Please help...terrified.

smallsteps_2

I hope the following makes sense.
Six years ago my husband took out a personal loan with Welcome Finance(month is unknow was summer time ,we have no paperwork to verify exact date).

It was for £1500.

My husband made some payments but then due to personal reasons suffered a breakdown and to be frank it wasn't at the top of our list of priorities..working and paying the rent ,electric etc was first.

We moved shortly afterwards and were trying to rebuild our lives.
Now suddenly last month we received a claim form from Northhampton county court asking for the sum of £5,400.
We have no idea of how this has leapt nor any correspondance from Welcome Finance whatsoever.

Foolishy we missed the deadline to send it back as my husband tried contacting local branch where loan taken out to request CCA ..branch has closed long ago apparently.

Now this morning a form from our local courts informing us they apply for an attachment of earnings against my husband.
How can they do this without providing us with proof of debt,details and how on earth these charges jumped so much??

My husband is self employed now but struggling so heaven knows how we are going to manage this but I firmly believe they should provide info..not just slap someone with this surely?

I am filling in the form today to send back asking it to be set aside/suspended.

I rang a debit line number who only ended up scaring the life out of me saying baliffs would be s tep and to keep doors and windows locked...but for how long??

Any advice I would be so so grateful...I am googling everything yet confusing myself more.

Thank you

notts_phil

As you missed the deadline they got judgement by default and so are thus entitled to apply for an attachement of earnings order

Did you send the claim form back at all, even though you missed the deadline?

puregeordie

Could be lucky in that the debt pursued by them maybe statue barred as its 6 years old!

http://www.debtadvisersdirect.com/Features/825/Limitation-Act-1980.htm

Just a thought.

Cheers.

jackyann

Go to your local CAB, neighbourhood law centre or similar. Ask at your library for information on what organisations you have locally that can offer you help. Then take everything to them.

iolanthe07

They probably got judgement just inside the 6 year (5 in Scotland) Statute Barred limit, but definitely worth checking out.

AJG384521

It wont be statue barred as she said she took out the loan in the summer of 6 years ago and made a "some payments", so would have defaulted about 6 month later minimum at a guess.

Tixy

If husband is self-employed then they are not going to be able to get an attachment of earnings. As that is when the ask his employer to deduct it from his pay before paying him.

If you cannot afford to pay it them you need to apply to be allowed to pay in installments - have a read of this factsheet http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=08_reducing_payments_or_suspending_a_bailiffs_warrant_on_a_county_court_judgment
It doesn't sound like you would have a case to get it set aside from the limited info given.

National debtline have a free helpline and could help you with this - or if you would rather see someone in person then you could go to your local CAB - but they may have a delay before you can see someone and you really need to act now.

In terms of the balance having increased by so much - welcome finance offered high APR loans - in the 5plus years since it was paid the balance will have been increasing all the time. Welcome will have been writing to your last known address - in fact you were lucky to get the court papers at all before the judgement, as these could easily have been sent to the last known address as well.

Have northampton court sent you a copy of the default judgement - it should say whether or not the creditor are allowed to continue to add interest on top of the judgement.

smallsteps_2

hello and thank you all for taking time to reply.
Very foolishly we didn't send the form back..I know..

We have tried contacing Welcome to request copies of agreement and what was actually on there...we have zero paperwork except for the claim forms.
I don't even know what the charges consist of..
Can they still serve you even if they sent letters prior to a preceeding address?

Received a letter this morning from Northampton judgement in default and states ordered to pay £5,252.90 for debt and interest to date of judgement.

This is saying to pay now or goods may be removed..so along with that I have the forms from my local court with attachments of earnings order which I understand is void but we want to rectify this and sort it out.
But have no idea of the charges at all with no documentation.
Are Welcome bound to comply with this if we ask the court on the forms?