I’m in the middle of applying for a DRO but have received a ‘letter of claim’

Adam657

I have been a bit stupid as I have moved addresses since acquiring all these debts. I never bothered telling my creditors I had moved (I was already in 8 months+ of defaulting by then). Curiously no creditors have said anything in email (the amounts are quite low).

One payday loan company sold my debt to TLS however and they have been hounding me whilst I bury my head in the sand.

In any case I am in the process of getting a DRO with step change which they say I qualify for.

My latest email from TLS said I have not responded to a ‘letter of’ claim they sent me 2 & 1/2 weeks ago and if I do not respond within 30 days total. they can start court action. They also said if I haven’t gotten the letter (which I obviously haven’t as they don’t have my correct address) I must tell them so they can send one.

I’ve accepted I must tell them but want to ask what will the letter entail? It seems fruitless to offer them some sort of payment as I literally have barely anything in the bank and am saving up for the DRO fee.

If I tell them I’m in in the process of a DRO will they start a CCJ anyway to try and beat it? It’s unlikely my DRO will be approved before their letter of claim deadline expires.

Sorry for this long post I’m just in such a panic.

sourcrates

Hi,

Just write and tell them you are applying for a debt relief order.

They have no remedy against it, and even if they obtain judgement against you, CCJ’s are extinguished under insolvency.

Once you’ve told them, they most likely won’t bother you again, even if they do, just ignore them, and crack on with the DRO.

Enforcement of judgements takes months to organise, so no worries on that score.

WhenIam64

In any case I am in the process of getting a DRO with step change which they say I qualify for.

How far down the application process are you. Has the application gone in yet?

As SC says, the CCJ is extinguished but a LoC is a 30 day notice of the claim form. When/if the claim form comes, you can extend the time by acknowledging and defending (of sorts) to give you some breathing space to complete the start of the DRO application.

How close to the £20K are you and is this one included?

Adam657

This one is included. I’m about 6.5k debt in total. I emailed them and said I’ve not received the LOC and gave them my correct address to send it.

I read online I can click ‘box C’ that I’m unsure if I owe this debt and to ask them to send me info on when the debt was sold, notices of assignment etc which can give me more breathing space while the DRO is processing with StepChange. Does that sound sensible?

WhenIam64

I’m unsure if I owe this debt and to ask them to send me info on when the debt was sold, notices of assignment etc which can give me more breathing space

This is the correct procedure but a lot of this debt buying is run by computers and no actual human sees your request. After 30 days you get a claim and you have to follow the court rules of Acknowledging in 14 from the date on the claim and sending in a defence within 28 days of the date on the claim form. This is only to stop the HMCTS computer grinding on rather than the merits of any case. It gives you breathing space.

The paperwork you asked for then appears after the last date to defend.

Is the system they use unlawful? Perhaps, but you follow the court rules and respond. Or lose (though it is academic if the debt is within the DRO).

Talk to Stepchange and get the process to progress. Pay the £90 and get the DRO going.