Letters: empty threat of CCJ or genuine warning of upcoming CCJ?

DopeyTom

Hi,
I have recently received a letter explaining that Shoosmiths are collecting a £2000 debt of mine (originally a defaulted HSBC overdraft) on behalf of Arrow.
The debt is about a year away from becoming statute barred, but I'm worried that they will take a CCJ out against me before this time has elapsed.
I expect to receive letters threatening that court action may be taken against me, but will they make it clear to me when they're serious, & that a CCJ is truely imminent (unless I cooperate etc.)?

Separate question: a debt of £1500 ~6 years old (originally a defaulted NatWest overdraft) is no longer on my credit report, does this necessarily mean it is statute barred?
Thanks.

fatbelly

Hi

Shoosmiths are solicitors but it doesn't mean that they will necessarily start a court claim against you in the time remaining.

An easier question would be 'How will I know if they're not serious' The answer to that is if they start offering increasing discounts.

Your Nat West overdraft is over six years since defaulted. If you haven't made a payment to it in that time and they haven't already started a court claim then yes it's statute barred

DopeyTom

Thanks for the reply.
But further to my first question, isn't there some sort of warning that they must legally provide before taking a CCJ out against me such as 'you have to respond in 14 days or we will take out a CCJ & were serious' or can they take one out an any time, after any number of generic threats?

sourcrates

DopeyTom wrote: »

Thanks for the reply.
But further to my first question, isn't there some sort of warning that they must legally provide before taking a CCJ out against me such as 'you have to respond in 14 days or we will take out a CCJ & were serious' or can they take one out an any time, after any number of generic threats?

It's called a "pre action protocol letter", or a "letter before action".

It should give you the opportunity to settle the debt, or face action through the courts.

It will say along the lines of "we will take court action" as a pose to "we may take court action".

Subtle difference.

DopeyTom

:heart2:
That's exactly what I was after, thanks!

DopeyTom

Would it still be possible to negotiate a realistic monthly repayment plan if it gets to the stage of them sending a letter before action?

fatbelly

Yes, but bear in mind that even a correctly worded letter before action does not mean that they will take court action, merely that they can.

fermi

Poki12 wrote: »

Hello
I was getting letters from Lowell ltd. regarding a debt which I don't acknowledge, so I ignored them. Recently BW Legal started claiming for the same debt n asking to contact them. I ve been getting letters n even phone calls which I had been ignoring. Yesterday I received a County Court Claim Form for the same. Also received a letter from BW Legal stating that if I don't respond to their letter or the Claim form, they ll enter a CCJ against me.
Where I can recall, their claim is way back from around 2007. After which I was not in the country for few years and I came back 7years ago and to a different address. In any circumstances if I had an arrear won't it be statute barred by now.? But my credit report shows a default on 2011.
I have written a letter to BW Legal to provide me with the proof of contract with my signatures.
Can you plz advice me on how to deal with the Court claim form and BW Legal?

Moved to a separate thread:

link --> https://forums.moneysavingexpert.com/discussion/5622561

DopeyTom

fatbelly wrote: »

Yes, but bear in mind that even a correctly worded letter before action does not mean that they will take court action, merely that they can.

I reckon it would be pretty risky to call their bluff & do nothing after receiving a letter before action though eh?
Receiving a letter before action will be the end of the line for me, I'll arrange a repayment plan if I'm sent one

DopeyTom

fatbelly wrote: »

Hi

An easier question would be 'How will I know if they're not serious' The answer to that is if they start offering increasing discounts

The letter I received from Shoosmiths states
'Our client has informed us that, in return for a lump sum payment in the short term, they may be prepared to accept less than the sum set out above'
Does that suggest that they're not serious?

sourcrates

DopeyTom wrote: »

The letter I received from Shoosmiths states
'Our client has informed us that, in return for a lump sum payment in the short term, they may be prepared to accept less than the sum set out above'
Does that suggest that they're not serious?

Creditors use all kinds of "incentives" to get you to pay up, if you continue to ignore, the chances of legal action grow.

As I said in an earlier post, the pre-action protocol is changing in October, from the 1st a creditor has to supply much more information, and accept a payment plan that's offered, before issuing a claim form.

Between now and then, they will be looking to get results on there current portfolio of debts, so expect a rush of court claims before the new system goes live.

Right now I would not be taking any chances.