AOE notification / not seen CCJ

Lamplighter

Hi
I'm hoping for some quick advice please, and need to act quickly.
I've received a notification of an application for an Attachment of Earnings relating to a default on a loan from a couple of years ago. A default CCJ has been issued against me without my knowledge, as all correspondence has been with an old address that I no longer have post forwarding from.
Mea culpa on the default, which occurred when my finances went pear shaped and I have since buried my head about it. I am happy to agree a repayment plan, and obviously want to avoid the AOE.
However, the judgment amount shocks me - the loan was £3k at high interest (24x£300 repayments). I paid only £900 against the loan, however the claim is for £7.7k (£5.5k debt at default, £1.2k legal & collection costs, £1k interest since default @8%).
I believe I have 2 choices:
- submit N56 statement of means with an offer of repayment and hopefully avoid my employer being contacted. This would mean accepting the £7.7k, but I'm not able to afford much more than £400 per month. I'm worried whether this will be acceptable?
- submit N244 application to set the default judgment aside (and paying £255 costs), as I had no opportunity to defend the claim, in which I would have contested the additional charges and willfully agreed some form of settlement. Does this have any prospects?
I've spoken to the local court to let them know I'm taking some advice about requesting a set aside, and they've put a note on the account.
Any direction would be appreciated. If anyone is able to support and needs more info, I can give further detail in a PM.
Many thanks

T-G-C

Lamplighter wrote: »

Hi
I'm hoping for some quick advice please, and need to act quickly.
I've received a notification of an application for an Attachment of Earnings relating to a default on a loan from a couple of years ago. A default CCJ has been issued against me without my knowledge, as all correspondence has been with an old address that I no longer have post forwarding from.
Mea culpa on the default, which occurred when my finances went pear shaped and I have since buried my head about it. I am happy to agree a repayment plan, and obviously want to avoid the AOE.
However, the judgment amount shocks me - the loan was £3k at high interest (24x£300 repayments). I paid only £900 against the loan, however the claim is for £7.7k (£5.5k debt at default, £1.2k legal & collection costs, £1k interest since default @8%).
I believe I have 2 choices:
- submit N56 statement of means with an offer of repayment and hopefully avoid my employer being contacted. This would mean accepting the £7.7k, but I'm not able to afford much more than £400 per month. I'm worried whether this will be acceptable?
- submit N244 application to set the default judgment aside (and paying £255 costs), as I had no opportunity to defend the claim, in which I would have contested the additional charges and willfully agreed some form of settlement. Does this have any prospects?
I've spoken to the local court to let them know I'm taking some advice about requesting a set aside, and they've put a note on the account.
Any direction would be appreciated. If anyone is able to support and needs more info, I can give further detail in a PM.
Many thanks

A default CCJ has been issued against me without my knowledge, as all correspondence has been with an old address that I no longer have post forwarding from.

That is not their problem. You are supposed to inform them of an address change, to prevent a lack of correspondence in cases such as this. As you have realized, failing to notify an address change does not hide the consequences.

The charges look about right. The interest, as agreed to upon signing the credit agreement, is still charged even when defaulting. The legal and collection costs look quite high, most likely because they have spent a while chasing you because of the failure to update your address.

You can submit the N56 and if your offer of repayment is accepted, then you will be able to stick to those terms going forward. We cannot estimate that for you, it is merely on whether they decide if £400 per month is acceptable for them.

as I had no opportunity to defend the claim

Once again, this is the consequence of moving to another address and not telling them. If they had the correct address, you would have been made aware in the first instance and been able to fight your corner from the start. They are not to blame for this factor, so please do not use it as collateral against them, because it will not work in your favor.

Your other option, as you have suggested, is applying to have it set aside. However, this is usually only worthwhile if you disagree with the amount that the creditor is claiming. It is easier to ask the court to set affordable monthly payments by amending the judgement. This will save you in costs and may make the situation more resolvable for both parties. You have to have a good reason for requesting to set aside and with the costs attached, you could find yourself in a worse position if it is refused.

You need to go with the option that you feel is most appropriate for your situation. Like I said, there is no guarantee of a set aside being granted, as you were technically at fault for not receiving correspondence about it initially, so it may be wise to propose the £400 per month as a repayment structure and go from there.

Lamplighter

Appreciate your thorough and prompt response, thank you.
I had assumed there wasn’t much to be gained trying to set aside, as you rightly mention my change of address wasn’t their fault. The magnitude of the legal and collection costs is frustrating, as I had not exactly disappeared, however I hadn’t told them and I guess it’s a tough lesson.
Thanks again

T-G-C

Lamplighter wrote: »

Appreciate your thorough and prompt response, thank you.
I had assumed there wasn’t much to be gained trying to set aside, as you rightly mention my change of address wasn’t their fault. The magnitude of the legal and collection costs is frustrating, as I had not exactly disappeared, however I hadn’t told them and I guess it’s a tough lesson.
Thanks again

There should be tougher laws in passing on legal costs, as I do not believe they are tariffed proportionately to the realistic cost of debt recovery. I am not saying that costs are not incurred, but certainly on a pen and paper basis, not to the extent of which is billed to the client.

That being said, unfortunately as things stand, they are legal and ruthless. If you are on a low income, there is support out there for people who cannot afford legal costs, such as setting aside etc.

Lamplighter

Thanks for all your advice on this.


I submitted the N56, my proposal of £400pcm was accepted by the court, and I have been issued with a Suspended Order conditional upon my regular payments by 28th of month.


One question remains - the court order "How To Pay" section states that at least 4 days should be allowed for the payment to reach the creditor. My salary clears on 24th, so whilst I can always make the payment by 28th, I cannot always meet the four days earlier deadline due to weekends.


Should I be concerned about this? Should I contact the creditor about it? I don't wish the suspended order to be considered breached on this minor issue, as I'm very happy with the installment amount and that my employer is not involved, and don't want to risk it being amended.


Thanks.

BrassicWoman

Spend almost nothing this month to get a 400 buffer in the bank and set up a standing order so it lands in plenty of time.

Lamplighter

Hi there

I have a new issue and would like some advice.

I submitted the N56 in November and was handed a Suspended Order conditional on me making payments by 30th of each month starting November, and also ordered that my employer is not contacted so long as I don’t breach the conditions. I had requested this on basis that an Attachment order would compromise my reputation with my employer and cause harm to my career. The total amount is significantly more than the original debt, including extortionate interest to the benefit of the claimant, and costs of the bailiffs and the solicitors.

I paid the claimant on 26 November, which they accepted. I then called the claimant to pay on 21 December, however I was told I should be paying the Bailiff instead. I said that the Court Order states payments MUST be made to the claimant, but was told that the November payment was accepted by them in error (inexperienced call handler), and I should be paying the bailiff. I therefore called and paid the bailiff, and confirmed with both bailiff and claimant that both the Nov and Dec payments were recorded.

3 Jan I get a copy of an Attachment of Earnings Order through the post, which has been sent to my employer dated 27 Dec. I called the court and established that the claimant’s solicitors had filed this stating no payment had been made against the suspended order, so the court proceeded to issue the attachment order on my employer.

I provided the court with an explanation and proof of payment, which the clerk passed to the District Judge for directions. As an outcome, the full order has been rescinded and the AOE “adjourned with liberty to restore”, and the court will write to my employer to confirm. The DJ has also requested a full explanation as to how this happened from the claimant’s solicitors.

That’s great, but it should never have happened. The claimant’s solicitor was wrong, with a result that my employer now has knowledge of this matter which I can’t deny, and which is contrary to the assurance ordered in the Suspended Order.

I find myself greatly aggrieved that I’m paying significant costs to claimant, bailiff and solicitors over the original debt, whilst between them they’ve been wholly incompetent in wrongfully asking the court for a full order on my employer.

Is there anything I can do, or should be doing about this? It merits more than just a slap on the wrist for someone, as it has compromised me greatly.

Thanks

Gaz83

Lamplighter wrote: »

Hi there

I have a new issue and would like some advice.

I submitted the N56 in November and was handed a Suspended Order conditional on me making payments by 30th of each month starting November, and also ordered that my employer is not contacted so long as I don’t breach the conditions. I had requested this on basis that an Attachment order would compromise my reputation with my employer and cause harm to my career. The total amount is significantly more than the original debt, including extortionate interest to the benefit of the claimant, and costs of the bailiffs and the solicitors.

I paid the claimant on 26 November, which they accepted. I then called the claimant to pay on 21 December, however I was told I should be paying the Bailiff instead. I said that the Court Order states payments MUST be made to the claimant, but was told that the November payment was accepted by them in error (inexperienced call handler), and I should be paying the bailiff. I therefore called and paid the bailiff, and confirmed with both bailiff and claimant that both the Nov and Dec payments were recorded.

3 Jan I get a copy of an Attachment of Earnings Order through the post, which has been sent to my employer dated 27 Dec. I called the court and established that the claimant’s solicitors had filed this stating no payment had been made against the suspended order, so the court proceeded to issue the attachment order on my employer.

I provided the court with an explanation and proof of payment, which the clerk passed to the District Judge for directions. As an outcome, the full order has been rescinded and the AOE “adjourned with liberty to restore”, and the court will write to my employer to confirm. The DJ has also requested a full explanation as to how this happened from the claimant’s solicitors.

That’s great, but it should never have happened. The claimant’s solicitor was wrong, with a result that my employer now has knowledge of this matter which I can’t deny, and which is contrary to the assurance ordered in the Suspended Order.

I find myself greatly aggrieved that I’m paying significant costs to claimant, bailiff and solicitors over the original debt, whilst between them they’ve been wholly incompetent in wrongfully asking the court for a full order on my employer.

Is there anything I can do, or should be doing about this? It merits more than just a slap on the wrist for someone, as it has compromised me greatly.

Thanks

Put in a complaint illustrating how their error has 'compromised you greatly', and what redress you feel would set it right.

You might get something out of it, you might not. In what way do you feel it has compromised you? Do you work in financial services?

D_M_E

By the sound of what you have written, either the solicitors or claimant or both have disregarded the court by contacting your employer.

A complaint about the solicitors to the SRA would seem to be in order.

http://www.sra.org.uk/consumers/problems.page

Lamplighter

Hi Gaz


Thanks for your reply. I don't work in financial services, I am an Engineering Manager in the manufacturing sector. I am responsible for around £3m operational and £6m investment spend annual budgets, and having occupied this role for several years, I am looking for elevation to a board-level role. It is on this basis that I feel my employer's knowledge of some personal financial issues compromises my reputation and career.


I do not deny the original debt, however given that the claimant (themselves or via their agents) has breached the terms of the order and comprised me unfairly, I believe some form of redress in respect to their fees and interest might be appropriate.

Lamplighter

Thanks DME - I'll follow that up.