IGNORE.

notice of discontinuance soon by the looks of things.

what defence did he file please?

the claim is WELL stayed!!