Statutory Demand - old britannia per loan Connaught Collections / First Credit

[rune]

Hi all,

 

This is my first post to the forum.

 

I could really use some advice here.

 

I have received a Statutory Demand from Connaught collections (1st Credit). I wish to defend against this but until now was not sure what I could do and have let the 18 days pass (i think - read on ).

 

The Statutory Demand was delivered by a registered post service and marked to be signed for by the addressee only. However, it was not served in person by a Process Server.

 

Am I able to still contest the Statutory Demand, even after the 18 days, on the basis that:

 

 

• It was not served personally and correctly
  
• It is possible this is an abuse of process
  
• I don't think I ever received a Notice Of Assignment from original company to 1st Credit. (It appears Connaught Collections is a trading name of 1st Credit).
  

If not, will I have to defend this in court if they submit a Bankruptcy Petition?

 

I also have a letter from them which states that they are now in a position to present a Bankruptcy Petition and that I have failed to either respond to the Statutory Demand or demonstrate an ability to pay.

 

This is untrue.

 

I have had one phone call with them, where I made an offer to pay in installments, which was declined. I was then invited to write to them which I did subsequently and have not had any reply. Unfortunately, I did not send this letter by registered post, perhaps I should have done.

 

Your help would be greatly appreciated.

 

Kind regards

[dx100uk]

whatever debt this is does it show on your CRA file?

 

and if so what is the history on the debt please

 

dx

[rune]

Hi,

 

Thanks for you quick response.

 

The debt does not appear under Britannia (original company) or 1st Credit on my on-line credit report from Experian.

 

This was originally a loan which I took out, which has not had payments made in a considerable time but I did contact them to try and make an offer recently (before the issue of the statutory demand).

 

Please let me know if you need any more information.

[dx100uk]

does it show at all?

 

dx

[rune]

It doesn't appear on my file online, no. Is it possible it's only listed with one of the other agencies?

[dx100uk]

urm...

 

something fishy here

 

thats prob not a genuine sd then

 

they do get sent out like confetti!

 

as a frightener

 

you say you made recent contact

who too a fleecing DCA?

 

tell us the debt story

 

dx

[42man]

You need to be very cautious as Connaught usually carry out their threats.....is the debt possibly statute barred ? Have you sent off a 'CCA' request ? - You can apply to the courts for a 'time out' statutory demand - I had recently heard that this doesn't cost anything..... - You might also find this thread useful - http://www.consumeractiongroup.co.uk/forum/showthread.php?309388-capquest-statutory-demand

[rune]

Ok, on with the story

 

the short verison is:

 

This is one of several debts I have.

This particular one was an unsecured personal loan with Britannia.

I am a freelance IT consultant and I took a hit when the economy struggled.

 

 

I had extended periods out of work and have worked for less then my previous rate when I have been working

. Also, my partner and daughter are both disabled

and and i've had to take time off to care for them.

Being freelance, I am only paid when I work.

 

I have not paid anything to this loan in about a year.

 

1st Credit appear to now own it. (or so they say).

 

Recently 1st credit sent me letters.

One threatening statutory demand, after which I called them but they did not accept my proposal.

Then, the statutory demand.

Thirdly, a letter saying they intend to now pursue a bankruptcy petition.

 

The SD looks in order, but my knowledge is limited at best.

 

It has A signature of representative, names a court, states the amount etc.

 

How can I now confirm if the SD is genuine?

 

 

Thanks again for your continued help!

 

 

 

 

The original loan, or the 1st credit interest in it does not appear on my Experian file.

 

The statutory

[rune]

Thanks 42man - reading.....

[42man]

It is likely to be genuine.....however what is disturbing is that they have turned down a repayment offer from you....(although this in itself is not enough to set aside) The then undersecretarty of state for trade and consumer affairs said this....

"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.'

 

You MUST report them to the OFT too...

[dx100uk]

whom were you paying 1 yrs ago

and when was the loan first taken out

 

dx

[rune]

Hi again DX,

 

I think it's actually been closer to two years or more since the account first got into problems. I was paying Britannia directly. I think the original loan was taken out three-ish years ago. I've never paid a penny to 1st Credit.

 

42man:

 

What you posted makes an interesting read. I will definitely follow up with a complaint to the OFT.

[dx100uk]

something fishy if it does not show on your CRA file.

 

1 wonder if brits wrote it off against tax years ago and 1st crap-it have brought it on a phishing list and are trying to spoof you.

 

i would NOT indicate to them anything at present.

 

poss an SAR to brit?

 

dx

[rune]

Ok, thanks for that DX.

 

In the mean time, however, how would you recommend that I deal with the Statutory Demand?