Statutory demand for credit card debt(bankruptcy)Help!

[Lapos]

Hi All,

 

First things first what and incredible forum this is i have fell upon and it's great to see so many selfless people willing to help without a hidden agenda. This is my 1st post and a cry for urgent help i'm afraid.

 

I have just come home to a "Statutiry demand under section 268(1)(a) of the insolvancy act 1986"Debt for liquidated debt payable immediately. form 6.1 for £2696. This is from an old credit card debt with MBNA, is now owned by 1st credit(finance)ltd but the demand is being made by connaught collections uk ltd on 1st credit's behalf. This debt is an old debt from a bad period of my life. I tried making effort to resolve this last year but got fed up with being shoved from pillar to post.

 

Now, i certainly cannot afford to be associated with a bankrutcy as I'm a registered FSA Mortgage Advisor now and could lose my licence to trade, so this has got to a point of major concern. I am very tempted just to call up and pay it tomorrow even if it does leave me skint as i'm so worried but on the other hand i'm sure they don't have the original credit agreement as i applied for it twice last year so feel quite compelled to fight these gits but am very afraid of getting the bankruptcy order and am not sure where to start. Any help from the pro's on here would be more than appreciated as i just can't afford to get this wrong!

 

Many thanks to all

 

Lapos

[tomterm8]

Was it sent by first class post?

 

Do you own your own home?

 

when did you open the account (roughly)

[Lapos]

Hi Tom,

 

Many thanks for taking the time to reply.

 

-It was sent second class i think(franklin stamp for only 36p on an a4 envelope)

 

-No i dont own my own home, it.s in my girlfriends name.

 

Account was opened early 2003 roughly, unfortunately and strangely there's not an acount on my experian file.

[Lapos]

Hi Tom,

 

I'm up at 6 am tomorrow so i'm afraid i must now retire. So please don't think i'm rude if i don't reply to any further posts tonight but again i'd like to thank you and i hope i can pick up with you tomorrow.

 

Many thanks

 

Lapos

[Curlyben]

First things first get a CCA into Connaught to prove they even have the legal right to demand payment on this account. They are well know for this tactic.

 

There is a template letter to be found here: http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

Letter N.

Is it important to start the letter:

I DO NOT ACKNOWLEDGE ANY DEBT TO YOUR COMPANY in Big Bold letters.

 

Next have a good read through this thread and start preparing your set aside.

You have 18 days to get this process started.

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/112326-debt-collection-agencies-statutory.html

[sequenci]

As you do not have property in your own name, it is highly unlikely they will actually go down the bankruptcy route, this is very likely to be a scare tactic. Certainly send the CCA request as previously mentioned. I would also like you to complain about their actions to The OFT and The FOS. You must exhaust their internal complaints procedure first, you can ask them to provide a copy of their policy which they need to make available to you in accordance with The Consumer Credit Act 2006. Please do follow the complaints route up, there is a *real* reason why this is important.

 

If any other 1st Credit / Connaught Stat Demand receiving folks are reading this I would like you to do the same.

 

our complaints procedure and how to complain

[Lapos]

Hi ben and Sequenci,

 

Thank you both for replying.

 

First things first get a CCA into Connaught to prove they even have the legal right to demand payment on this account. They are well know for this tactic.

 

Ben,

 

Would i send CCA to Connaught or 1st credit as they own the debt and connaught are just the collectors?

 

Sequenci,

 

I'm all up for exhausting the complaints procedure but on what ground should i complain? (sorry i know that may seem like a stupid question but as i said before i just don't want to get this wrong!)

 

Regards

 

Lapos

[Curlyben]

CCA who ever is demanding payment, so in this case Connaught.

Leave 1st credit out of the picture until they contact you.

 

The grounds for your complaint are that Connaught are abusing process by "serving" this SD on you without following the proper procedures.

They are well know on CAG and else where for this activity.

2nd class mail is NOT a recognise method for service of legal material !!

[Lapos]

Hi Ben,

 

ok, thank you very much, i'll get on with the CCA now then, recorded delivery i assume?

 

Would it be fair to say i'm best getting on with my set aside request now as well? and should i start the complaints procedure staight away but post the compalint seperate from the CCA?

 

Thanks again

 

Lapos

[Curlyben]

CCA via recorded delivery - TODAY

Complaint - TODAY

Set Aside, make a start, but there's no rush as you have plenty of time.

Have a good read through the sticky I posted earlier.

[sequenci]

2nd class mail is NOT a recognise method for service of legal material !!

 

We've argued this before and the Insolvency Rules are quite ambiguous about it. The thing is, the creditor would have to be able to PROVE that the SD was served on the debtor, just saying it was posted wouldn't wash if challenged.

[Lapos]

Brilliant, CCA letter is now done. Starting complaint straight way.

In relation to the statutory payment for the CCA am i OK to send a cheque or is it safer to send a postal order?(as it doesn't have my bank details on it) Also i have read on this site that i should not hand sign the letter, would both of you guys concur with that view?

 

Sequenci,

 

By starting a set aside request does this not help the prove that the SD was served as I'm acknowledging receipt?

 

Many thanks

 

Lapos

[Lapos]

Hi Ben,

 

I'm just writing my complaint letter but need More of your help (sorry!). You said my ground for complaint is that Connaught are abusing process by not following proper procedure in issuing a SD. The problem is i don't know what the correct procedure should be which meas 1) I'm not confident in presenting my complaint 2)it's gonna make for a short complaint letter!.

i would be very grateful if you could give me rough guide to the procedure they should have followed or possibly post me a link to a thread that explains more about this.

 

Many thanks

 

Carl

[Curlyben]

Here you go this should help: Legal Issues Explained - Statutory Demand

 

Basically Connaught should of given you some warning that this was likely to happen.

They then should of attempted to make an appointment with you for service in person. Service by mail is a last resort and, due to the fact they must prove it was served, is normally meant to be recorded 1st class mail.

Now in this case, with normal 2nd class mail they have no way to prove you ever received this SD.

[Lapos]

Thanks Ben

 

i did receive one letter prior to this from conaught on 12th of Feb that said if i did not reply to this letter in 7 days the SD would be issued does this change things?. Also going back to my previous post, is me putting in a set aside request acknowledging receipt of SD and therefore helping connaught's case?

 

thanks

 

Carl

[Curlyben]

As I said you have 18 days to start the process.

Leave it til the last week to give Connaught a chance to respond to your CCA.

[Lapos]

ok i see. right, i'll stop bombarding you with questions(for now anyway!) and get on with the complaint letter and reading the editorial you linked me.

 

Thank you very much for your help and i'll post again with an update.

 

Thanks

 

Carl

[Curlyben]

No worries there Carl.

Hey we don't learn without asking questions

[Lapos]

OK firstly a huuuge apology as i said i would leave you alone for now but I've just read that article on the UK insolvency helpline that you posted me and it's got me worried again!

 

My area of concern is as follows:

 

Many creditors are so shrewd that use various internet websites to let the banks, credit reference agencies and other public interest groups to publicise the statutory demand which can be disastrous for someone.

 

When is a statutory Demand a threat?

A statutory demand is something to worry about if your debts are over, say, £1000.

If your reputation is at risk by the public finding out about the statutory demand process being started against you

 

This is what I'm worried about as i said earlier because I'm now a registered mortgage adviser. The SD clearly work as i am thinking of paying it somehow! is an SD a public record that they can put on your credit file etc as stated in the quote? i just can't afford for that to happen.

 

Thanks

 

a worried Carl

[tomterm8]

OK firstly a huuuge apology as i said i would leave you alone for now but I've just read that article on the UK insolvency helpline that you posted me and it's got me worried again!

 

My area of concern is as follows:

 

Many creditors are so shrewd that use various internet websites to let the banks, credit reference agencies and other public interest groups to publicise the statutory demand which can be disastrous for someone.

This relates to companies, not to individuals.

When is a statutory Demand a threat?

A statutory demand is something to worry about if your debts are over, say, £1000.

If your reputation is at risk by the public finding out about the statutory demand process being started against you

 

This is what I'm worried about as i said earlier because I'm now a registered mortgage adviser. The SD clearly work as i am thinking of paying it somehow! is an SD a public record that they can put on your credit file etc as stated in the quote? i just can't afford for that to happen.

Nope.

Thanks

 

a worried Carl

 

Unfortunatly, just logging in from the library so I'll help more latter tonight but the FIRST thing to do is send a consumer credit agreement request (the template is on the forum). Send it by special delivery. Do not sign it, and send a £1 postal order with it.

 

Second thing is that you really do not need to panic at this stage. Don't contact them by phone. Wait a little while, and see what the credit agreement request turns up.

 

It is really VERY unlikely that this "stautory demand" would lead to a bankruptcy petition, because issuing such a petition costs around £1,100 whereas a stat demand improperly served costs 36p.

 

Bankruptcy petitions are normally reserved for people with assets such as homes, where the creditor would recover more money than the petition. Or for people who owe certain taxes.

[Lapos]

Hi Tom,

 

Thanks for returning to this. So an SD can not be displayed publicly(credit file etc) or other lenders be informed of it etc???

I have written the CCA but should i amend it to also request the deed of assignment and statement of account before i post it or is the credit agreement enough for now? I'm guessing the more i ask for that they don't provide the stronger set aside case i have, would you all agree?

 

Many Thanks

 

Carl

[Lapos]

Hi all,

 

I trust your all well?........good:) ! OK, a bit of an update and a bit more advice please guys.

After sending the CCA letter to Connaught i have received a very speedy reply from them indeed.

 

They would have received my CCA request on Monday the 3rd and this reply letter was typed the same day it basically reads as follows;

 

"The content of your letter has been noted. However we write to inform you that our files have now been closed and returned to 1st Credit Ltd.

We would request that all future correspondence in relation to this matter is forwarded to their offices"

 

I called them today just to confirm when they closed their file and it was closed on the same day they received my CCA request, the 3rd. Now i can't understand why they have closed the file while there is an outstanding "statutory demand" with 12 days till expiry and closed so promptly upon recieving my request?????:-?

 

My question to the more experienced guys is; is the SD still relevant and should i still put in a set aside request or is the whole thing redudant? and what should my next course of action be?

 

Many Thanks to you all

 

Carl

[denver]

Hello Carl,

I'm in a very similar situation as you, just a few days behind you. I have a credit card debt of well under £1000 inc charges and a DCA have, after a long chase, sent me a SD. I have followed the advice on here and sent them a CCA request. I just hope I get the same result as you. I'll be interested to see what responses you get about whether to continue to get the SD set aside. I guess you don't have to bother if you have it in writing that they have closed the file (as long as the SD was from Connaught and not 1st Credit). Good luck

[baileyboy]

You should always take a SD seriously. Apply for the set aside just in case.

[Lapos]

hi guys,

 

i agree with you baileyboy but the problem i see with asking for it to be set aside is by doing this I'm acknowledging receipt of the SD where as at the moment they have no proof i received it as it was sent 2nd class post. You see my quandary? Just to clarify, the SD was prepared by Connaught on behalf of 1st credit.

 

 

Anyone Else's views would be much appreciated!

 

Regards

 

Carl,

 

P.s. Best of luck Denver, i hope you get a good result too. from what I've read i very much doubt the would take the SD further than an idle threat if the debt is below £1000 because the associated cost of a bankruptcy petition is more than the debt!