Land Of Leather - Creation Finance ***interest Fee Credit Con**

[LAND OF LEATHER]

Please can some one help me, I purchased a sofa form Land of Leather Back in February 2006 for £699, the credit deals were advertised as 'free until 2007', 'free for a whole year' and 'everything's free until 2007' when in fact interest accrued from the beginning of the agreement if the whole balance was not paid off within a specified period. I considered this to be misleading under of the Consumer Credit Act 1974 and in breach of the Consumer Credit (Advertisement) Regulations 1989.

I signed a direct debt considered that my sofa was paid for, also I have never received any correspondents regariing my purchase, until August 2007 from Creation Consumer Finance Ltd issuing a Default notice and my outstanding balance £1,766.14 and now my debt has been forward to Greenhalghs Solicitors.

Greenhalgh have asked me to write a letter and to included that I had signed a Direct Debit which was never cancelled. Can anyone advised what sort of thing should I write?

[2020]

The very first thing I would do is to make sure that the agreement is legal

1. Were you given two copies of the finance in the store to take away or was one forwarded by post when the finance had been accepted? One of these must be signed by te store to complete the agreement.

2. Did you sign all four copies of the agreement (one is sent to the finance company and one retained by the store) ask for copies?

3. If you took out a warranty or PPP is it signed on the finance form and the box ticked?

4. Is the pre contract box ticked?

5. Did you have it delivered to the address on the finance form?

6. Does the amounts and up to what is on your order form price of suite, delivery ect ect ?

The only way forward if it is 100% legal is to be honest is come to some arrangement with them to repay it is very clear on the documents what the payment date is. I would ask why no payment s were taken from your bank as if you pass over the payment date the direct debit is meant to start

[LAND OF LEATHER]

Please can u help me, I purchase GBP 699.00 a sofa from Land of leather Feb. 2006 and was not delivered until May 2006(interest fee for one year. Credit agreement was with Creations. I signed a standing order and assumed the sofa was paid for. Aug Sept 2007 I received a letter from Creations saying that I had cancelled my direct debt (I never canelled the DD, from this site other people have had their DD cancelled. I was so shocked they told me I owed GBP 1,500.00. I wrote asking why and they reply in Sept 2007 with a copy of my credit agreement. I agreed to the new repayments and took first payment and then they sent out a letter confirmation and three weeks later I received a letter from their legal saying my contract had been terminated. Dec 2007 I received a letter from Court that a CCJ had been put against my name and the debt had gone up to GBP 2,200.00, I sent back to the court disagreeing, but received not reply. January Creations emailed agreeing to repayments and 7th Feb 2008 I received a letter from the Land Register say that Creations are put some notice on my house. 8th Feb I contacted Creation and I

Just want to clear this mess, I cannot sleep, I work for a financial institution and I can lose my job if I have CCJ against my name. Creations confirmed that my debt is now GBP 3,200.00 if I settled they would remove the Land register, but were unable to remove the CCJ. PLEASE CAN YOU POINT ME IN THE RIGHT DIRECTION.

[dad]

OK Land of Leather,

 

I have found your thread.

 

It seems from your description that their solictors have also obtained a charging order over your house.

 

As I said time is short. The first thing is to try to get the CCJ set aside. You will have to submit an N244 form http://www.hmcourts-service.gov.uk/courtfinder/forms/n244_0400.pdf.

 

To be honest given the delay this might or might not work depending on the judge.

 

Fill in 3 copies of the N244 as follows:

 

In the box at the top right copy the details from your CCJ.

 

Fill in the box on the left as follows:

 

1. a at a hearing

2. 30 minutes

3. No

4.

5. District

6. Claimant

 

Part A

1. enter your name

2.

i. Set aside the judgement in default entered on xx Dec 07.

(ii. Set aside the charging order made on xx xxx xx)

iii. Execution of the judgment entered against the Defendant on xx Dec 2007 be stayed pending a final decision on this application to set aside judgment.

iv. The Defendant be allowed to file a Defence to these proceedings.

 

3. The default notice issued by the claimant on xx xxx 07 is invalid. A valid default notice is required by s87 of the Consumer Credit Act 1974 before the Claimant may issue a claim. The lack of a valid default notice bars the Claimant from issuing proceedings and fatally undermines the claim form in this matter.

 

4. evidence in part C

 

PART C:

 

The Defendant took out a Regulated Credit Agreement on xx xxx xxx.

 

Under the terms of that Agreement the Claimant is only entitled to the reasonable costs of arrears.

 

The Defendant claims that the Claimant has added £xxx.xx in penalty charges to the amounts due under the agreement. The Defendant asserts charges are punitive in nature; are not a genuine pre-estimate of cost incurred by the Claimant; exceed any alleged actual loss to the Claimant in respect of any breaches of contract on the part of the Defendant; and are not intended to represent or related to any alleged actual loss, but instead unduly enrich the Claimant. As such the Claimant is not entitled to these amounts. The Defendant contends that the Claimant is claiming a sum far in excess of the amount in fact owing.

 

These penalties are included in the default sum in the Default Notice issued by the Claimant on xx xxx xx. In consequence it overstates the amount to be paid in favour of the Claimant. In accordance with the ruling of the Court of Appeal in Woodchester v Swayne & Co [1998] EWCA Civ 1209 (14 July 1999) such a default notice is invalid.

 

Without a valid default notice section 87 of the Consumer Credit Act 1974 bars the Claimant from issuing proceedings.

 

-------------------------------------------

 

You should attach to this notice a copy of:

1. The agreement.

2. The default notice.

3. A copy of Woodchester v Swayne ( Woodchester v Swayne & Co [1998] EWCA Civ 1209 (14 July 1998))

 

4. A copy of Section 87 of the CCA 74 Consumer Credit Act 1974 (c. 39) - Statute Law Database

 

Given the complexity of your situation, I would seek proper legal advice and or vist your local CAB.

 

Dad

[LAND OF LEATHER]

Dad, I am sending everything by registered post tomorrow. Thks you and I will keep you posted. you are GREAT.

[LAND OF LEATHER]

Dad,

Should I put the original amount of sofa GBP 699.00 and add interest or the whole amount which on the court from is GBP 1,916.14? Do I calutate with the interest free year and then next year at 28 pct?

The Defendant claims that the Claimant has added £???? in penalty charges to the amounts due under the agreement.

[LAND OF LEATHER]

Dad ... Sorry but do I have to paid anything for to get the CCJ set aside, should I send cheque when I submit an N244 form?

[LAND OF LEATHER]

Dad .. one more point on the N244 = Part C = should I include updated amount including the charging order 19 January 2008 = GBP 3,200.00 - The Defendant claims that the Claimant has added £???? in penalty charges to the amounts due under the agreement.

 

[dad]

LOL:

 

1. Yes you will have to pay the application notice fee (£75 I think) to the court unless you qualify for a fee remission see: http://www.hmcourts-service.gov.uk/courtfinder/forms/ex50.pdf and http://www.hmcourts-service.gov.uk/courtfinder/forms/ex160.pdf.

 

2. You will have received various letters from them before the issue of the Default Notice. Each will have said something along the lines of 'you have been bad and we are charging you an administration fee of £30'

 

Add up all of the thirty pounds and put that total in 'The Defendant claims that the Claimant has added £???? in penalty charges to the amounts due under the agreement'.

 

It would not harm to add copies of any of these letters to the application notice.

 

I would always recommend going into the county court office, if you can, as the counter staff will check that the N244 form is correctly filled in and you are paying the correct fee. Also if you put it into their hands and explain how urgent the application is it is less likely to get put to the bottom of the pile.

 

One more thing You might want to add to the application a request to prevent enforcement before the hearing of of your application. I have changed the draft above to reflect the new wording and correct some typing errors.

 

Dad

[dad]

LoL:

 

Separately,

 

If they are seeking a charging order you must have received the interim charging order notice and a date for the hearing.

 

Did you respond?

 

Dad

[LAND OF LEATHER]

If they are seeking a charging order you must have received the interim charging order notice and a date for the hearing

I received that last week dated 19th Jan and hearing 19th march? why?

what

[LAND OF LEATHER]

If they are seeking a charging order you must have received the interim charging order notice and a date for the hearing

I received that last week dated 19th Jan and hearing 19th march? why?

what should i do?

[dad]

LOL:

 

The rules for charging orders are very specific. You only have a limited time to respond. Under the rules you MUST submit your response within the time table.

- must dash for a train so can't respond further have a search for charging orders

- the insolvency service also has some advice on their web site.

[LAND OF LEATHER]

Dad .. Firstly I would like to thank you for all your help and I think you are great.

 

I found a letter about the arrears and they charge me for sending the letter, an administration fee of £25.00, should I send this to the court??

 

 

The Jugment order was given on 7th Dec and 14th January 2007 the judge consider a intermin charging order application and I also received from Land Registry (5th Feb 2008) intermin charging order dated 14 Jan 2008 and finial order will take place on 19/03/08.

 

Loan agreement

============

The loan agreement key finiancial informaiton - includes administration fee (any) on 09/02/07 and current fees for letter sent, arreas notication £30

 

total amount payable:

 

Goods £699.00 SOFA - Interst free credit for one year

AMOUNT OF CREDIT INSURANCE 227.96?? - I never took out any insurance?

total amount of credit: £ 926.96

TOTAL AMOUNT PAYABLE (GOODS) £ 1322.32

TOTAL AMOUNT INSURANCE : £ 431.24?

TOTAL AMOUNT PAYABLE: 1,753.56

Payments receievd: £97.42 - Unknow to me They cancelled my direct debit

 

So should I take off the £1,753.56 from £ 2,183.06 CCJ or should I only include claimant re-issued admin chagres £ 110.00(as per CCJ)

 

 

I am going to the court thurday to deliver the papers, please see below:-

 

Part A

1. enter your name

2.

i. Set aside the judgement in default entered on 07 Dec 2007.

ii. Set aside the charging order made on 14 Jan 2008

iii. Execution of the judgment entered against the Defendant on 07 Dec 2007 be stayed pending a final decision on this application to set aside judgment.

iv. The Defendant be allowed to file a Defence to these proceedings.

 

3. The default notice issued by the claimant on 07 Dec 2007 is invalid. A valid default notice is required by S87 of the Consumer Credit Act 1974 before the Claimant may issue a claim. The lack of a valid default notice bars the Claimant from issuing proceedings and fatally undermines the claim form in this matter.

 

4. evidence in part C

 

PART C:

 

The Defendant took out a Regulated Credit Agreement 9th Feb 2006.

 

Under the terms of that Agreement the Claimant is only entitled to the reasonable costs of arrears.

 

The Defendant claims that the Claimant has added £110.00 in penalty charges to the amounts due under the agreement. The Defendant asserts charges are punitive in nature; are not a genuine pre-estimate of cost incurred by the Claimant; exceed any alleged actual loss to the Claimant in respect of any breaches of contract on the part of the Defendant; and are not intended to represent or related to any alleged actual loss, but instead unduly enrich the Claimant. As such the Claimant is not entitled to these amounts. The Defendant contends that the Claimant is claiming a sum far in excess of the amount in fact owing.

 

These penalties are included in the default sum in the Default Notice issued by the Claimant on 7th Dec 2007. In consequence it overstates the amount to be paid in favour of the Claimant. In accordance with the ruling of the Court of Appeal in Woodchester v Swayne & Co [1998] EWCA Civ 1209 (14 July 1999) such a default notice is invalid.

 

Without a valid default notice section 87 of the Consumer Credit Act 1974 bars the Claimant from issuing proceedings.

 

Thanks and regards

Kaz

[dad]

LoL

 

1. Charging orders. I do not really have the right knowledge to help you here. I do know there are set timescales and if you miss them, the court may not be able to consider your submissions. Take the paperwork with you when you go to the court - explain to them that you are seeking to have the judgement set aside and ask what you need to do to respond to the charging order.

 

2. Penalty amounts: With out seeing all of the original documentation is is hard for me to be sure of the exact figure. It is importnat that you do not mislead the court. So I think you should change the wording of part C as follows.

 

The Defendant claims that the Claimant has added more than a deminimis sum in penalty charges to the amounts due under the agreement, prior to the issue of the required default notice. Due to the lack of detail in the claim, the Defendant is unable to particularise these penalty charges. An example of a letter detailing such a penalty charge of £25 is attached to this application. The Defendant is seeking an order from the Court for disclosure of the relevant information by the Claimant.

 

 

As a result you should make an addition to Part A 2.

 

v. The Claimant be ordered to provide the Defendant with a true copy of the original default notice and a break down of how each amount mentioned in that notice was calculated within 14 days.

vi. Hearing of this application be stayed until 14 days after the deadline in v above.

 

Finally, just to check, where is says:

 

1. enter your name - You have to replace this with your full name.

[LAND OF LEATHER]

Dad .. I have updated, please confirm is ok to take to court?

 

Part A

1. enter your name

2.

i. Set aside the judgement in default entered on 07 Dec 2007.

ii. Set aside the charging order made on 14 Jan 2008

iii. Execution of the judgment entered against the Defendant on 07 Dec 2007 be stayed pending

a final decision on this application to set aside judgment.

iv. The Defendant be allowed to file a Defence to these proceedings.

v. The Claimant be ordered to provide the Defendant with a true copy of the original default notice and a break down of how each amount mentioned in that notice was calculated within 14 days.

vi. Hearing of this application be stayed until 14 days after the deadline in v above.

 

 

3. The default notice issued by the claimant on 07 Dec 2007 is invalid. A valid default notice is required by S87 of the Consumer Credit Act 1974 before the Claimant may issue a claim. The lack of a valid default notice bars the Claimant from issuing proceedings and fatally undermines the claim form in this matter.

 

4. evidence in part C

 

PART C:

 

The Defendant took out a Regulated Credit Agreement 9th Feb 2006.

 

Under the terms of that Agreement the Claimant is only entitled to the reasonable costs of arrears.

 

The Defendant claims that the Claimant has added more than a deminimis sum in penalty charges to the amounts due under the agreement, prior to the issue of the required default notice. Due to the lack of detail in the claim, the Defendant is unable to particularise these penalty charges. An example of a letter detailing such a penalty charge of £25 is attached to this application. The Defendant is seeking an order from the Court for disclosure of the relevant information by the Claimant.

 

These penalties are included in the default sum in the Default Notice issued by the Claimant on 23rd Nov 2007. In consequence it overstates the amount to be paid in favour of the Claimant. In accordance with the ruling of the Court of Appeal in Woodchester v Swayne & Co [1998] EWCA Civ 1209 (14 July 1999) such a default notice is invalid.

 

Without a valid default notice section 87 of the Consumer Credit Act 1974 bars the Claimant from issuing proceedings

 

When the Defendant took out the contract the Claimant misrepresented to the Defendant that the goods, subject of the contract, would be interest free for a period of a year. This was not the case. This matter is currently the subject of an investigation by the Defendant's local trading standards. The Claimant has been censured previously by the OFT for this activity.

The Defendant contends this misrepresentation gives him the right to rescind the contract under the provisions of the Misrepresentation Act 1967

[LAND OF LEATHER]

Dad ... I also received this today from my

LOCAL Consumer Protection Inspector:-

 

Thank you for your complaint to Consumer Direct.

 

I am sorry to read of the problems with finance agreement relating to purchase of furniture from the above store.

 

I note that whereas to begin with, this was advertised ‘interest-free’ in point of fact if not paid-off in full within the specified period, interest then accrues from the outset.

 

The company gave previously a signed undertaking to the Office of Fair Trading (OFT) back in 2004 that it would refrain from advertising in this manner and would amend its adverts accordingly, in respect of which the latter then issued a Press release 129/04 dated 19th August 2004.

 

Accordingly, I have raised the matter with our Team Manager, and for him to decide what action to take.

[dad]

LoL:

 

Do you have copy of the advert which said interest free/free for a year?

 

If you do you could add this to Part A 3 after the existing text:

 

Further the Defendant claims he has a statutory right to rescind the contract under s1 of the Misrepresentation Act 1967.

 

At the end of Part C add:

 

When the Defendant took out the contract the Claimant misrepresented to the Defendant that the goods, subject of the contract, would be interest free for a period of a year. This was not the case. This matter is currently the subject of an investigation by the Defendant's local trading standards. The Claimant has been censured previously by the OFT for this activity.

The Defendant contends this misrepresentation gives him the right to rescind the contract under the provisions of the Misrepresentation Act 1967.

 

Attach to the application a copy of:

 

1. The Advert;

2. The message from Consumer Direct;

3. The misrespresentation Act 1967 (Misrepresentation Act 1967 (c.7) - Statute Law Database)

 

In very basic terms what the act says is that if you were wrongly told that you got an interest free year then you can undo the contract. ie You give them the sofa back and you get your money back.

 

If you don't have a copy of the ad it is not a disaster, just less compelling.

 

Dad

[dad]

LoL:

 

looking at your updated version of the application, this bit cannot be right:

The default notice issued by the claimant on 07 Dec 2007 is invalid

 

This is the same date as the judgement. Default notices must be issued at least 14 days before initiating a claim.

 

Do you have the default notice? It should be clearly headed "a default notice served under section 87(1) of the Consumer Credit Act 1974".

[LAND OF LEATHER]

Who would send the default notice? the court? - should I change to 23rd Nov?

[LAND OF LEATHER]

Dad .. please could u check my application and also I do not have a copy of the ad. thk u Kaz

[dad]

LoL:

 

1. Creation must send you a default notice at least 14 days before they started the court case.

 

2. On the application you still need to add the extra bit is part A 3 so that it now reads:

The default notice issued by the Claimant is invalid. A valid default notice is required by S87 of the Consumer Credit Act 1974 before the Claimant may issue a claim. The lack of a valid default notice bars the Claimant from issuing proceedings and fatally undermines the claim form in this matter.

 

Further the Defendant claims he has a statutory right to rescind the contract under s1 of the Misrepresentation Act 1967.

[LAND OF LEATHER]

Dad .... (1)I have contacted companies house to see if their is a connection between Land of Leather and Creation Finance. (2) I am going to use the above format application and go to the court to hand it in tomorrow. I will keep you posted. BIG Thank you for all your advise.

[LAND OF LEATHER]

Dad,

1) I took my application to the County court and I was advised that I should

Receive something in the post by next week I should attend a Hearing 14 days after that? Will I need legal council?

2) Apparently this County Court alone receives over 500 applications a day from people regarding Creation Finance. I cannot understand that nothing is done about them; so many court resources are being wasted on them. Apparently another person submitted an application against her CCJ with Creation and contacted Greenfield Solicitors to settle the CCJ and they wanted an additional large sum of money on top of the CCJ, which is against the law and if you settle the CCJ via the court the sum is the original figure.

3) I notice on this site that due to FSA ruling individuals got refunded PP Insurance,

Which looking at my credit agreement, I have been charged for, do you know if this if correct?

Do you think I should report them to FSA?

BIG THANK YOU FOR ALL YOUR HELP.

I will keep you posted

Kaz

[LAND OF LEATHER]

Dad - Do you happen to know any solicitors who would deal with the above?