Default Notice

[luke123456]

I have a friend who has received a defualt notice for an amount he cannot afford to pay. What does he do? He has been liasing with the CCCS (Consumer Credit Counselling Service) and has been paying the bank regular payments of £30..

 

thanks

[slick132]

Speak to CCCS and seek advice from them about this.

 

If there is an agreement made with CCCS and the payments have been kept up to date, this seems unfair.

 

Moving this to the Data Protection and Defaults Issues forum.

[blooo]

What authority do the CCCS have?

[luke123456]

No, he was making regular payments of £30 but could not keep up with this. Then he recived a default notice.

 

Then he contacted the CCCS who took details of his income and found that he cannot afford to keep paying them back and have told him to pay just £1 a month. He was also told that he would get harassed from the bank, their solicitors, and baliff action....But was told to ignore this and just oay the £1 a month.

 

Is this all right? I told him what if the baliffs come and recover goods in his house...Is all he has been told so far, correct?

 

Thanks

[luke123456]

I am not sure what authority the CCS have.

[slick132]

Now it is clearer why the DN was issued. The repayment agreement was broken.

 

You could post up the DN so it can be checked for validity - hide personal data.

[luke123456]

Ok the DN was issued as the repayments could nto be made. But is the advice given by the CCCS, correct ( please read bove)??

[slick132]

Hi Luke,

 

I don't think CCCS have any authority - they only act as an intermediary to try and help peeps who are having debt problems keep paying in a way the Creditor finds acceptable.

 

CCCS advised that £1 token payments be maintained but that does not prevent the Creditor from taking action when the Debtor fails to maintain the agreed £30 payments.

[luke123456]

He was told that the bank cant do anything as my friends income and outgoings mean he doesnt have much to live on.....i.e. they cant send baliffs as they need court permission...and if it goes to court the court will see that hehas no money to pay...and £1 a month is all that is possible. is this right???

 

The CCCS have sent template letters for him to send to the bank...and have told him to set up a standing order for £1 a month as I said.

 

It is worth mentioning that the £30 a month is not the agreed payments, my friend was just paying that since that is all he is able to afford. But now the CCCS have told him not to do so.

[slick132]

The CCCS template letters should be sent off as advised and the payments kept up, as far as is possible.

 

If any of the Creditors find it unacceptable, it's up to them to take further action if they wish.

 

This could involve DCA's and countless phone calls. Or it could end up with the Creditor taking the a/c to court.

 

If they are able to produce an enforceable credit agreement, judgement could be made for the debt, but the court should take a/c of personal circumstances and order monthly payments which Debtor can afford.

 

The Creditor may accept the token payments just now although this may change if a CCA request is sent to challenge the enforceability of the a/c. A CCA request may also cause CCCS to no longer assist with the debt management.

[luke123456]

Thanks, but what does this mean 'If they are able to produce an enforceable credit agreement, judgement could be made for the debt'

 

Also could you explain this a bit more...'The Creditor may accept the token payments just now although this may change if a CCA request is sent to challenge the enforceability of the a/c. A CCA request may also cause CCCS to no longer assist with the debt management.'

 

Thanks

[slick132]

Many banks or credit card Co's threaten to take you to court for a debt.

 

But, to be successful with a CCard a/c case, they must produce the actual credit agreement in court. If they have it, they may get a judgement (or a CCJ) in their favour.

 

We see cases where CCCS arrange for CCard Co's to accept token payments when you can only pay so much. But if you challenge the debt by sending in a CCA request (for sight of the credit agreement), the CCCS may withdraw their involvement.

 

They may say, if you are going to challenge the debt on this technicality, we will no longer act in negotiating between you and the Creditors concerning token payments.

 

Send off the template letters and see what comes back from the Creditors.

 

Also, read more about this in either the Debt Issues or the Legal Issues Forums.

[luke123456]

OK thanks so much for your advice. I have told my friend to send of the template letters given to him by the CCCS...

 

Can I just ask, can he be put into prison or the baliffs take any of their home belongings...he doesnt have much anyway his house is rented and all he has is a nice TV, leather sofas and childrens laptops....

 

thanks

[slick132]

Hi Luke,

 

I think it highly unlikely YF would lose sofa, lappyies, etc.

 

Prison is out of the question.

 

If it went to court, which is not a certainty in itself, the judge should take into a/c income and outgoings and make an order for payments which YF can reasonably afford.