Could really do with advice on a debt agency chasing old debt

karel

Hi, I am looking for advice on a debt from 5 years ago.

I lived with my partner and had a knock on the door from the local authority telling us we had to replace the boiler in out alley as it was now illegal to have them outside due to a new ruling. This was fine but we could not afford it, they offered us an interest free loan for the new boiler which we accepted.

They then sent a DD form out which we filled in, nothing happened, then we got another letter asking for our details again, filled it in and sent back, weeks past and nothing was taken, then another DD form sent out and at this point we rung them and explained we had filled it out many times and nothing has been taken, they took our details over the phone and promised it was now sorted, it wasnt and no money was taken, so we gave up trying to help them.

Roll on 5 years and now my ex partner recieved a letter from a debt recovery agency for the full amount of £2.340. Me and my partner have broke up since, although her name is still on the mortgage until we sort a settlement out and she has not lived with me for 2 years. I told my ex partner about the letter and that I was going to take some advice before replying. They then sent another letter today ( A claim form from northampton) adding £840 interest and court and solicitors fees taking it up to £3,400, adding this amount will keep going up each day it is not paid, again finding a massive interest rate of 8%.

I have read up quite a lot and have taken on board a lot of things, but would really like help on a starting point. Also this is in her name only but I would still help her out if it is enforcable, although we both struggle to keep our heads above water.

If anyone can help with these questions or anything else then it would really help.

1. Is it worth me telling them I don't know where she is and buying some time? She has moved a lot recently, but if they can find her easily enough then it maybe a waste of time.

2. Can they charge any interest or fees to this account? The original loan was interest free, but that was on the loan and not for non payment. I seem to get conflicting advice whilst searching for answers.

3. As I live at the address they are sending the letters can they do nothing at all to me personally and will they listen if I say she no longer lives here or keep harrasing me?

I basically need a starting point on the best way forward and will try and keep reading up after that.

Thanks for any help

RAS

karel wrote: »

1. Is it worth me telling them I don't know where she is and buying some time? She has moved a lot recently, but if they can find her easily enough then it maybe a waste of time.

No - because the CCJ will be recorded against her name if she does not respond to the court paperwork, automatically. Given the sum involved if she does not pay the CCJ, they could go for a charging order on the house.

2. Can they charge any interest or fees to this account? The original loan was interest free, but that was on the loan and not for non payment. I seem to get conflicting advice whilst searching for answers.

That will depend on the exact terms and conditions

3. As I live at the address they are sending the letters can they do nothing at all to me personally and will they listen if I say she no longer lives here or keep harrasing me?

If you have a joint mortgage, you are finaicailly linked so any CCj against her affects your credit rating and they could secure the debt via a charging order.

I basically need a starting point on the best way forward and will try and keep reading up after that.

You need to get your ex to acknowledge the court papers and then prepare a defence.

What paper work do you still have?

Who was the loan actually with?

karel

Thanks for the swift response.

The original debt was with Yorkshire energy services, but it is a bit odd as I was told these were paid by kirklees energy services (local council) and then we paid them back. I even have a copy of a letter with a copy of a DD statement they acknowledge recieving, saying no amount had been paid on this account, even though they received it. Anyway on this letter it states kirklees energy services, but on the letter from the debt agency it states Yorkshire energy services. But I am 99% sure it was with kirklees (local council).

The only paperwork I have is a letter stating they have recived a copy of the DD and my partners signature on the DD form, why no money was taken I have no idea.

Should I ask for an original copy? So I can determine the initial debt amount as I am taking there word for it. And also how can I find out about the interest and costs they have added, I have had mixed messages if they could do this or not, is there a way of finding out?

Thanks for the advice so far, it's a starting point.

By the way there has been no court action threat, the inital letter only came last week, they have just sent a claim form out, asking for proof of earnings etc, it is the first basic contact.

RAS

Thanks

Sorry but if this is a claim form from Northampton courts, then they are in the proces of getting a County Court Judgement against your ex. Northampton is the bulk processing centre for CCJs.

karel

O.k thanks, what is the next best step?

Ask for proof of debt, sorry I can't remember exactly what they call it, basically proof of original debt? Then how do I go on about finding if the interest is illegal or not?

RAS

Please, please can you stop interceding between your ex and the DCA. Your intervention is going to wreck her and your credit ratings and she only has 14 days to sort things out.

She needs to ring one of the debt charities urgently http://www.moneysavingexpert.com/loans/debt-help-plan#help

She also needs to do a Subject Acccess request to find out exactly what she owes to whom.

Once the election is over, I suggest that she gets hold of her local councillor (where the house is) and tries to get this pulled back from the DCA, then comes to an agreement to pay this off. it may or may not be possible, but politicians can pull levers that are not available to others (the loan provider may want to be more reasonable with a major stakeholder, the Council may want to avoid talking to the LG Ombudsman.)

karel

I am not interceding, she does not have the internet at her house and I just need to find out some information before letting her contact them so she does not make a mistake and fully understands her rights. I have no intention of taking it on and as it is partly mine and I will pay half, then I want to find the best way forward.

Thanks for the info so far and I will do as you say and have her contact them straight away, one last question, would it be better to write or do this by phone and could I apply for the 30 day period to sort things out?

RAS

karel wrote: »

Thanks for the info so far and I will do as you say and have her contact them straight away, one last question, would it be better to write or do this by phone?

Who are you going to contact?

Do not speak to DCAs on the phone. there is no proff of the call or the contents or any agreement.

It is too late to speak or write to them anyway, now they have start court action.

She needs to acknowledge the court paper work. She probably needs to send a Subject Access Request to both the Council and the creditor. That will not return much before she had to organise her defence. These need to go registered post.

Speak to the councillor.

There should be a consumer credit agreement and a defualt notice somewhere? Can you locate those?

IUf so, come back here uregently.

karel

If I understand you correctly there has not been one default notice given before action was taken. We basically agreed to pay the loan all those years ago, filled out numerous standing order forms without them taking anything from the bank. No warnings, no default nothing, it was like they had just lost it in the system and then a letter last week saying the debt had been passed on.

She spoke with national debt helpline and they said they would send a pack out and basically they can't add court or solicitor costs on as it has

not gone to court. The interest was not on last week, but on this week, so they said that could be bull, I still can't get a clear answer on that side. In the pack though they said there was something to send them asking for a full breakdown of debt and so called costs.

Her parents say if they accept a one off payment then they would lend it her, not sure how to go down that road though.

Can you explain what you mean by she needs to acknowledge the court papaerwork? This is all new to us.

Also I can't find the original credit agreement although I do have a copy sent by the concil stating the amount taken each month and my partners signature, I will look further for anything else, it could be around somewhere.

Thanks again for the advice so far, it has helped.