Urgent**** Statutory demand

[Kim_25]

Hello!

 

I received a statutory demand by hand on the 3rd Jan. I've contacted the CAB as it states on the form but they couldn't offer any help or advice on how to get the thing set aside!

 

It's for £5000 and its the balance of a loan from the bank for £25000. I requested a copy of my credit agreement which they didn't have, and from the little research Ive done and from what I've heard that means the loan is unenforceable?

 

Is it correct as well that if I was self employed when I took the loan out they shouldn't have sold me PPI?

 

Any help/advice welcome!

[honeybee13]

Hello and welcome to CAG.

 

I expect the forum regulars will be along later with advice for you, please bear with us.

 

My best, HB

[unclebulgaria67]

Hello!

 

I received a statutory demand by hand on the 3rd Jan. I've contacted the CAB as it states on the form but they couldn't offer any help or advice on how to get the thing set aside!

 

It's for £5000 and its the balance of a loan from the bank for £25000. I requested a copy of my credit agreement which they didn't have, and from the little research Ive done and from what I've heard that means the loan is unenforceable?

 

Is it correct as well that if I was self employed when I took the loan out they shouldn't have sold me PPI?

 

Any help/advice welcome!

 

You have 18 days from the date of service to get the set aside into your nearest county court that deals with insolvency. Yes you could start a dispute with the original creditor about PPI as if it was a standard PPI policy, it would not have been relevant to self employed. When you send the complaint about PPI by recorded delivery to the company who arranged this, do send a copy to the debt agency that is is chasing the debt.

 

If you have asked for a copy of your loan agreement and this was not supplied, then this can be noted on the set aside.

 

Was this a business or personal loan ?

 

When did you last make any payment or admit to the debt in writing ?

 

Were there any other problems you had with the bank providing the loan ?

 

Any charges applied to the loan account ?

 

You have a bit of time on your hand, so no panic yet. It would probably be best to get the site team to move this thread to legal issues, so you have more chance of a reply from those with more knowledge. I have asked them to do this.

[honeybee13]

Hello again.

 

Thank you for the report, UB, I'll move this to Legal and leave a redirect.

 

HB

[citizenB]

You might want to try and head it off before you need to set aside. On the information you have provided I have drafted a letter which you could send to the Solicitor acting for the company. However, before sending.. you might want to answer some of the questions asked above.

Is this account still with the original lender and is it them who have issued the demand. If so, then amendments will need to be made to the letter. If it has been assigned to a Debt Purchaser, can you advise if you recieved a notice of assignment and what communication have you had either with the Original Lender or the Debt Purchaser.

All communication regarding the stat demand must be between you and the solicitor

Subject Access Request must go to the original lender.

 

Dear Sir or Madam,

References

 

You v Company

 

I am in receipt of a statutory demand, served on me on DATE.

 

I am in the process of submitting the form 6.4 and 6.5 and intend to apply to set the demand aside.

 

I must advise that this account has been in dispute with the original lender, since they failed to comply with my legal s78 request.

I would also point out that the original lender has mis sold PPI on this account, which will be reclaimed/counterclaimed for.

The issuing of this demand is clearly contrary to the OFT guidance on debt recovery where there is a bona fide disputed debt and I would argue that the debt is not immediately due and payable.

 

It is clear that this matter is more suited to the County Court as a Part 7 Claim rather than a bankruptcy matter. I assume that that you are aware of the ruling of Mr Justice Warren in Hammonds (a firm) v Pro-fit USA Ltd [2007] EWHC 1998(Ch) at Para 27 which confirmed that the Insolvency Court is not the place for disputed debts.

 

Given that I have sufficient grounds for challenge, I invite your client to withdraw the demand and pay any costs I might have accrued to date. Should your client refuse, I will seek to set aside the demand which will almost certainly incur costs of attending and I will seek to recover those costs

 

I trust that this matter can be dealt with amicably and without the need for further costs of attending the hearing to set aside the demand.

I look forward to hearing from you as a matter of urgency.

 

Yours faithfully

[Kim_25]

Thank you for your speedy response!

 

In reference to your questions; it was a personal loan and I stopped payments around six months ago. The debt is currently frozen with a collection company.

 

I've had a quick browse on the internet but keep coming across sites which talk me through the process. Is there a website you can recommend? I don't fancy tackling this solo, without any professional knowledge.

[AndyOrch]

" I've had a quick browse on the internet but keep coming across sites which talk me through the process. Is there a website you can recommend? I don't fancy tackling this solo, without any professional knowledge "

 

Tackling what kim the Stat Demand or the PPI?

 

Regards

 

Andy

[Kim_25]

On the statutory demand Andy. I've had a little look about the PPI (hear so much about it lately, it's difficult to avoid) and I actually think they owe ME money! I'm not legal minded and so definately would want some help in trying to get this set aside. There are so many PPI companies out there, why aren't there some that set aside stautory demands!

[AndyOrch]

" There are so many PPI companies out there, why aren't there some that set aside stautory demands! "

 

Because there is no money to recoup... for them to grab a percentage of any award.You really can do this on your own kim...no need to be legal minded this forum will help you every step. Just type into the search box above Stat Demand.... a plethora of threads will show were posters have successfully set a side and recouped costs to boot.

 

Regards

 

Andy

[unclebulgaria67]

On the statutory demand Andy. I've had a little look about the PPI (hear so much about it lately, it's difficult to avoid) and I actually think they owe ME money! I'm not legal minded and so definately would want some help in trying to get this set aside. There are so many PPI companies out there, why aren't there some that set aside stautory demands!

 

You have a couple of choices in dealing with the SD. Follow advice online or employ a solicitor, with the second option potentially costing you, if costs are not awarded in your favour. Solicitors charge about £150 an hour, so you are probably looking at £500+.

 

Anyway it appears you have good reason to ask for the set aside. Your request for a copy of the CCA was not fulfilled and you have a potential PPI claim which might exceed the amount they are claiming.

 

Suggest that you send the letter in CitizensB's post above by recorded to the debt company chasing you. Also send them a copy of the complaint letter regarding PPI claims that you will also be sending to original creditor by recorded. The PPI claim process is pretty straightforward and you can also do that yourself. The FOS can help if you have a problem.

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

[42man]

Is this Connaught / 1st Credit ? or Lowells ?

 

I suggest that you email them first (or you can write recorded delivery) ONLY telephone the person on the demand if you can record the calls and speak only to the person named on the demand....

 

Dear Sir / Madam

 

I am in receipt of your statutory demand which was received by me on (xxxxx)

 

Please can you tell me if I have to reclaim a significant amount of missold PPI through yourselves or through the original creditor ? (EDIT THIS IF NOT CORRECT) - I am surprised that you are attempting to use the insolvency rules as this has been in dispute since (date). The original creditor have also been in default of supplying my credit agreement since (date)

 

If I do not hear back from you within 7 days (please note the date of this letter) Then I will have no option but to set this demand aside in my local county county. If you do not withdraw the demand due to a significant amount of missold PPI then when the issue of costs arises I will have no hesitation in showing the judge my correspondence. I will also be forwarding this demand to the Office Of Fair Trading, I am sure I do not have to remind you of the Consumer Protection From Unfair Trading Regulations 2008, nor the Office Of Fair Trading's stance on the use of statutory demands.

 

I trust this makes my position completely clear.

 

Yours faithfully

[42man]

You could fight this quite easily, but if you need a solicitor then you could google insolvency / bankruptcy solicitors.

[Kim_25]

I appreciate all the advice and confidence but I don't have the time or knowledge to fight it myself atm. Found a nice chap on one of the search engines (EDIT) who I have had a thorough chat with and who is going to do all the leg work Will keep you posted on the outcome. Thanks again for all your help.

Edited January 10, 2013 by Andyorch
Reference to Website