Another 1st Credit Problem

[nicknoks]

I wonder if anybody can offer advice on how I should proceed with an issue I have with 1st Credit?

I agreed with Goldfish to pay £40 per month (Goldfish put this in writing). Despite keeping payments up to date Goldfish advised me that they assigned my account to 1st Credit. 1st Credit then wrote to me advising that Goldfish have assigned the debt to them and that the full amount was payable immediately, and if I wanted a copy of my personal information they hold I would have to write to them together with a £10 postal order for admin fees. I did not send this but I did send letter 'N' from Creditors and DCAs - Letter Templates & Budget Planner together with a £1 postal order. This letter crossed in the post with a letter 1st Credit sent to me on 13th October 2008 claiming that they are considering taking legal action against me! I have not heard from them since, even the phone calls which I never answered have stopped! However, the monthly £40 direct debit us still in place but the reference on my bank statement is now Barclaycard!!!

Can anybody advise if: -

a) I sent the correct letter (should I have sent a letter that requests details of assignment as opposed to asking for a copy of the credit agreement?

b) Should I stop the direct debit?

c) Should I contact 1st Credit?

Many thanks for taking the time to read this and I would appreciate some advise.

[rory32]

a) I sent the correct letter

Yes you sent the correct letter.

 

b) Should I stop the direct debit?

 

I would.

 

c) Should I contact 1st Credit?

 

No. They've received enough CCA requests by now to know how to deal with them.

 

P.S. Goldfish is no more. It's now..........Barclaycard. Hence the name on the DD.

[ScabHunter]

a) If this alleged debt relates to a credit card, loan, HP agreement, anything which is covered by certain sections of the Consumer Credit Act 1974, then you did the right thing in sending a CCA request.

 

b) Yes, double yes, and treble yes. Never ever, ever set up Direct Debits with organizations which can be dangerous. Never give your debit card details out either. I keep seeing horror stories on here every single week, usually multiple times, of cases where banking security has been lax, and people have suffered as a result.

 

There is an instance today of someone giving out debit card details thinking they were being charged £15, and later finding that £50 had been taken.

 

Direct Debits are a security risk at the best of times, but to set them up with organizations such as these is asking for serious trouble. Cancel it immediately. If you have ever given your debit card details out, "lose" the card and get one with a new number.

 

It is my advice that, if at all possible, you get a new bank account. This must be with a bank totally unrelated to any you have had previous problems with. Get your income paid into there.

 

c) Depends on the result of your CCA request with the letter "N". Did you send it recorded or special delivery? Have you checked to see that it was delivered? If so, then they are way beyond the 12+2 day limit, and you can send the "Account In Dispute" letter.

 

Account In Dispute

 

Ref:

 

Dear Sir/Madam

 

Thank you for your letter of xx/xx/xx, the contents of which have been noted.

 

You have failed to respond to my legal request to supply me a true copy of the original Consumer Credit Agreement for the above account.

 

On **DATE** I made a formal request for a true signed agreement for the alleged account under consumer credit Act 1974 s77/8. A copy of which is enclosed for your perusal and ease of reference.

You have failed to comply with my request, and as such the account entered default on **DATE**.(12+2 days after you sent the CCA request)

 

The document that you are obliged to send me is a true copy of the executed agreement that contained all of the prescribed terms, all other required terms and statutory notices and was signed by both your company and myself as defined in section 61(1) of CCA 74 and subsequent Statutory Instruments. If the executed agreement contained any reference to any other document, you are also obliged to send me a copy of that document.In addition a full statement of this account should have been sent to me detailing all debits and credits to the account.

 

Furthermore

 

You are aware that the Consumer Credit Act allows 12 working days for a request for a true copy of a credit agreement to be carried out before your client enters into a default situation.

 

This limit has expired

 

As you are no doubt aware section 77(6) states:

 

If the creditor fails to comply with Subsection (1)

 

(a) He is not entitled , while the default continues, to enforce the agreement.

 

Therefore this account has become unenforceable at law.

 

As you have Failed to comply with a lawful request for a true, signed copy of the said agreement and other relevant documents mentioned in it, Failed to send a full statement of the account and Failed to provide any of the documentation requested.

 

Consequentially any legal action you pursue will be averred as both UNLAWFUL and VEXATIOUS.

 

Furthermore I shall counterclaim that any such action constitutes unlawful harassment.

 

Please note you may also consider this letter as a statutory notice under section 10 of the Data Protection Act to cease processing any data in relation to this account with immediate effect.

 

This means you must remove all information regarding this account from your own internal records and from my records with any credit reference agencies.

 

Should you refuse to comply, you must within 21 days provide me with a detailed breakdown of your reasoning behind continuing to process my data.

 

It is not sufficient to simply state that you have a ‘legal right’; You must outline your reasoning in this matter and state upon which legislation this reasoning depends.

 

Should you not respond within 14 days I expect that this means you agree to remove all such data.

 

Furthermore you should be aware that a creditor is not permitted to take ANY action against an account whilst it remains in dispute.

 

The lack of a credit agreement is a very clear dispute and as such the following applies.

 

* You may not demand any payment on the account, nor am I obliged to offer any payment to you.

* You may not add further interest or any charges to the account.

* You may not pass the account to a third party.

* You may not register any information in respect of the account with any credit reference agency.

* You may not issue a default notice related to the account.

 

 

I reserve the right to report your actions to any such regulatory authorities as I see fit. You have 14 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint. I therefore request a copy of your official complaints procedure which you are obliged to supply.

 

I would appreciate your due diligence in this matter.

 

I look forward to hearing from you in writing.

 

Yours faithfully,

 

xxxxxxxxxxxxx

 

As so often happens, you will have to amend it slightly because the letter referenced at the start doesn't exist!

 

Don't be worried about threats of legal action. These are routine. As are lots of threats for things which cannot even be carried out. At least court action is something they can legally do.

 

You have done the right thing so far, apart from getting involved with Direct Debits. Get out of that trouble and you will be heading in the right direction.

 

As they are now in default of your request, you are within your rights to stop paying them. Should they produce an enforceable agreement in the future, they will be able to enforce the alleged debt.

 

Early days yet.

 

SH

[nicknoks]

Sorry about the long delay but many many thanks to both Rory32 and Scabhunter. I cancelled the direct debit and followed up letter 'N' (sent recorded and received) with 'Account in Dispute' letter (again, sent recorded and received) and I've not heard from !st Credit since! However, the debt still appears on my credit report! Can anybody tell me how I can move this forward now? Can I simply write to !st Credit and ask them to remove the bad debt from my credit file considering they did not provide the agreement within the stated time?

 

Again many thanks.