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1st Credit - What do I do next?


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I have been dealing with 1st credit since last October. My MBNA credit card debt was sold to them. I sent a CCA request to 1st Credit on the 13th October, they cashed the cheque on 19th October. Since then they have made many attempts to arrange a payment plan much higher than I could afford. I had already been paying MBNA what I could afford through Payplan but 1st Credit would not continue with my payments.


Anyway I no longer make payments to them and Payplan are holding my monthly repayments for me until this is resolved. They quite clearly do not have the agreement so I sent a Statutory Notice pursuant to Sections 10 and 12 to then on the 27th March which they received. I even called their office and it does say on their system that this letter was received.


I had given them 21 days to stop processing my data as they currently have 2 defaults against me for the same debt which they do not have a credit agreement for.


So my question is what do I do now? They have no cca, but they still have not confirmed this because they don't even write back. They haven't responded to the stat 10 and 12 and the 21 days are now up. Do I now need to report them to the IC or do I take them to court.


I have tried looking for myself what happens next but I can't see anything.

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1. The next step is to request your latest credit file from Equifax or Experian for £2. That will show if the default is still there.


2. The actual debt you owe, I hope it is not made up of unlawful charges. If it is then you have to claim it back as well. That will decrease the amount of debt or wipe it out totally if the whole debt is made up of unlawful charges.


Well don't let them punish you unlawfully.

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Thanks for your quick reply. I have checked my credit file and both defaults are still there. I have been able to reclaim my charges back and the debt was reduced by the amount reclaimed, but I still owe abot £6k. I don't have a problem with paying back what I owe but they didn't want the amount I was paying MBNA and so 1st credit began to make lots of calls saying they wanted to sell my house.

I have done everything so far I am suppose to do but I am now stuck at getting the default removed. I now want to start paying the money collected so far from this debt which Payplan have and pay one of my other creditors off.

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Thanks Bennyowen for your responses...


I still haven't got any further with 1st Credit and I still do not know what to do next.


I requested the agreement back in October and I have had nothing back.

I issued a stat 10 and 12 on the 27th March which the 21 days have now passed and I still have had no response from them.


After speaking with their legal department today, they said they are still trying to locate the agreement from MBNA (since October last year)


She said that they don't have to produce it within 12 days at all......She asked me why I had stopped making the payments. I told her I was within my rights to withhold the payments until the agreement was found. (I am still making the payments to Payplan and they are holding it for me. So I am not spending it on anything else.)


She said once they send me the agreement she expects me to pay the full balance. I said no way I would not be able to afford to pay the whole amount I would have to make agreements to pay it monthly. She the said that I wouldn't be able to do that and it would be taken to the courts for full payments.....


So my questions are....

They are saying that when they purchase the debt they don't get the agreement with it, they don't need to have it. Is this true?


They said that the deed of assignment is what proves that they purchased the debt and no other paperwork is needed. (They sent me a deed of assignment to say I must now pay them.)


When I asked about the 2 defaults for this one debt that has been registered against me she said she would look into it but the one default would remain there. I did say to her that 1st Credit have not issued me a default notice so why would I have a default from them. Wouldn't it be from MBNA. She couldn't answer this question.


She is now saying that because of the delay and withholding payment when they send me the cca that I have to pay the whole balance in full. What happens when they do find the agreement? I now know that if they do find the agreement they will not accept a payment plan. So what can I do?


I know everyone says do nothing, but I really feel I have to do something or else they are going to take me to court. Is it worth me taking them to court for processing my data since I have already issued the stat 10.


I would really appreciate it if someone could help.



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I don't know about stat10, but I do know that they are talking out of their bum. You are entitled to withold payments while the account is in default. Under OFT guidelines, they cannot pressure you to pay more than you can pay. It will cost them a lot of money to take you to court and then the judge still wouldn't make you pay more than you can afford.


HOWEVER, this is a completely moot point becaues they have not supplied you with the CCA. A debt is unenforcebale without one and it won't look too good for them with the OFT or a judge (if they were silly enough to go to court) that they have failed to abide by the law.

All help is merely my opinion only - please seek legal advice if you need to as I am only qualified in SEN law.

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Thanks Bennyowen.


I had already read the links and I have read them again.


I shall report them to Trading standard so that I have something on file and I will then wait and see what 1st Credit do if anything.


I think because I had spoken to them this morning and they were saying that the information I had was wrong and I should go and speak to whoever was advising me. I now know that this is not the case.


They are just going to have to take me to court if they do find the agreement because I don't have the money to pay it all in one go and they will not accept monthly payments. We will just have to let the Judge decide.....

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  • 3 weeks later...

1st Credit are back again. They still have not sent me a copy of the credit agreement. What I have received this morning is the following letter.





Debt outstanding £££££loads a money


We will shortly be taking legal action against you. As a consequence of such action we will also include a claim for statutory costs and interest. If judgment is obtained this may seriously affect your ability to obtain credit for 6years.




In a final attempt to avoid the aforementioned action we are offering you an opportunity to settle this matter amicably and avoid legal action. If you are preepared to make a single payment amounting to 50% (half) of the debt outstanding we will pay the remainder of your debt for you! Let me repeat this,





This offer is only available for a period of 14 days from the date of this letter. If you wish to accept this offer you must call credit and confirm your acceptance. Please note that the above offers are 'without prejudice'. If you do not reply to this letter, accept and/or adhere to the strict terms and conditions legal action will be taken for the full (not discounted) balance.


Yours faithfully


Legal department



So what happens now yet again. Shall I respond to them about this letter or ignor it. They still won't admit that they don't have the credit agreement and they still have 2 defaults for the same amount registered against my name....

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If they are so sure they can take legal action and get their money why would they offer a full and final for just 50%.


Clearly they do not have the original executed agreement and are trying to salvage the situation by offering you this 'deal'.


You have them on the ropes stick it out.:D

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Fantastic News..... Hang on there 1st Credit customers


I sent a letter of complaint to Office of Fair trading and Trading Standards about the recent letter I received about taking legal action.


I decided to send the same letter to the Founder and Director of 1st Credit. I sent it by special delivery on 16th May. They received it on the 17th and straight away they sent a reply which I received this morning. This has to be the fastest response I have had from 1st Credit considering they ignorned all my previous letter.


This is the letter I sent to them



Complaint about 1st Credit ref account no 0000000


I would like to make a complaint about 1st Credit Limited, who contacted me claiming that they had a debt placed with them which I should pay immediately.


Upon seeking advice from the Consumer Action Group website I sent 1ST Credit a request (copy enclosed) for a copy of my agreement under the Consumer Credit Act 1974, along with the statutory fee. This was sent recorded delivery (ref DK815665975GB) and, signed for on October 17th the £1 cheque was also cashed on 19th October.

As I’m sure you are aware, Section 78 of the Act states:


If the creditor under an agreement fails to comply with subsection (1)—


(a) he is not entitled, while the default continues, to enforce the agreement; and

b) if the default continues for one month he commits an offence.

I was also receiving many calls from 1st Credit at that time requesting payment and that they plan to take court action and force me to sell my house to borrow the money by way of a loan or from family and friends . I then sent a letter dated 23rd October and signed for on the 25th October requesting for all communication to be in writing because of the pressure they were putting me under and their aggressive behaviour. After this time I then still received 3 calls from 1st Credit requesting full payment.

The latest letter I have received from 1st Credit is quite disturbing. This letter now states that they will shortly taking legal action against me if I settle the debt by paying half of it. At this stage 1st Credit have still continued to commit an offence by not sending me a copy of the credit agreement.

1ST Credit have had more than the statutory time period to produce this agreement they are now committing and offence which I would like to draw to your attention.


The last letter I sent to 1st Credit was a Statutory Notice pursuant to Sections 10 and 12 of The Data Protection Act 1998. Data Subject Notice. (Which is enclosed). They were requested to cease from processing data to third parties. 1st Credit are currently sending and have recorded information at the credit reference agencies. They currently have 2 defaults for the same debt registered against my name. I had received no response regarding this request. I had advised Alexis Morby over the telephone about the defaults which she said she would look into but I have heard nothing back and the defaults still remain on my credit file.I believe that their flagrant disregard for the Act calls into question their suitability to hold a Consumer Credit Licence, and would be most interested in your comments.

Just to clarify. 1st credit have failed to send a copy of the credit agreement for the above account. 1st credit have committed an offense

After looking through The office of fair trading guidelines on how a debt collector should conduct 1st Credit and not meet any of these guidelines when pursing a debt which currently in dispute.

False representation of authority and/or legal position

2.3 Those contacting debtors must not be deceitful by misrepresenting their authority

and/or the correct legal position.

2.4 Examples of unfair practices are as follows:

b. falsely implying or stating that action can or will be taken when it legally

cannot, for example, referring to bankruptcy or sequestration proceedings

when the balance is too low to qualify for such proceedings or claiming a

right of entry when no court order to this effect has been granted Physical/psychological harassment

2.5 Putting pressure on debtors or third parties is considered to be oppressive.

b. pressurising debtors to sell property, to raise funds by further

borrowing or to extend their borrowing

f. pressurising debtors to pay in full, in unreasonably large installments,or to increase payments when they are unable to do so

h. ignoring andor disregarding claims that debts have been settled or are

disputed and continuing to make unjustified demands for payment

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.

2.8 Examples of unfair practices are as follows

k. not ceasing collection activity whilst investigating a reasonably queried ordisputed debt.

2.12f: Visiting or threatening to visit debtors without prior agreement when the

debt is deadlocked or disputed.

By 'deadlocked' we mean where a debtor (or debtor’s adviser) agrees there is a debt and

has offered a repayment programme which has not been agreed by the creditor or debt

collector. We are not saying that any offer must be accepted but we have seen cases

where offers are disregarded and a debtor is told that 'we are sending field agents'. Many

debtors are unlikely to understand this term and are likely to view the visit as a threat

designed to make them offer more money when they can pay no more. Some letters appear

to be designed to give this impression

By 'disputed' we mean genuinely disputed. We are not seeking to protect 'won’t pays' but those who are being pursued for a debt they do not owe or genuinely believe they do not owe. Debt collectors who can show that the debt is due and that any dispute has been

looked into and the debt confirmed will not be in breach of this provision.

Should you require any further information regarding this complaint, please do not hesitate to contact me. I understand that you may need to pass this onto any relevant agency, and I give my consent for you to do so.


This is the promt reply I received this morning from 1st Credit


Thank you for your letter of 15th May 2007


Our client is unable to provide a copy of the application form and we are aware that according to legislation we are unable to enfoce the debt.


Please accept our apologies for the telephone calls made after your request for this information and out last letter to you stating we will be taking legal action.


We have instructed the credit reference agencies to delete the information on both entries.


However, we still invite you to make an offer of repayment.



Well that is just lovely, all that money I wasted sending letters and all that time waiting for them not to respond to my letters, I think they should be paying me for the sleepless nights they gave me when they first got the account....



I encourage everyone that is dealing with 1st Credit to hang on in there. If they are breaking the Office of Fair trading rules right to the director Mike Cleary and tell him. I sent a copy of all my letters I sent them and everything they sent me. I highlighted all the actions which broke the OFT guideline on how they should and should not collect repayments so there was prove of what they had put in writting.


I was sooo worried about 1st Credit because I have read that they still go for charging orders if you own a house...... They still will unless you stop them first......


Just a question does anyone have a nice letter I can write back and decline their offer of repayment on a debt which they quite clearly know is UNFORCEABLE.. I would be very greatfull....



At last I can breath.......:-D

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  • 2 weeks later...

Hi heavenly1,



I think you should be writing a letter to them inviting them to make an offer of compensation.


Threatening you with legal action etc, when all the time they knew the debt was unenforceable is unforgivable. All the harassment you suffered with the telephone calls as well.


Go for them big style!!!



Best wishes, Jeff.

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Hiya heavenly1 :) Congrats and good luck.


Hope they wipe the alledged debt and you get compensation for harassemtnet, stress etc.


I'll be watching closely 'cos I'm going through the same thing with them.


Best wishes,



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