Recently defaulted- Need advice on next steps

LateStageCrapitalism

Hi, all my debts have recently defaulted, and I have a few questions about the best strategy for a couple of them. First, I have an old (opened 2006) nationwide credit card. It defaulted last year, but I made a token payment last month. The account is currently being managed by ARC on nationwide’s behalf. Due to the account’s age, I think its unlikely that NW have the credit agreement. I’m unsure whether to just stop paying and then CAA NW if they start court action or make token payments in the hope of the account being sold on and increasing the chance of the credit agreement going missing. What would you recommend and why?

 

Second, I also have a loan from nationwide, which also defaulted last year and is also managed by ARC. It is much newer (account opened: 2019), but I haven’t made a payment for about 16 months and haven’t had any contact about it for a few months. I’m currently unemployed and have no assets etc. If I continue to not make payments, how likely are NW to give up or go for a CCJ. I’m reluctant to make a token payment and reset the statute barred clock, but would do so if it was the best approach. What would you recommend?

 

Thanks for any advice.

sourcrates

Old 2006 credit card, make a CCA request, you have nothing to lose by doing so.

Accounts are automatically put on hold whilst actioned.

If you are unemployed, write or email ARC and tell them so, it will stop any possible escalation of collection activity, which may include legal action.

Better to nip it in the bud rather than face a court claim.

LateStageCrapitalism

Thanks, that sounds like sensible advice. Do you know where I could find a template letter for asking for a pre-2007 CCA? Also, what differences are there in the requirements the documents sent in response to such a request have to meet pre-2007 vs. post-2007, e.g., does a pre-2007 CCA have to be signed and is a reconstituted agreement ok for a pre-2007 account?  Thanks again for all the effort you're putting in, it really is appreciated.

sourcrates

A pre-April 2007 agreement without a signature may not always be irredeemably unenforceable.

The wording of 127(3) is:

(3)The court shall not make an enforcement order under section 65(1) if section 61(1)(a) (signing of agreements) was not complied with unless a document (whether or not in the prescribed form and complying with regulations under section 60(1)) itself containing all the prescribed terms of the agreement was signed by the debtor or hirer (whether or not in the prescribed manner).

That is not the same as saying an actual signed agreement must be provided.

So its likely signed or unsigned, it would comply with sec 77.

But it may not be sufficient to successfully take court action to enforce the debt (assuming the court action was defended).

The standard CCA request letter should be used, it`s what they send you that is important.

LateStageCrapitalism

That's great. Thanks for your help.

Rob5342

I made a CCA request to them for a 2004 credit card. They sent me some reconstituted terms and a direct debt form that I had signed but there was no CCA.

LateStageCrapitalism

Hi Rob5342, was this recently? How did things turn out as a result?

Rob5342

LateStageCrapitalism said:

Hi Rob5342, was this recently? How did things turn out as a result?

It was February 2022 when I sent it. I told them I wouldn't be paying and got the usual "further collections activities" letter. They passed it on to ARC Europe to chase and then Opos, they gave me the same "further collections activities" rubbish and then started offering me "substantial discounts" if I phoned them. In parallel I'd been pursuing an unaffordable lending complaint against them, I won that and the refund cleared the balance and it all.stopped there.