Have you received scary letters from a debt collector demanding payments? These letters may threaten defaults, county court judgments (CCJs) and bailiffs taking your possessions.
Sometimes the letters are bluffing, but the number of CCJs is continuing to go up. In the first half of 2019, there were 586,765 CCJs and more than half were for less than £650.
This article covers consumer debts such as credit cards, loans, overdrafts, car finance and catalogue debts. It doesn’t apply to debts such as council tax, rent arrears, magistrates court fines (NB parking tickets are not magistrates court fines) and tax owing to HMRC – these are priority debts and you need to take action urgently.
Contents
Have you received a Claim Form from the court?
If you have already received court papers about a debt, read What To Do If You Get A Claim Form.
Here you now have to defend the court case, even if you think it should never have been started. The timescales for replying to a Claim are tight. If you miss them you will get a CCJ “by default.”
That article covers what your options are, how to complete the forms, where to send them and how to get help.
Have you received a Default Notice?
A creditor can’t take you to court unless a formal Default Notice has been issued. A Default Notice is a formal letter from your creditor informing you that unless you bring your account up to date within 14 days a Default will be made. A Default Notice won’t be issued immediately you miss a payment – creditors usually wait 3-6 months.
As soon as you miss a payment, it will be reported to Experian or the other Credit Reference Agencies. After a few months your credit record at the Credit Reference Agencies may be marked as “in default” but, confusingly, this isn’t the same as a “Default Notice”. Read What should the default date for a debt be? if you would like to know more about defaults on your credit file.
Receiving a Default Notice letter does not mean that you will definitely get a county court judgment. If you can’t pay the balance required, you can still make an offer of repayment. If this is accepted the creditor will not proceed to court action.
Have you received a Letter Before Claim?
Creditors have to send you a Letter Before Claim before they start going to court. This gives you a chance to ask for more information and take debt advice before court. There is a lot of legal protection for consumers with old debts, so find out if you may have good reasons to challenge the debt. For example:
- if the debt is very old and you haven’t made payments to it or acknowledged it for over six years, the creditor may not be able to take legal action. This is a complicated area, if you think it might apply to your debt, read Statute Barred Debt and talk to National Debtline.
- if the creditor can’t produce a copy of the Consumer Credit Act Agreement for a loan or a credit card/catalogue, then they can’t win a case in court.
Read How to reply to a Letter Before Claim which explains what you should have been sent and what you can do.
It is usually a big mistake to ignore a Letter Before Claim. This is not a bluff. If you ignore it you will be getting court papers next.
It is much easier to dispute debts at this stage, by using the reply form to ask for the CCA agreement etc, then to ignore the Letter Before Claim and then have to defend a court case.
Creditors are more likely to go to court if you ignore them
The Ministry of Justice has looked at when creditors decide to go to court. Creditors told the MoJ that:
- “Debt recovery claimants would try to engage with the debtor and negotiate a settlement (including through the offer of repayment plans) before considering issuing a claim in the courts”
- “Customer profiling at the prelitigation stage ensured that claims were only issued where there was a high probability that the debtor could repay the debt (and the court costs incurred)”.
In other words, if you talk to the bank or debt collector, court action isn’t likely. There is more chance of being taken to court if you have a house or a well-paid job than if you are unemployed.
Sending a bailiff round
Unless you already have a County Court Judgment, this is a bluff! For consumer debts, a bailiff can only be sent round if
- the creditor has obtained a CCJ
AND - you don’t comply with the terms of the CCJ.
If you get panicked by letters and court forms and try to ignore them, then bailiffs could be the end result. But if you try to deal with your creditors and any Claim Forms you receive, you shouldn’t need to worry about bailiffs.
What you need to do
Even though the threats in the debt collector letters may well be bluffs, it’s not safe to ignore them. To avoid the escalation from late payments to CCJs and bailiffs, you need to make an offer of a monthly payment to your creditor – ignore the fact that the letter is demanding immediate payments in full, contact your creditor and make a realistic offer.
The more you talk and the more co-operative you are, the less likely court action will be taken. Legally you don’t have to explain to your creditor why you have missed a couple of months payments, nor supply them with details of your income and expenditure – but if you do, then you are more likely to be able to negotiate a repayment plan.
It’s important that you don’t promise creditors more than you can afford. And if you have more than one creditor, they all need to be treated fairly. If you promise all your spare income to the first debt collector that calls you, what are you going to say to the next one?
Unless your difficulty is very temporary, just a couple of weeks, you need to think through your whole debt situation:
- read up about your debt options and priority debts. If in doubt, a Debt Management Plan or making token offers of payments are often sensible holding moves;
- don’t let cross phone calls or scary letters rush you into something you aren’t certain about;
- don’t stop paying priority debts such as your rent or council tax because a bank or debt collector is threatening a county court judgment – that will cause much bigger problems in future;
- don’t ignore a Letter Before Claim – replying asking for more information. This may prove that the creditor can’t win their case and it will help you decide what to do.
If you are still worried or uncertain
StepChange are a great source of advice on how to deal with your creditors. They can help you look at whether a debt management plan is a good option for you, or what your other alternatives are.
If you get a Letter before Claim or a Claim Form itself, then talk to National Debtline on 0808 808 4000 asap. Even if you don’t think you have a defence or you don’t have any money, it is still better to take advice as you may be able to offer a very low monthly payment which the court will agree to.
Got a court Claim Form for a debt?
Everything you need to know about CCJs
Worried about a charging order?
Correct or not? says
A question please :-)
When a debt collector states in writing that they have ‘purchased your debt this means you now owe us’, are they legally in a position to issue a ‘default’ at any time during the statute time period or within 14 days of the ‘purchase’?
Asking as 5years has passed since informed ‘debt’ has being purchased and wondering if a CCJ can still be sought
I dont recognise the ‘debt’ because it was ‘purchased’ without my written agreement and the DCA are refusing to show the ‘receipt’ of their purchase. When I make a financial payment (online or offline), I get some sort of receipt. Why am I expected to pay blindly?
At school I was taught £5(debt) – £5(DCA alledged purchased price ) = £0(owed) Am I correct?
Until purchase proof is shown, still awaiting confirmation whether is £0 owed by me or not
If it isnt £0, then the DCA have been lying with their demands for the last 5yrs
Debt Camel says
That is rather a lot of questions to cover in a reply to a comment! In brief – it sounds as though a CCJ can still be applied for; you don’t have to agree to the sale of your debt to a debt collector; the DCA does not have to tell you how much the debt was bought for; you can ask the DCA for a statement of your account showing payments made and amount owing; and your “sum” isn’t so much arithmetically wrong as legally irrelevant – when a debt is bought you owe the whole debt to the purchaser regardless of what it was bought for.
I’ll do a blog on the purchase of debts by a DCA in the next few days when I will go into more detail as other readers may be interested in this.
Regarding your specific debt, I would suggest that you call National Debtline 0808 808 4000 who will be able to go into specifics about this debt and your general situation.
Correct or not? says
Thanks for your answers!
Sounds like an interesting up and coming post on purchasing of ‘debts’ in particular the non transparent bit of the purchase.
Until (if at all) there’s a change in the Law, these purchases seems analogous to buying a car cash where the legal proof is there (owner’s details) on the log book BUT the ‘receipt’ proof is not legally necessary – even when requested ;-)
Regarding the CCJ bit, if the outstanding balance was ‘purchased’ in 2009 and a CCJ was sought in 2014, does it remain on a credit file until 2020 or until 2015?
Have you done a post on:
-Why DCA’s are reluctant to apply for CCJ’s instead of going the writing, telephoning, texting and doorstep visits route?
-Extending CCJ’s (I read that CCJ’s can be extended at the Court’s discretion)
Asking because I thought a Default Notice had to be sent by 14days after ‘purchase’ then a CCJ can be applied. It’s over 14days and would be interested on reading those answers as I’ve never received a Default Notice from the ‘purchaser’
Thanks also for the National Debtline pointer :-) Have previously spoken to them and they were very helpful too!
Debt Camel says
Here is the article: https://debtcamel.co.uk/sold-to-dca/
If a CCJ is obtained in 2014 it remains on credit file until 2020. re DCAs and CCJs – see this post https://debtcamel.co.uk/debt-collectors-court-bluffing/
CCjs never become statute barred but after 6 years the creditor has to apply to the court to enforce one and will need to give a good reason why this wasnt done before. It’s not very common.
Mo says
I was wondering about this: I have a continuously defaulted debt dating back to September 2012. It will be cleared from my credit score in 5/6 months’ time. Would the debt collector apply for a CCJ between now and then? Based on your comment about having to explain to the court why they hadn’t sooner, I’m presuming not, but I would really appreciate a confirmation of this and also, why do you think this is so unlikely? Basically I only noticed this default 2 and a half years ago and disputed it twice, but it wasn’t removed from my file. Ultimately, I was advised to not acknowledge any letters, not reply to the debt collector and just wait out the last couple of years for it to be cleared automatically; however, I’ve just read elsewhere that debt collectors are likely to apply for a CCJ against a debtor as the 6-year period is nearing to an end. The last thing I would want is to have endured a crap credit rating for all this time just for a CCJ to go on my file! Thoughts?
Sara (Debt Camel) says
“Based on your comment about having to explain to the court why they hadn’t sooner” I am not sure what comment this was? There is no reason why a debt collector can’t wait until the last few months then apply for a CCJ – indeed that very often happens!
“Ultimately, I was advised to not acknowledge any letters, not reply to the debt collector and just wait out the last couple of years for it to be cleared automatically” don’t know who told you that, it doesn’t sound like good advice to me unless there is some fault in the debt documentation which means it can’t be enforced in court.
Read https://debtcamel.co.uk/no-calls-or-letters-about-debt/ which looks at your situation and your options.
Pickle says
My husband and I are both retired ( now in our 60’s) following redundancy a few years ago. Only my husband has a small pension. Redundancy funds were used to make sure essential repairs etc to the house were made. We have dependants in respect of an elderly parent with dementia whom I look after and receive minimum carers allowance for and my widowed mother who has health issues.
My husband has several historic defaulted debts from about 4/5 years ago with cc companies and all have been sold to DCA’s. one has taken him to court to obtain a CCJ. In this instance my husband has admitted the debt but not the amount as stated and has asked for various bits of information pertaining to his defence. The only paper work he has received is a copy of a letter dated 1st September from the original lender ( Barclays) addressed to my husband ( not received by him) which states the debt o/s to be a figure on the court form which includes the court fee and a reconstituted agreement without a name or date, just basically a copy of the t&c’s, and a copy of a printed form from ‘Goldfish’ with his details but again no date or signature. We think that maybe there was a balance transfer from Goldfish to Barclays but otherwise have nothing to link the two. This goes back to 2007 so memory is a bit hazy to say the least.
We have agreed to mediation and my husband wants to clear his debts one way or another., my question, or questions are-
1.The debt was definitely sold to the DCA so is it right that Barclays should be writing to my husband via the DCA giving an o/s figure that includes the court fee?
2. Should they have provided my husband with more than a reconstituted agreement if he is disputing the total outstanding?
3. We can only offer to pay a small monthly amount of about a £1 to each creditor or offer a F&F settlement figure of about 10/20% – this depends on us using a remaining small amount from pension lump sum and a small sum from a relative to split between them all.
We own our house but do not want to end up either selling or with a charge on it. So, How likely is it that the DCA will agree to a settlement of some kind bearing in mind our age and circumstances.
Debt Camel says
hi Pickle, the claimant at court has to prove you owe the amount specified to the claimant – it doesn’t sound to me as though they have yet done this. Also as you mention 2007, if there was a sale of the debt at this point your husband was not aware of, then it may be possible he made no subsequent payments to it and the debt could be statute-barred.
I would rather not speculate on how likely the DCA is to agree anything, because me guessing wouldn’t really help you! Instead I suggest strongly that you need urgent advice on this, I suggest you call National Debtline on 0808 808 4000. They are excellent at dealing with everything CCJ related, and they will be able to give you specific advice on your particular case, which I cannot.
rob haig says
Entered a payment plan with a solicitors that lloyds passed a debt to . We have twice received shocking letters about them stopping the arrangement and sending Bailiffs because of missed payment. Twice they have got it wrong with not even a sorry they left my partner in bits , its affected her experian report with absolutely no fault of ours as we have payed every month before the deadline time, absolutely shocking they can get away with this.
Sara (Debt Camel) says
hi Rob, in these situations it helps to know the facts. They can’t send bailiffs round if you have just missed payments in a payment plan, only if they have already obtained a CCJ. But your credit reports may well be affected even if you are keeping to the terms of a payment plan, see https://debtcamel.co.uk/dmp-credit-rating/.
Violet says
I have had a debt company hand deliver me a letter which is dated a week old and that stated they had written to me informing me of their visit but have failed to put what date this was sent. This is important as I had not received z letter and now they are saying they are charging me an additional £65 for there personal delivery. This debt refers to a dispute I had with a company over 2 years ago which after I sent my complaint in have never had any further contact from, and now they seemed to have doubled the value of the dispute without informing me of this!
The letter is threatening court action if I don’t pay within 14 days (but letter is already a week old) and badly written from the out set then refers to enclosed information which is not enclosed. To top it off I don’t have the value they are asking for and I will refuse to pay everything they are asking as I feel they have treated me unfairly at the most I may agree to pay the original amount however I am reluctant as they never replied to my complaint.
Sara (Debt Camel) says
Hi Violet, it sounds to me as though you need some advice on your original complaint as well as the charges that are being added and how you should respond. Good places to get help would be your local Citizens Advice Bureau or to phone National Debtline on 0808 808 4000
sara says
hi, wondering if you can help, I think the debt has been sold on to a finance companymsaying I owe £1387. if it has then it’s 6 years old as I haven’t obtained credit since my divorce 6 years ago!. they have sent a letter with a Notice of issue of warrant of control, yet there is no court stamp of official court issue!?. further down the letter it has my local court address, telephone number for the local Baliffs office and an empty box for a payment amount. is this a bluff from the creditor do you think?!. I have no CCJ’s previously and I’m a stay at home mother of two in receipt of benefits, what can they do?!.
Sara (Debt Camel) says
hi sara, that doesn’t sound like a bluff, you need to find out what it is about and what you can do urgently or you will have bailiffs turning up. I suggest you call National Debtline and discuss what to do with them: 0808 808 4000. It would also be a good idea to phone your local court and see if you can find out more about the CCJ. And check your credit record and see what that says – you can get access for free here but remember to cancel within a month! http://www.experian.co.uk/consumer/statutory-report.html
Andy says
Question,
Hi i currently have a debt with barclays which is in an agreed repayment plan and the last letter i received from them stated they accept my offer of monthly payment and they will contact me again to start payments. its now been a year and until a month ago i had forgotten about it myself but ive had no contact from barclays whatsoever. Do i just carry on and save a bit up ready for when they do contact me and possibly offer a final settlement or do i contact them and just get the payments started?
Sara (Debt Camel) says
Hi Andy, Saving up and offering a F&F settlement sounds good. Either to Barclays or to a debt collector if Barclays sell it on. Debt collectors are often more prepared than the original lender to accept a F&F.
mary maughan says
Hi, around 4-5 years ago at another property at the time I arranged for SKY TV to be installed. They didn’t come on the day arranged then they later installed it next door. They then said sorry and they will sort it out in 5 days. They never did after weeks so I cancelled for breach of contract. I had a few letter from debt collectors asking me to contact them and once or twice I told them the above story. Not almost 5 years later a recovery agency called Zinc had written asking me to contact them urgently.
As I never had it installed in the first place I don’t feel I own anything.
Sara (Debt Camel) says
Hi Mary, sometimes it’s not easy to cancel a contract, but if Sky wanted to dispute what you did, they should have done this earlier! I think you should write back to the debt collector and say why you don’t owe anything – Sky never completed the installation. If they bother you again, I suggest you contact National Debtline for their advice.
Rachel says
Hi
Question
We own our property freehold but we pay a service charge to a management company for the maintenance of a pump (Severn Trent have not yet adopted It). Although we having been paying the management company sought additional money. They were requested to provide evidence that their request was lawful and reasonable. It also appeared that we were being charged for services we did not receive. They initially put our accounts on hold for a few weeks. Since then they have not met our requests for disclosure, provided answers to our reasonable questions or provided transparent accounts. However, they kept telling us that someone was looking into it and would reply to us. This never happened and they added the additional money to our next invoice. We explained we still required clarification and answers to our questions. They have now passed the matter to a debt collection agency who say we have to pay and have added their charges. Your advice is appreciated. Many thanks.
Sara (Debt Camel) says
Hi Rachel, service charges can be complicated. You need someone to look through the whole situation, your correspondence and the lack of proper replies – I suggest going to your local Citizens Advice. If there are several of you affected (you refer to “accounts”) then one person could go to CAB and ask for all of you.
Rachel says
Thank you so much for your prompt reply. There are a number of us involved. I will go to CAB as you advise.
Andrea says
Hi,
I purchased some bathroom furniture and paid by credit card. The total cost was around £3,600. Basically everything the company sent us was wrong or faulty and it took ages for them to remedy things. The toilet they sent didn’t fit the cistern and a cupboard was faulty. After emailing and trying to get them to remedy these they just stopped replying. I made a credit card chargeback for the toilet and cupboard totalling £398 through Barclaycard. This week I received threatening phonecalls from the company and then a very threatening letter yesterday claiming that we owed them the whole amount of £3,600 and they will issue a CCJ for this amount and sent contractors around to pull out the bathroom furniture (AND TILES even though we didn’t purchase them through them). I checked with Barclaycard and they only issued a chargeback for £398 no the whole amount. Can this company issue a CCJ for the £3,600 when we’ve only been credited back for the cost of the toilet and cupboard?
Sara (Debt Camel) says
If they issue a Claim Form (the first step to a CCJ) for £3600 when actually you have paid £3202 you can either defend the whole claim – on the grounds that the toilet and cupboard were faulty and they failed to repair them – or a defend £3202 on the grounds that you have already paid this.
But I suggest you should go to your local Citizens Advice about this. They should not be writing you threatening letters and they can’t enter your property to remove things unless you let them in.
nic says
Hi, I bought a house with a ex in 2007 and left in 2009. He kept the house and said he keep up the payments. Along with a 30k piggy back loan. A few days ago I had a letter of the bank asking for me to phone them. I did and the house was repossessed in 2011 with 12k shortfall now they are asking me to pay the 44k on my own as they cant find him, I’ve received no further contact from them 2 weeks on but I cant afford to pay out anything if they press I’ll have to go bankrupt I have my ex address now do I pass that on? What’s my options? I also don’t know when the last payment was so being 2011 is it they are chasing me all of a sudden because its close to the statue barred? Shall I tell them I will go bankrupt? What’s the best thing for me to do I’m a single mother on a poor income? Thank you
Sara (Debt Camel) says
You could ask for a Statement of Account, that would clarify when a payment was last made. Personally I would be inclined to pass on your ex’s address – it’s his mess, why should you protect him from it? You could also ask a debt adviser to help you draw up an income & expenditure sheet so you could pass that on to the bank – that will probably show there is nothing to be gained from pursuing you.
Julie says
Dear Sara and Debt Camel,
you have a wonderful site and thank you for the info you have generously shared.
My question is the following:
I have just recently got a copy of my credit file and I see a single post of a defaulted assumed debt with Hoist Portfolio 2 (presume debt collector agency) as the holder. The debt on the file is though registered at the very old address where I have not been for 3 years or more.
Can they issue County Court letter and take me to court with that address? (meaning that I would never receive the letter and thus automatically get issued with a CCJ for not appearing to contest …….. as I would have no way of knowing if they take me to court???)
Thank you
Julie
Sara (Debt Camel) says
Ys, the creditor may get a CCJ using your old address. You can apply for it to be set aside IF you have a defence with a reasonable chance of success, this set aside application will cost £255.
S Rainer says
Hi,
I went to court over a debt which was being chased by MKDP, it was unproven and the judge ruled in my favour. However, two years later and several debt agencies later and i am still being pursued. I wrote and told the first one the details,they never responded and now i have just opened a second letter from a different one and they are the new owners. Why did the company MKDP not accept the courts decision.What should my letter say.
Sara (Debt Camel) says
You need some advice from someone that can look at the details of your debt, the previous case, letters etc. You could talk to your local Citizens Advice, or phone National Debtline 0808 808 4000 who are good on everything to do with CCJs
Sarah says
Hi
I am receiving letters from CapQuest stating I owe them £6097 from an old debt with HSBC. HSBC had put a default on for this debt in January 2010 which has now dropped off my credit file. I was paying low payments through a debt management plan until 2013 but then stopped and this is the first I have heard about the debt?? If this debt has already had a default on it can CapQuest put a CCJ on it? I am still liable for the debt? The last letter stated I have 14 days otherwise they will ‘consider’ court action…
Sara (Debt Camel) says
If you were making payments until 2013, then the creditor has 6 years – so until 2019 – to go to court for a CCJ. The debt still exists and the fact it has dropped off your credit record doesn’t make any difference to this – see https://debtcamel.co.uk/debt-not-on-my-credit-file/ for more details.
Susan says
I have several very old debts (over 11 years old) that I was paying via debt management plan until about 2 years ago when I stopped due to change in financial circumstances.Only one of these debts is still on my credit report (marked as account closed) and recently I have started getting a few letters from debt recovery agents. I have no intention of not paying them but want to know what the effect to my credit score will be- can they reappear on my credit score and is it likely given the age of the debts that they will give me a CCJ?
Sara (Debt Camel) says
The debt can’t reappear on your credit score but if there is a CCJ that will appear.
If you start repaying them it is unlikely the debt collector would try for a CCJ, but not impossible. You have been paying the debts until recently so they won’t be statute barred. You could discuss with National Debtline (0808 808 4000) whether you would have any other defence to a CCJ.
If you could offer a full and final settlement, that could be a good way forward.
martin says
Hi I have had personal loan taken out around 1998 for £1800 i stopped making payments in 1999m after my insurance company stopped covering my payments due to mental health problems. Since this time I have not made contact or made any payments.
I have had many letters at my C/O mail address as i was homeless and of no fixed address.
I after several years now received a letter stating i now owe £4800 and need to pay it immediately.
I know my debt has been sold on many times. my wife is on ESA and PIPS for a serious heart condition and all i get is a small company pension and full carers allowance of £62 a week.
This recent letter states they were ”assigned” this debt ion the 04/09/2007
Surly this must be statute barred so why have they contacted me ?
They say they will be contacting me again shortly.
Should i consider this as a bluff hoping i will make the payment. Truth is I don’t have money now I’m full time caring for my wife that I’m feeling guilty as its my debt from 1998 that is now causing her stress.
What should i do now? I’m reluctant to break the 18 year silence by contacting them.
Please can you offer any help or advise please.
Regards
Martin
Sara (Debt Camel) says
From what you have said, the debt will be statute barred. If you don’t want to carry on getting letters you are going to have to contact them. See https://debtcamel.co.uk/statute-barred-debt/ which has a link to a national debtline template letter you can use. If you would like some support doing this (for example you may get a letter in reply and are unsure what it means) then I suggest calling National Debtline 0808 808 4000.
keith says
Debt collection company chasing monies from about 2005 stated ‘as you are aware the creditor has obtained a CCJ against you’. This is untrue, having checked with credit reference agencies and another website that lists CCJ’s (can’t remember name) I called the debt collectors to ask for the CCJ reference number and date only to be told that a CCJ was never sought. Can I now make a complaint to the Financial Ombudsman or is this far too common to bother them?
Sara (Debt Camel) says
Hi Keith,
you can’t complain to the Financial Ombudsman until you have first complained formally to the debt collector and given them 8 weeks to resolve your complaint.
From what you have said, I assume you think the debt is clearly statute barred, see https://debtcamel.co.uk/statute-barred-debt/? (If there is a CCJ this would not be the case.) If this is correct, I suggest you put in a written complaint to the debt collector (you should be able to find an email address for complaints on their website) and say that you feel they harassed you to pay a debt which was statute barred by claiming incorrectly that there was a CCJ. Ask them to confirm in writing that there is no record of a CCJ and that they will not continue to demand payment from you.
anthony says
hello my name is tony , in 2010 i ordered a sim card from T- MOBILE on a 12 month contract , i never received the sim card so i phoned T-MOBILE and told them the sim card was never received , they said would send a replacement which again was never received, i called T-MOBILE and told them again the sim card was never received , again they said a new sim card would be sent out, after the third time of calling them i told them to cancel the contract ,which i had a verbal acknowledgement over the phone it would be cancelled , now in 2016 i have been contacted by a DCA in regards to my outstanding debt of £564.00 for failing to repay the breech of contract by T-MOBILE , i have told the DCA about what happened all they say is the monies are outstanding and they want payment , i have told the DCA i want PROOF OF RECEIPT OF DELIVERY , I WANT PROOF OF ACTIVATION OF THE SIM CARD AND I WANT PROOF OF USAGE Y TEXT MESSAGE OR PHONE CALL OR DATA USAGE ON THE SIM CARD , to which the DCA are both unwilling to supply and unable to supply… i have been sent manyletters demanding repayment and court action , my question is do the DCA people have to supply me with both the time and date of the county court hearing so that i can attend and give my statement to the court or are they allowed to proceed with out me being there in person ?
Sara (Debt Camel) says
If court action is started, you will receive a Claim Form. You have to reply to this Claim within a strict and short timescale and using the proper procedure if you want to “defend” this case – which you obviously should! – otherwise a CCJ will be given “in default” if you do not reply. Contact National Debtline immediately if you get a Claim form for help on what to do. NB it is essential that the DCA has you current address – you do not want to find out later that the court papers went somewhere else and you have a CCJ. See https://debtcamel.co.uk/court-claim-form/ for more about responding to a Claim Form.
If you are still just receiving letters, you should put in written (not telephone) complaint to T-Mobile. I suggest using Resolver – it is completely free service that helps track complaints. See http://www.resolver.co.uk/companies/ee-complaints and you want to complain about Billing / Being charged for a cancelled service. If this complaint doesn’t resolve the matter, you need to take it to the relevant Ombudsman – the Resolver service can help with that too.
After putting in your T-Mobile complaint, you need to inform the DCA in writing that the debt is in dispute with T-Mobile and that you have put in a written complaint and that you want them to suspend any form of enforcement action and cease to contact you about the alleged debt until the complaint is resolved.
Sarah says
I was declared bankrupt in 2013 in the UK and some of my old accounts that were included in the bankruptcy are still showing as ‘active’ and ‘in default’ on my credit reports/files. This is despite these companies being notified of my bankruptcy. I have contacted them all via post and email and the majority of them have just ignored me. What can I do to get them to resolve this? Are they breaking the law?
Thanks for your time
Sarah
Sara (Debt Camel) says
Hi Sarah – here is an article that looks at cleaning up your credit record after bankruptcy: https://debtcamel.co.uk/credit-file-after-bankruptcy/
Tracy says
I have had an arrangement with a debt collection agency for a number of years, a low level payment was agreed and I have never missed, I pay by direct debit. They have begun sending letters asking me to resubmit my income/expenditure…can they do anything if I do not give them this information and continue with my currentt payments
Sara (Debt Camel) says
You don’t have to give them a new Income & Expenditure form. But if you refuse, they may decide you have got more money so they could go to court for a CCJ.
Darrell says
Hi,
I have been in dispute about a credit card debt, I had PPI on the policy and was informed by the credit card company that my payments would be covered under the policy, however I have been informed by the insurance company that I was unable to claim due to the fact I did not pay class 4 national contributions whilst being self employed. A DCA company have requested payment for the outstanding balance, they have stated that they may take court action to recover the balance. Can I claim that the contract is unenforceable on the grounds that the PPI policy that forms part of the contract was mis-sold?
Sara (Debt Camel) says
No, but I suggest you put in a claim for a PPI refund as soon as possible – that should allow you to reduce or even pay off the outstanding balance. Don’t use a claims firm!
Darrell says
Hi,
I have already started a claim for mis sold PPI with the FOS, however the DCA are still threatening court action, even though I have informed them that a dispute is still in progress and could take up to six months to complete. Can I ask the claim be struck out if court action is pursued, on the grounds that the claim may not exist if my dispute is upheld by FOS?
Sara (Debt Camel) says
If you are very worried they will start court action, then I suggest you talk to National Debtline about your options. But it may be sensible to just reach an arrangement to pay with the DCA to avoid this?
rob says
I have been threatened with a ccj in one weeks time, I can pay the balance in full on the 28th of jan. is there a time limit to pay the balance in full before it is set in stone on the file? I have read that 30 days after they process? just so I know it would be nice to know the truth? thanks
Sara (Debt Camel) says
“Threatened with a CCJ” – so you haven’t yet received a Claim Form from the court?
If you get a CCJ and you pay it within 30 days, it will not appear on your credit record. I don’t know if you have a reason to contest this debt – is it very old?
rob says
no its from a debt management/solicitors. they said they will file to the courts on the 20th, will it be 30 days from then or when the court get intouch. its from an old littlewoods account from a couple of years ago £150
Sara (Debt Camel) says
To answer your question, if a debt collector put in a Claim on the 20th, you will have a couple of weeks to file a defence, or you can extend this by completing the acknowledgement of service form you will get with the Claim form. After that a few weeks later there will be a judgement and from that date you have 30 days to pay.
However, it’s worth talking to the DCA now and trying to deal to avoid court, because then court costs would be added on.
Smithers says
Hi
I have 25000 credit card debt with mbna
13000 credit card debt with barclays
5000 credit card debt with HSBC
25000 personal loan debt with tesco bank
I have made no repayments for over a year and all letters remain unopened.
I am now in a position to make repayments of around 300 per month divided between the 4 debts
If I contact the debt collection agencies what are my chances that they would agree to split this 300 per month between them.
Thanks
Sara (Debt Camel) says
Can I just check that that is £68,000 of debt in total?
Are you buying or renting? Is your income secure?
LuLu says
One of my credit accounts has been deemed unenforceable – confirmed via a specialist solicitor. After which, I wrote to the credit company explaining why it is unenforceable and asked them only to contact me in writing, but not in connection with demands for money (also I quoted FCA regulation 7.5.3 – as advised by my solicitor. They have not provided any further evidence that the debt is enforceable and have instead continued to both write and phone me – asking me to arrange repayment (I resigned from my job to care for a disabled relative, so no real income anyway). Their last letter threatened me with sending someone to my home. I could get back int touch with the solicitor for advice, but it will mean paying out more money I do not currently have. So, I was hoping to get some advice here instead. Is what they are doing legal and what should be my next step please?
Sara (Debt Camel) says
When was your letter sent and have they ignored it? Who is the debt collector?
Why is it unenforceable? Some problem with the CCA?
LuLu says
Cabot – they have threatened to use another company to visit my home. Yes, there are multiple problems with both the original and what they have stated as being reconstituted CCA (the debt is about 20 years old) and no, they have not replied to my last letter (sent signed delivery).
LuLu says
Sorry, the letter (compiled with advice from my solicitor) was received by them well over a month ago and they did in fact reply stating that they were going to go back to the original lender with the information I had provided, but that they would also continue to chase me for the debt regardless.
Sara (Debt Camel) says
An unenforceable debt still legally exists. You need to talk to your solicitor about your options – it may be fine to simply stop paying.
Kevin says
Hi a debt collection agency has started court action against me for a old credit card debt 1997, which they purchased from the bank in 2015.
I have filed a defence saying I believe it was statute Barred and also that I don’t acknowledge the debt.
I sent a cca request to which they replied with a shabby attempt at a cca, a microfiche of a photo of the first page of the application form from 1997 with my signature on it, no terms and conditions, no %Apr, no default notice ect. Is there a template letter I can send them to say they haven’t complied with my request for a true copy of the original cca, what they have sent is not enforceable and I suggest that they should ( in the interest of not wasting court time) write to and inform the court that they wish to withdraw their claim against me.
Sara (Debt Camel) says
With a court case underway, sending template letters isn’t the best approach. I suggest you talk to National Debtline (0808 808 4000) or post on the Legal Beagles forum https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues about taking your defence forward.
Damian says
Hi Sara,
I’m being hounded by Moriarty Law on behalf of MMF in regard to a debt they purchased from Northway Broker (Swift Sterling). I have no recollection of ever having any dealings with this company, I have also checked three credit reference agencies and nothing from Northway/swift sterling/MMF is showing as a default on any of them. This has been going on since last July, and after completing a per-action form in January I finally got sent a credit agreement, containing no signatures, but my name was typed into the signature area. A statement and a letter of assignment that they say they sent me – I have never seen any of these before. They have essentially refused to send me deed of assignment, default notice and termination notice from the original creditor.
I’ve received another letter this morning, saying that if I don’t make an offer of payment in next 16 days they will being court action – could you offer any advice how I should handle this?
Sara (Debt Camel) says
Have you got hold of your bank account for the month of the loan so you can show there is no credit from Swift Sterling?
Damian says
Thanks Sara,
For some reason that didn’t come to mind, I have printed off my statement for the month concerned in 2012, and will send them a copy.
Sara (Debt Camel) says
If you have never used payday loans it would be good to point that out too.
dave says
14 days to go for a default to drop off my credit file, and now Lowell are taking me to court for the debt , may I add I have always denied the debt because truly was nothing to do with me. any advice on this
many thanks
Sara (Debt Camel) says
What sort of debt is it? Have you had a Claim Form from Lowell or a Letter before Claim/Action (see https://debtcamel.co.uk/letter-before-claim-ccj/ for what one of those looks like.) Why have you not complained about a debt on your credit record if it was nothing to do with you?
Ann says
Hi, I just recently found out that I have three defaults from Orange-EE when I checked my credit score for the first time. The defaults were dated from 2013 and 2015. I contacted EE straightaway as I was not aware of this and no one has contacted me even they are aware of all my contact details. (phone nos, address and email) Even Lowell has not contacted me or inform me when it was sold to them around the same year. I have taken this to the ombudsman but unfortunately, the favour was not in my side even they can’t get any concrete evidence as they are way too old as they say I took this account. Now Lowell has sent me a CCJ letter that they might take me to the court what should I do. I know I don’t owe this account to them.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about your options.
Jon says
If ime in debt to the tune of ten grand have no assets, no saving s and on benefits can a ccj be issued what would the judge do if this is my scenario, two unsecured loans, and one Barkley card,
Sara (Debt Camel) says
If a creditor takes you to court for a CCJ, you will get one if you owe the money unless you have some legal defence to it. Saying you have no assets and are on benefits is NOT a legal defence, you would still get a CCJ but you can ask the court to accept a small payment each month.
Are you just worrying about a CCJ or is a debt collector actually saying they will go for one? If you are getting hassle from creditors, it would be good to talk to a debt adviser, try National Debtline on 0808 808 4000.
Jon says
No not worried about ccj but just worried about the amount if I am on benefits, also what constitutes a legal defence, might even consider I v a or dro
Michael says
Got a loan off 118 back in around 2014 what i was paying no problem then need led more cash for car repair or something so they uped my loan amount by giving me a new loan and paying off the old loan with the new one but being desperate off needing the cash i didnt think about the monthly payments, and become in a hole very very quickly because the loan was £255 a month and could just possibky not affort it, havent paid it since 2015 so they have now sold the debt to lantern is there anything i could do as they are threating ive asked for the agreement and they have sent it
Sara (Debt Camel) says
I suggest you read https://debtcamel.co.uk/refunds-large-high-cost-loans/ and put in an affordability complaint to 118 Money. Immediately inform lantern that you have done this and you are disputing the debt, so ask them to hold off on any enforcement.
Frank says
Hello
my name is Frank i live in Northern Ireland a few years ago i lost my job due sickness i am now on the waiting list for Spinal Surgery and live on Disability (PIP) when i lost my job i received Sick pay for a while and when i run out i didnt apply for any benefits. I “lived” on overdraft and Credit card which eventually all went into default. Capital One credit card sold my debt(£1400) to Arrow Global Limited.
Last week i received a letter from Court with some forms attached. After looking at some advise online i did not accepted the Debt. I filed a dispute at court (online) and ask the debt collector to send me deed of Assignment demonstrating that the Claimant has a right to bring a claim against me. Today i received another letter from Court that i have to attend Court next Month.
How can i avoid going to Court ? At the moment i barely can make it to the Bathroom , haven’t left my House for Months due to the pain in my Back.
Can someone please advise me what to do ?
Steve Lee says
Back in May 2014 (four and a half years ago) the newsagents that supplied two weekly magazines to me suddenly closed and never reopened. Over the period of about two months following the closure, I wrote 3 letters asking them to contact me so I could settle my account. I posted these through the letterbox of the shop. I never had any response at all ever.
Today (23.01.2019), totally unexpectedly I received an invoice for £44.80 with an apology for the delay in invoicing. I should think so after 4.5 years!!! There was a mobile number on the letter which I rang. I was told that a debt could be recovered up to 6 years after it had happened and was (in my opinion) verbally threatned with a bailiff visit. The man said he was the manager of the shop and said at least one of my letters was on file (so he did know I tried to pay after the shop closed). Can I have some advice please. Thank you. Steve
Sara (Debt Camel) says
It sounds as though you agree you owe the money. The delay is irritating but doesn’t affect the fact there is a debt. you won’t see a bailiff until after they have taken you to court for a CCJ, but I suggest you pay this now and avoid the extra charges.BUT you may want to ask for some proof that you are being asked to pay this to someone that does own the debt. Talk to National Debtline on 0808 808 4000 if you are unsure.
Toasty63 says
My ex employer was chasing me for overpayment of wages I refused to pay on the grounds that they owed me double. I was taken to court with all the usual add on fees.
They won I appealed for the judgement to be set aside & was given a date for the hearing, but in the mean time they have paid me the money I said they owed me.
Any advice would be appreciated .
Sara (Debt Camel) says
I can’t give advice on a court case. I suggest you talk to National debtline on 0808 808 4000 or post on the Legal Beagles forum.
When you do, make it clear if you have an appeal (which is unusual) or you are applying for a set aside (much more common) – these are legally quite different.
Denver says
Can a firm issue you with a CCJ if your bill is outstanding for only 10 days and you have offered to pay your bill in full in 3 weeks time?
Sara (Debt Camel) says
You have a bill that was due 10 days ago? What sort of bill?
Wellz says
Hi there,
I was wondering is there a minimum limit to how much you need to owe before a debt collector can issue a CCJ against you? I read on the gov.uk website that the amount has to be between £600 – £5000 but I don’t know if this applies to all parties including debt collectors like Lowell?
Thanks.
Sara (Debt Camel) says
I don’t know where you have seen “£600 – £5000” but it doesn’t sound right. The latest statistics show that a half of all CCJs in the first three months of 2019 were for less than £628.
Michelle says
Hi I received a ccj earlier this year and my offer of £1 per month was accepted. I have some other similar debt chasing me and have had pre legal notification letters, I don’t want any more ccj’s and was wondering about the stipulations in treating all creditors fairly/the same- is it a good idea to offer them all (the ones actively pursuing me) £1 repayment plans as I only have around £15 disposable income per month and will the ccj being accepted at £1 pm help my standing
Sara (Debt Camel) says
With other debt collectors chasing you, it’s a good idea to think about your overall position, not just react to each letter / Claim Form as it arrives.
Offering £1 a month repayment plan may be enough to stop a creditor going for a CCJ. See https://debtcamel.co.uk/token-payment-debt/. But unless you expect your situation to really improve in the next year or two, it is just trapping you in making these low repayments forever.
Now may be a better time to review your whole situation. With a CCJ on your credit record, it is already messed up badly for the next 6 years. Making regular £1 a month payments to it isn’t going to help your credit score.
So do you mind saying how large the CCJ debt is? And how much all the other debts add up to as well?
Are any of the other debts for really old credit card or catalogue accounts? Or for high cost credit?
Are you buying or renting?
Michelle says
The ccj was for around £800, with costs it ended up just over £1000, the other debts that have shown seriousness in pursuing repayment are for £760 (likely loans high interest repayment – they have refused my affordability claim, and as I lied on the first and second top up loans about my income to get the loan to pay other debts I’m not sure about going to the ombudsman- this debt is currently with cabot) and around £3500 with very catalogues (they allowed me to have more than one account) and shop direct (all now with lowell).
I am a single parent with 3 kids and despite applying for jobs non stop for nearly the past three years it doesn’t look like my situation is going to change any time soon. DRO doesn’t seem likely for me as although my total debt is under £20,000 I have a car (now worth about £4500) that is currently paid for by my ex (but is in my name)
Sara (Debt Camel) says
Thanks for the details.
If you send the Likely Loan case to the Ombudsman you may well win if you topped it up twice! They should have checked more closely on each top-up – this case is well worth pursuing. And while the complaint is with the Ombudsman (which can take a very long while!) Cabot can’t start court action if you keep them informed about the complaint being at FOS. Offering £1 a month is a good idea though.
If Very let you have more than one account, also look at an affordabilty complaint against them. See https://debtcamel.co.uk/refunds-catalogue-credit-card/. Again keep Lowell informed that you are complaining first to Very and then take it to the ombudsman if Very reject it.
Michelle says
Thank you – very allowed me to have 2 accounts as there was some sort of merger, but they definitely kept increasing credit limits on both accounts and let me have multiple ‘buy now pay in 12 months’ deals on the go on both accounts which bumped up my debt considerably.
I was worried about going to the ombudsman regarding likely loans, as I did put a false income into the application in order to secure the top up, after which payments jumped from £120 per month to £190 per month – I managed to pay off all of the £3000 total loan, but faltered on the last £700 odd because I just couldn’t keep up repayments, Likely loans refused my claim on the basis that I had adequate income and had proven to be a reliable payer, however they failed to mention ALL the other debt that would have shown up on my credit report if they had properly checked. Is it a good idea to still refer to ombudsman considering I didn’t put the correct income details in?
Michelle says
Forgot to add – I’m renting and am up to date with payments to LL
Andy says
Firstly, thank you for providing such a helpful resource, your site is very informative.
None of the cases exactly fit mine though.
I made direct arrangements with all my creditors and made regular but small payments to them for all these years.
About three or four years ago two of the biggest debts (£8k bank loan and £2.5k credit card) that are still going after being passed on from one debt collector to another have both ended up with Arrow Global and I’m now being mailed every month by Drydensfairfax.
So last month I got a letter about the £8k debt saying whilst I am currently making payments but do not have a formal arrangement in place. They said they have been instructed to make a financial assessment. They included a Inc/Exp form and a offer of payment form, nothing more.
This month I’ve received a letter of claim regrading the £2.5k debt that included the Inc/Exp forms, statement of account and the reply form threatening court proceedings. The statement of account for this debt shows I’ve paid them £1500 over the years I’ve been paying and to my knowledge I’ve not missed a payment for years.
My question is this. Can they take out a CCJ or indeed do anything legal if I’ve been making regular payments and do I have to have a formal arrangement to prevent ‘further action’ as they state multiple times in their letter?
Do I need to reply to this letter of claim?
Sara (Debt Camel) says
“I’ve received a letter of claim”
Can I check, is this a Letter before Claim/Action as described in this article: https://debtcamel.co.uk/letter-before-claim-ccj/?
Or is it a Claim Form from the court, see https://debtcamel.co.uk/court-claim-form/
What you do next is VERY different in these two situations…
“Can they take out a CCJ or indeed do anything legal if I’ve been making regular payments”
They may be able to. But if you supply an income & expenditure form and a monthly offer which looks reasonable, they won’t normally bother.
Stuart says
If it is not within the terms and conditions of alledged agreement to sell on debt, then if debt is sold on it’s a breach of contract, thus making it null and void.
Sara (Debt Camel) says
This argument is very rarely going to be of assistance to people in debt. It is standard for there to be a clause in consumer credit (loans, credit cards etc) contracts allowing the lender to assign his rights.
Thomas P says
Hi Sara
I left the UK 2 years ago and having recently checked my credit file from overseas, have noticed that I have been landed with 2 CCJs- That I knew nothing about as I never received any claims forms etc.
One for Lending Stream (£653) the other for a private car parking firm (£260). These have obviously obliterated my credit score and although I have no immediate plans to return to the UK, what do you suggest is most sensible way of resolving this with the longer term in mind?
Thanks Sara
Sara (Debt Camel) says
Do you ever intend to return? Do you have other debts that you have been ignoring?
Thomas P says
Hi Sara
I certainly don’t intend to return in the next five years to live.
There is also an Uncle Buck loan for £375 that I has been unpaid since 2015.
I only had a postal redirection set up for 3 months and heard nothing regarding any of the above- Although I am not naive enough to think that they will just go away.
To be clear, my reason for emigrating wasn’t to avoid paying any of the above.
Thanks
Peter Walker says
In my business we used a company called Biffa Waste to remove all company waste, we decided to change from them to another supplier but they sent a severance bill for £1,105 they took a CCJ out on us but the paperwork was sent to our accountant and by time it had got into court we had missed although we didn’t agree with the claim, we have now got the CCJ and it runs out from the court to be paid by 9/4/20 but we have had debt collector onto us wanting now £1350 and if its not paid they will send a balif into on the 6/4/20 to collect the payment and charge another £256 on top, please this cannot be correct, your comments please?
Sara (Debt Camel) says
can I suggest you talk to Business Debtline https://www.businessdebtline.org/
Phil says
Hi
A friend of mine received a letter from bailiffs to say she owed £1500 for a loan she had been a guarantor on (she has never agreed this) and they would take assets from her property if it wasn’t paid in full by the end of the week, her ex had taken a loan from amigo and used all her details to be guarantor and even had someone to pretend to be her on the phone telling them her account was closing and to pay it into a different account again none of this have ever happened so they have broke their own terms and condition of paying into a guarantors bank account my friend has mental health issues and just wants to pay this debt to make it go away but I can’t stand by and let her do this is there anything I can do to help this situation thanks in advance
Sara (Debt Camel) says
Bailiffs aren’t doing home visits at the moment because of Coronavirus. And even when they resume, a bailiff trying to enforce a CCJ has NO right of entry to anyone’s house.
Did your friend realise she had been taken to court for a CCJ? If she didn’t, I suggest she first needs to find out the facts. If she looks on her credit record, does it show a CCJ?
Phil says
No ccj has been issued yet as I know she got onto the loan company who have told her that the proof it wasn’t her wasn’t good enough to prove identity theft and they would take her to court if she didn’t pay ASAP she is now going to pay but I believe they are scaremongering her into it
Sara (Debt Camel) says
ok then bailiffs have no relevance at all. No CCJ = no bailiffs. it sounds as though she is just getting threatening letters from Amigo – is that right?
Has she been sent a letter by Amigo which is headed something like “Amigo Loans Ltd: claim for £xxxxx debt” and which has attached a Reply Form and a Financial Statement Form?
Tell her to read https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and send Amigo a complaint saying this was identity theft and ask to be removed as guarantor. That has a template letter she needs to change to make it clear this is identity theft. Can you help her with this? If she has mental health problems it is a good idea to mention these as well. In that template it asks for a copy of all her personal information – this will include a recording of the phone call she is alleged to have had with Amigo.
If she has already made a complaint has it been rejected? This rejection should tell her she has the right to take her complaint to the Financial Ombudsman.
While she has a complaint open with Amigo or with the Financial Ombudsman, Amigo may continue to send letters, emails and texts threatening court action but they should NOT start court action.
Customers are winning 90% of complaints at the Financial Ombudsman at the moment. Identity theft cases are unusual but if she did not agree to this why should she have her financial future harmed by this? There is a way she can challenge it and you can give her moral support to get through this.
Phil says
Thank you for your time to reply due to covid it’s difficult for me to be there in person hopefully she will read the info you have provided and it will show her that there is an option to this and not just pay this debt her ex has put on her 18 months since the split
Sara (Debt Camel) says
There are a lot of comments on the page I have linked to. She will realise she isn’t the only one!
ant says
1. ask for a copy of the signed contact with you ‘apparent’ signature on
2. get a print out from the bank of your signature held in file
3. 2+2 in this case does not equal 4 , and tell them to ….
Sara (Debt Camel) says
I am not sure Amigo requires an actual signature from a guarantor.
Phil says
Yeah it was a digital signature done by her ex partner
ant says
ask for the audit trail and digital signature audit trail. in line with digital signatures, as it will say which device it was signed on, when where and in details
Jonathan says
Hi, I’ve recently found out a DCA is acting on behalf of a property management company (RMG) that I was in arrears with (DCA is part of the same group of companies as the management company). I have never missed a payment in my life and this was a genuine oversight. I tried to make a payment to the management company only to find out that they wouldn’t talk to me anymore and referred me to the DCA. After this I made a bank transfer to the management company for the full amount £184. The management took this payment and is visible against my online account. The issue now is that the management company charged an £80 fee. There were no reminders or chasers sent, the first I knew of the debt being managed by a DCA was when payment was initially refused. in addition the DCA has charged £160. I have paid the admin charge from the management company directly. The management company’s account is clear but the DCA is still pursuing their charges. I have no problem paying the Money owed and to a degree accept the admin charge of £80 but the £160 admin fee from the DCA does not appear reasonable. I was wondering if any advice could be offered on this situation? I have no idea who to speak to because it doesn’t appear that this would be covered by CCA. Sorry for the lengthy post and big ask, but information on the internet is a little sparse on this topic. Thanks in advance and again thanks for making this material available to people in need of held and support!
Sara (Debt Camel) says
Is this for a service charge?
Jonathan says
Hi Sarah, yes the charges came about because of a service charge on a freehold property.
Sara (Debt Camel) says
freehold?
Jonathan says
Hi Sara,
The original debt relates to a “service charge” from a management company for a property (freehold and not leasehold) I own on a new development. From what I understand management companies are brought now brought in to manage the estate, it’s a new form of leasehold where a fee is payable each year for the upkeep of communal/ un-adopted spaces.
I hope that’s makes a little more sense now. Sorry for any confusion.
matt says
Hi
I have a debt going back 12 years this December, 6 years ago in December i was issued a CCJ which i chose to ignore rightly or wrongly today i have ignored any correspondence, today a baliff delivered a letter to my parents house where i have not lived for many years do i just ride it out and see what happens after december?
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about your options.
Kp says
Hi, I’ve got a debt with loans2go, which has just been passed to BW legal. I’ve just received the letter to set up a payment plan, however the debt has been closed on my credit file and marked as satisfied and the balance is showing zero. Can this debt be reopened? Also can a CCJ be added if the account is closed?
Sara (Debt Camel) says
It is normal when a debt is sold to a debt collector for the lender to mark the debt as closed with zero owing – but the debt collector then adds the same debt with the balance which is owed,
The Debt collector can go to court for a CCJ.
I suggest you read https://debtcamel.co.uk/worst-loan-in-britain/ which looks at these Loans2Go loans and their outrageous interest rate. And then think about making a complaint to L2G using the template in that article. You should then tell BW Legal that you are disputing the debt with L2G.
Kp says
Loans2go are an horrendous company and it was the worst mistake taking a loan out with them. I’ll have a read of that and also speak to BW. I think I’ll set up a payment plan with BW just to be safe. As this is my last debt that isn’t currently on a plan and receiving payments. Thank you so much for your help.
njw says
Credit Resource Solutions complaint response:
1. You claim the Collections Director of CRS was oppressive with threats of Court; you state this made you feel intimidated and felt forced to accept the payment arrangement which is not affordable to you. Furthermore you claim that the Collections Director informed you that your offer of repayment was not enough, you claim it must have been indicative that the arrangement the Collections Director had proposed was not affordable and despite confirming that you were not up to date on priority bills payment was still taken from you. You claim the Collections Director used passive techniques and used cut throat tactics to try scare you and that when you tried to challenge him you were threatened with court. 1. On 7th December 2016 you spoke with the Collections Director at CRS, there were four telephone calls with the Collections Director on this date. I can confirm that I have reviewed these calls and I accept that the Collections Director did not deal with the telephone calls in a manner that we would expect. I am very sorry for this and for the way that you have been made to feel. I can confirm that this has been escalated to the Management of the business and has been addressed with the Collections Director. As a result of my investigation I have upheld this aspect of your complaint; I hope that you will accept my apologies for this” thats an extract when they threatened court
Sara (Debt Camel) says
Are you replying to someone? or asking a question?
Jane Davis says
Hi. I have a debt that is now with Cabot. They have been calling relentlessly for a month after me hearing nothing for 5 years. It is due to come off my credit file on 30th Sept, exactly 6 years since my last cpayment. They have emailed me offering a large discount to settle by tomorrow, giving me just 2 days.
I had an accident that left me disabled & unable to work shortly after taking the loan that Cabots chasing me for (it was a learning course for my Autistic Son). I couldn’t pay as I lost my job following the accident (I could no longer function. I was medically retired, told I won’t work again). Despite the settlement being high 3 figures rather than high 4 figures, I live on disability benefit & £200 of that tops up rent. Housing benefit is capped & rent is high. But I need my bungalow for my disability. I feel anxious, sick, so close to giving up tonight. Then I found your site! Please can you advise asap?
If I don’t settle by deadline tomorrow, are they likely take me to court for CCJ – with only a month left to go before it’s Statute Barred? It’d be a noose around my neck for another 6 years! I had 2 other credit card debts I stopped paying also. NEVER in debt before accident. They’ve gone off my credit file now. Could they still become CCJs? I’ve heard nothing from them for ages. Thank you.
Sara (Debt Camel) says
How large is this debt? How large are the two credit card debts you also stopped paying?
Do you have any other debts that you are up to date with?
Jane Davis says
Hi Sarah
Cabot is just over £3000. Offering £800 to settle.
The cards were just over £5000 & £8000 each (they were used to helped pay for a lengthy divorce finalised in 2012).
I was earning well and paying the cards and Cabot regularly, no missed payments ever, until my accident.
I currently have a small balance with a mail order company, up to date. Phone contract, up to date. My income is disability benefit. Thank you.
Sara (Debt Camel) says
They are most likely to go to court if you ignore them. Have you ever had a letter from them that looks like the one talked about in this article: https://debtcamel.co.uk/letter-before-claim-ccj/? They have to send that before starting court action.
With your health situation they would be VERY likely to accept a token payment offer of £1 a month to the debt. It would still drop off your credit record if you start paying that.
Statute barring has got more complicated in the last couple of years. See https://debtcamel.co.uk/statute-barred-debt/. The debt may not be statute barred just because it is no longer on your credit record. You can talk to National Debtline on 0808 808 4000 about this.
If you want to make a token payment offer, read https://debtcamel.co.uk/token-payment-debt/. When you phone them up, you should explain about your disability and that you will not be able to return to work.
Alternatives to making a token payment:
1) you could do nothing and hope it becomes statute barred before they start a court case. As I said, it may be difficult to be sure whan it is statute barred. do not igore a Letter Before Claim!
2) you could ask them to produce the CCA agreement for the debt. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they can’t, the debt is unenforceable and they cant go to court. If they can, then you offer a token payment to it.
3) you could ask them to write off the debt on the grounds you will never be able to make more than a token payment. See https://debtcamel.co.uk/debt-options/less-common/write-off/. It may be better to make a token payment for a year and then write again asking for it to be written off,
4) you could option for bankruptcy or (proobably from what you have said) a debt relief order. This would get rid of this debt and the other credit cardsas well. It would wreck your credit record for 6 years, but do you care? Do you actually need to get any more credit? If you wopuld like to find out more about this, or any of the other options I have mentioned, talk to National Debtline.
Jane Davis says
Hi Sara
I haven’t received one of those letters. No payment or acknowledgement had been made on the other credit cards since February and April 2014 respectively. No official default ever showed on my credit file for either.
I’m so anxious to start communicating with Cabot. Some days I am not cognitive at all, I skipped meds for 3 days so I can think. But it’s just led to increased pain, exhaustion and next to no sleep. I know if they are likely to make it a CCJ before the 6 years are up next month I’m going to have to. It’s just making me feel so ill.
Kind regards
Jane
Sara (Debt Camel) says
If you get in touch with your local Citizens Advice, they will make the phone call for you.
But Cabot will probably be very nice if you phone them and say you are anxious and find it hard to concentrate so you would like to talk to their vulnerable customer team. explain you are disabled. If you can do this I think you will find a huge relief to not have to worry.
Jane Davis says
Thank you Sara. I will try and contact CAB or authorise someone to speak to Cabot on my behalf.
Kind regards
Jane
Chris says
Dear Jane, I am sorry to read about your difficulties and I empathise. I had to deal with Cabot while ill and distressed and I got my sister to make the call for me and explain my situation. They listened and I was able to pay a reduced amount, though my circumstances were less difficult than yours. It was such a relief. I do suggest you let them know your situation in detail and get someone to make the call for you if that’s easier. Also look at a debt reduction order. I hope you get it sorted out and can start feeling better.
Jane Davis says
Hi Chris
Thank you so much for responding. So sorry to hear you’ve had difficulties too. These thing’s are so stressful on top of that. It is good to hear that they were prepared to listen and that it gave you relief. It’s something I really need right now! With the reduced offer they gave, can I pay that in small amounts? I have no surplus income.
And do you know when it comes off your credit file then? Thank you. Take care.
Jane
Chris says
HI Jane I was offering a settlement with them and it came off my credit file immediately we paid. I imagine they’d be receptive.to your offer but I suspect debt would remain on your file until you paid. I would simply explain your circumstances. You also need to explain your income and make sure you can afford repayments without damaging your health. I also think you should ask for a lower settlement you can afford.
If they are offering a low settlement with weeks to spare it may be that they don’t think they can take you to court. Ask, as Sarah said, if they have a copy of the consumer credit agreement. If they don’t they can’t enforce their rights. If they do have it, offer them 10% or 15% as a full and final settlement after explaining your circumstances, if you can afford that. I would speak to CAB or National Debtline asap. Tell Cabot you need to take advice before agreeing and your health is poor. You can postpone this deadline a little, they are not monsters. Good luck with this – you can resolve it, truly.
Jane Davis says
Hi Chris
Thanks so much for taking the time to respond. I will follow your advice above and see what happens. Fingers crossed! I need this over and done with as soon as possible. I’m glad yours is resolved.
Take care and thanks again.
Kind regards
Jane X
Chris says
Dear Jane thank you and I hope, and am sure, you can work it all out. You will feel enormously better. Debt problems are very undermining. Sarah’s web site is very good for support and advice. Kind regards Chris x
Hershall says
Hello,
I owed HSBC repayments on a loan, but due to unfortunate circumstances defaulted, resulting on further charges being made on top. After the bank ceased dealing with me, it appeared that they outsourced to Cap Quest Investments.
In 2018 i looked at the PPI detail, and i was awarded money back – and subsequently money claimed against HSBC was then taken and i was paid the remaining fees after PPI Team took fees.
however since I am now trying to remortgage, it appears that Cap Quest have an order on my mortgage still asking for the money HSBC we’re chasing. However I have paid what was owed and have expected that I will no longer be in any deficit. I have contacted the teams involved and explained that I have no more debt with HSBC and that I have since become a much better customer (Due to separating from my ex wife – and now divorced) – so why is this detail still on my account?
Can this be dealt with easily>? I should not have to pay any more money if the debt is now gone.
I can’t remortgage until that detail is off my current mortgage deed detail…
Help is VMA.
Hersh!
Sara (Debt Camel) says
If you have repaid the balance, the Charge over your house should be removed.
Faye says
Hi Sara
I have a ccj for nearly £1400 T M Legal it was for Uncle Buck…I borrowed £900 over 3 months I paid back £869 I have had a statement from uncle buck 3 loans all together 2 fully paid and £869 paid off from the £900 one..so £32 outstanding from loan, £1400 seems a lot not sure how they got to this figure
Sara (Debt Camel) says
Do you already have a CCJ or are they threatening you with one?
Have you asked them to explain the amount owed?
Faye says
Hi Sara
Thank you for your replying, I am ashamed to say I got myself in a pickle with pay day loans and buried my head in the sand. The CCJ has been on my record for nearly 2 years now, I am trying now to sort things out but am not sure how they got to the figure it seems high as only £32 outstanding according to uncle bucks emailed statement.
Single repayment loan
28/05/2015 Date Loan Taken
£250.00. Loan Amount
£296.00. Total Payments Received
£46.00. Interest & Charges Paid
Repaid 19/06/2015
3 month instalment loan
21/06/2015
£350.00. Loan Amount
£498.23. Total Payments
£148.23. Interest & Charges Paid
Early settled 27/07/2015
3 month instalment loan
27/07/2015
£900.00. Loan Amount
£869.34. Total Paid
£0.00
Debt assigned to Asset Investigations & Collections Ltd 12/06/2018
Sara (Debt Camel) says
So the last loan you paid less than the amount you borrowed.
The debt that would have been passed to the debt collector would have been the interest & charges added plus the remaining small amount of principal owed. The interest and charges cannot have been more than £900.
But The legal costs of the CCJ would also be added on.
Do you have the CCJ paperwork?
Faye says
Hi
I don’t have any paperwork as I was in such a mess with other things I’m not proud but I ignored everything. But yes a balance of 31 pound to pay would be the original loan without interest so they have added £1400 pounds
Sara (Debt Camel) says
Well 900 of that can be interest and charges from UB. And the debt collector can also include their CCJ costs.
It looks possibly a bit high but not much to me,
Daniel says
Thanks for the advice you give here.
I have a rather complex query: I ran up a credit card debt during a bad period some years ago and according to my Experian file, the debt was sold to ‘Arrow’, a debt collection agency, some 3 years ago. I haven’t heard anything from this company re this debt, though this is likely because I moved to a different address (from England to Scotland) some time ago.
My query is this: the debt is now 5 years and 8 months old so will soon be statute-barred. However, as the company do not (as far as I know) have my current address or contact details, I am not likely to find out, should they initiate court proceeding before then, until it’s too late. I can’t afford a CCJ as we’re planning on applying for a mortgage in a year or two. Would I be better off pro-actively contact them, giving my new address and being prepared to make an offer of payment, or – given that there’s only a short period remaining before the debt becomes statute barred – leave (currently) well alone? Is there any other sensible option?
Also: I’m aware that the statute of limitations for debt in Scotland is 5 years rather than 6 – As I took the debt out whilst living in England but moved to Scotland 3 years ago, would the Scottish or English limit legally apply here?
Thanks again for your advice and time.
Dan
Sara (Debt Camel) says
Were you sent a Default Notice for the card back a few months after you stopped paying?
Daniel says
Hi Sara,
Thanks for the reply. I believe the bank sent a default notice back in 2015 after I stopped paying the debt. It’s listed on my Experian file as having defaulted in April 2015. Since they sold the account to Arrow (in 2016, according to my credit file) I’ve heard nothing, BUT as I mentioned, I moved address shortly after that so wouldn’t necessarily have known if they were mailing me or attempting to contact me at my old address.
Dan
Sara (Debt Camel) says
You may want to send the bank, not Arrow, a Subject Access request asking for a copy of all correspondence sent to you by email or letter after say January 2015. A Default Notice is a key document in establishing when a debt becomes statute barred, see https://debtcamel.co.uk/statute-barred-debt/. It has NOTHING to do with the date a default is added to your credit record.
I don’t know the answer to your question about whether the Scottish or English 5 or 6 year period applies. I suggest you ask National Debtline on 0808 808 4000.
Unless the debt is already statute barred (there was a default notice issued more than 5 years ago or more than 6 years ago, whichever is relevant) you are in a difficult situation. It is unusual for a debt collector to let a debt become statute barred with no attempt at contact and you are taking a big risk if you do not try to get in contact and offer monthly payments.
BUT if you start making monthly payments, this debt will show up as a problem on any mortgage application as the payments will be seen from your bank statement, even if the debt has dropped off your credit record.
One option that may possibly help but not always, is to ask Arrow (not the bank) to produce the CCA agreement for the debt. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they can’t, they can’t gop to court for a CCJ and you can simply not pay them. But if you ask for this now you have no option but to say where you live and will then be pushed to start payments if the CCA can be found.
No easy answers I am afraid.
Daniel says
Thanks for the feedback and suggestions, Sara. Much appreciated.
Dan
Matthew says
Hello, I have an old CCJ that was registered in 2006, I have heard nothing since then, then I got a letter by email asking for payment last week. Is this debt statute barred as I have had no communication for one 10 years? The solicitor told me that they thought there was a charging order on my old property, which has since been sold, but there wasn’t as the property title deeds didn’t have a charging order attached. They are asking for my latest address as I have moved, should I ignore them?
Sara (Debt Camel) says
The solicitor told me that they thought there was a charging order on my old property
were you aware of any charging order proceedings? If yes, what did you think happened to them – did you have them dismissed or did you think there was a charging order and it was a nice surprise when you came to sell the property and there wasn’t?
Matthew says
Back in 2007 I had a charging order placed on the property, when I got divorced in 2008 and signed the house over to my ex-wife, there were no charging orders on the title deeds, so they either didn’t do it, or removed it.
Sara (Debt Camel) says
ok, then I am unsure what may happen here.
CCJ’s do not become statute-barred. But after 6 years a creditor has to go back to court to get permission to enforce the CCJ and this is very rarely given. Whether this sort of situation might be an exception, I don’t know.
I suggest you phone National Debtline on 0808 808 4000, given them all the details and ask what the creditor can now do and what your options are.
Gemma says
Hi, I’ve a letter of claim through for a debt from Mercedes Benz, I handed my car back in 2013 and they have been chasing me for the difference of the car, I started to pay £10 a month but haven’t paid anything or replied since 2018 they have now again contacted me with a letter of claim asking for £3000 any advice please I’m due to purchase a house this year I don’t want a ccj
Sara (Debt Camel) says
Is this letter from Mercedes/their solicitors/a debt collector?
Or is it court papers? If so, who is the claimant?
Gemma says
It’s from alpha universal / bowen legal they have brought the debt the claimant being Mercedes it says their client instructs to take it further
Sara (Debt Camel) says
Sorry have Alpha bought the debt? So they are now the creditor not Mercedes?
You have had a letter from Bowen legal, not a Claim form from the court?
Gemma says
Yes thats right, it’s a letter of claim with the contract for the car I took out, no court papers yet I believe that the next step ?
Sara (Debt Camel) says
This sounds likely to be a Letter before Claim.
This debt can’t be statute barred as you were making payments in 2018.
I suggest you talk to National Debtline on 0808 808 4000 about your options.
JSR says
My CCJ has expired and dropped off my credit report . I’ve had no contact the whole time this has been on, made no payments and received no letters . I’m afraid I’ve opened a can of worms by asking for the CCA , which they do not have to comply to (now I realise). I doubt they have it anyway as the debt is so old ,
I’ve just come home to a very nasty threatening letter from them , they want a payment proposal in the next 20 days or they will apply to county court to instruct a bailiff to seek payment , attend my home and remove goods .
This is an extremely old credit card debt with MBNA , passed from MFS Portfolio to Mortimer Clarke .
Can you advise on my next move please?
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000.
The factsheet on Statute Barred Debt
https://www.nationaldebtline.org/fact-sheet-library/statute-barred-debts-ew/ says
“If your CCJ is more than six years old, and the creditor wants to use enforcement action, they must first get permission of the court… Contact us for advice.”
JSR says
Thank you 🙏
Abdirahman Abdi says
Hi, i have been sent a letter by debt collectors, where it states within the letter that they “have certificated enforcement agents” (formerly known as bailiffs).
My question is, is it illegal for debt collectors to claim they have bailiffs.
Sara (Debt Camel) says
I suggest you talk to National Debtline about this specific debt and the letter you have received. Phone National Debtline on 0808 808 4000.
Arfon says
Thank you very much for your advice, I will do that now.
Louise says
Hi. Wondering if you can help. I had an account with Vanquis bank that I could not manage, they defaulted my account and sold to Lowell Financial. This remained on my file for 6 years and after this dropped off my credit file. As I have not fully repaid the debt within this time they have now contacted me to advise they are going legal & looking to seek a decree. Can they do this? I live in Scotland FYI. I did not think a debt could be registered to my file for a 2nd time. Any help on this would be greatly appreciated. Thank you
Sara (Debt Camel) says
I’m sorry but you need advice from a Scottish adviser. You can ask your question in the comment below this page https://www.advicescotland.com/debt-solutions/ – that website is run by a good debt adviser.
louise says
No probs – thank you for replying/advising way forward on this