Settlement for unenforceable debt?

cluelessnurse

Hi there, can anyone offer advice?  I took out a loan from Welcome Finance in 2007. I topped this up twice - they were VERY accommodating at the time, almost encouraging.  I then defaulted in 2009, I was a newly single mum - I hope I don't need to explain. I got a CCJ for just over £7000 with all the costs etc.  Over the last 10 years I have been working hard on my debts and credit rating which is now "very good" according to the "checkmyfile" website.  The debt with Welcome was passed to Coast Financial Solutions in 2017.  I was still paying an agreed plan. Welcome folded I believe.  Coast suddenly added a fresh credit default to my record.  I complained, as I know the same debt can't be registered twice and it was over 6 years since the CCJ.  They took it off and accepted my offer of monthly payment again. Now I have had another  letter threatening to report this debt to the credit agencies again unless I increase my payments. I have written back to say they can't do this and I will complain to the FCA if they do. Can I just check that this is still correct?  In fact, is this debt even enforceable at this stage?  I do have the original agreements so I know it can't be written off as such. Just out of interest, IF  I were to come into some money, (I might inherit a little at some point), would it be worth offering a reduced settlement to Coast to basically get them off my back?  If so, what percentage would they likely accept? The current balance is £3,200 and I am paying £25 a month, which I appreciate means it will take a long time to clear at this rate but I have already nearly paid of half.  Many thanks in advance!

ItsComingRome

They have a CCJ that you've been paying, it's absolutely enforceable at this stage.

They shouldn't be trying to redefault it, but you'd need to complain to them in the first instance if they do it again and if they don't remove it take it to the FOS, not the FCA (who don't deal with consumer complaints.)

Neruda

cluelessnurse said:

Just out of interest, IF  I were to come into some money, (I might inherit a little at some point), would it be worth offering a reduced settlement to Coast to basically get them off my back?  If so, what percentage would they likely accept?

Yes, it is certainly worth offering a reduced settlement. The amount they are likely to accept will depend on how much they think they can get from you. Obviously if you say you have inherited ten thousand they will insist on every last penny: if you told them that a relative wanted to help you and was willing to pay just one thousand in order to clear the debt they might well accept.

sourcrates

This is a problem that crops up from time to time, mostly with older debts and/or judgements, that have passed the 6 year mark, and are no longer registered anywhere.

A question for you, how much was the monthly payment on the original judgement ?

Because that is what you are supposed to be paying, unless you either, informally agreed a lower monthly payment with the creditor, or, went back to court and had the judgement payment amended.

An account can only default once, making threats to issue another default, when they know they cannot do so, goes against fair debt collection practices, and you can make an official written complaint to them, and escalate the matter to the FOS if not satisfied with their response.

You can also CC in a copy to the FCA, they can`t investigate individual complaints, but can act if this kind of behaviour is rife, if they are threatening you, its likely they are doing the same to other customers in similar situations as well.

Once legal action has been taken, you can no longer use an enforceability or limitation argument with this debt, also county court judgements do not become statute barred, however, the law see`s to it that judgements must be enforced within 6 years of the judgement date, if they are not, then the creditor must go back to court if they intend to further enforce said judgement, this is time consuming and costly, and the court may say they have had time enough to enforce this judgement, and deny there application.

The same applies if you had been paying, and stopped, they would now need court approval to force you to re-start payments.

If you choose to make a settlement offer, then always start low, 20-30% of what`s owed, you can always increase your offer.
You must remember these things take time, don`t expect a quick result.

You can negotiate over the phone if you wish, but what is agreed MUST be backed up in writing.
National Debtline have an excellent template letter on their website just for this purpose, and it is worded so as to be legally binding on both parties.

So a few avenue's for you to explore here, don`t be put off by their rhetoric, there are rules these companies must follow, and the punishment for non compliance can be severe, always stand up for your rights.