1st Credit sent Bankruptcy proceeding being considered letter ....Please Help !!

crystal_clear

I would be grateful if someone could advise a course of action, The brief being I defaulted my MBNA credit card back in 2006 and then got approached in 2007 by 1st credit saying they had taken over my £10,000 debt so I promptly sent them the £1 postal order and requested my signed credit agreement I seem to recall getting some little snip of unreadable copied paper. I didn't consider this anything that resembled any kind of credit agreement so continued to send my nominal payments every month to MBNA as was agreed.

1st credit have been sending annual statements and offers to reduce full payment but being a single mum with a mortgage I have never had the available money to meet there offers although I have been trying to save in the hopes I would be in a position to do so before April 2017 when my mortgage is paid off and I have a small insurance policy due as well, I could have cleared all my outstanding debts with f&f offers.... If I cant stop 1st credit going down the route of bankruptcy I would lose everything I have fought so hard to keep on an even keel all these years.

back in 2004 I was involved in an accident that put me out of work for 3 years so I had a lot of things to pay out and couldn't keep up with things so what wasn't covered on insurance I had to reduce to nominal payments.
I stated working again in 2007 but only 20 hours a week and got tax credit top up in 2010 that 20 hours increased to 30 hours I only earn £210 and 1st credit want a statement of my income and expenditure to look at rescheduling new payment terms ....... All this time I have never corresponded with them and I kept my payments going regular to MBNA but I not sure what to do now.

If anyone could help point me in a correct direction of what I should or shouldn't do or if you need further information I would be only to glad to hear asap. I cant eat sleep or think straight my nerves are so on edge with fear they will force me into bankruptcy now and put me and my pregnant daughter on the streets.

kind regards
crystal clear

heartbreak_star

When was the last time you made a payment to this account?

Sourcrates, we need you!

HBS x

Clive_Woody

From what I have read 1st Credit have a whole load of different threatening letters they like to send out to frighten people and try and pressure them into handing over more money.

If you have an asset such as a house, and a debt less than £10k I would have thought they would be more likely to go for a charging order against your property than go for bankruptcy, either way I don't believe that they can force you to sell your home (I should add I am no expert).

The best advice I can give is ring one of the free debt charities (such as Step Change) who will be able to offer free impartial advice on how to proceed, they will have dealt with 1st Credit many times and will be able to help you sort this out.

Don't stress, give Step Change a call today and don't respond to 1st Credit until you have advice on what to say to them.

http://www.stepchange.org/

Clive_Woody

Just read your first post again. You say that 1st Credit took over the debt but you have continued making payments to MBNA. Not sure how this works as they can't both hold the debt.

If MNBA have been accepting payments it suggest they have not sold on the debt.....or they sold the debt and continued taking payments from you.

sourcrates

Hi Crystal,


Ok, first off, try not to panic too much here, DCA letters threaten all sorts of things, they are designed to scare you, and force you into making arrangements you cannot afford.


You say you did a CCA request before, and got back something not resembling a credit agreement ?
You should do another request straight away, today if possible, send recorded, or even special delivery, and send it to 1st Credit, as speed may be of the essence.


If nothing else, it will automatically place the account "on hold", whilst the requested documents are sought, as its effectively raising a dispute on the account, typically creditors take anywhere up to a couple of months to action these things, that will be valuable breathing space for you.


In the meantime, as suggested above, National Debtline or Stepchange will be able to offer you good advice on how to deal with 1st Credit, as you are a homeowner, and a single mum, I assume the house is just in your name, so whilst 1st credit can technically apply to make you bankrupt, its not such a simple process, firstly they have to show the court they have tried to resolve matters by other methods, for example, by taking you to court, and obtaining, then enforcing a CCJ against you, or by issuing a statutory demand.


Each step can be challenged by you, its not a done deal, and it wont cost anything to do so, but, if things do get this far, it would be wise to seek legal advice.
Usually the court may determine how much you pay the creditor, they could also impose a charging order, and/or an attachment of earnings order.
You will also find a judge may be reluctant to approve Bankruptcy in cases were children are involved, they would look at all other methods first, Bankruptcy been a last resort.


Lots of info here :


https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/creditors-making-you-bankrupt/creditor-trying-to-make-you-bankrupt/

Other useful info here to :
http://www.legalbeagles.info/forums/showthread.php?47734-Statutory-Demands-FCA-Rules-and-Guidance-from-April-1st

1sr credit were also under investigation by the OFT (now FCA) for bad practice in 2009 :


As a result, 1st Credit Ltd and its associated companies must:

refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated

not discuss legal action with consumers unless it is likely that such action will be taken

ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and
ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.

Won't hurt to remind them of there obligations.

fatbelly

I remember the OFT warning to 1st credit - they were at that time issuing statutory demands to everyone though their offshoot Connaught Collections, without having any intention to follow it through.

Unfortunately, this means that they are now more likely to follow their threat with an actual SD - after all, this is a good tactic for them where they know that a debt is (a) not statute barred, (b) over 5k and (c) the debtor is a homeowner.

There is no requirement for them to get a ccj. The unpleasant outcomes of a SD proceeding to bankruptcy are handled by the Official Receiver, who works to pretty rigid guidelines.

So if one lands, you do need to act and the National Debtline factsheet gives the options:

https://www.nationaldebtline.org/EW/factsheets/Pages/36%20EW%20Statutory%20demands/Default.aspx

FredWhispers

I have an involvement with the Free Advice sector. 1st Credit have a very good reputation indeed. Don't believe all you hear!

If you have been ignoring letters it is inevitable they will consider legal action. Have you ever spoken to them or told them about your health issues?

I am guessing you have not sought free advice, do so asap! Either your local CAB or StepChange. Plus contact 1st Credit and tell them you are seeking free advice, they will give you 30 days breathing space.

(Text removed by MSE Forum Team)

Fred W

sourcrates

FredWhispers wrote: »

If you are worried pm me. I know some very Senior People there who I have met at conferences. I can give you are direct email address and I know they are not only VERY nice people they are committed to helping the genuine 'cant pays'.
Fred W

Really !!

It must be a different 1st credit than the one I had dealings with then.

From my own experiance, I was called up to 10 times a day, I was threatened with court, Bankrupcy, you name it, my letters were ignored, whilst letters from them could fill a small fridge.
I was told to borrow the money off a relative, or get another loan to pay them.

The people on the phones were rude, unhelpful, and downright nasty at times, so I belive flouting the rules was pretty endemic at 1st credit, and !!!! flows downhill, if you know what I mean !!

I would not rely on the charity of a DCA if my life depended on it !!

I hope for the OP's sake you are right though, I do agree with one thing you have said, and that is to make them aware of her situation, but I doubt it will make much difference as they only look at profit and loss.

FredWhispers

I'm guessing that was around 2005-2007? Lot different now im pleased to say!

crystal_clear

I continue to make payments as always to my original mbna account and I get an annual statement of money paid from 1st credit and the only letters and offers of f&f settlements all come from 1st credit.


crystal clear

fermi

Apart from behaving on that scattergun SD issue. 1st Credit have not changed their spots, believe me.