Littlewoods - CPR 31.16 and being kind/stupid enough to help a friend

[stroke a badger]

Littlewoods and CPR 31.16

Being unemployed at the moment I have some time on my hands so i have offered to help a friend sort out a couple of financial issues. Of all the companies we have had to deal with, Littlewoods have been the most hostile and the uncooperative. It has taken them three months to comply with his SAR and even when they finally did a number of statements were missing but we managed to find these by looking at his online account. Just over £140 in penalty charges have been applied to his account which can be reclaimed, this equates to just over 1/4 of the outstanding balance.

Littlewoods were also asked to provide a copy of the credit agreement for the account and since then have admitted to not having a copy on file and have agreed to cease collection activates. Two months after agreeing to stop collecting the account they have issued a default notice for the arrears on the account and have applied negative payment markers to his credit file. I am now thinking that the only way Littlewoods are going to back down and close the account is if we request a copy of the credit agreement citing CPR 31.16.

If all the charges are reclaimed and we commence litigation against Shop Direct Group to force them to admit in court they do have a copy of the credit agreement, and request the court issue an enforcement order to stop them collecting the account in the future, would our claim for the repayment of charge affect his case against Shop Direct Group. Also. If Shop Direct lodge a default on his credit file could it's removal be enforced by the court as part of the order against SDG.

I have starting to draft the POC, once I have finished i will submit it for interrogation.

[stroke a badger]

Bump

[I've got no money]

Littlewoods and CPR 31.16

 

Being unemployed at the moment I have some time on my hands so i have offered to help a friend sort out a couple of financial issues. Of all the companies we have had to deal with, Littlewoods have been the most hostile and the uncooperative. It has taken them three months to comply with his SAR and even when they finally did a number of statements were missing but we managed to find these by looking at his online account. Just over £140 in penalty charges have been applied to his account which can be reclaimed, this equates to just over 1/4 of the outstanding balance.

 

Littlewoods were also asked to provide a copy of the credit agreement for the account and since then have admitted to not having a copy on file and have agreed to cease collection activates. Two months after agreeing to stop collecting the account they have issued a default notice for the arrears on the account and have applied negative payment markers to his credit file. I am now thinking that the only way Littlewoods are going to back down and close the account is if we request a copy of the credit agreement citing CPR 31.16.

 

If all the charges are reclaimed and we commence litigation against Shop Direct Group to force them to admit in court they do have a copy of the credit agreement, and request the court issue an enforcement order to stop them collecting the account in the future, would our claim for the repayment of charge affect his case against Shop Direct Group. Also. If Shop Direct lodge a default on his credit file could it's removal be enforced by the court as part of the order against SDG.

 

I have starting to draft the POC, once I have finished i will submit it for interrogation.

 

I'm a bit confused - can I ask when did your friend first borrow from Littlewoods?

 

If it is a pre 2006 agreement - I presume that what you are planning to apply for an Order under S142 for a declaration that the agreement is by virtue of s127 (3) is irredeemably unenforceable (because if they don't have an agreement it cannot logically contain the prescribed terms).

 

I'm not sure if the court - within S142 proceedings could direct removal or direct the creditor not to try to collect - the abscence of a written agreement does not mean that there is no agreement it just makes it unenforceable...

[stroke a badger]

The account was opened late 2006 or early 2007, he can't remember when. That is a good point. I think before I go any further I need to read up on S142 as I'm not that familiar with section of CCA 1974. :-?

[stroke a badger]

It seems that Littlewoods are playing silly buggers. The account has been in dispute for a while now and from what I can tell apart from the odd phone call and letter Littlewoods has been fairly quiet. I sent a letter to SDG to reclaim the £140 in charges that had been applied to the account and they have replied saying they will investigate my friends claim, however nothing has been received since. The amount left to pay on the account is not massive and even though Littlewoods admitted to not having a copy of the Credit agreement my friend paid the difference between the the amount outstanding and the claim for penalty charges thinking that help the situation. I've had a phonecall this morning from my friend saying that SDG have applied a Default on her credit file for the amount we are claiming back.

 

The problem I have is that I don't have much time at the moment to spend on this as I have a number of interviews to prepare for as well as other things that I wont go in to but feel obliged to try and help. We have made amazing progress in getting her other creditors to accept minimum payments and this has as far as I'm aware not affected her credit file (I've not seen it so don't know for sure) but Littlewoods seem hellbent on being an arse!

[the_shadow]

It seems that Littlewoods are playing silly buggers. The account has been in dispute for a while now and from what I can tell apart from the odd phone call and letter Littlewoods has been fairly quiet. I sent a letter to SDG to reclaim the £140 in charges that had been applied to the account and they have replied saying they will investigate my friends claim, however nothing has been received since. The amount left to pay on the account is not massive and even though Littlewoods admitted to not having a copy of the Credit agreement my friend paid the difference between the the amount outstanding and the claim for penalty charges thinking that help the situation. I've had a phonecall this morning from my friend saying that SDG have applied a Default on her credit file for the amount we are claiming back.

 

The problem I have is that I don't have much time at the moment to spend on this as I have a number of interviews to prepare for as well as other things that I wont go in to but feel obliged to try and help. We have made amazing progress in getting her other creditors to accept minimum payments and this has as far as I'm aware not affected her credit file (I've not seen it so don't know for sure) but Littlewoods seem hellbent on being an arse!

 

Only way I can see to stop this is to put in a court claim for the amount of charges, add interest compounded or whatever they charge and put on the POCS for removal of negative information held with the CRA's.

 

Put all the above in an LBA and see if it gets them moving at all prior to court. Mention that you will be seeking disclosure of the agreement or an acknowledgment in court that the agreement doesnt exist as part of the claim.

 

S.

[stroke a badger]

Very good point RE disclosure, hadn't thought of that.

 

I'm going to write a suitable letter to Littlewoods this afternoon. If they refuse to play ball then I think the only option available to use is to commence litigation, however my friend is not to most confident of people so I will if a hearing date is set and they attend, apply for consent from the court to speak on her behalf. From previous experience I know it will be a cold day in hell before they attend court but you never know.......

[stroke a badger]

Littlewoods have informed my friend that they do not see an worth in communicating further as the account has been defaulted and closed. They also go on to say that eventhough they can not produce a copy of the credit agreement they are going to sell the debt on to a DCA for collection.

 

Edited September 6, 2009 by stroke a badger

[stroke a badger]

Court claim for the repayment of charges and removal of default was filed today. Let's see what happens next.

 

I have been promised a bottle of Rye whiskey if the claim is successful so where's hoping it all works out!

[stroke a badger]

It’s been over a month since I last looked at this, what with a new job and not seeing my friend for a month I’ve let this slip. Things have moved on a bit since the end of August as last week Andrew Connelly of Shop Direct filed a defence, the defence was hand written with a number of corrections – very professional!

 

This is the extent of Mr Connelly’s defence

 

- The defendant confirms applying payment default charges to the claimant’s account in accordance with the terms of the credit agreement.

- The defendant denies that any such charges amount to penalties

- The defendant denies that any default registered does not reflect the true conduct of the account but contests in fact that it relates to the failure of the claimant to make the required payment.

- The defendant notes there is an outstanding balance on the account of £XXX and that the claimant has not paid the default charges he is seeking to reclaim.

- The defendant would claim the right to setoff any amount owed to the claimant against outstanding debt. The defendant denies any liability

 

So it would seem Shop Direct want to take this to the wire which is a pain as I don’t have that much time at the moment to devote to this.

[the_shadow]

Just because they've filed a defence, doesnt mean they'll actually defend ;-)

 

They may make an offer or then again your friend may make an offer prior to any hearing.

 

S.

[stroke a badger]

Completely. I expect they will stretch it out for as long as possible. The problem is Andy will fold under the slightest pressure so I have TOLD him not to talk to the on the phone and to scan and email anything received from the court or Littlewoods.

 

I'm going on leave at the end of the week for three weeks but he knows he can email me.

[stroke a badger]

The County Court the claim was submitted to have issued an Allocation Questionnaire which has to be completed by the start of next month. This has been completed and returned to the issuing Court.

 

It took a while as I'm about 10k miles away from home and Andy has less than reliable internet connection!