Creditor unexpectedly threatening court action

london1973

As a summary i am letting my debts slip into default prior to negotiating payment plans. Credit cards and loans. As advised by the good people here

All going to plan bar one creditor writing to me threatening a county court claim. This is not how the others are behaving

what is the advice here? it presents a potential longer -term problem with bailiffs, who i just can’t have turning up, for a variety of reasons

is it time now to negotiate or will it likely just be a threat and wait until it defaults?

Grumpelstiltskin

How are they threatening? Phone call, E Mail, text, letter through the post?

The only one to take any notice is a letter before action sent through the post, you can ignore any other ways.

RAS

Has this one creditor issued a default letter to you? Check your credit record as well.

They can't take any legal action until the default is issued.

Rob5342

They can't take legal action until the debt has defaulted, are you sure it hasn't?

What did they actually say to you? They often try and imply the worst by using vague phrases like "further recovery action" to try and scsre people into paying them. 

RAS

Or, referred to our legal team for further action, which may include CCJ?

It would help if you could type out the exact words, minus any identifying details.

Sly72

which lender was it?

sourcrates

london1973 said:

As a summary i am letting my debts slip into default prior to negotiating payment plans. Credit cards and loans. As advised by the good people here

All going to plan bar one creditor writing to me threatening a county court claim. This is not how the others are behaving

what is the advice here? it presents a potential longer -term problem with bailiffs, who i just can’t have turning up, for a variety of reasons

is it time now to negotiate or will it likely just be a threat and wait until it defaults?

Please disregard the use of bailiffs, it just does not happen for consumer credit debt.

Even if legal action was successful, 8/10 times it gets left there, even if you don`t pay, the remainder may try to obtain an attachment to your earnings.

But the use of bailiffs is extremally rare for credit debts, and unless you receive a "letter before action", its just an empty threat.

london1973

Rob5342 said:

They can't take legal action until the debt has defaulted, are you sure it hasn't?

What did they actually say to you? They often try and imply the worst by using vague phrases like "further recovery action" to try and scsre people into paying them. 

RAS said:

Or, referred to our legal team for further action, which may include CCJ?

It would help if you could type out the exact words, minus any identifying details.

sourcrates said:

london1973 said:

As a summary i am letting my debts slip into default prior to negotiating payment plans. Credit cards and loans. As advised by the good people here

All going to plan bar one creditor writing to me threatening a county court claim. This is not how the others are behaving

what is the advice here? it presents a potential longer -term problem with bailiffs, who i just can’t have turning up, for a variety of reasons

is it time now to negotiate or will it likely just be a threat and wait until it defaults?

Please disregard the use of bailiffs, it just does not happen for consumer credit debt.

Even if legal action was successful, 8/10 times it gets left there, even if you don`t pay, the remainder may try to obtain an attachment to your earnings.

But the use of bailiffs is extremally rare for credit debts, and unless you receive a "letter before action", its just an empty threat.

So, it is a ‘letter before claim’ AND it looks like the debt has defaulted- it references the default date of 10/05/2024 (apols i missed that when i 1st posted)

creditor is Brent Shine Credit Union t/a My Community Bank

it gives 30 days to pay or ‘we may instruct solicitors to issue court proceedings for the recovery of that amount plus etc etc’ 

sourcrates

Credit unions do tend to do this, in order to secure their position.

Respond to the LBA with your offer of payment, you can ask for evidence if you wish, but in this case its not really in contention.

Creditor should accept, and you can avoid a CCJ.

london1973

sourcrates said:

Credit unions do tend to do this, in order to secure their position.

Respond to the LBA with your offer of payment, you can ask for evidence if you wish, but in this case its not really in contention.

Creditor should accept, and you can avoid a CCJ.

thanks so much

what do you mean ‘ask for evidence’

RAS

As sourcrates says "but in this case it's not really in contention"

If you'd got an old account that had been thorough a few debt collection companies, it might be worth asking for the CCA.

Make My Community Bank a sensible (a little lower than you can manage) payment offer.