Withdrawal of Statutory Demand

[jmf46]

2 Years ago, I had some building work done - the builder tried to claim an extra £1500 on the work agreed to. The issue is not that I can't or won't pay the money, it is that I dispute that I owe the money at all. (The builder has never been able to produce any accounts of the work done)

 

I have since been contacted by Final Demand Ltd, who despite my sending detailed responses to, failed to respond to any of my communications. I was served a Statutory Demand, to which I have applied to 'set aside the statutory demand'. The court date is set for 6 days time, with a 30 minute slot, which I am quite happy to attend in order to resolve the dispute once and for all.

 

I received a telephone call from Final Demand Ltd yesterday to say that they had spoken to their client, who had 'reluctantly' agreed to withdraw the statutory demand and that I should withdraw my application to set aside the SD. I was told that the phone call was being recorded. I said that I was not prepared to take any action until I had something official in writing from Final Demand Ltd to the effect they were withdrawing the SD. I have come home today to 3 answerphone messages from Final Demand Ltd, checking that I had withdrawn my application.

 

Presumably, if Final Demand Ltd do actually withdraw the SD, then my application will be void anyway? Can anyone advise? Is this just another ploy on their behalf? If I receive nothing in writing from them and continue to court next week, am I liable for the court fees? Help!

[ScarletPimpernel]

It would appear that Final Demand used the SD as a threat to try to scare you into paying; it didn't work and they are now concerned that you will go to court anyway and claim wasted costs from them.

 

Looking at Final Demand Ltd., they seem to be a one-man band operating out of a residential address. They work on a no-win no-fee basis, so they won't like having to fork out for your costs.

 

I'd be inclined to go to Court, get the SD set aside (it's free) on the basis that you dispute that any debt exists, and the claimant was aware of the dispute, and claim costs. If they really have withdrawn it, claim wasted costs. There's lots of info on how to do this on CAG - read up on a few SD cases for details.

[jmf46]

Thank you - that sounds like sound advice. What are the 'wasted costs' that I can claim for? J

[ScarletPimpernel]

Have a read of this http://www.consumeractiongroup.co.uk/forum/showthread.php?263089-CapQuest-Letter-Statutory-demand-under-insolvency-act-***-WON-***/page2

 

...and use the Search function for more on SDs and costs. There are lots in the DCA Legal Successes forum.

[Eshezo]

HI,

 

Use this link http://www.consumeractiongroup.co.uk/forum/showthread.php?133153-Statutory-demand-for-credit-card-debt(bankruptcy)Help!&p=1529356&viewfull=1#post1529356 it shows a template of claiming costs for setting aside a Stat Demmand, I used it in court two weeks ago and won the case including costs awarded with this template.

 

rgds

[jmf46]

Brilliant! I'm on it! J

[DonkeyB]

No confirmation in writing from them = go to court!

 

Their recording the call, and the content of the call, should form part of your WS. Can you record calls yourself? If so, maybe call again and demand the withdrawal in writing, and see what you get. If they fail and then are silly enough to continue the action, you will have prima facie evidence of contempt.

[martin g]

Hi,

The court will charge a fee of £40 ( may be a bit more now) for their admin costs in the case of a discontinuation.

Obviously, you don't want to pay this as you are the innocent party so I would either get the other side to pay the court costs and your wasted costs or proceed to court.

The only warning is that the judge might feel that you should have taken the other sides offer to settle/ withdraw and you will need to explain why you wanted to put before the court- finality and so on.

 

Martin g

[NailPost]

I agree the judge may view your decision to continue in the light of what the other side are saying. On the other hand do you believe what Final Demand are saying? I would take what is said on the phone with a pinch of salt and continue. Once set aside Final Demand and the builder would not be able to resume action without leave of the court.

[martin g]

I agree fully, just pointing out what a difficult judge on a bad day may say.

However, saying "I am continuing because I want some costs" won't go down at all well

but saying " I didn't start this, the other side have been unreasonable and are trying to abuse the insolvency service by using it as a debt collecting tool. Please Mr judge, I need this finalised today, the other side are trying to withdraw at no cost to themselves but have not given any assurance that this is the last I will hear of the matter, and by the way here is my bill for wasted costs" would sound pretty good.

 

Martin g

[jmf46]

Wow - everbody is being so helpful! I am going to continue on to Court next Wednesday, in the hope that this will draw the whole dispute to a final conclusion. Am feeling greatly empowered, so thank you everyone!

[jmf46]

I am making my final preparations for my Court date on Wednesday and preparing my 'wasted costs'. I am a school administrator and my contract states that I may not take annual leave during term time, except for in exceptional circumstances. Therefore, for the 3 half-days leave I have had to apply for during term time to seek legal advice from CAB, go to court to swear my affavit to 'set aside' and my court attendance on Wednesday, I have had to inform the school of the circumstances. Can I make any claim for embarrassment or damage to reputation? Thank you! J.

[42man]

Do this company Final Demand Ltd have a credit licence ? which they will need to carry out debt collection ? I can't find anything under their address or company number !!! it might be worth contacting the OFT....They certainly don't mention a credit licence number on their website !!

[DonkeyB]

Application / Licence Details

Licence Number:

0622804

Licence Status:

Current

Current Applicant / Licensee:

Business Name Company Registration Number

Final Demand Limited 6711249

Categories:

Debt collecting

Right To Canvass Off Trade Premises:

No

Issued Date:

24-Nov-2008

Date Maintenance Payment Due:

23-Nov-2013

Legal Formation:

Body Corporate (incorporated inside UK)

Current Individuals that run the organisation:

Name Position

Colin McShane

Nature of Business:

Debt Collection

Current Address(es):

Address Type Address

Correspondence 6, Stanneybrook Close, Norley, FRODSHAM, WA6 8PZ, United Kingdom

Principal Place Of Business 117-118, Queens Dock Commercial Centre, Norfolk Street, LIVERPOOL, L1 0BG, United Kingdom

Registered Office 117-118, Queens Dock Commercial Centre, Norfolk Street, LIVERPOOL, L1 0BG, United Kingdom

[jmf46]

Thank you! I have just got back from court, the Judge agreed that the Statutory Demand should not have been issued in this instance as the amount was in dispute. Using the template from Eshezo, posted on 16 February, I have been successful in winning 'wasted costs'. The full amount requested was not granted, as I hadn't provided the court with 'proof of loss of earnings'from my current employer, otherwise this would have been allowed. The judge was very sympathetic to my situation and I am so glad that I pursued this to the end. Huge thank-you's to everybody who has helped. My only concern now, is that Final Demand will find some other way of pursuing me..... J

[ScarletPimpernel]

Firstly, well done!

 

I will move this thread to Legal Successes.

 

I think it unlikely that Final Demand will be doing much more. Firstly, they'll have to pay your costs; if that doesn't say 'mess with me at your peril', I don't know what does. I doubt they'll ask their client to pay because I suspect that the client will be less than impressed with them as debt collectors. Secondly, they went in with the big guns first - and were soundly thrashed for their trouble. What else can they do? Their rather foolish ploy has not only resulted in them losing money (and I imagine that your costs will be more than their fee if the had collected), it's also demonstrated beyond doubt that the matter is disputed.

 

A stat demand is almost invariably used as a ploy to get the alleged debtor to make contact with the DCA. This is a wholly inappropriate use, but it's what happens. The risk is that the person receiving it knows what to do, as you did, and it ends up costing them. Like most bullies, what they least expect is a sharp slap, but they usually learn from it.

 

If the builder/DCA really thought they could make a case they'd bring a claim in the Small Claims Court, but I suspect that they know that this would be problematical, because of the lack of evidence, and that is why they thought they'd try to intimidate you with the bankruptcy threat.

[martin g]

Well done,

The court will allow them a period to pay your costs, normally 14 days. If you don't get the payment you can get the court balliff to recover the sum and this will cost them an extra £100 or so.

Don't be fobbed off with any excuses for delay.

 

Martin g

[jmf46]

I have just received the following email from Final Demand Ltd

'We are in receipt of an Order of Court dated 23.2.11 and write to advise that we are not the Respondent in this matter. Also we have a recorded telephone call wherein we advised the Statutory Demand was withdrawn and as such you would then withdraw the Application in regards to same.'

 

Can anyone please advise? I know it's not a huge amount of money, but it is more the principle of the matter! Help!

[DonkeyB]

Well, he’ll also have it on tape that you requested this to be confirmed in writing. Tough!

 

Who issue the SD? If he did it in his own name, he is liable for the order for costs. He should be contacting the court, not you, anyway.

[martin g]

Hi,

It is my understanding ( having gone through this) that once a defence has been lodged with the court the SD can only be withdrawn by the claimant. This has to be in writing and the court admin. fee has to be paid at the same time, this was £40 in 2009, and may be a bit more now.

Did the claimant do this? Obviously he did not because it was still listed by the court.

I would write back and advise him that if he doesn't pay the costs by X date you will instruct the court baliff to collect and this will cost him an extra £100 or so.

Martin g

[DonkeyB]

The problem with SDs is the court does not know they exist until action is brought to defend one or enforce one.

 

Like martin, I think you have done everything right. He made the threat by way of a document, so he can withdraw it in writing too. But he did not. End of.

[martin g]

Hi,

Please also report the claimant to the OFT for using the SD as a debt collecting tool, and for generally running their business in a shambolic manner.

You probably won't get any feed back from the OFT but it may count against them when their consumer credit license comes up for renewal.

Martin g

[martin g]

Hi,

Any sign of your costs yet?

If not I would suggest that you give the court bailiff a ring and ask his advice,

Martin g

[DollyDagger]

Hi,

Any sign of your costs yet?

If not I would suggest that you give the court bailiff a ring and ask his advice,

Martin g

 

Final Demand may simply have been the 'agent' who served the SD.

 

In that case, it will be the builder who has to pay the costs. He would be the named creditor.

 

I note that FD have now registered themselves as required under Data Protection Act as data processors. It does seem that they may at time give the appearance of being a bit 'cowboy' like. For example, not being registered when you claim to provide 'credit references' or anyway does look rather like incompetence.

 

FD are very good at shouting, and at slamming down phones: I will give them that.

 

NB I am not a lawyer, this is just a personal opinion. But given that builders do sometimes use statutory demands in an attempt to collect 'debts' in connection with disupted invoices, I think it is worth sharing experiences on this site.

Edited March 18, 2011 by DollyDagger

[42man]

I believe that you have to get a court order for the builder to pay your costs....I can't remember the form on how you do it, but I think there is a fee (which you get back) and a bailiff is sent to either get the money or take goods.