Statutory demand - debt for liquidated sum etc

[redjax]

Help please.

 

My son has been unemployed for some time, he lost his rented home, his marriage has disintegrated and he is back living with us. The only thing he owns is a car worth about £100, his tools if he ever gets back to work as a brickie and his clothes.

He owes £12,000 on a loan he took out ages ago when he was working and earning good money. He has now received a form which says Statutory demand under section 268(1)(a) of the insolvency act 1986. Debt for Liquidated Sum Payable Immediately.

What is this and what does he have to do. Also can they take anything from my house for this?

Please help. I am getting frantic!!

[silverfox1961]

Hi,

sorry you were missed.

I don't know enough about SD's but I do know that this is your sons debt and not yours. Any bailiff can only take your sons stuff, not yours.

Someone will come along eventually to offer more advice

[redjax]

Thanks very much. I don't feel so bad now I know they can't waltz off with my TV etc. He is on £64 per week JSA and wrote offering £30 per month several times which they just ignored. If he goes to court I'll go with him and give them a piece of my mind!

[42man]

Is this being pursued through a debt collection agency ? 1st Credit ? Capquest ? Arrow Global ? If he has made an offer (which from what you say is quite reasonable) then they have to accept it....this is what Gareth Thomas - Undersecretary Of State For Trade And Consumer Affairs said earlier this year -

 

 

QUOTE " Debt collectors who issue stat demands without giving debtors reasonable opportunities to agree a repayment schedule are likely to be in breach of the OFT's debt collection guidance. This guidance outlines the type of business practice that the OFT consider unfair and therefore incompatible with fitness to hold a consumer credit licence.

 

In addition to this, the government has recently strengthened the OFT regime to give them greater powers to investigate and take action against unscrupulous or incompetent firms. The OFT will be targetting its monitoring and scrutiny activities on debt collectors.

 

If you wish to comment on a company's non-compliance with the OFT's guidance, you can do so by going to the OFT website and downloading a complaints form, which has been established so that debtors and their representatives can provide them with the information they need in order to investigate complaints quickly and effectively"

 

You must report them to the OFT if this is indeed a debt collection agency sending a demand....was it sent by first class post ?

[redjax]

Yes it's a well known one - Connaught Collections. They sent the demand by signed for delivery. My daughter in law (my other sons wife) signed for it, not my son. I will definitely be making a complaint now that you have given me this information. This account has been passed through various collection agencies and none of them have ever replied to his letters, they have just sent more nastier demands.

[redjax]

I have now found 2 emails which we sent to the solicitor who was also chasing him for Connaught Collections, an offer of payment was made in both emails. The first one was sent on 14 March which also had copies of letters to the first two collection agencies who were hounding him for this debt all of which they ignored and I have the response from them to the second email (which was sent on 2 April again with an offer of payment), saying they would pass it to Connaught who would be in touch in due course. All in all four different companies have been chasing him for this. The only reply he got from Connaught was this statutory demand. I have downloaded the complaints form but could do with some advise as to filling it in, it seems to be worded for a solicitor to complete. Can we fill it out ourselves?

[42man]

Has he sent out a request for a copy of the agreement ? sent a SAR to the original creditor ? Either Connaught are really stupid or they are serious......I can assist with this. But there are some other threads about stat demands here - DCA Legal Successes - The Consumer Forums offering a payment plan isn't enough to get it set aside, however there are a host of other reasons, such as notice of assignment, default notice HAS to be compliant, excessive charges ? agreement correct and with the prescribed terms ?

[42man]

Please send me a PM if you need some help....

[redjax]

He has recently done the request for copy of original agreement, not done the SAR. He was never told another company was taking over the case, he just suddenly got letters from different company asking for payment. Connaught I think are the third one! Thanks for the help, It's very much appreciated. What should we do now? I printed off the OFT complaint form but have no idea how to fill it in, nor the form for setting aside. They are so confusing!

[redjax]

Dear 42man.

 

Little update on this. Received a reply from Connaught stating they were trying to gather the documents we had requested, but they wanted to point out it would take longer than the 12 days the Consumer Credit Act states. (Are they allowed to do that?) They also said they are formally withdrawing the Statutory Demand and no further action would be taken until further notice. Have put this letter away somewhere very safe!

 

What do you think, are they just delaying - what should we do next?

 

Thanks for all your help so far, we wouldn't have gotten this far without you!

[silverfox1961]

 

What do you think, are they just delaying - what should we do next?

 

Thanks for all your help so far, we wouldn't have gotten this far without you!

 

Nothing much you can do until they default on your request. If they fail to supply the agreement within the allotted time, the account is in dispute and you could send them a letter telling them so.

[redjax]

Is the 12 days legal or can they extend that to suit them as they are implying?

[silverfox1961]

While no agreement is available, they can't enforce the agreement but if at any time in the future (up to 6 years) they come up with a VALID one, they can begin enforcemant action.

 

The 12 days is a legal requirement to supply but a couple of years ago the offence part, for not supplying, was removed. This used to allow them a futher thirty days but not anymore.

[redjax]

Sorry to be thick, but if they don't come up with the original agreement, he doesn't have to pay..is that right?

[42man]

How are you getting on with this RJ ?

[redjax]

All quiet on the Western Front at the moment, not heard a word from them since my last post.

[redjax]

Hi there,

 

We sent them the account in dispute letter and have now had a reply from Connaught. It states :

 

We confirm we are still presently awaiting a true copy of your credit agreement in regards to the balance above. However rest assured it should not take too much longer.

 

We do not accept your ascertation that we have breached the Office of Fair Tradings guidelines.

 

In your letter of 5th November 2008 (we never wrote to them in 2008 so don't know where that came from), you have not specified upon which ground you rely for the notice under s10 of the Data Protection Act and therefore we do not consider this valid: furthermore this is not a valid request as it falls under the exemption in Schedule 2(a) of the Act.

 

They go on to say that they have agreed that until a copy of the agreement is received they cannot enforce the debt, but once they have it they will be seeking full payment of the debt.

 

Is this right? Is it invalid? What do I do now?

[42man]

I think RJ you may be over the time now to set aside the stat demand, as you normally have to apply to set aside within 18 days of the date on the demand, I think you can still apply to set aside but it costs in the region of £30 to do this......I think a SAR to the original creditor is still a good idea too. And an email to the OFT, just stating what they have done and the fact that they have turned down the offer of payment !!! Connaught were recently ticked off by the OFT about stat demands, and they are either very silly or serious about this - The Office of Fair Trading: OFT imposes requirements on 1st Credit over debt collection practices

[42man]

Any more news on this RJ ?