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Credit card debt taken to small claims court help

Hi sorry if thus is in the wrong place but I really need some help. I've been taken to small claims court by the purchaser of my old credit card debt I don't know if it's legally enforceable but how do I sort this out now. The court has suggested mediation which I'm happy to do to sort it out but I've not been in this position before so am a little lost. Any help would be greatly appreciated.
Thanks in advance

Comments

  • Arleen
    Arleen Posts: 1,164 Forumite
    1,000 Posts Combo Breaker
    Do you owe the money? If so, why didn't you pay it before, or try to arrange alternate payments with them if you simply can't afford it?

    Up until the hearing the claimant is free to drop his case, although he will lose the court costs already paid. So probably contacting them and cutting out a deal is not a bad idea, especially as hearing will cost them even more money.

    What stage is the case on? Did you just receive the first form from court?
  • ALIBOBSY
    ALIBOBSY Posts: 4,527 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    TBH the legally enforcable (or not) issue regarding credit cards was only for cards where the agreement was several years ago and any recent agreements are unlikely to breach the legislation.

    You are much more likely to be able to defend on grounds of the account being statute barred, but without further info it is difficult for anyone to give you specific advice.

    When did the account default and when was the last payment OR acknowledgement IN WRITING of the debt by yourself.

    Otherwise your only option may be to make a repayment arrangement.

    Ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    sutty69uk wrote: »
    Hi sorry if thus is in the wrong place but I really need some help. I've been taken to small claims court by the purchaser of my old credit card debt I don't know if it's legally enforceable but how do I sort this out now. The court has suggested mediation which I'm happy to do to sort it out but I've not been in this position before so am a little lost. Any help would be greatly appreciated.
    Thanks in advance

    You will have the opportunity to contact the claimant and pay them what they are claiming including their costs. If you don't do that the case is likely to be heard and if proved a CCJ issued.

    If it's more than 6 years since you last admitted the debt in writing or made a payment it's not enforceable due to the Limitations Act 1980. In that case go to the Citizens Advice Bureau.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    Anthorn wrote: »
    You will have the opportunity to contact the claimant and pay them what they are claiming including their costs. If you don't do that the case is likely to be heard and if proved a CCJ issued.

    If it's more than 6 years since you last admitted the debt in writing or made a payment it's not enforceable due to the Limitations Act 1980. In that case go to the Citizens Advice Bureau.

    In the first place, the OP needs to file the "acknowledgement of service". If indeed the debt is statue barred, this needs to be put on the Defence which needs to be filed with Court and sent to the Claimant within the deadline (28 days from service of the Claim Form).

    If the OP fails to enter a defence, then there will be no hearing and no need for the Claimant to prove anything - they can ask for default judgment to be entered which is an (almost) automatic process.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 2 July 2016 at 5:39PM
    In the first place, the OP needs to file the "acknowledgement of service". If indeed the debt is statue barred, this needs to be put on the Defence which needs to be filed with Court and sent to the Claimant within the deadline (28 days from service of the Claim Form).

    If the OP fails to enter a defence, then there will be no hearing and no need for the Claimant to prove anything - they can ask for default judgment to be entered which is an (almost) automatic process.

    That's why I suggested the CAB. Personally I would argue till the cows came home and went away on holiday. But this has come to court and more professional and accurate information is needed.

    But don't wait. Do it now.

    Personally, if it's too late to enter a defense I would ask for leave to appeal and then go to the CAB if that's granted.

    Alternatively, your local council may provide debt counselling or may have links to a local organisation which provides it.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    Anthorn wrote: »
    That's why I suggested the CAB. Personally I would argue till the cows came home and went away on holiday. But this has come to court and more professional and accurate information is needed.

    I read your post differently - suggesting that it might go to a hearing regardless. Also suggesting it it might be statute barred and unenforceable.
    Anthorn wrote: »
    You will have the opportunity to contact the claimant and pay them what they are claiming including their costs. If you don't do that the case is likely to be heard and if proved a CCJ issued.

    If it's more than 6 years since you last admitted the debt in writing or made a payment it's not enforceable due to the Limitations Act 1980.

    No matter.

    But just to be clear: Limitation works as a defence. Even if this debt is 20 years old, unless a defence is entered, a judgment can be entered and IS enforceable. By all means the OP can go to the CAB for advice - but only if there is time to do this.
    Anthorn wrote: »
    Personally, if it's too late to enter a defense I would ask for leave to appeal and then go to the CAB if that's granted

    The way the 28 day deadline works is this. After 28 days, the claimant is free to ask for default judgment. This will be granted if no defence is entered. So even if you are late with a defence, it is still worth entering one if judgment hasn't been given. If you cannot write your defence in time you can make an application to ask for more time.

    As for "leave to appeal", the usual procedure is to apply for "set aside" in the case of default judgments. This is different from an appeal.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I read your post differently - suggesting that it might go to a hearing regardless. Also suggesting it it might be statute barred and unenforceable.



    No matter.

    But just to be clear: Limitation works as a defence. Even if this debt is 20 years old, unless a defence is entered, a judgment can be entered and IS enforceable. By all means the OP can go to the CAB for advice - but only if there is time to do this.



    The way the 28 day deadline works is this. After 28 days, the claimant is free to ask for default judgment. This will be granted if no defence is entered. So even if you are late with a defence, it is still worth entering one if judgment hasn't been given. If you cannot write your defence in time you can make an application to ask for more time.

    As for "leave to appeal", the usual procedure is to apply for "set aside" in the case of default judgments. This is different from an appeal.

    I'm confused. So are you saying that contacting the CAB for advice is the thing to do or not? And is the debt actually statute barred or not? Quite frankly your posts come across to me as pedantry and nothing more than that. Hey have a good day :)
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Anthorn wrote: »
    I'm confused. So are you saying that contacting the CAB for advice is the thing to do or not? And is the debt actually statute barred or not? Quite frankly your posts come across to me as pedantry and nothing more than that. Hey have a good day :)
    What's to be confused about, it's obvious contacting CAB for advice is the best thing to do and how is anyone supposed to now if the debt is statute barred considering there is no information to go on.


    There was nothing wrong with the post.
    good day.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    sutty69uk wrote: »
    Hi sorry if thus is in the wrong place but I really need some help. I've been taken to small claims court by the purchaser of my old credit card debt I don't know if it's legally enforceable but how do I sort this out now. The court has suggested mediation which I'm happy to do to sort it out but I've not been in this position before so am a little lost. Any help would be greatly appreciated.
    First work out if it has been six years or more since you last paid or did anything like agreeing you owed the money. If it has you should file a defence with the court stating when you last acknowledged the debt and that it is statute barred by the Limitation Act 1980.

    If the debt is covered by a debt relief order, IVA or bankruptcy tell the court about that.

    The court will help with procedures, and the people tend to be very helpful, though they can't give any legal advice, just tell you how to do things.

    If it is not statute barred then the thing to do is consider negotiating to repay some part of the debt. A court will only order you to pay what is affordable so it's worth looking into the court forms for calculating necessary expenses to work out what the court would consider to be affordable payments. You can then try offering less than that or that for only a certain number of years. If you have someone else who could pay some lump sum you could instead offer a lump sum in full and final settlement. There's no exact number for the amount to offer.
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