Consumer collection ltd Default Notice.

[wellerman]

Hi need help with a letter recieved from consumer collection ltd. bought a sofa from Land of Leather 3 years ago on buy now pay later. Put £1500 down had £1000 on finance with Open and Direct. We had a dispute with Land of Leather and the settee had to be replaced etc by the time this was dealt with we had started the finance. We havent heard anything from them for over two years, then on Friday recieved this letter.

 

This is a Default notice served under section 87 of the consumer credit act 1974

In order to remedy the situation you are reqired to pay the arrears before 12 October. If you do not pay the arrears as required, further action will be taken against you through the courts.

 

The arrears are £1588.49 and the outstanding balance is £2564.15. I obviously cant pay this amount, can anyone please explain what the default notice means and what the courts will do.

 

I have a mortgage and two loans do you think consolidating and paying this off is a bad idea and would I be able to remortgage with this default notice.

 

Sorry for rambling

[patrickq1]

if you did try to re mortgage and it was succesful you can expect to pay in excess of at least 23% plus compound intrest this would more than likely cost you another three or four thousand...

(1)do you have a copy of the origional agreement if so post it on here in this thread

(2)can you also send the full text of the threatened default

(3)do you have letter from land of leather and did they remedy your dispute or is this still in dispute

(4)is thier a reason for a two year gap in the non payment.may possibly be you move3d home or was made redundant etc

(5)was their any PPI INSURANCE on the purchase price

remember when you scan in any documents please cover all names and agreement numbers

hope this helps

patrickq1

[oneofakind]

Who has sent you this letter, wellerman?

Is it the original finance company, or someone else?

 

[wellerman]

Thanks for the reply. The original finance company was Open and Direct. This letter is from Creation Consumer Credit Ltd. There is no mention of open and direct

[oneofakind]

In that case your first job is to send a cca request to Creation to see if they have the legal right to collect this alleged debt.

You'll find the template you want here, letter N: http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

 

Edit as appropriate, but make sure you have across the top;

 

I DO NOT ACKNOWLEDGE ANY DEBT TO YOUR COMPANY.

 

Send a £1 postal order (cheques best avoided - some debt collectors have been known to do strange things with signatures and photoshop.... for the same reason do not use your normal signature on your letter.)

 

If they cannot supply you a 'true copy of the executed credit agreement' within 12+2 days of receipt of your letter, then they cannot enforce the agreement. If they fail to supply said copy for a further calendar month, then they commit a summary criminal offence.

 

Also, if your account is in dispute (cca request fulfils this) then any further action they take would be in breach of OFT guidelines.

 

Send all post by recorded or special delivery so you get proof they received it.

 

And NEVER,NEVER speak to them on the phone. From now on you need written evidence of every communication you have with them.

 

Dead easy!

 

 

FORGOT TO SAY: Failure to supply your CCA is a complete defence to any court action they may threaten you with. THEY have to prove the debt. It is not for you to prove there is NO debt.

[wellerman]

Hi sent letter as you said on October2. I hadnt heard anything until today when I recieved a letter from Greenhalgs solicitors.

 

It is a Termination Notice. It has no account number it just says "credit agreement dated 29 May 2004 (the agreement)

 

The letter goes on say the agreement is terminated and that the full balance under the agreement is now due, being £2,614.15.

 

Please note all previous agreements to accept payment by instalments(through debt collection agents or otherwise) are withdrawn. All further crrespondence should be addressed to us.

 

Court proceedings will now be issued for recovery of the full sum due together with interest and legal costs.

 

Any ideas what I should do next? There is no reference to the letter I sent.

 

Thanks for your help

[oneofakind]

Do you have confirmation from Royal Mail that they received your CCA request?

 

[wellerman]

Hi, checked with Royal Mail, they received it on the 4th two days after I posted it.

[oneofakind]

OK, so by my reckoning they default on the 24th.

 

OFT debt collection guidelines quote the following as examples of 'unfair practice':

 

2.2 (e) failing to provide debtors or creditors with information on status of debts, for example, not providing requested balance statements when reasonably requested.

 

2.6 (f) pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so.

2.6 (h) ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment

 

2.8 (i) failing to investigate and/or provide details as appropriate, when a debt is queried or disputed

 

2.8 (k) not ceasing collection activity whilst investigating a reasonably queried or disputed debt

 

These last two are the most important in your case.

 

What's the date on their letter? (and on the envelope, if you still have it!)

was it sent AFTER they received your CCA request?

 

Also, if they are not giving an account number, then that rather suggests to me that this is just an empty threat. Hold your nerve for now, until the CCA defaults.

 

[wellerman]

Thanks for keeping with me. The letter from greenhalghs solicitors was sent 11 october, unfortunatley I never kept the envelope.

 

Thanks

[oneofakind]

Great! so you can prove that it was sent a week AFTER your CCA request was received, putting them squarely in violation of the OFT guidelines!

 

(the only reason I asked about the envelope is that sometimes the letters are 'back-dated', to make it look as if they were sent earlier than they actually were. Not a problem here.)

 

:D

[wellerman]

Hi oneofakind its now the 24 october and I havent had any reply from the finance company,do I now tell this to their solicitors

[oneofakind]

Don't tell them anything!! They should know the rules without being reminded - but if they don't, that's all the better for you!

 

They have now defaulted, but if they do not produce your agreement in the next calendar month, they will have committed an offence.

It's difficult, but you still have to wait for THEM to make the next move.

 

Any further threats, notice of legal action etc.while they are in default will be in breach of OFT guidelines. The more they hassle you from now on, the bigger the hole they are digging !!!

 

[wellerman]

Hi oneofakind,

had court summons today for 2779.15 this included court fee and solicitors costs.

How do I go about defending this? Is it the cca.

Getting worried now.

[setmefree]

Bump

[wellerman]

cheers setmefree very helpfull

[wellerman]

Help me, help me help me.

Sent off defence to County court saying Consumer Credit Ltd were in breach of The CCA have now recieved a letter which is a Notice of Transfer of Proceedings, it has a location quesionnaire, managment information enclosed. Can any one help me with advice on how to fill this in and what do I do, say,when it goes to court.

 

Many thanks to anyone who can help

[Edz11]

what is the date of claim and what are the particulars of claim (the wordy bit). What did you say in the bit for defence (word for word). The next bit will be the transfer to the local court and you'll both get an allocation questionaire. They fill it in an pay a fee and you fill yours in (without a fee). You need to get in a CPR18 reequest for further info next but that depends on your defence. Shout asa you get your AQ.

[wellerman]

Hi have recieved my QA. The defence I issued in the origanal summons was basically rewording the letter to the solicitors about being in default of The CCA by not supplying me with a copy of the CCA.

Struggling with the QA as basicaly I have no expert witnessess just me.

The notes on completing the QA dont make the best of sense.

 

Thanks

[Edz11]

when does the aq have to be in by? and is it an online one?

[wellerman]

24 Jan its a written one

[wellerman]

I have recieved "Notice of Allocation to the Small Claims Track"

On the letter it states I should deliver to the court and other party all documents on which I intend to use. It also says I should give a statement to be filed by March 28.

Any help with this would be gratefully recieved as I am getting quite stressed by all this .

[aplcomms]

I have been disputing a claim by Open and Direct and their Solicitors/Debt Collectors for over a year and Greenhalghs have been employed for the second time by Creation Finance (the new-look Open and Direct).

 

I am claiming that the rebates on early settlemens are too low (and not in accordance with the Regulations) since their contract contains at least 2 clauses that are Unfair Terms. The first is Schedule 2 10© that states "In the event of early settlement of this agreement, the insurance will immediately and without notice terminate and no refund will be available". This is contrary to the Norwich Union Summary Key Facts and the PPP Policy Schedule Page 4 on Early Repayment, which state that there is a repayment. Norwich Union has undertaken to change the wording on its Open + Direct Coverplan policy following FSA intervention - have alook at these.

http://www.fsa.gov.uk/pubs/other/undertaking_norwich.pdf

PPI – Open + Direct Creditcover : FSA Money made clear – Unfair contracts

 

These took effect on 1/1/2005 and the LoL/Open and Direct Contract still had the old wording - making them unfair.

 

The consequence of this is that they will keep all of the PPI Premium even though they should refund it in accordance with the Rule of 78 (based on the belief that the risk is higher at the beginning of the term).

 

I am also disputing how interest is calculated on the loan and PPI premium amounts. Schedule 1 states "...If you don not exercise your cash-Price Option, interest will accrue from the date of the agreement and will be charged on the Total Amount of Credit" (=Loan AND PPI Premium). I agree that the interest on the loan should be calculated over 4 years from the agreement date. However, interest on the PPI is only due over 3 years and not 4 since they only pay it to Norwich Union after the first year is over.

 

The consequence of this is that the interest being charged is higher than it should be and the rebate is much less. They keep more money than they are entitled to.

 

I have been in contact with Trading Standards, FSA and others and I do not think they have sufficient power to do anything much about them. They all seem to rely on a Judge deciding if a term is fair or not.

 

I expect that I will need to go to court as well in the near future so am preparing my case at this time. I would welcome the opportunity of helping you if required.

[duncan_disorderly]

Wellerman

 

The first thing to do now is to get all documentation that has been sent to you scanned and uploaded so that some of the experts can have a look.

 

Open a free account at photobucket, and you can scan the documents to their and link to them on your thread. Block out any personal information and account numbers etc from your scan.

 

You will need to approach this case fro a number of positions.

 

1. Does the creditor have an enforceable CCA agreement? I know you haven't got a copy yet, but they will have to provide you with one before court.

2. Was the default notice served correctly and did it contain the required wording? Scan this notice so that we can have a look.

3. Has any unlawful charges been added to the agreement? Send a S.A.R - (Subject Access Request) to creation and a £10 fee requesting all information they hold on you and a copy of all satements of account.

4. Was there PPI added to the loan? If so did you request this? Were you put under pressure indicating that it would help you get the loan? Has this been mis-sold? (there are many other reasons as to why PPI may have been mis-sold.

5. Scan the Particulars of Claim that the solicitor completed on the court claim form. Again cover up any identifying infrmation.

 

Send PM's to pt2537, tomterm8 and car2403 who are all very knowledgeable on CCA and its requirements. Tell them that court action is imminent and get them to check your thread. They should be able to advise you on your next step inclding completing your AQ.

[wellerman]

Hi have uploaded two letters to photobucket. Its wellerman open and direct. You have to set as full screen for wording as have had to use camera as dont have scanner. The letter from the solicitors refers to a default letter dated 27 september. The letter from creation was actully sent on 26 September. There is absolutley no mention of it being a default letter.

I do have a credit agreement with open and direct but have had no notification that they have changed their name to Creation.