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Court action over company debt inflated by claimant


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Hi,

I have read through some of the cases here but can't find anything directly relevant so I'll post the details here and see if I can gain some guidance.

 

Brief outline:

Our company has agreed a payment plan with a creditor (approx £7000 from Covid related problems) which was agreed over the phone and via a letter from their credit control department.

 

They then sent a payment agreement for signature with an inflated sum of over £14,000 for signing. We have tried to discuss the matter direct but cannot get any access to the legal department, who have no direct email and are not answering their phone (messages are full so cannot leave a message).

 

I have emailed their credit control department who advise that these have been forwarded to legal, still no response. We have been adhering to the payment plan (£100/week) religiously.

 

We have now had court proceedings filed against us for the inflated amount, to which we have sent a defence via MCOL admitting to the original sum owed and pointing out that this is a waste of court time as we are paying already and do not agree the inflated sum (made up of 146 invoices at £40 per invoice plus fees and court fees)

 

We have now received form N181 to complete.

 

Are there any issues with returning this form and what should we do to show that we are being reasonable and have already, to our mind, made an agreement that will save our business getting some form of further default which will cause us issues in the future?

 

I hope that is enough information but please feel free to comment if not.

Many thanks in advance for any help.

Edited by dx100uk
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Welcome to the Forum.

 

If you would read the following link and then copy the Q,s and your responses back here for further advice.Some of the questions will not be applicable to this type of claim but if you can give as much information as possible to help us advise the best course of action.

 

 

Andy

 

 

.

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Thanks Andy,

 

Please see answers below:

 

Which Court have you received the claim from ? Via MCOL

 

Name of the Claimant ? Alliance

 

Date of issue –

 

 8th December 2021

 

 

Particulars of Claim

 

What is the claim for – the reason they have issued the claim? 

 

1. Outstanding invoices for vehicle parts delivered and invoiced between 1st July 2021 and 9th September 2021, and there remains a due balance despite previous reminders and an LBA.

 

2.The outstanding amount is £13,772.42.

including the Late Payment of Commercial Debt (interest) Act 1998 of £149.57

and late payment compensation for 146 overdue invoices at £40 per invoice

plus £732.50 admin fees for managing the recovery process.

 

What is the total value of the claim? 14,461.04
 

Have you received prior notice of a claim being issued pursuant to paragraph 3 of the PAPDC (Pre Action Protocol) ? In the inflated payment agreement a line 'Failure to return the signed agreement, will result in continued legal action.'
 

Have you changed your address since the time at which the debt referred to in the claim was allegedly incurred? No
 

Did you inform the claimant of your change of address? N/A

Is the claim for - a Bank Account (Overdraft) or credit card or loan or catalogue or mobile phone account? Commercial debt
 

When did you enter into the original agreement before or after April 2007 ? N/A
 

Do you recall how you entered into the agreement...On line /In branch/By post ? N/A
 

Is the debt showing on your credit reference files (Experian/Equifax /Etc...) ? Uknown
 

Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim. In house credit control and legal team
 

Were you aware the account had been assigned – did you receive a Notice of Assignment? N/A
 

Did you receive a Default Notice from the original creditor? Uknown
 

Have you been receiving statutory notices headed “Notice of Sums in Arrears”  or " Notice of Arrears "– at least once a year ? No
 

Why did you cease payments? Covid related financial constraints
 

What was the date of your last payment?  Weekly payment plan in place from 8/11/21 last payment of £100 on 7/1/22.
 

Was there a dispute with the original creditor that remains unresolved? Amount owed
 

Did you communicate any financial problems to the original creditor and make any attempt to enter into a debt management plan? Yes fully explained in November 2021 and payment plan agreed on the phone. No response since despite email and phone attempts to see why they feel the inflated sum is justified.
 

Edited by dx100uk
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Defence was admission of £7,000 (approx after the weekly payments to this point 14/12/21) verbatum as below:

 

Company had finanial difficulties brought about by covid related downturn in business causing debts.

 

We have arranged a payment plan with Claimant of £100/week which has been paid on time, so find this claim a waste of court time and resources.

 

The debt according to a letter from the claimant on 27th September 2021 was £7,600. It was based on this amount that the repayment plan was agreed. It has been impossible to communicate with the legal dept of the claimant as they have no email address and their phone systems are full so taking no messages. I have repeatedly asked their credit control dept to liaise in this matter but have yet to receive a response.

 

We are trying o keep all our creditors happy and pay off what we can. This payment plan was agreed with (name of legal guy) from the legal dept who required a signed agreement in return. This took several weeks to arrive and then showed the enlarged amount. Clearly, this could not be signed.

 

Having made several weekly payments, beginning 8th November 2021 until the present day, we not see any reason for this claim to be put through court and reduce our already impacted credit file.

Edited by dx100uk
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Okay thanks.....so you have admitted part of the debt (7K) and defending 7K did you do that on line MCOL

Can you upload a copy of your defence...redacted.

 

I will run through the completion of the N181 over the weekend...what date do you have to file by ?

 

 

Andy

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

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Thanks Andy,

 

Yes that was done on MCOL.

That was the defence that I put on MCOL as above. Do you want me to upload the full specified amount admission document?

Notice of proposed allocation to the fast track received 14th Jan 2022, dated 13 Jan 2022 with directions questionnaire.

 

Your help is much appreciated, thanks again.

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Thanks so your defence in post # 4 above

 

Quote

Do you want me to upload the full specified amount admission document?

 

Yes please.

 

 

 

 

.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

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Quote

Notice of proposed allocation to the fast track received 14th Jan 2022, dated 13 Jan 2022 with directions questionnaire.

 

 

What date must you submit your N181 ?

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

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Good morning Andy,

 

Please see the required doc below:

 

 

 

Date for return of N181 is 14th Feb 2022

 

Thanks

N9A.pdf

Edited by dx100uk
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Thank you...handy to have all the documents to refer to on your topic.....so you have plenty of time to file and serve the DQ.

I would recommend that you hold of for now until nearer the time and wait until the claimant serves their copy then we can use that in the completion of yours.

 

Having admitted to part of the claim of 7K you have in effect brought the claim down to small claim track threshold so in reality you should really be submitting the n180 DQ and not the n181 Fast Track...but lets wait and see what the claimant's file first.

 

Bump your topic say in a few week's time or if you receive the claimant's DQ in the meantime.

We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

If you want advice on your Topic please PM me a link to your thread

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