CONNAUGHT COLLECTIONS STATUTORY DEMAND...is this a fake??

annievtaylor

Today, My elderly father received a "Statutory Demand under section 268(1)(a)of the insolvency act 1986. Debt for liquidated sum payable immediately".This looked like a court document , but , upon inspection was clearly not , it was from Connaught.
It came through the mail , it is not a court document. I thought these things had to be served personally and be an official court document?
The sum is for £1342 which is an old Lloyds TSB account my Dad had....I thought they could not officially make anyone bankrupt for under £5000?
It says all the way through that to set it aside , he has to apply to his nearest court....as far as i am aware this debt is nearly 6 years old and if he goes to court regarding this the time will run all over again...is this true?
Does anyone have any advice as to what to do here....does he go to citizens advice...does he report this to OFT for being a fake...or does he do nothing?
We also got one for my mother who has been in a nursing home since 2000 and has not lived here since then...Any help appreciated.

whatatwit

Sorry Anniev, I don't know anything about these, but I'm sure someone will be along soon who can help.

annievtaylor

I hope so...thanks...time is of the essence..my dad has pulmonary disease and this is making him ill.

rog2

It is MORE THAN LIKELY to be a 'Try on'. In spite of the fact that it is illegal for a DCA to use forms which are so similar to official forms that they are 'misleading' the debtor, many of these 'lowlife vultures' continue to do so.
Do not reply to the form - take it to CAB, or a solicitor, to check its authenticity.
It is extremely unlikely that a DCA will petition for a creditor's bankruptcy for a debt of £1,342, since they will have to pay the court fees (usually in excess of £750) 'up front' with no guarantee of getting them back.
Also, check the details of the alleged 'debt' and post them here.
If no payments, or written communication, for 6 years, then the 'debt' is almost certainly 'statute barred' and can not be collected.
I repeat - DO NOT contact the DCA until you have taken advice.

rog2

Just a further two words of advice:

Firstly, the MINIMUM debt, for which a creditor can petition for your bankruptcy, is £750.00 in England and Wales.

For more information on 'Statute Barred Debts, click on the following link.

http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

annievtaylor

Wow..is that all? Thanks for your comments..will get to the CAB as soon as poss which is hard as my dad is in hospital with pneumonia.

AGB863

Connaught Collections are well known for this scare tactic, they purchase debt that are over 6 years old and then use the Statutory Demand to get people to start paying as they do not want to be made bankrupt.

I have had to do this for a number of clients who get this type of demand.

It will be a legal document and it does not cost them anything to produce this, but to take someone to court and made bankrupt does. WHat happens if your father has no assets.

Send a copy of this lettr to Connaughts as then they have to prove that the debt is not statue barred, ie payment towards the debt or acknowledment of the debt has been made in the last 6 years. If they do not, they can not follow through with any action.

WITHOUT PREJUDICE

Dear Sir/Madam

Acc/Ref No xxxxxxxxxxx

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

We would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation
period”.

The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time.

Unless you can provide evidence of payment or written contact from us in the
relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to
section 40 (1) of the Administration of Justice Act 1970”.

We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

We look forward to your reply.

Yours faithfully

Kreator01

Has this been resolved? did a bankruptcy order come? I had one the other week and am still waiting!

annievtaylor

Well , I have looked into this further and unless they served the statutory demand officially , they cannot follow up with a bankruptcy order as they have to prove in court that the demand was served properly. It arrived second class through the post box so legally...it didnt come. I have had a follow up letter with threats and then three weeks later they sent the original hoax demand out all over again as though the first one didn't happen.
Be aware that if you contact them in any way , over the phone or by letter to discuss your debt....the 6 year cycle starts all over again for that debt so best thing is to say nout and , if a court document was to ever come through your door....fight it from there....there are delay notices etc you can serve in response etc...I don't think it'll come to that.


£1906 claimed from the Abbey....applied to the account today!

rog2

Good to hear from you Annie, and pleased to see that it was, after all, a try on.
One point, though, about contacting them - it is only written contact that will re-start the six year cycle, and, even then only if the written contact is made within 6 years of the last payment or written contact.

annievtaylor

Hi...i read it was a verbal agreement that you acknowledge a debt if your phonecall is recorded....dads nearly at his six year limit so thats why they are piling it on.