Letter of Claim received. What next?

dasedandconfuzed

I recently received a letter of claim for a barclaycard debt that went into default late 2020. I was out of the country and ended up using the card due to a bereavement in early 2020 and was unable to make the monthly payment as it became unmanageable.

I contacted barclaycard multiple times to set up a payment plan or to come to some sort of agreement which was rejected. I even offered to pay £20 until I could get back on my feet but was met with zero empathy and was told it would be “business as usual”. Even after that I tried calling again and had the line disconnected when I said I was in a different country.

I returned back to the UK early 2021 and focused on clearing my other debts which were accruing interest. The debt was sold to Wescot and then Link Financial.

Fast forward to present day and I’ll be done paying all of my credit cards by March except the default. I’ll be honest I thought I’d close my eyes to wish it away in six years but I’ve received a letter of claim from Kearns solicitors.

They’ve given me 30 days to respond and honestly I don’t know what to do. I can’t afford to pay back all of it as it’s close to £5k. My financial advisor had said I should ignore the debt until it is statute barred but I guess that’s not possible now.

I wanted to request the CCA to buy some time but does that not reset the timer if I acknowledge the debt? Also I worry they may be able to produce the original agreement and then I’m forced to pay it all.

I know it’s a debt I incurred but I really did try to come to an agreement with barclaycard. I also know that link financial have bought the debt for a fraction of what it is so they’d be making a profit if I pay in full.

Any advice is appreciated.

sourcrates

You have received an LBA (letter before action) forget statute barred, or CCA, you must now respond to it well within the 30 day return window.

Tick the box for further information, this asks them to provide evidence of your liability.

If it went to a claim, or an agreement was made prior to that, no one expects you to repay this all in one go, monthly instalments according to your disposable income is the normal approach, and will be accepted.

People get the idea a court claim must be paid in full straight away, its simply not true, court debts are repaid monthly, and according to an individuals budget, if you have no money, then the court would not order a payment, affordability is key these days.

ManyWays

I wanted to request the CCA to buy some time but does that not reset the timer if I acknowledge the debt? 
You have been sent a Letter Before Claim, there is no chance that this debt is going to become statute barred so worrying about this is a red herring. 

Also I worry they may be able to produce the original agreement and then I’m forced to pay it all.
If they produce it, then you make an arrangement to pay what you can afford a month to prevent this going to court and a CCJ. 

Dubai_Chariot

I have just received the same letter.  However, I have a letter from early 2020 from Link saying the debt is unenforceable. (They couldn't find paperwork for CCA for a card debt from 2003.)
I haven't made a payment for well over six years.

Is it still worth asking for proof of debt despite the letter from five years ago? 

Grumpelstiltskin

If it is a genuine Letter Before Action you must follow what Sourcrates said. tick the box for further information and send it back.

sourcrates

Dubai_Chariot said:

I have just received the same letter.  However, I have a letter from early 2020 from Link saying the debt is unenforceable. (They couldn't find paperwork for CCA for a card debt from 2003.)
I haven't made a payment for well over six years.

Is it still worth asking for proof of debt despite the letter from five years ago? 

You must follow the court process otherwise you risk a CCJ by default.

You may have a double defence to this, its unenforceable, and also potentially statute barred, so tick the box to say you will defend the claim, and also for more information.