Connaught Collections - Statutory Demand Received - **SET ASIDE GRANTED**

[Morby68]

Evening everyone .

I am new to the forum but wonder if someone can advise me in relation to a problem I am having with 1st Credit/Connaught Collections .

 

 

I had previously had an agreement with AA Personal finance to pay a reduced amount of £10 per month until October 2012 when my wife qualifies from Medical School.

 

On 22 July I received a letter from 1st Credit stating they were now the legal owner of the debt and demanding immediate payment in full .

 

I replied in a letter dated 24th July that I had an agreement with AA and would continue with this.

 

On 28th July I received a letter from 1st Credit stating that Bankruptcy proceedings were being considered .

I then sent a further letter on 29th July that bankruptcy proceedings were pointless as my house was in negative equity

and I had no other assets but would set up a standing order to make the £10 per month payments.

 

On 5th August , 1st Credit sent another letter that as I hadn't replied to their 'numerous' letters (2!) they would refer to Connaught Collections to issue a statutory demand .

 

As they were clearly ignoring my letters ,

 

i set up the standing order and the first payment was made to 1st Credit on 9th August with subsequent ones scheduled for 1st of each month .

Then on 11th August i had a letter offering me a 5% discount .

Finally on 23th August I got a letter from Connaught Collections stating they would issue a Statutory Demand within 7 days which duly was delivered by registered delivery on 1st September .

 

I have a number of issues with what they have stated on the Statutory Demand .

1) They state that i have been sent a notice of assignment which I haven't

2) I am not sure that the amount they are demanding is right

3) They state i have failed to pay any money towards this debt which is also wrong as the first payment was made on 9th August .

 

I wonder if I can get this set aside and if so I would really like some advice as to what to do .

I would also appreciate any other advice about dealing with these clowns as I feel they are just trying to imtimidate me into paying more than I can really afford at this time .

[rebel11]

Hi mor

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

[42man]

It is completely unreasonable of them not to enter into a payment plan with you first, I would drop drop a line to the OFT. And although entering a payment plan isn't reason enough to set aside a srtat demand they should give you the opportunity to make a payment plan....

 

Secondly how was the demand delivered to you ? by hand ? If so then you have 18 days from when you received the demand to set it aside....

 

On the demand there should be a particulars of debt or particulars of the claim. Can you type it up here ? but please don't be too specific with amounts / dates.....

 

If it was me in your situation then I would send off for a copy of your agreement, it is called a CCA request. I would also send off for a SAR to the original creditor... - you can find the links in my signature below) (make sure you send ALL correspondence recorded delivery too, so you have proof)

 

Was there any PPI on the agreement ?

 

I would also try sending a CPR31.14 request to Connaught as several caggers have recently used this in BR/Stat Demand cases to their success you can read about this here - http://www.consumeractiongroup.co.uk/forum/showthread.php?159445 basically what this can do is order the claimant to provide the relevant paperwork in line with what is written on the demand...it can be very useful especially so as you have a problem obtaining all the relevant paperwork...

 

If you spend a little time reading around these forums then you will become a little more enlightened...

[42man]

the Under Secretary Of State For Trade And Consumer Affairs (at the time it was Gareth Thomas) said this in a letter back in 2009 -

 

"Debt collectors who issue stat demands without giving debtors reasonable opportunities to agree a repayment schedule are likely to be in breach of the OFT's debt collection guidance. This guidance outlines the type of business practice that the OFT consider unfair and therefore incompatible with fitness to hold a consumer credit licence."

 

1st Credit and Connaught had a broadside from the OFT back in 2009 (this is why it is important that you contact the OFT)

 

20/09 25 February 2009

The OFT has taken action against 1st Credit Ltd requiring the company to improve its debt collection practices.

The OFT has imposed 'requirements' on 1st Credit using consumer credit powers, after an investigation found that some of its business processes and procedures failed to meet satisfactory standards. As a result, 1st Credit Ltd and its associated companies must:

 

• refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated
  
• not discuss legal action with consumers unless it is likely that such action will be taken
  
• ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and
  
• ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.
  

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.

Failure to comply with the requirements could lead to a fine of up to £50,000 for each occurance and/or possible revocation of 1st Credit's consumer credit licence.

In 2008, following receipt of an application to vary an associated company's licence, the OFT carried out an in-depth investigation into the business practices and procedures employed by companies operating under the 1st Credit banner. In assessing the companies' competence to carry out consumer credit activities, the OFT conducted on-site visits and reviewed complaints received about 1st Credit Ltd's debt collection practices via consumers, Citizens Advice, CCCS and Consumer Direct.

The OFT raised concerns about its dissatisfaction with 1st Credit's behaviour and confirmed that it was looking to impose requirements to improve some of the company's business practices. 1st Credit acknowledged the problems and, as allowed under the Consumer Credit Act, proposed necessary changes to address the OFT's concerns.

 

Ray Watson, OFT Director for Consumer Credit, said:

'The OFT welcomes the constructive approach that 1st Credit has taken in responding to the OFT's concerns about its activities.

'Debt collection firms have a clear legal obligation to deal fairly and proportionately with consumers. This is more important than ever given the current economic climate, when people may already be suffering as a consequence of debt problems. We will continue to use our licensing powers to take firm action to protect consumers where debt collectors engage in oppressive behaviour or practices that fail to comply with our guidance.'

[PGH7447]

subbing

[Morby68]

Thanks 42man . Much appreciated . I have sent off a CCA request special delivery today and will follow your other suggestions . There was no PPI on the original agreement . I take it that the process to make a complaint to the OFT is explained on the OFT website .I have typed the Particulars of Debt below :The debtor entered into a contract with Automobile Association Personal Finance and was given the account no xxxxxx . The debtor failed to adhere to the contract terms and conditions .The account was assigned to the creditor on the following date xx/xx/xxxx .The creditor sent notice of assignment pursuant to the assignment of the debt.The creditor attempted to recover the amounts outstanding by telephone and letter collection methods but the debtor has failed to pay any money pursuant to the assignment of the debt to the creditor .At the date of this demand £xxxx is due and owing by M..........to 1st Credit(finance)3 Limited

Edited September 2, 2011 by Morby68
Error in original post

[42man]

OK...how was the demand delivered to you ?

[42man]

Is the stat demand in Connaughts name ? or Moorhead James ? For the CPR31.14 I would be typing this, I would also send a CCA request to the original creditor.....you need to be seen to be doing as much as possible to get information...

 

Dear Sir,

 

Re: (Claimant's name) v (Your name) CPR 31.14 Request

 

On (date) I received a statutory demand

 

I confirm it is my intention to contest all of your claim.

 

[i have delivered a request for the production of the agreement mentioned in the particulars of the claim/debt which you rely. That request was ignored][delete if no such request was delivered]

 

Please treat this letter as my request made under CPR 31.14 for the disclosure and the production of a verified and legible copy of [each of the following / the] document(s) mentioned in your Particulars of Claim:

 

1 the agreement/contract. where a claim is based upon a written agreement, a copy of the contract or documents constituting the agreement should be attached to or served with the particulars of claim and the original(s) should be available at the hearing. Further, that any general conditions incorporated in the contract should also be attached.

 

2 the deed of assignment*

 

3 the notice of assignment*

 

4 statements for the duration of the agreement*

 

5 [any other documents mentioned in the Particulars of Claim]*

 

* delete if not mentioned in the Particulars of claim.

 

You should ensure compliance with your CPR 31 duties and ensure that the document(s) I have requested are copied to and received by me within 7 days of receiving this letter. Your CPR 31 duties extend to making a reasonable and proportionate search for the originals of the documents I have requested, the better for you to be able to verify the document's authenticity and to provide me with a legible copy. Further, where I have requested a copy of a document, the original of which is now in the possession of another person, you will have a right to possession of that document if you have mentioned it in your case. You must take immediate steps to recover and preserve it for the purpose of this case.

 

Where I have mentioned a document and there is in your possession more than one version of that same document owing to a modification, obliteration or other marking or feature, each version will be a separate document and you must provide a copy of each version of it to me. Your obligations extend to making a reasonable and proportionate search for any version(s) to include an obligation to recover and preserve such version(s) which are now in the possession of a third party.

 

In accordance with CPR 31.15© I undertake to be responsible for your reasonable copying costs incurred in complying with this CPR 31.14 request.

 

If you require more time in which to comply with this request you must tell me in writing. You must tell me before the time for compliance with this request has expired. In telling me you require more time you must tell me what steps you have taken and propose to take in order to comply with this request and also state a date by when you will comply with this request. In addition your statement must be accompanied with a statement that you agree to an extension of the time for me to file my defence. Your extension of time must be not less than 14 days from the date when you say you will have complied with my request and you must state the new date for filing my defence.

 

If you are unable to comply with this request and believe that you will never be able to comply with this request you must tell me in writing.

 

Please note that if you should fail to comply with this request, fail to request more time or fail to agree to an extension of time for the filing of my defence, I will make an application to the court for an order that the proceedings be struck out for non-compliance and a summary costs order. in my favour

 

I do hope this will not be necessary and look forward to hearing from you.

 

yours faithfully

[42man]

For your complaint to the OFT then look at this - http://www.consumeractiongroup.co.uk/forum/showthread.php?195265-Complaining-to-the-OFT

[Morby68]

Thanks 42man . Statutory Demand was delivered by hand and was signed for by my wife yesterday morning (1st September) as I was at work . States I've got 18 days to apply for set aside .

Statutory Demand is in the name of Connaught Collections and if I require any further information then I need to contact a ' Mr D Silcock '

I'll send off the CPR31.14 letter and OFT complaint straightaway and send both a CCA request and SAR to the OC ? . One more point , am I right in thinking that I may not get all this information within 18 days . If that is the case what effect will that have ?

Edited September 2, 2011 by Morby68

[PGH7447]

Try contacting mr silcock, if you dont get him after three attempts than that is a gorunds for set aside

[Morby68]

I have sent CPR 31.14 request to Connaught and SAR to original creditor as well as complaint to OFT . I have received a reply to my CCA request to Connaught which states as follows :We refer to your letter dated xxxxxxYour request for information to be supplied under the Consumer Credit Act is noted.And we confirm that we have requested this information from our client and shall provide it to you as soon as we are in receipt of the same.We must , at this point ,advise you that due to the fact the outstanding debt has been assigned from the original creditor to our client , it may take longer than the 12 days specified within the Consumer Credit Act . We confirm no enforcement action shall be considered by Connaught Collections until this information has been supplied to you .Should you wish to discuss this matter in the mean time please do not hesitate to contact us .Yours Faithfully ,Connaught Collections . Just would like any thoughts on fact that Connaught are saying that they are not going to take any enforcement action until I have the information. However , they have already issued a Statutory Demand which was delivered by hand on 1st September . I have being trying to speak to the Connaught representative named on the Statutory Demand but he seems to be out a lot !!

[42man]

You continue as normal.....it is hardly your fault that they do not have any of your paperwork....!!

[BRIGADIER2JCS]

If you fail 2 speak to the person on 3 separate occasions

it's grounds for set aside.

[42man]

I certainly wouldn't rely on that being a strong enough point to set aside on it's own Brig...

[BRIGADIER2JCS]

Agreed but the contact is supposed

to be available during business hours ??

[Morby68]

Evening everyone and thanks to 42man , Brigadier and PGH for your help to date - it really is greatly appreciated . Just an update and a request for thoughts . I have received a reply from Connaught to my CPR 31.14 request :

 

Dear Sir ,

 

We note your request under the CPR 31.14 , however we would advise you that these are Insolvency proceedings and are therefore exempt from the Civil Procedure Rules

 

Yours Faithfully

 

I was under the impression that all proceedings in a Civil Court were subject to the CPR . Is anyone aware of what statute exempts Insolvency proceedings . That aside , I am clearly not going to get any paperwork from these comedians at Connaught before the deadline for set aside has passed . I am keen to apply for a set aside as

1. 1st Credit/Connaught have ignored the agreement I had in place with the OC
   
2. Have provided no paperwork to confirm they are the legal owner of the debt
   
3. Are stating an outstanding balance which is greater than it was with the OC without providing any paperwork to justify this
   
4. Are clearly abusing the legal process by issuing a statutuory demand to intimidate me to pay money I can't afford as they have been informed in a letter they have admitted receiving , that I have no assets and so bankruptcy is commercially pointless for them .
   
5. The contact named on the Statutory demand seems to never be in the office.
   

I am aware that not all of the above are grounds for set aside , but I would like some advice on what grounds and terminology I may use to apply for set aside . Also , I have sent a complaint to the OFT about this lot , but if they are talking rubbish about CPR not applying to Insolvency proceedings , how do I amend that complaint to include this .

Sorry to ramble on but I am a bit cheesed off with these vegetables as all I want to do is pay off the money I owe at a rate I can afford . Any advice , as always , gratefully received .

[42man]

They are correct but a judge can make dispensation if the paperwork is required. I have heard of statutory demands set aside by judges when the Civil Procedure Rules have been applied by a litigant in person. You might find this thread useful. - http://www.consumeractiongroup.co.uk/forum/showthread.php?309388-capquest-statutory-demand

[king100]

Are you still paying them the £10?

[Morby68]

Yes , I have continued to pay the £10 as per my agreement with the OC , as that is all I can afford at this moment in time

[Morby68]

Sorry to be thick , but I am going to submit the forms 6.4 and 6.5 to the court but what other documents do I need to hand in with it - is it just the letters I have had and sent to 1st Credit/Connaught or is it anything and everything to do with points mentioned in my application .I rang Connaught and on the third attempt they did put me through to ' Mr Silcock ' but I just said that I was applying for a set aside without providing any details of my reasons which I hope was the right thing to do .

[42man]

You should also attach a copy of the CCA request you sent, and the recorded delivery slip, and a copy of the SAR too...

[alf2009]

I received a Statutory Demand for an AA loan from 1st credit, word for word this one to Morby 68, dated 1st sept, and received a couple of days later, following a letter giving me 7 days from Connaught dated 25th August, hardly 7 days given the bank holiday.

 

I thought I had responded within the 7 days by making a bank transfer of £200 on 1st Sept and sending an offer to repay over 4 years. Letters must have crossed in the post. The SD was sent by Interlink courier but was on the mat when I got home - not signed for. My offer was rejected, so I sent another offer over 3 years, no reply yet. I know I shouldn't have delayed but their opening gambit was to repay over 5 months - nearly £2000 a month -impossible, and I feared to get in touch in case I was talked into something I couldn't keep up.

 

I have 3 days to submit a set aside, the only reason really is that I have no paperwork, and I think they are abusing the process. I need them to agree to a sensible instalment plan.

 

I have looked at the the defence on a previous post to cut and paste, it seems very long winded, but is that the best defence to use? Do nothing is obviously not an option. I sent a CCA request today.

[BRIGADIER2JCS]

Not sure that's legal it should

be by hand to you in person?

[alf2009]

Well its says on the label ' must be signed for by adressee only' - but it was posted through the letter box while the house was empty. No idea what time of day.