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

Blahah

Yes the SD does give a date of assignation to CapQuest in October 2007. So I guess I'll just go ahead with the 'prove it' letter and if push comes to shove and they really are legally entitled to collect that amount, I'll negotiate a settlement to clear my credit record.

fatbelly

As a rough guide, bear in mind that they would have paid something between 6% and 16% of the balance figure for the debt.

Blahah

Can one of you experts have a quick look at this variation on the 'prove it' letter and check I haven't said anything stupid. I've kept the original content, but also added some things which, if it does go to court, will demonstrate my willingness to resolve the matter. I have also highlighted CapQuests repeated blocking of my attempts to discuss the matter with them by mail (by them refusing to write to me).

Dear Sirs,

RE: your letter dated 24th June with REF: 87L889

You have contacted me regarding the account with the above reference number, which you claim is owed by me. I would point out that I have no knowledge of any such debt being owed to CapQuest. 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.

You have contacted me by telephone several times before, even after I informed you of my postal address and requested that you contact me by mail. I have been willing to enter into a recorded dialog (by mail) with you and you have failed to pursue this discussion. I consider this a failure on your part to seek a reasonable resolution to this matter. I would remind you that persistent calling after being asked not to do so, and when an alternative method of contact has been offered, is considered harassment and is grounds for reporting to the OFT and financial regulators. Your letter dated 24th June 2010 (which was delivered by hand to my house by your representative on 06th July 2010) was the first contact by mail I have ever received from your company.

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. If you can provide said evidence you must contact me only by mail so that I may have a full record of our discussions – I cannot stress this strongly enough as you have ignored this instruction repeatedly in the past.

Finally, I would like you to be aware that if there is a genuine debt for which you can prove I am liable, and you can prove that you are fully legally responsible for its collection, I am willing to negotiate the terms of repayment of that debt.

I look forward to your reply.

Yours faithfully

My Name Here

If someone more knowledgeable than me can confirm that this is appropriate, I'll go ahead and send it. Thanks!

climbintheladderouttadebt

Reads very well, I hope they sit up and take note now! I'm not an expert but see no problems with the changes you've made. Good luck! Hope to see you back with some good news soon!

Tixy

Looks okay to me - nothing in it to admit its your debt, which is the key thing.

fatbelly

I agree - puts the ball back in their court. See what they come back with.

Blahah

I just received a response from CapQuest - nothing drastic but they seem to have logged my letter as a complaint.

Here's the text:

CapQuest wrote:

Dear........

Thank you for your recent correspondence and confirm this account is now on hold.

An investigation into your complaint will be carried out in line with our in-house procedure and as soon as we have the results of our findings, a Quality & Assurance Officer will be in contact with you.

In the meantime, please find attached our Complaints Handling Leaflet for your information.

Yours sincerely

~~~~~~

Complaints Department
CapQuest Debt Recovery Limited

Given that the account is now in dispute and on hold, should I fill out the forms to have the Statutory Demand for Bankruptcy set aside? Or is this still not enough grounds?

I'm considering writing to the contact name given on the Statutory Demand and in no uncertain terms telling him why it would be a terrible idea to actually go ahead with Bankruptcy - i.e. tell him my exact assets (in the minus figures) and income (low!). I would also make it clear that, as previously stated, as long as there is a legitimate debt which CapQuest can prove and they are legally entitled to collect, I will negotiate a settlement. Do you think it's a good idea to write this letter? I just want to make sure I don't go bankrupt whilst maximising the chances of getting my default removed.

If it comes to a settlement I will offer a pittance at first but make it clear that I would only make a higher offer if removal of the default was guaranteed.

As always, I'm very grateful for any help.

RAS

Please do the set aside anyway, as you need to get that sorted out.

Blahah

Thanks RAS, yes I am going to apply for set aside, but I will do it on the last possible day. I've also decided that I'm going to go at CapQuest with all guns blazing. I'll C.C.A them and S.A.R them tomorrow. I'll also write a response to their Statutory Demand and make a formal complaint. I'll also apply to recover my costs at the set aside hearing - costs including research time preparing my case and costs for all the communication with them. By the time the hearing comes around they will have defaulted on the C.C.A and I will be able to win the set aside, then I'll go about having the debt closed and my credit history cleared.

Ames

I don't suppose you're from Scotland? If you are then this could be very close to being statute barred.