CapQuest Statutory Demand

[subam]

I have had an ongoing correspondence with CapQuest who now own a debt bought from Egg which was taken out in 2000 (one of the old CAs I think with missing prescribed terms). I have had a CCA and SAR which were complied with and the copy agreement sent - it was around March 2009. Just before Christmas they offered to reduce the debt if I paid it, which I didn't, and then yesterday they have sent a letter threatening to serve a Statutory Demand unless I pay up within 10 days. They offer again to reduce the debt from 2321 (this amount regulary changes with different letters) to 1400, and also offer to take monthly payments.

 

What about the missing terms? Can they issue a SD if the agreement doesn't comply? I don't get why they can issue a SD, then threaten bancruptcy - which I think means the debt would be wiped off - if they can legally get the money back if they have followed the rules.

 

The SD hasn't been served yet. Is this just a threat? If they serve this is it a matter of public knowledge like a bancruptcy? I would rather just pay up if this is the case.

 

Why do they go for bancruptcy if this doesn't get them the money? I don't own my own home or a car so I don't see the point. Why don't they enforce some kind of payment through the courts? It is all a complete puzzle. I am attaching a copy of CA to try to establish whether or not it's meeting requirements. I was hoping, I suppose, that because they were offering the reduced debt that this was their own desperate last attempt to get some money.

 

Do you think it is better just to accept the reduced debt to get rid of all the stress? The thing is they said that I had defaulted the debt, when I hadn't and could prove it, and added 1000 pounds worth of interest. They have subsequently taken it off but have never said what it was put on for, or even acknowledged that they were wrong about the payments. It was because of that that I started down this path with the CA and the validity of it. If they can I don't see why they haven't taken me to court before now

Thanks

Subam

Edited April 25, 2010 by subam

[maroondevo52]

Hi,

 

I'll move this thread for you, looks like you've put it in the 'success' Forum by mistake.

 

Regards.

 

Scott.

[Series3]

Approved limit...

some say this is not a prescribed term..

 

I don't seem to be able to link threads but search the forum for approved limit and read those..

egg card agreements and what is wrong with them...

 

series3

[Windywoo]

It a similar situation with Cabot, they've issued me with a SD for a completely unenforceable agreement, and they know it!

 

They do this in an attempt to scare people into paying, and 99% of them will!

[subam]

How have you responded to the SD from Cabot? Is the SD a matter of public knowledge? I would die if everyone knew, and definitely won't let it go to the bancruptcy stage. I saw something elsewhere about getting SDs 'set aside' but don't really know what this is.

[subam]

Hi series3, I'm not too good with the technical stuff! I have seen some of the 'what's wrong with them' posts and took some notes a while back but can't remember where I got them from:

 

'Approved limit - not sufficient to advise what credit limit is or how it will be decided therefore a prescribed term is not correctly stated (supporting case Central Trust plc V Sparway 2005

 

does not state rate of interest on cash withdrawals. Only states an APR which is not sufficient for cash purchases as cash purchases include a 1.25% handling fee which included in the APR.

 

Also para 22 of schedule 1 Consumer Credit Act regs require that the agreement details the default charges payable and Egg agreements do not.'

 

All sounds great, but no idea where I got the notes from and no idea if they are correct and would make the agreement void - what an airhead!

Edited April 19, 2010 by subam
posted by mistake

[subam]

I haven't replied to the SD threat yet. Is it worth writing to them and repeating that the Egg Credit Agreement doesn't meet prescribed terms and if they issue then I will apply for a set aside. I really want to ignore them, but at the same time the doing and hearing nothing makes me nervous - especially as I am just watching a programme on debt and bailiffs!

[gh2008]

IMHO, from the tone of your posts, I would make a counter offer for say 25-30% of the balance and get rid of it.

 

To fight this will involve attending Court, many 100s of hours reading researching and preparing and a fair bit of stress and worry.

 

If you've got the money, pay it off and get rid of it.

 

The letter will need to be carefully worded to inform them of your strong bargaining position, there are some on the forum, other wise if you do want to go this way I can PM some others to help with the letter.

 

gh

 

If I'm barking up the wrong tree, do let me know

[gh2008]

Oh, the threat of an SD is just that a threat BUT it is an effective one for the reasons you've given.

 

Even a formal SD is not public so you can chill out.

 

You do need to do something though ...

[subam]

yes I agree I must do something, but I'm not sure what the best way forward is. I'm a bit peed with them as they tried to say I had defaulted (I was paying them back) for 18 months, stuck a 1000 pounds worth of interest on, took it of when I proved I had paid but never acknowledged what had happened at all. Also, I have no default notice. I SARed Capquest but there is no record.

 

So you think then that they will go to court for the bancruptcy? I don't own anything, property or a car.

 

What is IMHO?

[subam]

I was thinking maybe if they do issue the SD then I may get it set aside because of the missing prescribed terms? Also, looking at the copy statements from egg, they only start from 2002 but the card was taken out in 2000. I have until the 27 april to do something. I would make the offer I think, but would they not take this as a sign of weakness and go for a lot more. Plus, would they really accept this and that would be the final offer or in a year or so might they start pursuing me again.

[Series3]

IMHO = In My Humble Opinion

 

If you have the money to make an offer, like gh2008 said then, if worded right it would not show any weakness. Just that your aware of your strong bargaining position. If they sell the debt off to another DCA then they would sell it for far less than 25%.

you have to decide what is best for you.

Help is here either way. Only you can decide.

 

series3

[lee32uk]

I also received a SD from Crapquest, and also do not own a property. From what i have been reading, it seems that it is usually just a scare tactic on their part. It would also cost crapquest at least £1000 to make you Bankrupt. I doubt very much that they would throw money down the drain when they know they have very little chance of seeing any reward.

 

I have decided to ignore my SD and see what happens. They might actually be doing me a favour if they follow through their threat

[gh2008]

These debts are usually sold for a few pence in the £, so maybe 5% of their face value.

If the debt is under £5k then they will spend more in legal fees than they are likely to get back.

 

So, what they'll do is issue threats and generally hassle you for 6yrs. Then they'll sell it on to a low-life DCA who specialises in statute barred debts to have another go at you.

 

I know that if I had the money I'd pay them off and get rid of them - and I'm only 2 years down the line. 5 creditors and only 1 has tried legal action and failed. The others are huffing an puffing but only 1 has a real chance of winning.

 

As always the decision is yours - there is no easy fix. Live with the hassle or pay them off.

 

You do need to respond and you need to raise a clear dispute over the debt such as the unenforceable agreement. That way you should be protected from a SD.

[subam]

Thanks everyone for the replies. I don't much mind the hassle of keep sending letters out to them, I have been writing to them for over a year now with this dispute.I have done the CCA and then a SAR. I have no default notice, never received a statement for the 3 years I was paying, and I have written a letter to them - which I am attaching - this letter was sent on 6 November 09 - would that be a clear dispute?

 

If my case is not strong then the debt is for 2300, they offer to reduce to 1393, 25% is around 600. I can manage to raise the 600 as this is my only remaining debt. Could you help with a letter to them? I have to reply to them before Tuesday.

 

I can't tell you how grateful I am for your responses. I know my problem is very small compared to some that people are facing, but 600 will not be easy to find.

egg 6 november post copy.doc

[gh2008]

I'll PM a couple of excellent letter writers for you.

 

before that though - there seems to be confusion over a Default Notice.

Did you get one? are they saying they sent one? Did you get a letter terminating the account?

 

gh

[subam]

My first correspondance re this account was from Capquest in 2005 saying that my account along with others had been sold to them by egg. I was paying them until they said I had defaulted (to CQ not egg). I hadn't actually defaulted, I was still paying and proved it, but it was that that set all of this off and I stopped paying then. They sent me a copy of a letter supposedly from egg saying that they had transferred my rights and my Egg card to CQ and that my existing relationship with Egg and the account had now ceased. This letter was dated 2009 (is this the termination of account? 3 years after CQ had claimed it?). I was sent the copy CCA and have all the egg statements etc. but I can see no notice of default from Egg.

[subam]

If I correctly understand the position then this is the case...

 

1 Egg should not have sold on my debt as the Credit Agreement did not give permission for my personal data to be shared?

 

2 I have received no default notice from Egg (although I SARed CQ not Egg) or termination of account which means repudiation of contract and unlawful rescission?

 

Does this make it all unenforceable in a court of law?

[maroondevo52]

Hi, subam.

 

I've unapproved the attatchments in your 1st post, as requested

 

Regards.

 

Scott.

[gh2008]

If I correctly understand the position then this is the case...

 

1 Egg should not have sold on my debt as the Credit Agreement did not give permission for my personal data to be shared?

 

2 I have received no default notice from Egg (although I SARed CQ not Egg) or termination of account which means repudiation of contract and unlawful rescission?

 

Does this make it all unenforceable in a court of law?

 

They can sell your debt at any time, that would not be seen as sharing your data (like with a CRA)

 

repudiation of contract - maybe, but without termination the account is still live. They are allowed to withdraw credit facilities and allow you to pay it off as agreed at any time.

 

With a termination notice things change to your advantage usually.

 

Are they demanding the full outstanding amount?

If they are they should have served a compliant default notice, without that they can only demand arrears

 

hth

 

gh

[subam]

They are threatening a SD to be issued on 27th and then bancruptcy (I have no property). They are asking for the full amount of 2300 but as a final conciliatory gesture will accept 1393.

 

They applied interest to this account at the beginning in the period of taking the debt from egg and contacting me (£160) - I didn't think they could do that.

 

Also, some of the letters sent to me when I SARed them are not the same as the ones I have - they have different signatures and some have slightly different wording.

 

Talk about confused! I kinda thought it would be a simple matter of the prescribed terms not being in the agreement and that would be that as far as the law was concerned. I knew they'd fight and there would be lots of letter writing but I was prepared for that, but not really court.

 

Some people think CQ are blustering, and others not. At the end of the day as I said I have no property so they won't get anything there, but I am working.

[Windywoo]

Subam, it doesn't matter whether you have any propety, your car is an asset! If CQ do issue you with a SD, you must get it set aside, there is that chance they are not bluffing!

[subam]

I don't even own a car. I'm getting a bit fidgeting now that it is getting nearer to the 27th. I was wondering about offering them 500 as full and final settlement (I read that if the DCA are on shaky ground (still not sure if they are) they may well accept around 25% of the debt just to get something)

[miss muppet]

Subam, please don't let them panic you into paying when you don't have to. Yes, it can be scary getting a set aside but please read up on the legal successes forum and you will see that it can be done, the likelihood is that Capquest won't even turn up to court.

[subam]

Should I write to them, or just wait to see if they issue the SD and take it from there?