What Will Possibility Of Legal Action Being Taken Mean In My Case?

skibadee

I am currently 4mths into a DMP with Payplan......all but 2 of my creditors have accepted offers, the one's that haven't are Citi financial and Citi cards...Citi cards have sold debt to 1st Credit who refuse to accept offer and are now threatening to take legal action, I do not own my own home...so what will legal action mean in my case...a CCJ?

fermi

Most likely to be a CCJ.

From: PayPlan FAQ on Debt Management Plans.

Can my creditors still issue me with a County Court Judgement?

As a DMP isn't legally binding creditors could still take action against you. As Payplan have many years experience and have a great relationship with the creditors this is less likely to happen. However Payplan would continue to support you if any of your creditors applied to the court for a CCJ. Even if a creditor applied to the court for a CCJ the payment should remain similar to what you are paying through Payplan.

Have you spoken to PayPlan about these threats or sent them copies of them?

How much is the debt that 1st Credit are chasing?

skibadee

Yes I've spoken to Payplan...they say to wait and see what happens as 1st Credit are aware of my financial situation and can see I cannot afford to pay any more.

The debt is for £6000.

fermi

Well PayPlan are pretty much right.

Companies like 1st Credit tend to be full of bluff and bluster and extravagant threats, but much lighter on the actual action.

They know as well as Payplan do that if they take you to court for a CCJ, then Payplan will help you get the CCJ made as an instalment order at about the same payment level as the share they currenetly get in the DMP. In other words they wouldn't get any more money, and would lock themselfves into a repayment schem ordered by the court rather than negotiated with PayPlan.

Eager_Elephant

Hi

1st Credit are hoping that by threatening you you will suddenly have the money to pay them in full.
They will keep hounding you until eventually they will accept the offer.
They seem to work on the assumption that everyone owns their own home and therefore they will push for bankruptcy, they also think that everyone is scared by the term 'legal action' when in fact it doesn't mean much.

If you are in rented accomodation the most they can do is go for a CCJ but this is no biggy as you will just send your financial statement to the court and the judge will see that 1st Credit have been acting like prats and probably make an order for the same amount as you were paying anyway.

HTH

EE

stapeley

If they have sold the debt , why not request a true signed copy of the CCA and also a notice of Assignment . In many cases when a debt is sold on it is because theres is no true signed copy of a CCA .