1st Credit and old HFC debt - Statutory Demand

[Mr Bear 79]

I’m hoping someone may be able to help me with a rather critical situation I have.

 

Please forgive me if the answers to this could be found elsewhere, but I’m afraid I might not have much time to act. I have read a number of threads and stickies on here but this certainly isn’t my specialist subject and I’m very confused.

 

I have a credit card debt with HFC, and it is just over 3 years since I last used the card. The balance is just over £5000.

 

In spring 2005 I realised I was in serious financial difficulty and made nominal payments of £5 for several months while I communicated with them in writing. At one point they did agree (verbally) to accept 30% of the balance as full and final settlement, but when the written confirmation arrived it stated 40%, and ultimately we didn’t reach an agreement.

 

Over time, I stopped making the nominal payments and our communication became less frequent until after December 2006 when they (and their various off-shoots) stopped communicating with me at all.

 

This was the last I heard until April 2008 when the letters suddenly started to come again - 5 letters in quick succession from 3 different companies (1st Credit, LCS Solicitors and Connaught Collections UK Ltd).

The third of these letters gave me 14 days to pay otherwise they would issue proceedings in the County Court. However the 14 days passed in late May and no County Court proceedings ever began.

 

Now, here comes the shocker. Last week I received a Statutory Demand under Section 268(1)a of the Insolvency Act 1986. The demand was sent by standard (unsigned for) mail and I have just noticed that the date of issue was 9 days before I actually received it.

 

I must confess to being in a total quandary as to what to do now - I have seen many people say “don’t respond” or “it’s just a threatening tactic” etc. but I really feel as though this one can’t be ignored, although I am aware that Connaught do tend to send these out rather freely.

 

If they were moving towards a CCJ at this point I don’t think I would have any complaints, but to go straight for bankruptcy seems harsh in the extreme.

 

The ironic thing is that if they make me bankrupt they would probably be lucky to get a return of £500 (less than their costs would be I guess) and I’d gladly pay them that tomorrow if it meant this debt would disappear!

 

The main thing for me now is to respond appropriately, and in good time, and anything other than bankruptcy itself would be welcome in comparison (as amongst other things I would instantly lose my career due to the FSA).

 

Any help would be very very much appreciated.

 

Many thanks

 

(ps. Someone tried to break into my flat last night after forcing open the communal door. It’s the first time this has ever happened and I sincerely hope its co-incidental, but has anyone ever heard of Connaught, or any DCA, doing anything like this?)

[Guest forgottenone]

and I sincerely hope its co-incidental, but has anyone ever heard of Connaught, or any DCA, doing anything like this?)

 

Wouldn't have thought so. That would be a prosecutable criminal offense. I don't think even a DCA is that stupid; or maybe they are. So, have you reported this crime to the police, then? If someone is trying to break into your flat ... I'd seriously consider doing so as it may be the beginning of other things. It may waste your time reporting it to the police ... but ... what if it got worse next time, you never reported it? Just something to consider.

 

As to the SD you say you have received ... that will obviously need to be set aside. Others here will help you with that.

[Guest forgottenone]

Removed what was here to be replaced with this *yes, it's a bit obvious advice but will give it anyway*

 

REPORT THE MATTER TO THE POLICE. We wouldn't want to be reading on CAG later something had happened to you. If someone has forced your door as you say, then someone is either trying to get at you or ... commit burglary. Or worse. That isn't intended to sound doomladen, it's just a sensible piece of advice. Don't know if you have reported it to the police. If so, then clearly disregard.

Edited July 30, 2008 by forgottenone

[Multay]

Hi,

 

Don't ignore this whatever you do - You need to get the Demand set aside in court.This is pretty much a scare tactic but the concequences of not dealing with this could be serious. There are things you must do and in a pretty limited time frame from the date you recieved the letter. I'm afraid I can't help you as I'm no expert on this, but if you click the red triangle at the bottom left of your post one of the site team will guide you though. Don't worry, there are loads of people on here to help...

 

I think it would be highly unlikely this has anything to do with the break in..Debt collectors usually stick to nasty phone calls and letters of dubious legal status..

[babybear39]

You can apply for the SD to be set aside at your local county court. Check they deal with these as some don't. It's free and easy and the court staff will help. DO NOT IGNORE IT, deal with it ASAP.

 

The grounds you use for set asside are that you are disputing part of the debt due to unlawful charges, that's if you agree the debt is infact yours.

 

Good luck and best wishes.

[Mr Bear 79]

Bit confused with what you say there. I think you need to scan, paste what you've received here for other to view, then can help with EXACTLY what each letter says. It may be you've had a CCJ entered by default. I might be wrong, but ... is it usual practice to go to a SD without a CCJ first? Therefore, it appears something else may be going on eg you have a CCJ already.

 

You'll appreciate I'm reluctant to put the specific dates on here but in mid-May 2008, I received a letter from LCS Solicitors in relation to this debt. I quote "...unless full payment is made to our client within 14 days from the date of this letter we are instructed to issue proceedings against you in the County Court for recovery.....". The client was named as 1st Credit.

 

Exactly two weeks later, I received a letter from 1st Credit which stated "please let me introduce our Debt Help Team to you. Our department has been asked to contact you......."

 

In early July, I then received a letter from Connaught Collections which said "We have been instructed by 1st Credit Ltd - HFC - to recover this debt. It is now our intention to issue a Statutory Demand under the Insovency Act 1986 (Bankruptcy) as we are unaware of any valid reason for your non-payment.......... Should you fail to contact us within seven days then a Statutory Demand will be issued without further warning".

 

10 days later they issued the Statutory Demand, although I received it a further 9 days after.

 

I have no information to suggest that a CCJ was issued in relation to this debt. I would have expected at least an initial claim form to be sent from the Court, and then an order of payment, had that been the case. I have received neither.

[Guest forgottenone]

Then, as others have said ... you still need to get it set aside.

[Guest forgottenone]

You'll appreciate I'm reluctant to put the specific dates on here but in mid-May 2008,

 

Well, TBH, the idea behind scanning whatever you've received ... particularly with the SD ... is to merely see if what they've sent you is, in fact, a legally issued SD. It's surprising how many DCA's don't for example, will use misleading court head documents ... so, that was the idea.

 

I may be wrong, others will point that out if so *and I don't mind if so* ... but it could all turn out to be the usual threatograms eg

 

It is now our intention to issue a Statutory Demand under the Insovency Act 1986 (Bankruptcy) as we are unaware of any valid reason for your non-payment.......... Should you fail to contact us within seven days then a Statutory Demand will be issued without further warning

 

And they may not have issued the SD correctly or properly. So, that's the general ideas. You don't have to put dates. And, it also helps ... if you can scan, paste what you've been sent in order for others to offer more direct help.

 

Hope that clarifies things. You've obviously not got a lot of time ... as you say.

[Mr Bear 79]

This is the SD I received..... If there is a way of inserting it better on this forum please advise.

Edited July 30, 2008 by Mr Bear 79
additional info

[Mr Bear 79]

Well, TBH, the idea behind scanning whatever you've received ... particularly with the SD ... is to merely see if what they've sent you is, in fact, a legally issued SD. It's surprising how many DCA's don't for example, will use misleading court head documents ... so, that was the idea.

 

I may be wrong, others will point that out if so *and I don't mind if so* ... but it could all turn out to be the usual threatograms eg

 

 

 

And they may not have issued the SD correctly or properly. So, that's the general ideas. You don't have to put dates. And, it also helps ... if you can scan, paste what you've been sent in order for others to offer more direct help.

 

Hope that clarifies things. You've obviously not got a lot of time ... as you say.

 

 

I have scanned my SD as requested.

 

Is it possible to tell from my scan whether in fact it is a legally issued SD and whether they have issued the SD properly.

 

I would really like to deal with this on Monday as time is relatively tight but I'm really not sure what I should be doing to get this set aside.

 

If anyone could help I would be very grateful.

[Guest forgottenone]

Yes, there is a better way. Photobucket. Just paste the image code.

[Mr Bear 79]

I think I've found a way but I need to have made 5 posts before it will work, hence this one

[Mr Bear 79]

Hopefully this will be ok? (although it might be a bit big).

 

[palomino]

Mr Bear, that's the real thing. Can you also upload pages 2 and 3?

If you can't then can tell us if the court specified in Part A on page 3 is your nearest County Court?

 

To have this set aside you needs forms 6.4 and 6.5 available here: England and Wales Forms

after you've completed them you need to take them in person to the specified court and swear an affidavit which is the usual hand-on-bible stuff. It's pretty straightforward and you normally find the court staff pretty helpful.

[Mr Bear 79]

The quickest thing I can do tonight is quote the exact wording from Part A of Page 3......

 

-----

 

Appropriate Court for Setting Aside Demand

 

Rule 6.4(2) of the Insolvency Rules 1986 states that the appropriate court is the court to which you would have to present your own Bankruptcy Petition in accordance with Rule 6.40(1) and 6.40(2). In accordance with those rules on present information the appropriate court is (YOUR LOCAL COUNTY COURT.)

 

Any application by you to set aside this demand should be made to that court.

 

FOR CONFIRMATION OF YOUR RELEVANT COURT, OR IF YOU BELIEVE YOU HAVE GROUNDS TO SET ASIDE THIS DEMAND, PLEASE CONTACT OUR OFFICE ON 0208 253 0343

 

-----

 

It is written exactly as i have put it above (including bold text and caps locks).

 

It does seem to be worded rather bizarrely.

Edited August 2, 2008 by Mr Bear 79
typo

[overdone]

This is identical to the stat demand they sent me. It has the desired affect until you acquire the knowledge to turn the tables on them and get some money out of them. My whole world has turned around thanks to 1st credit and I now realise what a powerful position I am in. Check that the bank is actually one you have been with, not just the amount of money you recognise. Also, did they respond to your cca request. That usually scares them by return of post.

[palomino]

The quickest thing I can do tonight is quote the exact wording from Part A of Page 3......

 

 

That's just the preprinted part of the form. They have not entered the name of any specific court.

In this case take your forms to your nearest County Court. If you need court addresses then check out the Court Service website - The requested resource (/HMCSCourtFinder/tiles/Her Majesty's Courts Service - Court Information and Addresses) is not available .

[42man]

Did you ever send a request for a copy of your Consumer Credit Agreement ????

[Mr Bear 79]

Did you ever send a request for a copy of your Consumer Credit Agreement ????

 

Apologies for not responding sooner, I wasn't well early part of the week and haven't been on the thread.

 

I didn't ever request a copy of my CCA, as it had been so long since I had heard anything about this debt from them or anyone else. That would now seem like a sensible next step.

 

I'm taking my paperwork to the County Court shortly and will post an update later.

[Mr Bear 79]

Today I have been to the County Court and applied to have the SD set aside.

 

What a stressful and demoralising experience

 

I purposefully didn't go into huge detail when stating why I wanted to have it set aside, I just kept it to a couple of lines re disputing some of the potentially unlawful charges, as advised above.

 

The lady I spoke to at the Court didn't want to accept my forms at first, as she said the information was insufficient so I had to add a little more with no other paperwork with me to refer to. I put that I was not sure the debt had been legally assigned to Connaught, and that I had applied for a copy of my CCA and not yet received a response.

 

I would rather not have done that but I didn't have much choice - my 18th days falls over this weekend so it wasn't something I could go back and do later.

 

I am told that the application will now go before a judge, and that it will probably take place in about a month. Also, that I probably won't hear anything more for about 2 weeks. When the hearing does take place I will have to attend.

 

If I'm honest, I wasn't really expecting that. I suppose I didn't know what to expect but now I am very concerned about what will happen at the hearing.

 

If my finances are analysed it is unlikely to go in my favour as my debts far outweight my assets, but for me the implication of being made bankrupt would be very severe for a couple of different reasons.

 

Any comments on todays events would be welcome, as would any advice on what I am likely to experience at the hearing and what I should prepare in advance.

 

Thanks

[witchita]

Mr Bear, I’m afraid that I can’t offer advice because I’m new to all this myself. I will be applying for my own SD to be set aside next week and am not looking forward to it. But why don’t you give these people a call, explain your situation and see what they have to say. It’s a freephone number so you’ve got nothing to lose. http://www.discreetdebtsolutions.co.uk/index.html

[babybear39]

Call CCCS or national debtline first thing monday morning:

 

CCCS - Free Debt Advice from the UK's Leading Debt Charity

 

National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

 

You have to wait for an appointment with CCCS though.

 

If your job is at stake due to bankruptcy , I doubt a judge would grant it as creditors would get nothing.

 

Lack of CCA is a good starting point.

[Mr Bear 79]

To bring the thread up to date.....

 

I have not yet received a response from the County Court despite applying to have the SD set aside on 9th August.

 

I have, however, received another letter from Connaught Collections, dated 12th August, which has just reached me.

 

It reads.. I write to inform you that we are now in a position to present a Bankruptcy Petition aginst you following the recent delivery of our Statutory Demand.

 

As you have chosen to either ignore the Statutory Demand or demonstrate an ability to pay the sum claimed, you leave us with no alternative other than to present a Petition.......

 

Should I act upon this letter in any way or should I wait for a response from the County Court before doing anything more?

[Mr Bear 79]

Anybody please?

[madjenny1]

I cant be of much help I am afraid, but I do know this, they cant proceed with bankruptcy, while there is an outstanding stat demand waiting to be set out aside, I hope this helps somewhat until someone else can really help you.