Australian Debt being chased in the UK court papers received

[Mozz1]

I am not a lawyer. But I believe your solicitor gave you some misleading advice.

 

While the letter of what he said is true, my understanding is that you have to be resident in Australia for a judgement to be made against you. I also believe the same applies in the UK.

 

.

 

Guys, I know I'm looking at this from the Kiwi not Aussie perspective (NZ thread refers), but my NZ lawyer has just mailed to say

 

"My apologies for not replying sooner. It is possible to get a Court order in NZ against a non resident. That is then registered and enforced in the UK."

 

Which backs up what Lee's English lawyer has told him and also the information I have gleaned from another English lawyer. They may all be wrong and it may not apply to Australia (two important factors) but if NZ appears to allow their courts to make an order against a non-res and for an order to be registered here then it is likely that the same may apply to the Australian courts.

[WA_Newman]

I don't know too much about Court orders against non-residents but in civil cases a plaintif can apply for a court order, but the defendant can apply for a stay based on the fact that he is not resident in the court's jurisdiction.

 

Check this up with a lawyer to find what the law says in your case. A cheap option is the Australian Law section of justanswer.com

[Mandie94]

Hi I am in the same situation, I have now received a claim form from Brighton County Court stating the claimant is Credit corp services, the defendent is myself (my surname is spelt incorrectly), brief details of claim says monies due under 2 accounts assigned to the claimant and in a foreign currency value now £25600. The particulars are the same as Lee except its Westpac Bank. They also say on 23/10/2009 the balance due was $39909.78 (but their letter to me on 28/10/2009 stated amount due $34774.42) But with interest and cost they are now chasing $42353.

 

So far all I have done with correspondence from Stevensdrake is ignore, and I really thought they had given up - until I received this latest claim!! This debt will be statute barred in Jun or Jul this year, what should I do to stall this? Any advice would be much appreciated.

[Mozz1]

I don't think the debt will be statute in barreed in June or July.

 

A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.

[WA_Newman]

Mandie94,

 

Read up on Statute Barred. Each jurisdiction is slightly different. Mostly it's 6 years from last payment by you or written acknowledgement of debt. Some jurisdictions have less (Northern Territory is 3 years).

 

Typically, once you have not made a payment, or acknowledged the debt in writing, for six years the debt is unenforceable. You still owe the debt but the creditor can't enforce it. NSW has a unique statute whereby the debt also disappears.

 

If you were to make a payment or acknowledge the debt before the end of six years, the clock is reset. Some jurisdictions do not allow debts to be un-statute barred. So even if you make a payment on a statute barred debt it is still statute barred. Other jurisdictions such as WA allow statute barred debts to be enforceable should you ever acknowledge the debt in writing.

 

The only way a creditor can stop a debt becoming statute barred is to take legal action to recover the debt. Commencing legal action before the six-year anniversary is enough if they win the case. Once a creditor obtains a judgement against you, the debt can't be statute barred.

 

Check up whether having the wrong name on a claim form (is this a summons?) invalidates Creditcorp's case.

 

You may be lucky if the wrong spelling of your name means the case is thrown out. Whatever happens, never acknowledge the debt. Write back to the court with your intention to defend. Try to string Creditcorp along by any legal method possible. Waiting until the last day to return paperwork, not being available for court until after July, having a mystery illness, having a sick relative in another part of the country, requesting extra time to prepare. Creditcorp may not be aware of their error and be taken off guard.

 

In an ideal world, their case will be thrown out because the wrong defendent is named and their claim will then be statute barred.

 

Don't take my word for the incorrect spelling. Check it out, and get the case law on it.

[Mozz1]

WA, a good post on the limitation point, thanks.

[Mozz1]

Lee, you out there bro? What did you end up doing? Did you settle or are you going to tough it out?

[worriedman68]

Hi I dont know if anybody is there still, but Ive got same prob with CreditCorp in regard to a debt on credit card. The last payment was over 6 years ago.

When is it considered to be statute barred from date of last payment or when they default you??

Any help welcomed..

[cerberusalert]

When is it considered to be statute barred from date of last payment or when they default you??

It starts running one month after the last payment

[worriedman68]

Hi and thanks, I phoned SDsolicitors and told them I have no knowledge of this debt and then a few weeks later they sent me the application form for the cc in my name at oz address, then now ive just got copies of cc accounts which only say $1260 of which there are things on there when I was not even in the country!!, but there original claim is for $1961 plus interest now of $113, are they legally able to be pursue this? Im lost?

[Mozz1]

I'm amazed they're bothering over a meesly $1260 bucks!! My $11000 must be a sure bet for the b*ggers.

Do I understand this right, you have an ENGLISH CC court claim against you for the Aussie debt?

[worriedman68]

No CCJ or anything like that just meant cc as in credit card statements,

Ive just letters from SDsolicitors in UK have not lived in oz for over 6 years? It just says "Please provide us with your payment options within 7 days"

[cerberusalert]

No CCJ or anything like that just meant cc as in credit card statements,

When was the last payment made by you on this because it sounds as if it's Statute Barred to me.

[worriedman68]

The last payment I made was in may 2004.

But It is funny because in september the account was closed and balance shows zero and in payments it says skip/overseas?

[cerberusalert]

The last payment I made was in may 2004.

Then it is Statute Barred, depending on which State you lived in will determine what the SB period is... some it's 5 years others it's 6.

[worriedman68]

I lived in New south wales where it also states in report 55 ASIC "collecting statute barred debts" that the legislation in NSW goes further than legislation in other jurisdictions. It specifically extinguishes the cause of action. As a result after the limitation period expires, there will be no debt to request or demand payment of.??

[cerberusalert]

Write to the solicitor quoting the above.

[leelang229]

Hello All,

 

Sorry, been off line for a while. Having read up all I could, and consulted as much as I could afford to (I need to retrain as a solicitor - £175/hour!!), I have decided to come to agreement with SD and Creditcorp. My real problem is that I have sufficient assets here in the UK to be worth chasing, and once the CC process is in swing there isn't much you can do to stop it.

 

My solicitor is adamant that had we contested on the basis of the debt not being a UK one, and won, then Creditcorp could have claimed in Sydney. If I did not contest that one (tricky from the UK) then they would have got it transferred to the UK anyway.

 

My solicitor got the claim down from over $30k to just over $20k, with a 4 year payment schedule. This has been done on a Tomlin order, so no CCJ, but I have to make all the payments. I'm reasonably happy with that, as it's pretty much what I left behind in Oz in 2006 (and there's no dispute that I owe it!). There's no more interest to pay, so I'll just have to tighten my belt a bit, or earn more money!!

 

Lesson learned, no more big credit card debts for me!

 

Thanks for all your help and advice over the last few weeks,and good luck to all of you in the same position.

 

Cheers, Lee

[cerberusalert]

My solicitor is adamant that had we contested on the basis of the debt not being a UK one, and won, then Creditcorp could have claimed in Sydney

I would have thought Oz law would be much the same as UK law where a CCJ cannot be obtained against a non-resident... but that's academic now.

[Mozz1]

Figure they can get you wherever you live...

...seems the expat forum were right.

Thanks for the update Lee and all the best dude!

[pfjc1000]

Excuse me for being a bit ignorant!!!

 

Does this mean that AUS Credit Acts are different from the UK Credit Acts?

 

If so, does this mean UK creditors can chase debtors that live in Oz/NZ without a ccj and vice versa??

\

[cerberusalert]

does this mean UK creditors can chase debtors that live in Oz/NZ without a ccj and vice versa??

No, see; http://www.consumeractiongroup.co.uk/forum/overseas-debt-overseas-account/250889-can-i-sued-overseas.html

[leelang229]

Hello Mozzi,

 

sent you a PM. Need your copy of your email to the bank. Have another card provider on my back!

 

Cheers, Lee

[Mozz1]

Yo, Lee. I have replied by PM. Hope it helps dude.

[42man]

Lee make sure you make it known to the OFT about your situation - OFT warns credit firms against legal action outside debtors' home jurisdiction - The Office of Fair Trading