Letters: empty threat of CCJ or genuine warning of upcoming CCJ?
Comments
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The letter I received from Shoosmiths states
'Our client has informed us that, in return for a lump sum payment in the short term, they may be prepared to accept less than the sum set out above'
Does that suggest that they're not serious?
It suggests they're not 100% sure that they would get their money back if they spent money on a court claim against you.
Do you feel like making a cheeky offer?
If you do, then you MUST use the standard letter that National Debtline advise:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
It is headed 'without prejudice', which means that it cannot be used in court. Case Law says that a letter is not necessarily 'without prejudice' just because it is headed that way, but must contain 'an element of negotiation, which this one does.
It would therefore not count as acknowledgement and not stop the statute barred clock from running.0 -
sourcrates wrote: »Between now and then, they will be looking to get results on there current portfolio of debts, so expect a rush of court claims before the new system goes live.
Right now I would not be taking any chances.
Creditors do seem to be getting a bit more claim happy, particularly Cabot and Lowell.
I guess this will only serve to encourage them in the short term.
I'm not sure long-term it will make much difference - I remember when the PAP for mortgage arrears came in - didn't really change anything0 -
It suggests they're not 100% sure that they would get their money back if they spent money on a court claim against you.
Do you feel like making a cheeky offer?
If you do, then you MUST use the standard letter that National Debtline advise:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx
It is headed 'without prejudice', which means that it cannot be used in court. Case Law says that a letter is not necessarily 'without prejudice' just because it is headed that way, but must contain 'an element of negotiation, which this one does.
It would therefore not count as acknowledgement and not stop the statute barred clock from running.
How cheeky, <5%?
I'm surprised offering payment isn't regarded as acknowledgement!0 -
sourcrates wrote: »Creditors use all kinds of "incentives" to get you to pay up, if you continue to ignore, the chances of legal action grow.
As I said in an earlier post, the pre-action protocol is changing in October, from the 1st a creditor has to supply much more information, and accept a payment plan that's offered, before issuing a claim form.
Between now and then, they will be looking to get results on there current portfolio of debts, so expect a rush of court claims before the new system goes live.
Right now I would not be taking any chances.
I'll keep my eyes peeled for a letter before action 0 -
sourcrates wrote: »and accept a payment plan that's offered, before issuing a claim form.
Could you elaborate on that?0 -
Could you elaborate on that?
Under the new system if a reasonable payment plan is offered by the debtor, the creditor is expected to agree to this, without resorting to court action.
The whole idea of the new rules is to :
(A) make the creditor more accountable by providing all nessessary information as a matter of course,
And
(B) reduce the amount of county court judgement applications by agreeing terms without use of the courts.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Wow, I thought that was already the casesourcrates wrote: »Under the new system if a reasonable payment plan is offered by the debtor, the creditor is expected to agree to this, without resorting to court action.0 -
Wow, I thought that was already the case
In theory they do, but in practice certain creditors ignore income and expenditure details and instead progress to court anyway.
From October 1st they must take these details into account in order to agree a payment plan without resorting to the courts.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Surprised me because one would expect court proceedings to result in a reasonable repayment plan, such as the one in place beforehandsourcrates wrote: »In theory they do, but in practice certain creditors ignore income and expenditure details and instead progress to court anyway.
From October 1st they must take these details into account in order to agree a payment plan without resorting to the courts.0 -
Surprised me because one would expect court proceedings to result in a reasonable repayment plan, such as the one in place beforehand
That's the thing you see, the court would expect you to pay according to your budget, you know that, the creditor knows that, but some creditors are just bloody minded or stupid.
The added protection of a CCJ gives them more options should you not pay for any reason.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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