One debt / letters from 2 companies

claire21 · 4 June 2007 at 12:25PM

My partner took out a loan with his ex wife in June 2001, they seperated in 2003 and he moved out, i think the loan stopped getting paid back then.

Letter sent to his ex wife March 2007 from UK Default Recovery and this was the first she had heard about it and passed it on to us to deal with.

UK Default Recovery Letter states:
CL Finance Limited V Mr *****, Debt £5051.47

I asked for a copy of the loan agreement and they sent it to us.
The loan appers to be with Charted Trust a subsidery of Lloyds TSB Group.
Loan was £4498.92 being loan £3100 and payment protection plan £1398.92.
INTEREST RATE 43.9% APR !!!!!!!!!!

Spoke to UK Default Recovery and said this was the first we had heard about the dept and were unable to pay, they offered to accept £4100 in settlement, said we would take advice and get back to them.

Letter recd today from CL Finance Limited.
"You have been selected to receive an amazing offer reharding your outstanding debt of £5051.47 with CL Finance".
"The offer is simple, pay the amount of £1515.44 in full by 8 june 2007 and we will clear the remaining £3536.03 for you".
"Whats the catch.THERE IS NO CATCH AT ALL. providing you pay £1515.44 your debt will be clear".

What do you think? I dont understand why we had letters from UK Default Recovery and then 2 months later one from CL Finance?

Thanks for your advice on this.

claire21 · 4 June 2007 at 12:52PM

I phoned CL Finance and they said Yes there letter was correct and if i paid the reduced sum now the rest of the debt would be written off.

This seems to good to be true that they would wipe out £3536.03????

AGB863 · 4 June 2007 at 1:12PM

Yes.

Debt companies, like CL Finance, purchase "bad debts" from various lenders, but not at the face value.

They may have purchased this debt for a lot less than the "settlement figure" than they are offering you.

They will still ake a profit from you at this point.

Legally they have the right to demand the full amount of the monies that are owed.

RAS · 4 June 2007 at 1:52PM

Hi

Think you might want to read these

CL Finance on companies web-site
http://wck2.companieshouse.gov.uk/8149af7c198129860c0208da7f06a18c/compdetails

According to the payplan site they are linked to GE Capital and solicitors Howard Cohen

See this thread

http://boards.fool.co.uk/Message.asp?mid=10282048&sort=whole#10284029

Another person's experience of UK Recovery

http://www.grumbletext.co.uk/vt.php?t=1526&subj=complaints+UK+Default+Recovery+complaint

THE LEWIS GROUP LIMITED
ROWAN HOUSE
70 BUCHANAN STREET
GLASGOW
G1 3JF

I do not have the link but I would suggest that you do nothing that might acknowledge the debt. If they have bought it, then your husband should have been sent a notice of assignment.

My guess is that Charter Trust have sold the debt to one of the companies who have sold it on as they did not think that they would get anything for it. In which case £

Given the status of PPI, which you could probably challenge altogether, and the potential issue that both companies could come to you for a full and final settlement, I would wait until the experts come along.

After all if they bought it for a couple of pennies in the pound, the 30p in the pound is a wacking profit

claire21 · 4 June 2007 at 4:10PM

Thanks for replies.

CL Finance asked me to pay the reduced offer by credit card today but i said i would phone back.

Sorry to be dim "given the status of PPI" not sure what this means.

Looking for any other comments?
Should i pay and be done with it?

claire21 · 4 June 2007 at 8:08PM

Anymore advice please. I know they will be on the phone in the morning.

claire21 · 5 June 2007 at 10:45AM

Please advise me, had them on the phone again

danno_4 · 5 June 2007 at 2:45PM

Hi
All you have to do is get there offer in full,It should be made very clear about there offer,ie it should read in full & final settlement of the account then the amount.Providing they do this then you will have no problem and the account will then be closed.
kindest regards
danno

claire21 · 5 June 2007 at 8:25PM

The letter states "the debt will be clear" if i pay their offer figure.

Is that good enough?

danno_4 · 6 June 2007 at 7:31PM

yes.
danno

vandermerwe · 16 June 2007 at 10:02PM

Came across this by chance. They seem part of a Yorkshire Mafia. CL Finance is seemingly owned by Cattles PLC, owners of the Lewis Group, operating from Kingston House, Centre 27 Business Park, Woodhead Road, Birstall, Batley WF1 9TD, Telephone (for Cattles and CL) 01924 444466. My advice is DO NOT discuss the debt by telephone, write (recorded delivery) asking for written response. For what it's worth Cattles (see preliminary results for Dec.31, 2006) purchased through Lewis Group an unsecured debt portfolio of £52.2 million in July 2006 for £8 million - about 15% of value. As Cattles is a listed FTSE company they must, presumably, be fairly clean but what about their subsidiaries? And where is Howard Cohen in all this? Also operating from the same address I strongly believe despite showing a Park Square, Leeds address. Go to https://www.howardcohen.co.uk or Google the name (don't get them mixed up with Dr. Howard Cohen muhl to Jewish gentry!!) Finally go to https://www.consumeractiongroup.co.uk, register (it's free), click on debt collection agencies and you'll find a whole can of worms there. Please remember from now on everything in writing, recorded delivery and keep a copy (and the GPO mailing receipt) Hope this helps a little. Vandermerwe

One debt / letters from 2 companies

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