Got a Statutory Demand for Bankruptcy from CapQuest today - advice please!

Blahah

Hi everyone.

Here's some background:

In 2005 I took out a store card with Jessops via Clydesdale Financial Services (now owned by Barclays). The amount of the store card debt was about £2500. From 2005 to 2007 I repaid quite a large chunk of the money, I would guess about £2000. Then I fell behind with my payments and eventually stopped paying altogether. For my shame I ran from the debt, ignored letters and avoided calls and moved house several times.
Stupidly, I threw away most of the original paperwork relating to the debt, including statements and details of payments I made.

In late 2009 my parents started receiving letters from CapQuest at their address (I used to live there) and also some calls. Not wanting my parents to get pestered for me, I called CapQuest and they said that I owed £3814.12. I denied any knowledge of this debt, and told them I would only correspond in writing and they should not call me again. I gave them my current address. Over the next few months I got a load more calls from CapQuest, each time I told them to write to me and not to call, giving them my address again in each call. Then I heard nothing for a while until today when a man knocked at my door and gave me an envelope. He said "this is from CapQuest - do you want me to call them?" I said "err.. no thanks, I'll read the letter". Then he left.

The letter includes a statutory demand for bankruptcy.

My situation:
I am 24 years old and currently a full-time university student, in the second year of my degree. I live with friends and my girlfriend, and pay rent of £390/month. I get the minimum student loan and I have also worked this year on a casual basis to earn money to pay my girlfriend's tuition fees, our rent and other needs. My girlfriend is not entitled to a student loan as she is taking a 2nd degree. I no longer have the casual job and am doing a summer research project at my university, getting paid a subsistence grant to do it.

This is really my only debt. I owe the university library about £30 and the university itself about £540 for the final payment of my girlfriend's tuition fees, but I expect this to be settled at the end of July. Next year I will be taking a placement year and will get paid about £12000 for my placement over the year. Out of that I might be able to repay the debt they allege, but I don't want to pay more than I owe (a couple of hundred pounds) and I certainly don't want to pay CapQuest - I would like to pay the original creditor if I have to pay anyone.

Now then...
In the past I read this forum and decided to prepare a CCA demand letter to send to CapQuest. I never got around to sending it (stupid, I know). Can I send it now? I'm pretty sure I don't owe the amount they claim (they say £3814.12 including interest of £966.08, which has accrued since the assignment of the debt). The original debt was less than £2500, and I certainly paid a large chunk of it back before I stopped paying.

I've read through this thread (showthread.php?t=1835131) and it seems I should send off the CCA on the chance that CQ don't have the correct documentation. At the same time I should call some sort of Debt Advice line. Is this correct? Who in particular should I call for advice?

Are there any other grounds on which I can challenge the statutory demand?

I'm going to prepare the CCA now so I can send it tomorrow morning if I get confirmation from you guys that it's the right way to go.

I'd appreciate any help I can get - I'd rather avoid bankruptcy as I know it will hinder me getting jobs in future.

Tixy

Hi

I would speak to national debtline for advice. http://www.nationaldebtline.co.uk/

Personally I would suggest you start with the prove it letter rather than a CCA request - on the basis how do you know that capquest are chasing the jessops debt? have they given you any proof that they have bought the debt from jessops (a notice of assignment) or that this is even the debt in question? does it mention jessops and your old account number at all?
But like I said phone national debtline for free advice to confirm this is the correct procedure to follow.

Whatever letter you do send make sure it goes recorded and keep a copy.

Blahah

Thanks Tixy. I will call national debtline after work today. The Statutory Demand does mention Jessops in it so I assume they are talking about the same debt (although Capquest employees never mentioned this when I asked them about the debt in one of their many phone calls). Could you point me in the direction of the 'prove it' template? I can find plenty of other templates but not that one.

In any case I will send everything by recorded delivery, keep copies for myself and won't sign any letters by hand.

handyman123_2

Hi BlaHa, This sounds like another one of CrapQuests Bluffs. Whats the point of making you bankrupt. Do you have assets of more than the amount that they are claiming. What would be the point of them spending 1K plus in legal fees to get sod all back in return.

Hit them with the CCA, request a statement showing how the debt is made up. Send the communicate only in writing letter, and only sign digitally (just in case).

Meanwhile lets keep this thread current until someone with the appropriate knowledge comes along. Still follow Tixy's suggestion and have a word with national debt line.

Good luck, handy.

climbintheladderouttadebt

It may be worth sending this 'prove it' letter':

Dear Sirs,

Account No: XXXXXXXX

You have contacted me regarding the account with the above reference number, which you claim is owed by myself. I would point out that I have no knowledge of any such debt being owed to (insert company name). I am familiar with the CPUTR 2008 and the Office of Fair Trading's Guidance on debt collection, which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable and in not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive and unfair methods. Furthermore ignoring and disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical & psychological harassment.

I would ask that no further contact be made concerning the above account unless you can provide evidence as to my liability for the debt in question and await your written confirmation that this matter is now closed. Otherwise I will have no option but to make a complaint to Trading Standards and also inform the Office Of Fair Trading of your actions.

I look forward to your reply.

Yours faithfully


Sign digitally

Is that what you were thinking Tixy? Hope this helps and doesn't hinder things!

fatbelly

I agree with Handyman that this is probably a bluff. Crapquest are very fond of sending out these SDs like confetti despite the OFT warning another company last year (1st credit?) that they shouldn't use them in this way.

It sounds like the debt has not been acknowledged (by payment or in writing) since 2007 so I'd be reluctant to do that now. I would go for Tixy's suggestion of the prove-it letter and see what they come back with.

Blahah

OK thanks everyone for the responses so far. To summarise my proposed course of action (when I get home from work):
- I will send the 'prove it' letter.
- I will also call National Debtline and seek their advice.

Do I need to do anything about the statutory demand to avoid going to court? It says on it that I have 18 days to apply for it to be set aside. Should I do this now, or should I wait until I get a response from CQ? Thanks again.

fatbelly

In order for them to lodge the sd with the court they would have to pay the court fee plus some costs - previous figure of £1000 is near the mark.

If they did that on every SD they send out it would cost them something approaching the UK National Debt!

So we can't say 100% they won't do it ... but they probably won't do it and what would be your grounds for set-aside as things stand anyway?

I have recently dealt with two of these from Crapquest. On one we just denied liability. They couldn't prove anything (interesting - they held no paperwork at all!) and we eventually received a letter saying they were 'no longer instructed' or something like that.

On the second we were intending to go for bankruptcy anyway. So we asked them to lodge the SD with the court and then complained when they didn't - passed their 'final response' to OFT, FOS and CSA. None of these organisations were any use to us - all said that Crapquest had 'behaved reasonably' etc etc. However, they have stopped writing to my client.

Standard debt advice says you should respond to a SD and that is the gist of National Debtline's factsheet. Crapquest know that and that is why it is a very effective tactic for them.

jockinleeds

...and when they 'prove' that the debt is valid?
So, if its a bluff for bankruptcy then surely would go down the CCJ route.
Sometimes 'hiding' from the debt does funny things in your head about how much you owe. Not being funny here - I've done it myself!
So I would suggest rather than conjure up loads of ways on how to avoid paying a debt (which is what has happened so far) surely the story here is finding out how that debt has been accrued and facing into it if its yours?
Blood and stone spring to mind. If you dont have the income then you cant pay it back? How did you get the card in the first place w/o income? Offer 'em £5 month.
No work at the mo?
W/o any assets - property/car etc then their chances of full recovery are slim... Offer what you can.

Blahah

If it transpires that I actually do owe that amount (and I must have a fairly serious brain problem if I do and have completely rewritten my memory) then I'm happy to pay it. I don't want to pay if I don't owe, I don't want to be bankrupt and I don't want CapQuest to profit from dealing with me in an underhand way. I don't have any significant assets - I have my laptop and phone and clothes. No savings, bank account in the negative by 4 digits. I got the card in the first place because I had no previous credit history and at the time had a reliable monthly income. I'm now a student, however I can easily start making extra income to cover an expense that I need to pay.

If I find that there is a significant debt, can I make an offer to the original creditor (Clydesdale) in exchange for getting the default removed from my account?

fatbelly

Blahah wrote: »

If I find that there is a significant debt, can I make an offer to the original creditor (Clydesdale) in exchange for getting the default removed from my account?

Only if Clydesdale (Barclays) still own the account. It may have been assigned (sold) to Crapquest and that should be made clear on the SD. If they don't state it in so many words, then they probably don't own the debt - and that's another reason to think they're trying 'to profit from dealing with me in an underhand way' (your words).

There used to be a similar problem with 1st credit until the OFT intervened:

http://www.oft.gov.uk/news-and-updates/press/2009/20-09

Jock - the reason they don't go for a ccj is that it would cost money. Anyone can hold the text of a statutory demand in Word on their computer and churn them out by the thousand. Costs peanuts but is a very effective tactic.