Salad money court threat.

LMJ10

Hi has anyone had a
salad money loan? I have missed payments and now that have said they may take me to court? They haven’t gone through a debt collector agency yet, should they go through a debt collector agency first before court? 

RAS

No, they can sell or assign the account to a debt collector, or chase themselves.

They have to terminate the relationship first however. Have they recorded the default on your credit record? Check all three.

LMJ10

Yes they have terminated it today. And registered a default. They have just sent me a little worded letter saying they may instruct solicitors. 

I always thought a debt collection agency was first port of call?

Grumpelstiltskin

They must send you by snail mail a letter before action, not just a vague threat that they 'may' do something.

How much do you owe them?

LMJ10

£1400, I’m happy with them sending it to a
dent collector - they are easier to work with for payment plans. 

No letter in the post. 

Grumpelstiltskin

For £1400 unlikely to go for a CCJ, ignore anything you receive by E Mail text etc. and don't phone them up it only encourages them.

Wait until you get something by post.

sourcrates

Some lenders do opt for legal action instead of using a DCA.

It depends on their internal collection policy, as long as a CCJ won`t effect you otherwise, in your job for example, then its just another way to repay the debt.

The court sets your payment according to your budget, so much like a debt collector really.

You don`t go to court, its all done by post/online, if its not going to matter to you, just let the dice roll.

DisabledDan

LMJ10 said:

Hi has anyone had a
salad money loan? I have missed payments and now that have said they may take me to court? They haven’t gone through a debt collector agency yet, should they go through a debt collector agency first before court? 

https://www.saladmoney.co.uk/socialimpact

Social lenders often do go straight to legal action but you are not there yet.

You can still make an offer, maybe say that you can't manage your finances but your brother might be prepared to lend you 40% of the debt for full and final settlement so 60% off.

They can only say no or negotiate a different rate, before they go to Court they have to follow Practice Direction for pre-action conduct in civil procedure rules:

Objectives of pre-action conduct and protocols

3. Before commencing proceedings, the court will expect the parties to have exchanged sufficient information to—

(a) understand each other’s position;

(b) make decisions about how to proceed;

(c) try to settle the issues without proceedings;

(d) consider a form of Alternative Dispute Resolution (ADR) to assist with settlement;

(e) support the efficient management of those proceedings; and

(f) reduce the costs of resolving the dispute.

So in your negotiations you can say they are being unreasonable and ask if they will consider an ADR process or try to understand your position so you can make decisions about how to proceed.

If you are at rock bottom and have no assets you can always consider a DRO and even saying that if they proceed with legal action you will have no choice but to seek a debt relief order.  If they believe you are desperate and that legal action will be futile they may reconsider your position, but you must qualify for a DRO (no assets and little or no disposable income).  These are now free, can eliminate debt up to £50k but are for situations where you have no prospect of earning enough to pay off the debt. 

https://forums.moneysavingexpert.com/discussion/1385275/debt-relief-orders-dro-information-help-thread#latest

If you have the potential to pay off the debt then consider asking for breathing space.

https://www.gov.uk/options-for-dealing-with-your-debts/breathing-space

Also consider your other creditors, maybe post an SOA and say what you are looking for

https://www.stoozing.com/soa.php