Tomlin Order - CCJ set aside but payment plan already in place (PRA)

Cherryx

Hi all,

I’m in a really tough situation and could use some advice.

Last year was terrible for me, with redundancies, poor mental health, and living in an awful situation. Over the summer, I managed to get an internship at a different location. During this time, PRA filed a CCJ claim against me at an address I wasn’t living at. I made a token payment and set up a payment plan online £5 monthly, but I didn’t know about the claim until it was too late to respond. The debt is for just under £4k and I cannot afford to pay it off now or anytime soon.

PRA has been unhelpful when I explained my situation, including my mental health struggles (I’ve provided evidence of my depression). They refused to apply for an N244 by consent only signing the consent order last minute, CCJ was then set aside but defence must be filed within 3 weeks. They are now insisting I sign a Tomlin order or file a defence 'as per my N244 request' I added about filing a defence because I understood that a set aside takes you back to the defence stage anyway? I did not plan to defend the claim but simply stated in my application I wanted time to resolve the matter with PRA. I’ve been making regular payments for 6 months, but they won’t explain why they’re pushing for the Tomlin order.

My circumstances are dire:

• I’m recently unemployed and on Universal Credit and worried any issues with this impact the Tomlin Order
• I had to relocate due to a housemate’s substance abuse and now live in a cramped temporary space.
• The CCJ is impacting my ability to work, as I need a clean credit file to hire equipment or vehicles for my job.

I’m considering complaining to the Financial Ombudsman Service (FOS) but feel stuck because I must either sign the Tomlin order or file a defence in two weeks. I understand I cannot change the Tomlin even if the FOS agree with me. 

Does anyone have advice on what I can do next? I’ve asked PRA to escalate my case to a senior decision-maker and drop the claim entirely, but they’ve said it’s a “business decision" and basically won't take what I've said seriously. I know its well within their ability they are just refusing and being incredibly vague. 

Thank you so much!

x 

fatbelly

What's the problem with the Tomlin Order if you have no defence?

Nothing appears on your credit file as long as you make the specified payments


https://www.stepchange.org/debt-info/debt-collection/tomlin-order.aspx

Cherryx

fatbelly said:

What's the problem with the Tomlin Order if you have no defence?

Nothing appears on your credit file as long as you make the specified payments


https://www.stepchange.org/debt-info/debt-collection/tomlin-order.aspx

My main concern was that I'm already on a payment plan with them so the Tomlin is already unnecessary, the only benefit (which seems to be to them) is that I get an automatic CCJ if I don't pay. As I'm on UC, what's to say my payments don't get messed up and I miss the payment? Their argument is that there would be no CCJ if I let them know this.. but I'm taking their word for it. Legally, if I failed they could just give me the CCJ. They can also still file a claim if I were to stop with my payment plan.

So I don't understand why they won't just drop the claim  

fatbelly

The Tomlin Order is necessary because they've already taken the decision, and paid the costs, of a court claim.

If they drop the claim, and you stop paying, where does that leave them?

If there is a Tomlin Order in place, then if you stop paying, they get a ccj and enforce it by one of four methods.

They are correct that you must sign the order or put in a defence. There is a third option, of course that you pay the debt in full. If you can't do that, and the amount specified in the order is affordable, and you don't want to try defending the claim, then surely signing the order is preferable to just getting the ccj back on your file.

Having said all that they would struggle to enforce a ccj if you don't work, don't have savings and don't own property. All they could do is use the court bailiff ( I assume this is a credit card) who would be easy to ignore.

ManyWays

How much are you being asked to pay in a Tomlin Order? These are very inflexible, as you are on benefits and in temporary housing (is that sofa surfing?) I am not sure how you can commit to paying a monthly amount for several years. And is this your only problem debt? 

Cherryx

I haven't reached an agreement via an amount for the Tomlin Order yet, but this is my exact point. I do not know how to raise this with PRA as they have been quite abrasive with me given I have reiterated my concerns and maintained being polite.

But my total debt for this credit card is just under 4k and is not my only debt though it is the only CCJ I have. I do have other creditors too.

Re temporary housing, I am staying with a family member and paying from UC towards the rent but this isn't sustainable for us and for different reasons both of us moved in together in temporary housing until my circumstances have improved in terms of work. They do not know about the CCJ and I'm hoping I can resolve it so I don't need to bring this up.

Would you suggest I speak to PRA about this again? I know a lot of people look at a Tomlin order as a way out, but given I have been paying for half a year towards a payment plan (set up before I even knew about the claim) I cannot see why after what I have said they won't just drop the claim - or at the very least request evidence from my side to make an informed decision. 

Cherryx

fatbelly said:

The Tomlin Order is necessary because they've already taken the decision, and paid the costs, of a court claim.

If they drop the claim, and you stop paying, where does that leave them?

If there is a Tomlin Order in place, then if you stop paying, they get a ccj and enforce it by one of four methods.

They are correct that you must sign the order or put in a defence. There is a third option, of course that you pay the debt in full. If you can't do that, and the amount specified in the order is affordable, and you don't want to try defending the claim, then surely signing the order is preferable to just getting the ccj back on your file.

Having said all that they would struggle to enforce a ccj if you don't work, don't have savings and don't own property. All they could do is use the court bailiff ( I assume this is a credit card) who would be easy to ignore.

Given there's absolutely nothing stopping them filing a new claim, I'm unsure why they are insisting as I've paid them on time for 6 months after setting up a payment plan. 

I agree they are trying to cover their backs and understand they want to protect themselves. But I'm given the impression that they are able to withdraw the claim.. but are actively choosing not to. I haven't denied the debt outright and have taken steps to reduce it where I can. I can't understand given the circumstances I'm in that its not even being considered given a payment plan is set up already. Every answer they have given me has been vague and they've tried to blame me for it also. 

(Attached some of the responses when I've requested outright if they can withdraw the claim or not)

'We appreciate your offer of repayment and the payments you have already made. I however must highlight that both our Consent Order Draft and your N244 application request for the set aside be granted to allow the defence to be progressed. Taking in your circumstances we are able to offer you a Tomlin Order. If this is agreed by both parties then we can inform the Court that we have reached an agreement to settle this matter.'

'As previously stated our consent Order Draft and your N244 application request for the set aside asked for set aside to be granted to allow the defence to be progressed. This is the route in which we will follow. The Tomlin if you wish to proceed will allow you to continue paying an affordable amount each month and prevent the County Cout Judgement from being entered.'

'Whilst we appreciate your willingness to communicate and resolve the matter , it is a business decision to offer the Tomlin. The payment plan which is in place just now was set up after a claim was submitted to the court in September 2024 meaning we could not stop the claim from being  issued. If a Tomlin is something you do not wish to enter , you do have the option to defend the claim in court.'

'Just to clarify – when the Tomlin agreement is in place, you need to keep payments up to date to avoid judgement, however if at any point you would are not able to cover the payments, you should contact us to prevent broken arrangement and  Judgement would not be entered. If you still do not  agree with this, please file defence directly to the court.'

'Whilst we appreciate your willingness to resolve the matter, I can confirm that at this stage we’ve got two options, as explained before. We can either agree Tomlin or you can complete Defence and submit it to the court.'

Cherryx

*UPDATE*

I don't think I have a choice as PRA will not withdraw the claim, I am super unhappy with the Tomlin Order and given what I've said I think they are being incredibly unfair.

They have said I can pay what I want for the Tomlin, they are aware I'm paying £5 so I imagine they are happy to accept this in a T.O? Is there any advice on what I should look for in the draft so I don't get caught out?

That aside, does anyone know if it's possible to offer a full and final settlement (F&F) AFTER a Tomlin Order is in place? I'm hoping I will be able to offer an F&F if I'm in a more secure place at some point this year to wipe off the debt. As otherwise I'll be paying £5 towards my debt till 2095..

RAS

Just pay the £5 and advise them in writing that you are on benefits.