Statutory Demands from 1st Credit Ltd

sallyjo_2

Hello,

I have been paying off old debts on a CCCS DMP for about 3 years now, and I reckon I have two more years to go to finish them off if I stay in work and am careful and throw extra money when available at these debts as I have done.

I had one of my remaining debts transferred to a dreadful firm called 1st Credit Ltd who for the last six months have harrassed me and not accepted my DMP payments. They threaten me regularly with bankruptcy, do not respond to my own letters. I received a letter in the post from a firm purporting to be a process server threatening to 'revisit' my property next week in order to serve me a Statutory Demand. Needless to say I do not intend to allow this, though presumably they can find other ways to serve it if they really want to.

I know 1st Credit Ltd are being investigated by the OFT for using statutory demands as scare tactics, but I am frightened that in my case they might go ahead as I am a homeowner and am in full time work, not enough to pay them £6K on demand, but enough to make regular payments on a DMP. I do not want to be forced into bankruptcy and have my home sold or auctioned off! I can't contest the debt as I am duly paying it off. Will a court really allow them to petition for my bankruptcy so they can seize the full amount of my debt which is about £6K if I am making regular payments?

I am writing to the OFT to complain but what can I do to protect myself?

Thank you.

Leixlip1

It's probably just a bluff/scare tactics but I would call National Debtline or CAB to get some advice about what to do.
Good luck.

fermi

Do you have equity in your home? Or other assets that could pay your debts if bankruptcy happens?

If not, then 1st Credit would be mad to do it. It would cost them literally thousands to do and it is unlikely that they would get what it costs them back, let alone any of the original debt.

What is this debt for, and when was it taken out? Making a CCA request if applicable would be a good idea. If 1st Crudit do not comply with that then it would give you grounds to have any statutory demand set aside by the court. Getting it set aside costs you nothing.

Likewise, is any of the debt disputed or incorrect? Is any of it penalty charges, mis-sold PPI etc....

Have a read here: http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.php

hopefull1

Hi

If you could advice us on how much equity you have in your property.

I suspect that it is a scare tactic as you say in your post that you are hoping too have everything paid of in 2 years then they will be getting a decent ammount every month.

Even if they do issue you will a stat demand you can still apply too the court too have it set aside and hopefully the judge will see that you are being responsible and trying too pay them back as quick as you can.

Who was the original lender of this debt as I suspect that they are being more aggresive again as they have lost 2 of their biggest clients.

Take care

hopefull1

Hi

Just another thought have you tried offering them a f&f settlement they may well settle for alot less than £6000 as they will have paid nowhere near £6000 for the debt.

Kind regards

Lensman_2

From Fermi's link.

Please note that a statutory demand in 90% of instances is 'bluffing technique' used to scare a person into paying up. If a bankruptcy petition does not follow then this will become apparent.

To successfully get a statutory demand set aside one or more of the following must be satisfied:-

• The amount stated on the statutory demand is disputed.

CCA them!