Unenforceability & Template Letters

leemuddywaters

never-in-doubt wrote: »

Yes mate - send this letter: However if the debt is settled then first and foremost you send off to reclaim charges.

Appreciate that NID, keep you posted on the outcome!!

puddy

Hi, can I ask advice on behalf of someone,,, she has used one of the claims companies (despite me telling her to do it via here) and its been 7 months since they took a payment of £150 and have now told her that the case is with their solicitor.

she is trying to get one of her credit card debts made unenforceable and they have told her that it shouldnt result in a default. so far she has continued making minimum payments as advised by this company (might be monster claims)

i keep reading on here that once you stop paying (after finding out the debt is unenforceable), they will put a default on your account, however, how do you then get the default removed and what is the difference between a legal or illegal default (in what circumstances would it be illegal to put a default on the account). does the use of these companies mean that she wont have a default put on her credit rating accounts??

thanks

billl111

Hi N.I.D, just some advice i've been following your thread and the advice given is great. I've requested my CCA from Marbles back in April, i sent all the follow up letters and still received no reply from them until mid October where they stated they were unable to provide a copy of the original agreement, they went on to quote that regulation 3 and 3 (2). The final line states, "however if an agreement is found to be unenforceable, the contract still has legal effect and is not void, the lender is merely prevented from seeking an enforcement order from the court".
My question is reading from earlier threads is they are still sending me letters and today i received a default notice stating i must pay before a date this month or they will default me. I have no defaults against me and i'm wondering will i be able to get the default removed at a later date? I've didn't send your section 10 letter, i used another template for my 12+2 CCA request. Any advice on what i should do?.
Many thanks

never-in-doubt

jenner wrote: »

Hi, can I ask advice on behalf of someone,,, she has used one of the claims companies (despite me telling her to do it via here) and its been 7 months since they took a payment of £150 and have now told her that the case is with their solicitor.

she is trying to get one of her credit card debts made unenforceable and they have told her that it shouldnt result in a default. so far she has continued making minimum payments as advised by this company (might be monster claims)

i keep reading on here that once you stop paying (after finding out the debt is unenforceable), they will put a default on your account, however, how do you then get the default removed and what is the difference between a legal or illegal default (in what circumstances would it be illegal to put a default on the account). does the use of these companies mean that she wont have a default put on her credit rating accounts??

thanks

Basically a default cannot be legally registered against you if the debt is unenforceable, i.e. they do not supply your CCA. That said, the lender realise you can;t afford to sue them (as it would be civil action) so they just default you anyway. Its a catch 22 situation, they cannot do it but they do actually do it.

The company - irrespective of who they are - cannot have a default removed nor can they promise one will not be added because the lender or DCA that owns the debt make that decision and usually it results in a default being registered.

Do it yourself, these companies are a joke - all of them are! :eek:

never-in-doubt

billl111 wrote: »

Hi N.I.D, just some advice i've been following your thread and the advice given is great. I've requested my CCA from Marbles back in April, i sent all the follow up letters and still received no reply from them until mid October where they stated they were unable to provide a copy of the original agreement, they went on to quote that regulation 3 and 3 (2). The final line states, "however if an agreement is found to be unenforceable, the contract still has legal effect and is not void, the lender is merely prevented from seeking an enforcement order from the court".
My question is reading from earlier threads is they are still sending me letters and today i received a default notice stating i must pay before a date this month or they will default me. I have no defaults against me and i'm wondering will i be able to get the default removed at a later date? I've didn't send your section 10 letter, i used another template for my 12+2 CCA request. Any advice on what i should do?.
Many thanks

You should send a letter to the lender that confirmed they cannot locate the CCA and demand that no action is taken against you or you will pursue this through the courts. They will probably add a default, they always do. My post above explains this - basically its hard to get it removed and no guarantee that a judge will side with you in which case you'd be liable for both sets of costs which could be 10's of thousands!

Personally, i'd be writing to the lender and demand they adhere to the laws and guidance specifically quoting s.10 (CCA1974) as per page 1.

Fossildog

This is probably a naive question but here goes. Is it possible to use the lack of a CCA as a bargaining tool with a CC Company? If for instance you have a good credit history but are being squeezed by what you consider to be punitive rates on your CC do you think they would be more willing to negotiate if they knew that the agreement was not legally enforceable?

never-in-doubt

Fossildog wrote: »

This is probably a naive question but here goes. Is it possible to use the lack of a CCA as a bargaining tool with a CC Company? If for instance you have a good credit history but are being squeezed by what you consider to be punitive rates on your CC do you think they would be more willing to negotiate if they knew that the agreement was not legally enforceable?

Hiya

Nope - usually the lender themselves look for 100% repayment. The only way to mess around with F&F settlements is when they sell the debt to a DCA who usually buy it for much less, say 15p in the £1 thus allowing them to negotiate. The lender will not.

So you have a couple of choices; pay the full amount or fall behind for 3 months and let them pass it to a DCA in which case you then haggle with the DCA for reduced settlement. 50% would be more than ample with a DCA. However, the only downside is that you'd probably end up with 3 or 4 payment late markers.... this entry would be viewable on your credit file for 3 years.

Personally, unless you're in debt, i'd just pay the amount cos anything else will hinder your credit file, albeit a late payment marker is better than a default!

Fossildog

Thanks for the quick reply. I was thinking more of reducing the rate of interest rather than not paying the amount owed back. They have upped the rate on the cash portion of the balance from 22% (which was bad enough) to a heart stopping 34.9% (MBNA). I have tried negotiating with them to reduce but to no avail. I also heavily suspect they do not have a CCA. They are unwilling to reduce the interest with the result that any payments I make are reducing the balance on the lower rated purchase balance whilst the cash balance is increasing every month.

puddy

never-in-doubt wrote: »

Basically a default cannot be legally registered against you if the debt is unenforceable, i.e. they do not supply your CCA. That said, the lender realise you can;t afford to sue them (as it would be civil action) so they just default you anyway. Its a catch 22 situation, they cannot do it but they do actually do it.

The company - irrespective of who they are - cannot have a default removed nor can they promise one will not be added because the lender or DCA that owns the debt make that decision and usually it results in a default being registered.

Do it yourself, these companies are a joke - all of them are! :eek:

thank you, so how would she get the default removed and would this action mess up her credit file?

tryingtoruletheworld

Hi

This may be a really stupid question, but I am trying to organise my bf's finances! I have seen from this thread (which is amazing btw!) the situation regarding CCA's etc, I was just wondering if this is relevant to secured loans and mortgages? Or is different paperwork involved there? He has used some dubious companies, but obviously with a property at stake I don't want to do anything silly!