Cabot and Mortimer Clarke THREAD CLOSED

exponential

I think the best thing to do initially is to send an email to them acknowledging receipt of their initial letter and request time to prepare a suitable response.
At least I have acknowledged the letter which may pause their clock as far as further action is concerned.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81930086#Comment_81930086

What they actually mean by all that rubbish, is that they will issue a court claim against you, which you can defend, and if you lose, you pay a monthly payment according to your disposable income.

Now if you want to avoid a CCJ, or going to court at all, now is the time to set up an arrangement with them, or you can take the chance this is all a bluff and see what happens.

SPM87

send a "without prejudice" email to them offering them a £1 per month payment plan, if they ask for your I&E simply say you will pay 1p per month until £1 is agreed.

That is assuming you want to avoid court right now and with your situation I cannot see what fun doing all the admin of court etc is going to be for your life.

what you then want is time to allow for important documents to go missing over time.

exponential

@SPM87 So assuming I send the "without prejudice" letter and they accept, what happens then? I pay £1 a month for the rest of my life? If that is the case, what happens with the account on my credit files?
Does paying the £1 a month continually update the file to reflect unsatisfied/unpaid/defaulted?

All of the original accounts have already defaulted BTW.

exponential

@sourcrates

I have sent an email stating that I acknowledge receipt of the letter and require time to prepare a suitable response.

I got an automated email back saying they have received my email and to expect a 14 day wait for a response.

Grumpelstiltskin

Defaults disappear from your credit report 6 years from the date they were made even if you have not paid 1 penny during that period.

You need to research and understand debt management before you communicate with these people.

One rule is the less you communicate with them the better.

sourcrates

If an account has already defaulted, it doesn't matter what you do credit file wise, as the default marker takes precedence, the whole entry will drop off your file after 6 years regardless of whether you pay anything, or not.

You say a CCJ would be disastrous for you, now this lot may be bluffing, because they do that a lot, but they also sometimes follow through with the threat, so your focus should now switch to stopping that from happening.

Some people get CCJ`s and its not a problem for them, most are never enforced, but some are, and it can be a random process who will do what, what happened to one person, may not happen to you, or vice versa.

The basic premise is that if you have a house, and you work, you are in danger of having any CCJ registered against you, further enforced by the creditor, now I`m not saying your home would be at risk, but they may make an attachment to any earnings you have, or they could send round the county court bailiff, or place a charging order on your home.

Your opportunity to avoid all of this is now, at this very early stage, it can also be done later in the process, as long as you pay what has been agreed under the judgement, no further action can be taken, but best to avoid it now if you can.

exponential

@grumplestiltskins

Yes, all 9 of the credit accounts have been marked as defaulted and replaced by the DCC's Lowell, Cabot and Link.

The reason I am communicating is to try prevent what has just happened with Mortimer Clarke (I must've missed a letter to Cabot somewhere along the line).

I send the same letter back to them each time explaining my financial situation and telling them my situation has not and is unlikely to change. I hope to continue to do this until they get bored of trying to collect the money and close the accounts down.

If I stop communication, I end up with the solicitors instead which I was hoping to avoid.

Grumpelstiltskin

You do realize these letters are computer generated, there is no human being involved.

The more you contacted them the more the computer will keep contacting you, a CCJ doesn't just appear out of thin air you would receive a Letter Before Action at which point you could then do something.

The best action is to stay silent and not encourage them.

exponential

https://forums.moneysavingexpert.com/discussion/comment/81931781#Comment_81931781

Yes, a CCJ, would prevent my being a director of the company I created and would also prevent the company from obtaining suitable public liability and professional indemnity with a Director who has a CJJ against them which would effectively force the closure of the business.

Some might say, close the business and get a "proper job" but it isn't as straightforward as that.
Before all this debt business occurred, I spent a small fortune setting the business up and then spent years building up my client-base who all rely on my services to function. Additionally, not being tied to an employer's working hours and contractual limitations has its benefits as I can pick and choose my working hours to suit my family and the many issues we currently have.
Too much time, money, effort, blood, sweat and tears have gone into this business and I would be heartbroken if I had to give it up.

I don't earn money, I don't draw a salary and am not on any payroll. I draw money from the business to pay the bills and that is that. We don't have holidays, don't own fancy cars and take each day as it comes. I don't see how they can attach from earnings where there isn't any.
The house is jointly owned which I think will prevent or at least hinder a charging order.