Got a Statutory Demand today off Connaught Collections

Silvafox

I got a statutory demand through the post today off Connaught Collections on behalf of 1st Credit/HSBC. Its my fault its got this far obviously and I want to tackle it. Its for £7200 on a loan taken out in 2000. I'm not sure whether its statue barred and don't know how to find out without droppping myself in it. I have my credit file that says when the loan was takne out but I don't know when my last payment was. It certainly around 6 years ago and I have not aknowledged anything so far (hence I'm in this position now).

I've trawled the forum for info on these things and these particular companies but worryingly it seems like they are a heavy handed company to deal with so I'm after advice really on whats 'best' to do from here.

Firstly, I'd like to say that I want to sort this out and I accept full responsibility. If anyone read any other threads by myself they'll know that I've manageds to sort some other things out too... ie reposession.

These are my options:

1) I can offer monthly instalments of around £100 absolute maximum.
2) I can offer for them to add a charge to my property and secure the debt.

After reading a lot about his company I am pretty sure they will refuse my instalment offer. So am I best just offering permission to add a charge to the property? Also, if I do that, can they then force me to sell the property once they have the charge or can I then start making monthly payments?

If they refuse my £100 per month and even the charge and it goes past 21 days - what are they 'likely' to do? I know they have to pay a large upfront fee to get a petition against me. Is this company likely to do that after me making them two offers to sort the debt? I am unsure since it is quite a large debt.

Also, if they did do a petition against me and it goes to court, will the judge simply view my two offers and throw it out as I've made a 'resonable' effort to resolve the problem?

One other thing I think I'm best doing is 'not' entering into telephone conversations with this particular company and to do it all by mail. Is this a good route? I'd use recorded delivery too. Only thing is, I hate how long mail can take and what if they drag their feet in replying and it goes past the 18 or 21 days? I just really don't want to actually speak to them.

Any advice is welcome? Just need some help in deciding whats best. Either way, I can't afford to go bankrupt.....

Thanks for reading.

PS There is sufficient equity in the property for a charge but we already have a secured loan too so I assume they would be third in line if the house was sold.

PPS If I send them a letter offering £100 per month in relation to the Statutory Demand - does anyone know where I could get a good template to use so I can use the correct wording etc.

artic_fox_2

sorry ive no idea but i thought id say good luck and i hope it all works out for you

some one will be along who knows more than me soon

CLAPTON

i think i would try the statute barred route, i can't see you have much to lose and let them prove if its less than six years

i would suggest you send the letter posted below (recorded post and check its delivered )

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Silvafox

CLAPTON wrote:

i think i would try the statute barred route, i can't see you have much to lose and let them prove if its less than six years

i would suggest you send the letter posted below (recorded post and check its delivered )

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

OK, thanks for your advice, very much appreciated.

If I go down this route and ask them to prove otherwise, will I still have to go down to the court and ask for the Statutory Demand to be put aside? I just don't trust them to respond in time thats all and I want to cover all options really.

If they prove that payment or contact has been made within the last 6 years I intend to then offer £100 per month in writing. Therefore, if they try to petition me, at least in court it will look like I've made the effort to start paying it.

Catch 22 really. If I offer an installment plan then they've got me....if I don't and they petition me then I'm in big trouble. They may be willing to stump up the £1500 or whatever it costs as the debt is substantial. It is more than likely a strong-armed bluff - but its a good one and its working.

CLAPTON

it is a bit tricky and i think you ought to phone nationaldebthelp line and get some advice. clearly you're not denighing the debt's yours but that its statute barred; but you're not absolutely sure.
see what the helpline say but obviously you must respond to the statutory demand on the basis that its statute barred.

does your property have much equity left as you say you already have mortgage and secured loan?

Silvafox

My house is a jointly owned property with my girlfriend. The house is worth about £175,000 and we owe £149,000 in mortgage. We have a £6000 redemption charge if we sell it within the next 2 years and we have a £20k secured loan. So basically, even if we sell up now then there won't be enough to cover it all.

I think I'm gonna have to make an offer to make instalments and then see if they get arsey and refuse it then I'll have to see what their next move is. I would feel more confident if if it went to court and I could at least say I've made the offer. I would offer them to secure a charge on the property but am unsure as to whether they can then force me to sell?

Would a company like this refuse a £100 per month and then pay about £1500 of their own money to risk being told by a judge that they need to accept my offer? I wouldn't be so worried about it, if I hadn't read loads of threads on here about them being unreasonable to other people.

I've faced a few things debt wise, such as facing reposession and raising over £7k just by selling stuff and cutting down on things and have managed to sort them all out, including now being up to date with the mortgage and the secured loan! But this particular instance is worrying me. I'm reasonable...but are they? I simply can't afford to pay more than £100 per month to them.

Kyresa

scrutinise the form you have been sent and see if it says anywhere "this is a copy of what a statutory demand looks like" .

Some debt collection firms use them like that - it's not an actual statutory demand per se!

Silvafox

Kyresa wrote:

scrutinise the form you have been sent and see if it says anywhere "this is a copy of what a statutory demand looks like" .

Some debt collection firms use them like that - it's not an actual statutory demand per se!

I'll get my magnifying glass out on it tonight....although I'm pretty sure its real!

debt23

Hi all,

I tell you what, i'd be amazed if they turned down a repayment of £100 per month on a £7200.

I pay a lot less than that on debts far higher.

I just cant see it being in their best interest.

Assuming you do end up accepting the debt is yours (not out of date etc), then write them a letter proposing the repayment plan (enclose a full financial breakdown of your affairs etc) and pop a cheque in for £100.

That should do the trick. I tend to find its best not to enter in negotiation over a DMP (i.e you ask can I pay x a month and wait on the reply). Just tell them what you can pay and send the cheque.

Should all work out ok.

All the best

debt23

Silvafox

debt23 wrote:

Hi all,

I tell you what, i'd be amazed if they turned down a repayment of £100 per month on a £7200.

I pay a lot less than that on debts far higher.

I just cant see it being in their best interest.

Assuming you do end up accepting the debt is yours (not out of date etc), then write them a letter proposing the repayment plan (enclose a full financial breakdown of your affairs etc) and pop a cheque in for £100.

That should do the trick. I tend to find its best not to enter in negotiation over a DMP (i.e you ask can I pay x a month and wait on the reply). Just tell them what you can pay and send the cheque.

Should all work out ok.

All the best

debt23

Thanks, I think this is what I'll do. Should I still do something about the Statutory demand just in case they drag their heels on replying? Or will me simply doing what you have said, be enough to halt any further proceedings?

Thanks again for taking the time to reply.

debt23

Hi,

My (limited) understanding of these things is that the stat demand is just a stepping stone to them having the ability to take further legal action if they wish.

I dont believe that it means they will and if you proceed as above, I dont think they will do anything further other than bank your monthly payment!

Of course, they may still huff and puff, but just roll with it and keep sending the payments.

All the best

debt23