Stat demands and scare tactics

[mak71]

Im pretty new to this site but over recent days have noticed more and more posts about stat demands being issued

I have read that alot of it is just a scare tactic which results in good results for the dca as alot of people panic and find the money from somewhere ,

However after reading up on here i certainly wouldnt just ignore a stat demand as the risk of them following through is still there if undefended and i would defend it and try and get it set aside as my first plan of action.

 

But What my point really is is this,

how much does it cost for these companies to issue a stat demand?

it obviously must pay handsomely for them overall or they wouldnt do it?

Do the courts take a dim view on them going for the jugular like this,

are they really just making a nuisance of themselfs and wasting court resources ?

can a stat demand be applied for before other avenues are explored,

ie can they go straight for a stat demand , or do they have to get a ccj first and then you to default on it to issue a stat demand?

 

Im just trying to get my head round they seem to be freely able to issue all these stat demands.if you were paying say x pounds a week off the debt, would it still be possible for them to go straight for a stat demand or

do they rules and legislation to adhere too and have to go down less drastic routes first?

 

If they can do these stat demands freely, surely any unsecured debt really isnt 100% unsecured is it , on paper it is yes but in the real world your house can still be at risk from any debt over £750 , through bankruptcy,so technically even though they cant reposses your house, they can have it snatched away from you anyway through bankruptcy

is that correct,

[Duffers Mum]

From my experience DCA's like 1st Cretins seem to issue SD's to nearly everybody! I've received one and my debt is for a mere £1300 which is peanuts really, I've applied to have it set aside and the hearing is tomorrow. 1st Cretins have sent a letter saying they don't intend to attend, but from what i've read on these boards they have been known to do that in the hope that you don't turn up and they can get the result they want. I'm certainly attending tomorrow and have requested costs too.

 

I there its scandulous that DCA's can act like this and I'm sure they do frighten a lot of people into making contact with them and agreeing to repayments. In my case I requested a copy agreement for Citi Cards in February this year and I still haven't received it, 1st Cretins have been told this on numerous occasions yet still try to bully me by sending out a SD.

[mak71]

Ive cca"d citibank this week, if its unenforceable i guess im going to get the privilidge of 1st cretins tactics too,

Last week i was frightened to death of the postman, now im quiet looking forward to seeing him each day,

After reading some of the horror stories on here on some of the stunts these dca"s have pulled i think its fair game to give as good as you get

 

The only thing really concerning me is why the authrorites arent clamping down heavily on these big companies who are passing on or selling their debts to dca"s knowing full well they are already in dispute and not really supposed to be doing so,

[rory32]

how much does it cost for these companies to issue a stat demand?

 

Nothing really. There is no court fee. It's the bankruptcy petition that costs money.

it obviously must pay handsomely for them overall or they wouldnt do it?

Yes. Only a small percentage find their way to sites like CAG and it's obviously very scary to be threatened with the possibility of bankruptcy. Also there is still the belief amongst a lot of people that DCA's are law abiding companies with some sort of special legal powers. The opposite is often true.

Do the courts take a dim view on them going for the jugular like this,

The courts first have to be aware of the abuse of process. Some courts are becoming more aware of this but it takes time.

are they really just making a nuisance of themselfs and wasting court resources ?

Yes and no. Most people will just pay up. Of course if you actually apply for a set aside the DCA will not bother to turn up.

can a stat demand be applied for before other avenues are explored,

It reality it often is and again the court would need to be aware of any abuse of process e.g. you point it out to them. Court action should only ever be used as a last resort and not as a first resort scare tactic.

do they have to get a ccj first and then you to default on it to issue a stat demand?

No.

[rory32]

The only thing really concerning me is why the authrorites arent clamping down heavily on these big companies who are passing on or selling their debts to dca"s knowing full well they are already in dispute and not really supposed to be doing so,

They need to know that this is happening on a regular basis rather than isolated cases. Not enough people report the creditor/DCA to the regulatory authorities.

[mak71]

Rory, thanks for that, i will go down every route possible if they try it on with me,im now a much better informed stronger person than i was this time last week, and still learning something new everyday

 

it would be really intersting and thought provocing if there were statistics available for how many stat demands were seen through to bankruptcy petition,

and indeed what % of dca threats ever got to a bankrupty hearing,

 

I wish ide found this site alot earler, as ive just racked up more debt paying of previous debt with more higher rate debt as i was worried to death i would have my house and possesions snatched from me.

Credit card companies and my bank were actively encouraging me to top up etc and giving me new increased limits, god knows how much ive paid in interest over the years,and now a recession and reality comes and bites my bum ,

Edited October 22, 2008 by mak71

[cashins]

Credit card companies and my bank were actively encouraging me to top up etc and giving me new increased limits, god knows how much ive paid in interest over the years,and now a recession and reality comes and bites my bum ,

 

And still are!

 

Banks make 99% of their income lending money, if they don't do it their in trouble. What they are doing is battering to death known 'good' customers to take more credit.

 

Several people I know who would fit the bill on this are persistently being targeted primarily by their own bank, existing cardholders and companies they have used in the past.

 

What they never seem to understand is that an impeccable credit history is just that, history, the 1st default could be tomorrow.

 

David

[splatty natty]

I've received two SD's from the same company approx a year apart for the same account.

 

They were receiving regular payments but kept putting up the amounts despite me telling them I couldn't pay any extra, until they were impossible for me to afford.

 

Then they issued a SD I didn't know at the time that I could get it set aside so I didn't do anything I just told them I would see them in court, they sent me a letter saying they were now in a position to make me bankrupt.

 

And I never heard anything more for about six months then they started the phone harassment again & they sent another SD, the same thing happened again....this was all before I found CAG.

 

Now I would definately get them set aside if I get anymore now I know that I can.

 

And these SD's were sent when I was making regular payments & they haven't yet been able to supply me with a CCA.

 

I find it disgusting that they can play with peoples lives in this way...I don't know how they sleep at night!

 

I'm going to complain to everyone I possibly can about these monsters.

 

Rant over

[42man]

Just to add, and if anybody is in doubt....some DCA's WILL progress to bankruptcy stage....the risk is obviously your own, but I personally would never ignore a stat demand, whether it is a threat or not...unless people go to court and hit the DCA's in the pocket, get judges seeing that the Insolvency service is being abused, then the more they will use them....the more people that oppose them, then a DCA will perk up and say...'hmmm why are we paying out £400+ to an alleged debtor, when it should be us getting money out of them... this isn't very economical..'

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/154693-1st-credit-connaught.html

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/104409-bankruptcy-order-twice.html

[ODC]

.the more people that oppose them, then a DCA will perk up and say...'hmmm why are we paying out £400+ to an alleged debtor, when it should be us getting money out of them... this isn't very economical..'

 

 

Yes and they could have bought nearly 400 Unenforceable Capone debts for that:grin:

[Duffers Mum]

Once I'm back from my set aside hearing later today, with hopefully my costs, I intend to report 1st Cretins to the FOS, OFT, TS, my MP, and anybody else I can find to report them to.

 

I would advise anybody to take notice of what people tell them on this site when the receive a SD and that is apply to get it set aside and try and hit them for costs, (must admit my costs could probably have been more but would rather be realistic and hope to get them!). At least this way the unscrupulous DCA's will realise that people are fighting back and hitting them where it hurts....in their pockets.

 

Right off to get ready for court now, in 3 hours it should all be over

[miss muppet]

Good luck DM, 1st Crud still haven't paid daughter's costs, lets see how they like Bailiffs appearing at the door!!!

[paulwlton]

Can a SD be sent to a debtor where an installment order is being complied with after judgment?

[snooziesuzie]

Good Luck DM - keep us posted

[paulwlton]

Once I'm back from my set aside hearing later today, with hopefully my costs, I intend to report 1st Cretins to the FOS, OFT, TS, my MP, and anybody else I can find to report them to.

 

I would advise anybody to take notice of what people tell them on this site when the receive a SD and that is apply to get it set aside and try and hit them for costs, (must admit my costs could probably have been more but would rather be realistic and hope to get them!). At least this way the unscrupulous DCA's will realise that people are fighting back and hitting them where it hurts....in their pockets.

 

Right off to get ready for court now, in 3 hours it should all be over

 

Good luck DM.

[42man]

Some will try Paul.....but it would probably be set aside if a payemtn order was being complied with...

[Duffers Mum]

Hmmmm, well if I get awarded costs and they don't pay them, I might pay them a little visit with a calling card and my rather fierce dog who doesn't like people who upset his mum

[ODC]

Good Luck DM. When you get your costs dont forget to send worst Credit for your nice Christmas Bonus

[mak71]

Good luck DM,

Mak x

[Duffers Mum]

Back, I have updated my thread, in brief, set aside and costs awarded to me

[mak71]

Back, I have updated my thread, in brief, set aside and costs awarded to me

 

Fantastic news,

well done

[fuzzybobble]

YAY Well done.

 

Another winner on the DCA fruit machine.

 

The more people who get SD's set aside and cost the DCAS money, the more unattractive a business model it will be for them, and save a lot of people money and worry paying these scumbags.

[thunder5]

In the first quarter of 2008, there were only 2,539 creditor forced petitions, (including HMRC, LA's, business creditors, etc) out of a total of 15,814.

 

Now bear in mind many of these would have been for owed Tax, Owed VAT, Council Tax, Self Employed Business Debts ets, the actual number of Creditors forcing bankruptcy is very very low.

[blipvert]

In the first quarter of 2008, there were only 2,539 creditor forced petitions, (including HMRC, LA's, business creditors, etc) out of a total of 15,814.

 

Now bear in mind many of these would have been for owed Tax, Owed VAT, Council Tax, Self Employed Business Debts ets, the actual number of Creditors forcing bankruptcy is very very low.

 

now that is rather interesting, in view of the fact it costs rather serious dosh to bring a b/r application, how many are initiated by DCA's I wonder ?

[thunder5]

I was told it was less than 100, with a high majority somewhere in the 90%range being AMEX, although this is not factual information, just a rough guide, whereas the numbers above are actual fact. Going on these figures, it seems extremely rare for a DCA to go for bankruptcy, with the exception of AMEX.