1st credit/conns SD for Credit Card

[mikecymru]

Hi all

 

Need some advice, Got a letter hand delivered Thursday, statutory demand for bankruptcy... its for a former debt with a credit card.

 

I have been paying the DCA for sometime now but recently have let it lapse..

 

Now this not sure what to do..real worried not sleeping so well.

 

I dont mind paying if the debt is legit..but I cant help thinking that i should be clear of it now..

 

The debt is for just under 10K

 

Can anyone help...

 

Thanks

 

Mike

[pt2537]

Hi Again Mike

 

this thread may be helpful to you http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/135078-me-1st-credit-stat.html#post1426635

 

you only have 18 days to get the stat demand set aside so time is of the essence

 

can you give a little more info about who served you with the demand and what the debt was? have you requested a copy of the credit agreement from this lender?

[mikecymru]

Hi,

 

Hope you are feeling better.

 

The stat demand is served by 1st credit, on behalf of connaught collections.

 

I got it thursday but its dated the 30th April.

 

Hand delivered no postage stamp/date.

 

No I havent asked for a copy of the agreement but like I said I have been paying for some time now maybe 2 years.

 

thanks

 

Mike

[slick132]

Hi Mike,

 

Have you carefully read and understood the thread Paul post in his 1st para above.

 

You must take action at your local county court within the time limit to have the SD set aside. GaryH's thread refers to the forms required.

 

Also, send a CCA request to the DCA. Use letter N from here and enclose the £1.00 fee - http://www.consumeractiongroup.co.uk/forum/debt-bailiffs-advice/20758-creditors-dcas-letter-templates.html

 

Send by Rec'd Del'y, keep copies of all letters and don't SIGN your letter - just print your name.

Edited May 13, 2008 by slick132
typo

[mikecymru]

hi slick

 

yes I did read it but I am not sure I understand all of it.

 

I am concerned what if it doesnt go my way and there is a case to argue.

 

Until the CCA is done (Incidently is there a template I could use?) then how do I know if there is a case to argue? Is there a way of stopping the action until they provide more details?

 

thanks

 

mike

[saintly_1]

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html#post162367

[nicklea]

hi slick

 

yes I did read it but I am not sure I understand all of it.

 

I am concerned what if it doesnt go my way and there is a case to argue.

 

Until the CCA is done (Incidently is there a template I could use?) then how do I know if there is a case to argue? Is there a way of stopping the action until they provide more details?

 

thanks

 

mike

 

Mike,

 

The whole point is that there IS a case to argue.

 

The only reason they should be issuing a SD is if there is no case to argue ie you admit you owe the debt.

 

In the set aside application you don't have to prove you are right you just have to show the judge that the debt is genuinely disputed on a substantial ground.

 

Not replying to s77/78 request is a substatntial ground, also not providing a valid default notice, not having an agreement with all the prescribed terms, not sending you cancellation details if appropriate etc - these are all substantial grounds in their own right. If you can put a couple of them at least in your application then it is obvious that the debt is disputed and so the judge has not choice but to accept your set aside application.

 

This DOES NOT mean that the debt is unenforceable - it means that the judge believes there is an issue that needs to be decided in court. This is all you're trying to do - show the judge that there is an issue for the court so they cannot go just for a bankruptcy petition

[pt2537]

Hi Mike,

 

1ST Crud throw these stat demands around like confetti and it is a gross abuse of the process on their part.

 

for that reason alone i would be firing in a set aside application, but make no mistake, if you do not apply to set it aside they can petition for your bankruptcy and it makes your life much much harder to fight it at that stage believe me

 

Garys thread sets out quite well how to deal with the setaside application and my thoughts are that they will most likely not oppose the set aside, nor will they even bother to turn up as that is how these things with 1st normally go

 

once you have got the SD setaside you can even ask for your costs as Gary outlines in the thread

 

i think you need to act as a matter of urgency as you do not have much time

[mikecymru]

Hi Guys

 

Thank you all for your advice.

 

The cca request is straightforward, I will action this immediately.

 

I am however unclear of how to fill in both forms to have the demand set aside. and I dont think I can write an affidavit as elequantly as Gary did.

 

I apologize for not being up to speed but this is quite distressing and I am not thinking that clearly right now.

 

I am thinking of calling them tomorrow to try and re-hash my payment plan with them. Mainly because I am in fear of the outcome.

 

 

 

mike

[saintly_1]

Dont try and speak to them on the phone .....

 

It is vital that you get the stat demand set aside otherwise they can petition for bankruptcy as stated above

 

There are people here who can help with the forms and the affidavit (It dosent need to be as eloquent as GaryH's he has had plenty practice) There again there are people who can help you .... guide you in the right direction

 

 

Saint

[mikecymru]

Ok...

 

Then if someone could help me it would most appreciated.

 

mike

[mikecymru]

Quick question where does the CCA go? connaught or 1st credit?

 

does anyone have an address for 1st crud?

 

Thanks

[slick132]

Hi Mike,

 

I'd send the CCA letter and fee to Connaught. Get this printed tonight and off in the post in the morning.

 

The link to GaryH's thread is a great guide.

 

http://www.insolvency.gov.uk/pdfs/forms/6-4.pdf - Start off with your name and address at (a).

 

At (b) enter the name of the debtor (who you owe the debt to) as shown on the SD.

 

© is the date of your affidavit (tomorrow, I hope !!).

 

(d) is the name and address of 1st Credit.

 

(e) your address.

 

Sign as Applicant and date.

 

More to follow re affidavit.

[slick132]

Mike,

 

Are you aware of any penalty charges that have been added to this a/c and have you made any move to reclaim them.

 

You need to send an SAR to the credir card co. with a £10 fee if you don't have all the state's nec'y for you to quantify the amount of penalty chgs you've suffered.

[sutherland]

I've read a comment on Statutory Demand as follows:

 

"First Credit (debt collection agency) have (as at December 2007) been issuing statutory demands where it has not been possible to contact the name given on the demand because the call centre will not put you through. This has the effect of nullyfying their ability to follow through their bankruptcy threat."

 

Is this information correct regarding nullifying their ability to bankrupt?

[sutherland]

In the event that the SD is reversed by the court and costs awarded perhaps it would teach 1st Credit to be more sensible if an SD was used when they inevitably don't pay up. It would be nice if someone on here had the opportunity to petition for the company to be wound up.

 

Here's the form: http://www.insolvencyhelpline.co.uk/downloads/pdf-files/form4-1.pdf

[mikecymru]

Thanks slick

 

I have done the first part, and started the second.

 

I dont know about any charges, it was such a long time ago..

 

I dont even have an account number anymore.

 

Thanks everyone.

[slick132]

Use the 2nd link to fill out the form as follows:-

 

(1) Do not admit the debt because the existence/enforceability of the alleged debt is in dispute:

 

The respondent alleges that the applicant is indebted to it in the sum £xxxx.xx being the amount outstanding under an agreement regulated by the Consumer Credit Act 1974 (“CCA”). It is further alleged that the debt was assigned to the respondent from your credit card co. on date. The applicant will say that the statutory demand should be set-aside upon the following grounds;

 

a) The applicant does not admit that the debt exists. The respondent is put to strict proof that that the alleged agreement was entered into between your CCard Co and the applicant; and at what place and on what date and upon what terms.

 

b) In the event that the burden of proof is discharged as set out in paragraph 1) above and entirely without prejudice to the same, the applicant does not admit that the debt is legally enforceable. A request under CCA s.77(4) was sent to Connaught on date and the applicant awaits their response.

c) The respondent is put to strict proof that the alleged debt has been properly assigned.

 

d) The respondent is put to strict proof that a compliant default notice was served in relation to the alleged agreement pursuant to CCA s.88(1). Further or alternatively, the alleged debt contains sums levied by way of penalty charges which the applicant will say are contrary to common law. Accordingly, any default notice which may have been served could not have contained accurate particulars of the outstanding debt and would therefore have been defective and invalid.

 

f) Attention is drawn to recent correspondence between the applicant and the respondent, exhibited hereto as ‘C’, in which the grounds upon which the alleged debt is disputed were set out clearly, coherently and in full. The respondent was invited to file a County Court claim in order that, in the interests of justice, the many matters at issue can be fully, fairly and properly determined before a judge at trial. The respondent has declined to do so.

 

g) The respondent has chosen to serve a statutory demand by hand delivery on 8th May whereas the statutory demand is dated 30th April.

 

Accordingly, the applicant respectfully requests that the statutory demand be struck out or set-aside. Further, the applicant invites the court to make an order of costs in favour of the applicant in respect of the reasonable cost of preparing this application and of attending any hearings in respect thereof.

 

I make this statement with the sworn belief that all facts stated are true.

 

**********************

 

Print out 2 copies of the forms and keep 1 of each for your file. Take the 2 forms to your local county court along with a copy of the SD. Ask the staff to take the forms for processing.

[mikecymru]

slick

 

Thanks that sounds really good...

 

Two questions though...

 

1. I dont have a credit card number or date.

2. I dont understand part F. correspondence and asked to file county claim etc...

 

thanks

 

mike

[slick132]

Mike, can you put this on hold for a mo. I've sought advice and there are some other questions we need answering before we advise on your application to set-aside.

 

Have you received a Notice of Assignment about the debt and, if so, from whom.

 

Have you received a Default Notice.

 

Did you receive an LBA (Letter Before Action) in relation to the SD.

[mikecymru]

I dont remember a notice of assignment

 

Yes I got a letter before action.

 

I probably got a default way back from the credit card company but again I dont have it.

 

This makes me sound really stupid, but it was years ago.

 

mike

[slick132]

Mike,

 

Do you own or rent your home. If former, is there any equity in it.

[mikecymru]

very little equity but it may be enough for this.

 

mike

[mikecymru]

ok stage one done sent the cca.

 

standing by slick..what next?

 

thanks

 

Mike

[slick132]

Hi Mikey,

 

I sought advice about this and am reliably informed that the 18 day clock only starts from the date of service (8th May). This means you have until the 26th May to decide what to do and how to do it.

 

It is important that this time be used wisely to put together the best defence you can. I will leave Paul (pt2537) to come back and advise further but, if he's busy, shout and other help will be available.

 

In the meantime, you should try and find any state's for the a/c so you can check for penalty charges. Or at least try and find an old voucher with the a/c no. on it so you can send an S.A.R - (Subject Access Request) if nec'y.