Pending CCJ advice please

Gls1981

Hi, 2 years ago I stupidly took out a £250 payday loan from The Lending Stream.

To cut a long story short, I lost my job and couldn't make the monthly payments.

I buried my head in the sand and hoped it'd go away, but 2 days ago I received a letter from court saying that Asset Collections and Investigations LTD (a company that bought my debt) had filed for a CCJ against me for the sum of £968.41...

I have already filled out a defence and acknowledgement of service form online through Money Claim Online , HM courts and tribunal service as I don't agree with the figure they have presented me.

They have sent me a DQ today to fill out and return.

I am a single father on jobseekers allowance and could not afford to pay back such an enormous debt.

My questions are:

1.What happens now ?

2. Is there not a cap on the amount of interest a loan company can put on a defaulted loan ?

3. Will I need to attend a court hearing in person ?

4. If I cannot pay the full amount in one go, will bailiffs be sent to remove goods or will I get a chance to repay what I owe in affordable installments, which wouldn't be very much much as my outgoings are level with my income.
I couldn't face the bailiffs taking away the TV in front of my son and couldn't afford another.:(

5. Is there a chance that the judge will take a dim view of the amount of interest Lending Stream added and reduce my debt ?

Any help would be great, I know I was an idiot, but I'm tired of the sleepless nights and stress this has been causing me and just want to settle the cheapest and easiest way I can.

Thanks in advance.

sourcrates

Hi,

You can still attempt negoatiations with the creditor, there is a cap on interest on these type of loans now, but not two years ago, I don't think the law can be applied retrospectively.

You will not have to attend court, it's all done by post and online.

I think you've been watching too much television, bailiffs are rarely employed in collecting consumer credit debts, the judge will work out a repayment based on your ability to pay, if you should default on those payments, then, and only then, would the option of using bailliffs be concidered.

Info here :

http://legalbeagles.info/forums/forumdisplay.php?58-Library-Guides-Templates-amp-Information

National_Debtline

Hello Gls1981

Gls1981 wrote: »

Hi, 2 years ago I stupidly took out a £250 payday loan from The Lending Stream.

To cut a long story short, I lost my job and couldn't make the monthly payments.

I buried my head in the sand and hoped it'd go away, but 2 days ago I received a letter from court saying that Asset Collections and Investigations LTD (a company that bought my debt) had filed for a CCJ against me for the sum of £968.41...

I have already filled out a defence and acknowledgement of service form online through Money Claim Online , HM courts and tribunal service as I don't agree with the figure they have presented me.

They have sent me a DQ today to fill out and return.

I am a single father on jobseekers allowance and could not afford to pay back such an enormous debt.

My questions are:

1.What happens now ?



Your DQ ("directions questionnaire" for the benefit of any readers not recognising the abbreviation) will help the court decide how best to deal with your case - for example, whether you and Lending Stream are willing to agree to a mediation process which would save court time and extra costs.

2. Is there not a cap on the amount of interest a loan company can put on a defaulted payment ?


Recent changes in payday loan legislation mean that the amount owed should never exceed double what was originally borrowed; however these rules have only been in force since 2 January 2015 and so it's not clear whether your debt is governed by them. It's certainly not inconceivable that your debt could have grown the way it has.

3. Will I need to attend a court hearing in person ?


If you intend to defend a money claim, it is certainly advisable to attend any hearings that are arranged as the sitting district judge may want to ask questions on the day.

4. If I cannot the full amount in one go, will be bailiffs be sent to remove goods or will I get a chance to repay what I owe in affordable installments, which wouldn't be very much much as my outgoings are level with my income.


You will have an opportunity to tell the court what income and living costs you have, so that they can determine an affordable rate of payment based on your means. Bailiffs are unlikely to be used unless you have assets worth pursuing outside your property e.g. motor vehicles - these bailiffs would have no powers to enter your home by force.

5. Is there a chance that the judge will take a dim view of the amount of interest Lending Stream added and reduce my debt ?


All that matters is whether the facts and terms of any agreement you signed permit Lending Stream to add what they added, however hefty it may look to the casual observer. You cannot rely on the judge simply disapproving of a lender's rate of interest.

I have no wish to discourage you from exercising your right to dispute the amount claimed, but you do need to consider whether it is based on hard fact, as you run the risk of incurring extra costs should it go to a hearing only for you to be unsuccessful. We would always recommend seeking legal advice for such (partial) defences and you need to weigh up whether the cost of such advice is justified.


Dennis
@natdebtline

Gls1981

Thanks for your reply.

I spoke to the creditors, but as I've already filled out a defence form regarding the increased amount being disproportionate to the initial loan, they have told me it's out of their hands unless I make payment in full, which I'm unable to do.

I guess the CCJ is the only way forward.

Although I'm relieved that bailiffs will not be an issue if I stick to an affordable payment prescribed by the court.

Gls1981

I certainly couldn't afford a solicitor...

Could I still change my reply to an admission and agree on an affordable repayment plan, even though I've already sent the defence form back ?

fatbelly

I think this would be an interesting one for legalbeagles - although you are part way through the process, I'm sure they could help.