Letter from Cherry Godfrey

curlu

https://forums.moneysavingexpert.com/discussion/comment/82042414#Comment_82042414

thanks, I’ll look at the agreement but from the point of me changed my address 3 years ago, I have always only ever heard from IOW office, will let you know what agreement says

RAS

Once a debt defaults, the lender stop adding interest, under English rules so creditor want to keep accounts out of default.

You do need to look at each debt, they may end up subject to different rules.

curlu

thanks for your replies everyone, they have now sent me a letter of claim but there is still no default? Am I right in thinking this is contrary to FCA requirements? I get that they may not want to default because it reduces their earnings but is this legal? When it comes to loans how do affordability complains work?

ManyWays

Talk to National Debtline on 0808 808 4000 or go to your local Citizens Advice fast.

The loan being from a Guernsey lender may or may not complicate things, I do not think we see enough similar cases here for you to get an informed opinion and you do not want people assuming that it is the same as an English lender.

I think the same applies to affordability complaints. I do not remember seeing one here against an off shore lender.

curlu

https://forums.moneysavingexpert.com/discussion/comment/82079499#Comment_82079499

thanks but I didn’t update that I have confirmed that this collection is being managed by their uk branch so uk rules apply. They’ve always had an Isle of Wight branch which is FCA rules.

sourcrates

If the lender has not sent you a default notice, then the agreement is still in force, and legal action cannot commence, as you are both still bound by its terms and conditions.

It is a pre-requisite to any court claim, issued for a consumer credit act debt, that the agreement must be defaulted prior to any legal action taking place.

The process is outlined here by citizens advice online:

1. Default notice

The default notice includes details of what payments you missed and how long you have to pay. Your creditor has to give you at least 2 weeks. After 2 weeks they can send you a letter of claim. If you make the missed payments, your creditor won’t take any further action.

The default notice also includes a fact sheet from the Financial Conduct Authority which explains your rights.

At the top of the first page it should say:

• ‘Important you should read this carefully’
• ‘Default notice served under section 87(1) Consumer Credit Act 1974’

2. Letter of claim

Your creditor will have sent you a ‘letter of claim’ because they want to start legal action.

This gives you 30 days to reply.

The letter of claim should have come with:

• a ‘reply form’ - use this form to say if you agree you owe the debt or say you need more time
• a ‘standard financial statement’ - use this to make an offer of payment if you can't afford to pay the debt in full
• details of advice organisations
• an information sheet explaining how you and your creditor should act

3. Claim pack

If you and your creditor didn’t reach an agreement, they can start legal action against you.

If your creditor has started legal action, the court will have sent you a ‘claim pack’.

You’re given at least 2 weeks to reply to your creditor from the day you receive the claim pack. Your claim form will tell you when you need to reply by.

If you miss the deadline, you should still reply to the claim pack. If it arrives before the court grants a default judgment, your response will still be considered.

You should always check the documents are genuine. The form name should be at the top and the form number in the bottom right corner.

There should be 4 forms in the claim pack, which you can also download from GOV.UK:

• ‘N1: Claim form’ - this tells you how much you owe and what the debt is
• ‘N9: Response pack’ - use this to tell the court you need 4 weeks to prepare your defence if you disagree with the debt
• ‘N9A: Admission (specified amount)’ - use this to tell your creditor you agree to all or part of a debt, and make an offer to pay
• ‘N9B: Defence and counterclaim’ - use this to defend a claim if you disagree with the debt, or make a counterclaim if you think your creditor owes you money.

ManyWays

Does what you have received sound like the Letter of Claim or the Claim Pack described by @sourcrates above?

curlu

https://forums.moneysavingexpert.com/discussion/comment/82080041#Comment_82080041

letter of claim definately not a claim pack

ManyWays

Then you need to complete the reply form saying you do not know if you owe the money, you will be seeking debt advice and asking for copies of the CCA agreement for the debt and the Notice of Default.

NB not having had the Notice of Default just gives you another couple of months while they send one, and then repeat the letter before claim. Do you have a long term defence?