Universal Credit/Paragon.

Northants_Simon

Anyone here had any dealings with these? More to the point anyone won a battle with them?

I took out a Universal Credit loan in 1996 for £6k, run into difficulty a few years later and at this point owed £4000. I went straight to Citizens Advice who negotiated for the interest to be frozen and token payments of £10. A while later I got back on my feet and increased by payments in stages up to £220 a month to try and clear the debt. Paragon brought Universal Credit and started charging massive amounts of interest without telling me. They refused to give statements or a balance.

10 years on I thought the debt must be paid off and eventually got a statement from Paragon which showed I now owed £13k and had actually paid back around £12k. They denied ever freezing the interest.

I haven't paid them for several months now and to date they haven't threatened legal action but do keep pestering me. I asked for a copy of the CCA and got a form with my name and address added (not the original and not signed or dated by me or them)

A few questions.

I'm looking at getting an affidavit from other people who had interest frozen and then added back, the web seems to be full of these cases. Please let me know if this happened to you.

As I haven't been taken to court I presume they don't have a proper credit agreement. Do Paragon normally get a CCJ?

Paragon sent a document on 15th Feb 2000 which I had to sign and return. This said if I pay by standing order the debt would be consolidated and brought up to date. Did anyone else get this? I have been told it didn't comply with technical apsects of the Consumer Credit Act and probably voided the original agreement.

I have paid the debt back in full with a lot of interest and they still claim I owe £13k. How likely are they to write this off?

RAS

Simon

There are too many questions here; you really need to talk to one of the debt charities http://www.moneysavingexpert.com/loans/debt-help-plan#help

The basics however are that if Paragon cannot produce a signed CCA, they cannot take you to court to obtain a CCJ, as long as you defend any action they take. Judges will issue CCJs. charging order and even make people bankrupt in the absence of a CCA, if the debtors does not bring this to the attention of the court.

it is a lot easier just to defend the case than to unpick the mess later.

petermb_2

RAS.
I think you need to request a copy of the agreement officially. You need to quote section 77 of the Consumer Credit Act 1974. You must include a postal order or cheque for £1.

In your letter state that you advise them that under the above section of the act Paragon have 12 days in which to provide you with a copy of your agreement. Failure to do so will render the loan unenforceable until they have complied with your request.

My experience with these people is that they will not have a copy of the agreement to provide to you.

Northants_Simon

I have already made the official request with the £1. That was in August 2007. They sent a part completed application form with some sections in my hand writing and other parts in different hand writing. They sent a made up copy of the credit agreement with my address added. It didn't have a start date, or any date, neither did it have my signature or their signature.

Since then I have requested a true copy of the agreement and never recieved a thing.

petermb_2

I would now write back informing them that as they have not complied with section 77 of the Consumer Credit Act 1974 you now consider the agreement unenforceable.

Have you paid any money to them since you first requested the agreement?