How to prepare a good defense for a hearing at the County Court

eskbanker

Yoooz wrote: »

I still used the car though so needed the insurance. When I contacted the insurance company, what they called the ''cooling period'' was over so it would have cost me over £100 to cancel it, hence I didn't bother, instead I offered to repay the card. But as I mentioned earlier I made a total of 3 payments for the total amount of around £150-180, which haven't reached the account. I asked them to get it right as I can't keep paying if the money disappears. It's only when I went to speak to them now they understood what the problem was. They couldn't work it out back then as the money was never transferred.

So the bottom line is that Lloyds TSB lent you enough money to keep your car insured and you haven't paid it all back yet, but you stopped trying when you didn't get to the bottom of an allocation problem with repaying?

Based on what you've posted, I don't think you stand a chance in court and would suggest you just find out what it takes to settle it all before paying up and moving on with your life....

Yoooz

eskbanker wrote: »

So the bottom line is that Lloyds TSB lent you enough money to keep your car insured and you haven't paid it all back yet, but you stopped trying when you didn't get to the bottom of an allocation problem with repaying?

My argument is that Lloyds did nothing to rectify the problem with the payments going missing. I have asked them to check my current account, which was with them to to get to the root of the problem but they failed to do that. Now the amount I'm asked to pay is completely inaccurate as it STILL, after over 6 years doesn't include the payments I've made towards the card - that is what I'm not happy with. If the amount was not included in there then the interest was charged on the wrong amount and therefore the amount they're demanding is completely out of the blue. The consolidation loan I had with them is now fully repaid without any late payments so was the card until I closed it, which proves I always pay the correct debts on time but...they cannot ask me to make payments when quite clearly they could not fix this simple problem at the time - that's all I asked them to do. It's only now, when I contacted their representative after 40 minutes of checking sh worked it out that the payments weren't going into this account as it was previously closed something had to be done to allow the payments to reach it. To me that's a clear fault at their side as I can't access their systems. But I might be wrong again:)

eskbanker

I can see your argument that there's fault on their side too if they've failed to allocate your payments to the debt but you should have sorted that out with them in 2010 rather than ceasing all repayments and seeking to rely on the alleged error(s) years later. You say "they cannot ask me to make payments when quite clearly they could not fix this simple problem at the time" but I think you'll find they can ask that - were you expecting them to simply shrug their shoulders and write off the debt?

When you say "I have asked them to check my current account, which was with them to to get to the root of the problem but they failed to do that", what were you expecting them to be able to do - surely you have access to the statements that will clearly show the money leaving that account and presumably not being returned?

To a neutral observer, the idea that Lloyds wouldn't be able to resolve money leaving one of their accounts and not arriving in another is hard to believe, but I really don't think that negates the existence of the debt in the first place, so if you'd indicated that you were able and willing to pay off the bulk of the debt with the exception of the disputed missing repayments then it wouldn't have got this far. However, if you feel you have clear evidence of the repayments being made then if you make it clear that you're able and willing to repay the undisputed part of the balance then I'd have thought that you should be able to reach a settlement....

Yoooz

Thanks for your advice. I will contact the solicitors again and see if we could agree a settlement as so far they stuck to the amount they were given by Lloyds and wouldn't change it. I never denied the debt just couldn't believe how the money could go out of the closed account...8 months later, even their representative I've spoken with a few weeks ago couldn't explain that. After I worked it out it was genuinely payment for something of my use I offered to repay it but as I mentioned earlier I can't keep paying more than my budget allows me every month (I'm not rich, otherwise I would've repaid it within minutes:) So after I made a payment, 3 days later I would have received a phone call asking me to pay towards it...my answer I already paid, OK we will give a couple of days for the payment to clear...3 days later another phone call...at that stage I made another payment...few days later another phone call asking me to pay...I could put it under ''herassment'':) After I made 3 payments like that I said no more till you get it sorted at your end...6 years later those payments are STILL not recorded on that account. In my opinion that is a breach of credit agreement where they say any payments will go onto account and cover interest first then repay the balance...again I might be wrong but that's how I see it from my perspective.

Thanks again for any advice

davethorp

This would have been better in the debt section of the board.

If the last payment was made by you over 6 years ago then this sounds statute barred to me. If that!!!8217;s the case statute barred is a complete defense to any court proceedings. Again you!!!8217;ll get better advice in the debt section of the forum and you should request the thread be moved there ideally

Would also be helpful to know what stage of the court process you are at. Have you just received the claim form or have you already submitted a defense and are looking for help in preparing for hearing

enthusiasticsaver

Obviously the issue is whether the credit card was closed in 2010. There is a difference between just getting the card cut up and destroyed and actually closing the account. As I understand it you asked for a credit card for your girlfriend? Was that a joint card on the credit card account in question or did she open her own? Was there a balance outstanding on it at the time of the consolidation loan and do you have any documentary evidence that the credit card was closed and repaid in full. If you have a letter from the bank saying the credit card will be closed then that will be the crux of your case.

Automatic renewals are the bane of a lot of peoples lives and I guess the car insurance was on automatic renewal? It is a shame that was not spotted much earlier but it may be worth contacting the insurance company although being so long ago it may not be able to be corrected. Was the £800 all car insurance or was there a remaining balance from when you consolidated which presumably Lloyds never transferred? I agree that Lloyds do seem to have made mistakes but you seem to have a less than adequate grasp on your finances in not spotting these things much earlier. If I asked a bank to cancel a credit card I would make certain I had a statement saying the balance was repaid. It is easy on online banking to see if accounts are still open so I cannot understand why you did not realise earlier.

Court cases are expensive and given there appears to be fault on both sides I would try and resolve this outside of going to court.