Urgent Help Needed -1st Credit Statutory Demand Received **WON + COSTS **

[Duffers Mum]

My Citifiinancial account was assinged to 1st Credit earlier this year dispute it being in dispute as Citi had not provided me with the correct documentation under the CCA.

 

I subsequentlty received the usual threatening letters from both 1st Credit and LGS Solicitors. I responded by saying account in dispute, 1st then replied to me that they had gone back to Citi to ask for a copy of my agreement, that was in early August. I have recently received a statutory demand from 1st Credit. I'm obviously worried because I don't know much about Statutory Demands, surely with no copy agreement (not even an application form) this document cannot be legal.

 

What do I need to do, should I email them and tell them where to go as neither they nor Citi have provided me with a copy agreement, can they take me court with this statutory demand?

 

If anybody can give me some reassurance and point me in the right direction I would be very grateful.

 

Thanks

Edited October 4, 2008 by Duffers Mum

[witchita]

I've just been through this with Citi and 1st Credit. I went to court today, they could not produce a CCA and it was set aside in a matter of minutes.

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/154290-voluntary-charge-house.html

[rory32]

You will have to apply for the set aside of the SD which will take place at your local court. SD's should only be issued when the amount owing is not in dispute. There are lots of threads on SD's and getting them set aside. Here's one where the OP got costs as well as the set aside http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/161411-off-court-within-week.html

[Duffers Mum]

Surely though they should not be allowed to do this if they haven't got the proper documentation. How do I go about getting it set aside, what do I have to do?

[rory32]

All the info is in the link I posted, particularly the link in this post http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/161411-off-court-within-week.html#post1729633

[madjenny1]

How did you receive the Stat Demand? was it by post? if so, I suggest you read this first before making any decision on what to do about it.

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/162131-statutory-demands-service-post.html?highlight=statutory+demands

[smt37]

Of all the people on here, I don't know of one unsuccessful set-aside. 1st Crud are so bad at their job, they tie themselves up in knots by the time it gets to court.

 

Read through the other threads and you can't fail.

[Duffers Mum]

OK i've looked briefly at the threads mentioned, but am really getting myself worked up here, I think I might just pay the outstanding balance, because I just don't know what I'm supposed to do, do i contact 1st credit, how do I know which court I should apply to, bearing in mind i've been away on holiday i'm also fast running out of time.

[witchita]

The forms you need are 6.4 and 6.5 which are available here

http://www.insolvency.gov.uk/forms/englandwalesforms.htm

 

Here is a web site to find your nearest court. I don't know how old this information is so best to give them a call to check they still have bankruptcy jurisdiction

http://www.ivamarvel.co.uk/Docs/Courts%20with%20Bankruptcy%20Jurisdiction.htm

[Duffers Mum]

Witchita - thank you i've just fished the envelope out of the bin and the SD was dated 26 September and sent by Second Class Post.

 

I take it i need to fill in the forms mentioned above and just send them to the court?

 

I am emailing 1st Credit to tell them I intend applying to have this set aside and also advising that I am still awaiting a copy of my credit agreement.

 

I think people start worrying when they mention bankruptcy which is no doubt what they bank on.

 

Another question, the default notice was from Citi and not from 1st credit, does this make any difference?

Edited October 4, 2008 by Duffers Mum

[witchita]

So the earliest it would have arrived would have been 29 September due to the weekend. Your 18 days from there calculates to 16 October so submit your form and afidavit before then. You may be entitled to more time because of being on holiday but if it was me I’d meet the above date just to be on the safe side.

 

You need to take the forms in person as you are required to swear the afidavit. Without the correct documentation your reason to set aside would be 1 on the form. I’m sure someone can help with filling in the form if you need.

 

With mine, I phoned 1st Credit just to confirm I’d received the Stat Demand but I refused to get into any other conversation with them. I didn’t remind them that they hadn’t supplied the CCA. I’d asked them once and they had replied so I know they’d received it. It’s better if they can’t supply it so I just kept quiet.

 

Someone else will have to advise on default notices. I also had one from Citi before the debt was passed to 1st Credit but that wasn’t even mentioned in court because they couldn’t supply the CCA

[42man]

DM.....I can't help at the moment, but I WILL come back to you on Monday......please try and relax.....

 

Here are a few other threads for you....last week 5 caggers on here won their stat demands...!!!

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/156970-omg-connaught-first-credit.html

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/103839-cca-1st-credit-connaught.html

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/161411-off-court-within-week.html

[MONX]

Duffers Mum,

 

My situation was quite similar, Ist Credit sent me a SD on behalf of Connaught Collections - still no wiser as to who was the actual DCA dealing with it(although I believe it is one and the same company) however, Connaught are the ones who ended up writing to the court and paying me my costs!

 

You are right, they are hoping that the idea of bankcruptcy will panic you into contacting them and making an offer of payment.

 

I wouldnt email them at all. Just by completing your Affidavit you set the ball rolling as when the court arrange the hearing they contact 1st Credit for you. As 42man says the forum has had a good success rate with having not only the SD's set aside but also getting costs awarded. At the end of the day its not really about the money but we hope by more and more people challenging this new and sinister way of aiding debt collection through the insolvancy regime (which is an abuse of process) that the DCA's will think twice if they know that they are going to end up paying costs.

 

There is plenty of advice and information on here and I can say I've been where you are now, its not as bad as it may feel at this point.

 

My advice would be to make sure that you keep everything they send including the envelopes as this may prove instumental in showing how they are playing fast and loose with the "truth" about what has been sent when.

 

Make sure that you keep copies of everything you send, dont sign anything only print your name (aparantly DCA's have been known to cut and paste signatures onto dummy credit agreements).

 

Hope this helps

MONX

[Duffers Mum]

Thank you all I'm not feeling in such a panic now. I've looked at the forms I need to fill in, do I take these to the court and fill in, what sort of thing do I need to put on there - just that Citi never provided a CCA and sold the debt whilst it was in dispute and despite my advising 1st Credit of this they have totally ignored everything I've said? Do I need to ring the court first or do I just turn up? I intend to try for costs as well as I'm sick and tired of these bully boys. Thankfully I'm off work next week so it shouldn't be too much of a problem. I take it that the lack of a CCA is enough to get a SD set aside? Also do I presume that once its set aside they will try other tactics to get me to pay an alleged debt they can't prove I owe?

 

I have emailed them, rather than written, just to advise I will be applying to have the SD set aside, I have no intention of ringing them on an 0870 to speak to some cretin with no brain cells!

[Duffers Mum]

Another thing, i sent my CCA request to Citi who only provided a set of T&C's and then assigned it to 1st Credit, I advised 1st Credit that Citi hadn't provided the document and account was in dispute, I have a letter from 1st Credit saying they are advising Citi of my request for a copy of the CCA. I've never received any statements from 1st Credit. And yet another question....could they actually make somebody bankrupt when the correct procedures etc haven't been followed? Do they actually send out these Stat Demands and then make people bankrupt, what happens if the SD gets lost in the post and the person never receives it? sorry for so many questions, I'm just interested to know!

Edited October 4, 2008 by Duffers Mum

[Duffers Mum]

I've started to complete the affidavit etc, hope i'm putting the right sort of stuff down (not sure what to put in on form 6.4 for the parts d and e is it my details which should be put in here?), interesting that I've just found an old email from 1st Credit confirming they agree that until such time as the copy agreement is located the debt is unenforceable....yet still they send a SD, amazing. Am I correct in thinking that these SD are just computer generated and are sent out after 1st Credit have owned the account for say 6 months without them actually bothering to check prior to sending them that everything is in place?

 

I'd be grateful for some help in the filling out of the affidavit and the other form. I'd be happy to email what i've done so far to one of the site helpers if they can offer any assistance. Thanks

Edited October 5, 2008 by Duffers Mum

[42man]

On your affadavit state this....

 

The alleged debt is totally disputed.

 

The statutory demand was sent by 1st/2nd class post which I believe to be an abuse of process, as according to the insolvency website it states that a claimant 'can send a statutory demand by recorded post'

 

The alleged claimant knows that the account is disputed but at no stage have they notified me that they wish to discontinue this action. A letter was sent to 1st Credit dated XXXXX (see attached form X) stating the dispute.

 

The claimant has produced no statements, no notices of assignment, no default notices and no letter before action.

 

As a lone parent/low income family with limited finances I approached a solicitor by phone and asked for an estimate on how much it would cost. I was given an estimate of 3 to 6 hours at £170 per hour to prepare the Application (£510-£1020) plus extra for attending the court.

 

I respectfully request that the court give consideration to awarding these costs on the indemnity basis or, in the alternative, on the standard basis as I believe, in any case, that they have been proportionately and reasonably incurred and/or are of a proportionate and reasonable amount.

 

In support of this request, I would also like to refer the court’s attention to the authority of the High Court in the case of:-

 

Hammonds (a firm) v Pro-Fit USA Ltd [2007] EWHC 1998 (Ch)

 

In this case, Mr Justice Warren confirmed that it was usual for an indemnity award to be made:-

 

27 So far as disputed debts are concerned, the practice of the court is not to allow the insolvency regime to be used as a method of debt collection where there is a bona fide and substantial dispute as to the debt. Save in exceptional cases, the court will dismiss a petition based on such a debt (usually with an indemnity costs order against the petitioner).

 

I therefore request on the information above the judge sets aside the demand and grant my request for costs.

 

Then DM attach a sheet headed

 

COSTS AS LITIGANT IN PERSON

 

Then for example put 10 hours reasearch into the Consumer Credit Act 1974 and the Insolvency Act @ £9.25 (this is the most you can claim)...

 

Petrol -

 

Parking -

[Duffers Mum]

You are an absolute star, thank you so much I'm just about to give my local county court a ring, i'll keep this thread updated on progress/dates.

 

I really appreciate all the help and advice everybody has given me - thanks all

[Duffers Mum]

I've copied what you have suggested onto the affidavit and inserted the dates etc, i've copied the emails/letters. Have just spoken to the court and they suggested going in tomorrow as the clerk is not in today.

 

The bit where you put about the low income etc is that what I am claiming in costs as well as the petrol/parking/time off work fees? Of is that just an example and the costs i will be claiming will be shown on the separate sheet, which I am just doing now?

 

Interesting to see a guest is reading this thread? Hello are you from 1st Credit? If so suggest its time to get your wallets out!

[42man]

Have a look at Monx's post....

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/156970-omg-connaught-first-credit-6.html

[42man]

Is it form 6.4 ?

[Duffers Mum]

Yes its 6.4 i've done the other one (affidavit) ok, just not sure on the application one.

[42man]

It should be the 'other' side....LCS Sols is it ? 1st Cred ? whoever's names are on the demand.....

[Duffers Mum]

Thanks for that...all documents printed off and ready to take to the court tomorrow, any idea how long I'll have to wait for a date? I presume that once my application is registered it won't matter if the date they provide is outside of the 18 days?

[42man]

At a guess DM, the hearing if it gets to that will probably be in about a months time...ring the courts once a week just to ensure no paperwork that they have sent has gone missing....