End of Dispute, then what happens?

[The Debt Star]

When a dispute concludes, can the creditor demand the full arrears of the payments that should have been made during the dispute? ie demand one lump sum - or else?

[jimbo45]

Hi there

Glad you started a new thread on this because I think it definitely needs to be cleared up.

We need to know the EXACT position in Law on what happens if a LEGAL debt is proven to be VALID AFTER a sizeable period of "Debt in dispute".

 

Technically the debt should restart again with the same amount and LEGAL charges owing as it was at the time it was put into dispute but starting again from the NEW date but I'm sure sleazebag Banks and DCA's won't waste any time in trying to claim extra BACK charges.

 

Note -just to make CLEAR these are for DEBTS that ARE properly constituted with proper paperwork etc.

 

Nothing in this thread should stop you of course from trying to avoid Court action or giving in to scare mongering threats from DCA's or even trying to come to some arrangement with the creditors.

 

I just think we need to know the legal position here as nobody seems to have come up with any answer tested in Court.

 

Cheers

jimbo

[esmerobbo]

They have 12 days to come up with the paperwork. If they do then I assume they would be entitled to payment for the 12 days. After twelve days they are then in breach, I cant see how they can charge if they do not comply within the 12 days.

These companies know the twelve day period exists then they should have provided a system were they could come up with the relevant documents within the specified time.

 

Saying that it would be interesting to see a ruling on the actual point.

[jimbo45]

Hi all

Has any cagger out there had a debt contested for a while and then found out that it IS after all enforceable - and whether interest / payments during the period in dispute have been added on.

 

I would imagine this could also make an Unfair Charges case on to the debt possibly rendering it again invalid while these charges are disputed.

 

I think what most of us would dearly love to see is an actual Court ruling on this.

 

Probably difficult to find as it will probably be lumped under Unfair / Extortionate charges.

 

Cheers

jimbo

[Bazooka Boo]

NO interest OR charges can be added onto a disputed account, the only way in which a disputed or deadlocked account can be legally enforced is in a court, IF it gets to that stage then yes the OC or claimant can ask for reasonable costs incurred to be added to the total debt, should the DJ find the agreement/account to be enforceable, on the contrary the defendant can also ask for subsequent costs and damages should the agreement be found to be unenforceable.

 

Once the agreement is found to be enforceable, only then can interest begin bearing in mind that the claimant/oc will have been awarded the Statutory interest of 8% which will have been added to the total debt outstanding, and the interest rate can only coincide with what the defendant had previously agreed to in the contract/agreement originally signed or taken out.

[The Debt Star]

Bazook, so that means they can't ask for X months of backpayments of the principle either?

[Bazooka Boo]

Unless it is written into the initial agreement that was signed at the beginning of the contract/agreement, which you and they signed,then NO, if you dispute the account/agreement then ALL interest and charges are stayed, until such time that a Judge either confirms or negates that the agreement/contract is legally binding, and only then is the OC/plaintiff able to add reasonable charges in bringing the case in front of a Judge and allowed to add 8% interest, the back payments your referring to will be combined in with the plaintiffs legal action, so they cannot simply add spurious fees and charges, there is no back payment, all that you will be forced to pay is the debt outstanding plus 8% interest and any legal/court fees.

[harrassed senior]

When a dispute concludes, can the creditor demand the full arrears of the payments that should have been made during the dispute? ie demand one lump sum - or else?

 

They can 'demand' what they like, the question is, what actual rights do they have to even make that demand. If you were making payments to them, then continue, I mean, how the heck are they going to enforce this 'demand' you have not signed an Agreement to that end! I could demand that you pay the money to me, how would I make that happen?

[The Debt Star]

I should point out that I don't want to get into CCJ territory. But neither do i want a mega bill and a default notice for not paying it. harrassed, are you saying that I should continue paying them what I think is right during the dispute?

 

(I like your avatar BTW)

[creditcardmug]

You need to be a lot more specific, i.e. what was the dispute about, the attitude of the guy on the phone?, the colour of his tie? lol.

Or did you ask for proof of the debt, such as a CCA request

 

Really if you raised the dispute, its not over until you say its been resolved to your satisfaction...its not for them to say its resolved

[The Debt Star]

no. its over when the court says it is.

[Bazooka Boo]

no. its over when the court says it is.

Have they?

[The Debt Star]

nope and dont want it to get that far amigo