Token Payment 11 years - LBA - CCJ

Apollo14LMP

Hi,

OH has been making token payments of £5.00 per month for many years on a Credit Union Loan. Kept it going in the hope of getting funds to repay money as its a credit union.

OH is disabled and has in the past communicated with the business herself - Not able to do so now. C Union were taking the token payments and asking her to complete income and expenditure form.  Or just accepting the arrangement ...

New staff now in place - sent her forms which she has been unable to complete and I have been unable to help with for one reason and another.

OH has explained that she relies on benefits and is unwell and not well enough to complete the forms which are quite complicated.    

Even if they get a CCJ I will be looking at  £5.00 per month ... so nothing they will gain there is no money in this house :-(

This is dropped on me now as they issued an LBA and sent complex forms which I describe as taxing. Live in rural location so advice is difficult to access on anything to be fair.

They are asking for 2459.00 plus costs .. despite paying 600.00 plus over the years the interest was never stopped.

The option - IVA or something is a non starter - credit union were demanding over filling expenditure forms - and it seems to me like they have just been keeping any monies sent.

I would like to see a full account of the loan - can I demand that ?  

Am thinking of counter claim over disability discrimination due to their demanding unhelpful actions of late ...

Not sure how this works out as the debt is so old - but has been paid every month since the token payments came into place.

The C Union have also cancelled the standing order they used to take payments ..

Any advice appreciated before I ring them as a nominee :-(((

Thank you

sourcrates

The LBA is a document with a 30 day return window, you can make your offer of payment, and ask for proof of the debt, and a statement of account also.

Credit unions are not the most helpful in these situations where you cannot pay, they do tend to take action through the courts in most cases.

Honestly now an LBA has been issued, I would stick to written comms only, even if it progresses to court, as you say, the payment is set according to your budget, if a claim form does drop on the mat, be certain to fill it in correctly and return within the limited timeframe.

Debt camel gives advice on how to respond to an LBA here:

How to reply to a Letter Before Claim about a debt · Debt Camel

This really wants moving to the DFW board, I will ask for it to be moved.

MSE_ForumTeam5

Moved as per @sourcrates' suggestion

fatbelly

Read the Debt Camel article and do as it suggests. If you do get a claim form in a month or two, post again.

Apollo14LMP

I am after some advice on this topic. I have responded to the LBA -  got a email which includes a copy of original loan agreement. Some form statement of account dating back to 2011. 

The original loan in 2011 was £3208.00 - the credit union shares of £1000 were used in 2012 to reduce the loan. Plus years of token payments ...

Despite this and the token payments made the balance today is £2167.00 Plus £291.00 admin fee, and £36.00 letters sent to us. = £2459.00 - dont know were admin fee came from. 

OH gets Carers and some DLA - I have sent details of her income to the solicitor.

The maximum these would be £5.00 which we were paying anyway.

I have 2 options - offer and state £5.00 is the offer !

Let them issue CCJ and dispute debt as untenable we believe there are missing token payments.
The statement of account are dated 9/7/24 not the original which we never ever got !

Seems crazy that the debt has gone down by £700.00 in 12 years and a £5.00 payment will take forever to pay off. Due to the way they have acted any lump sum from a pension will not be going their way. My pension not wifes...

Wife has no monies relies on disability payments ... this illness came after loan was taken and we were sorry that the loan not repaid .... 

Not really wanting to go to court really as they might try to claim interest on the money going back 12 years !

Anyone encountered anything like this one before ??? any advice appreciated  - thank you ...

Apollo14LMP

They have sent me statements which are not the ORIGINAL statements - would a court accept these statements ? 

One statement shows a opening balance of £2167.00 dd March 2024.

Solicitor has sent me statements - dated July 2024 - which has a balance of 0.00 

Credit union shares were taken £1000 in 2012 ! ....

stu12345_2

if the debt is hers, they can't come after your pension, if the debt defaulted, then no interest can ever be added in after default date, 
only costs are court fees
 I would reply to the letter before action disputing the amount owed

do not dispute after and if a ccj is awarded, you do it before

but I see you have already responded to the letter before action

Apollo14LMP

Got a copy of  the original agreement ... would they need to have sent a default notice when this loan went bad ???

Not sure what legislation covers this agreement ? Section 77 ?? Anyone 

Thank you

sourcrates

What does it say on your agreement, it will state whether it is CCA regulated, most likely it will be, which means sec 77/79 CCA will apply.

Apollo14LMP

It honestly does not say ... its just a signed form from 13 years ago ..

Never got a default notice ...