Pay day loan redress and CCJ.

desperatedan123

Hello,

I had various payday loans back in 2011 - 2013.

I could and couldn't afford them at the time. Turned into a vicious circle of debt.

Fast forward 6 years and I'm getting lots of compo payouts from various companies for mis sold loans. Lack of affordability checks etc ...

1 company (the money shop) sold a £400 debt to another debt purchasing company. This company then chased me for 600 pound right up until 5 years and 6 months, then sent me a court summons.
Stupidly I ignored it and ended up with a CCJ on my file. This all happened in Feb 18.

The last 3 months I've had contact from the money shop who identified me as a customer who was mis sold my loans and in due a redress psyment of about 1200 quid.

So my question is;

If the last loan I took out wasnt legally valid / above board (hence the compo payment) ; should my debt have been sold on?

Can I now present this new evidence to the 2nd company or even the courts, to have this CCJ retracted / removed?

Kind regards

All help appreciated.

sourcrates

Debts can be sold on at any time and for any reason.

Only one thing matters in respect of a set aside application, and that is if you have a defence to the claim, that you were unable to provide to the court at the original hearing.

What you have stated does not constitute a defence in the eyes of the law.

You may get refunded, but the CCJ will stay the full 6 years.

xlnc99

Very good question but the OP has a point. How can the CCJ stand if the loan was in effect misold and therefore making the judgement void for numerous reasons. Especially if the judgement amount would be incorrect

boo_star

xlnc99 wrote: »

Very good question but the OP has a point. How can the CCJ stand if the loan was in effect misold and therefore making the judgement void for numerous reasons. Especially if the judgement amount would be incorrect

Because money was borrowed and wasn't paid back. That the money perhaps shouldn't have been offered in the first place is immaterial.

FOS decisions (as far as I'm aware) will only require redress in the form of repayment of interest and charges (and maybe a small amount of compo), not the initial capital so even the FOS (which is considerably more consumer-focused than the courts) wouldn't agree that there was never a debt.

TripleH

We could argue both sides of this arguement (and i can think of good reasons for both) but the truth is that unless someone is prepared to take this type of arguement to court and get a ruling in their favour, the likely outcome is what it is.

Mrs_Ryan

Bear in mind that the Money Shop have gone under so it’s doubtful you’ll get anywhere near what they perceivably owe you.