Coast Finance based in Luxembourg so the financial ombudsman can't help?

cluelessnurse

Hello again.  My second question today - thank you for reading! Coast Finanace are writing to me every few weeks stating that my account with them is in default and that I need to contact their recoveries team or face 'further action'.  I am paying them a fixed amount each month without fail, based on the amount that I was instructed to pay after getting a CCJ over 10 years ago from the original loan from Welcome Finance. Coast continue to hound me to increase the payments with threatening letters. I have sent Coast a copy of the CCJ stating that this is what I was instructed to pay by the court and this is what I will pay, (on the advice of a member here).  I thought this would stop them, but no. So I complained to the financial ombudsman.  The FO got back to me to state that because Coast is based in Luxembourg, they can't help but gave me this link https://guichet.public.lu/en/entreprises/gestion-juridique-comptabilite/contentieux/litiges/ombudsman.html QUESTION:  Is UK law similar?  I mean - I have the CCJ stating how much I should pay a month, but does this count as they are based in Luxembourg or can they keep threatening me with 'further action'  - whatever that means? Should I complain to the Luxembourg financial ombudsman?  Many thanks again!

sourcrates

Basically there is nothing much they can do should you choose to stop paying this debt.

Being as its a foreign company, they probably do not understand that legal action was taken by the original creditor over 10 years ago, it may have been "lost in translation" so to speak.

Now CCJ`s never become statute barred, but if enforcement action is required anytime after 6 years since judgement, the party must go back to court to obtain permission to do so, this kind of thing rarely happens, and its even rarer to actually grant such a request, and even rarer still for a company based abroad to do so, in fact I`ll go one step further and say its never happened before for a consumer credit act debt.

The letters you are getting are just standard debt collection template letters, they consist of the same threats the world over, there is no further action they can realistically take here, its all just hot air as it`s all they have got.

fatbelly

You reminded them that this matter was subject to the courts in the jurisdiction where you live. There's nothing else to say really.

You're doing what your court ordered you to do. If they want to change that they have to go through the courts, who may agree or decline.

cluelessnurse

Thank you both.  I didn't realise that I could stop paying.  That feels a little scary.  I did ask them a while back to write off the debt as it will take several more years to pay it all off.  They said no of course. Now that I know they can't really do anything if I stopped completely, is it worth trying again, or asking for a reduced amount?  I beleive I was missold the original loan from Welcome, they saw me coming, and the interest was astronomical until the CCJ started. Not sure that is enough 'moral' reason for stopping payment though! As I suppose that is what this is about now...

sourcrates

cluelessnurse said:

Thank you both.  I didn't realise that I could stop paying.  That feels a little scary.  I did ask them a while back to write off the debt as it will take several more years to pay it all off.  They said no of course. Now that I know they can't really do anything if I stopped completely, is it worth trying again, or asking for a reduced amount?  I beleive I was missold the original loan from Welcome, they saw me coming, and the interest was astronomical until the CCJ started. Not sure that is enough 'moral' reason for stopping payment though! As I suppose that is what this is about now...

I find when dealing with debt matters, morals are best left at the door.

We are not suggesting you stop paying altogether, unless of course you want to do that, otherwise just keep paying what the court originally ordered, however you should use every weapon you can here, keep pestering them to write it off, or to settle for peanuts, you can do as you wish, you don`t need permission.

Debt purchasing companies are seldom aware of outstanding CCJ`s on the debts they buy, even less so on those that are this old, which is why they are asking you to up the payments.

As for further enforcement action on a 10 year old CCJ, especially by a company based abroad, its just not going to happen.

Best advice is to either leave things as they are, or write again and re-iterate your position, that you are paying the court requested payment etc, and put the ball firmly back in their court.