1st credit

levineg10

Just wondered whether anybody has had any problems with 1st Credit. Their new policy when they purchase a debt.

Clear the debt in 84 months or else they will take legal action. I received a statutory demand from 1st credit and it looks like they are actually going to peitition for my bankruptcy.

Basically, they work it out as follows. debt amount divide by 84 months equals monthly payment.

Anybody else have any problems with 1st credit?

chez000

how much do you owe?
have you discussed a repayment plan? how much could you afford to pay a month? how much do they want?
Is the stat demand the first letter youve had from them ?

skibadee

Sounds very familiar.....I'm also having trouble with 1st Credit....they purchased my £6000 debt from Citi cards.....Payplan DMP = £28 a month to them......they refuse to accept saying they must have at least £72...which would mean debt would be cleared in 84mths......have written to them again last friday explaining that if they look at my income and expenditure forms they will see there is no more money available......this was after recieving a letter that day from them....stating that if I did not make full payment or come to an mutual agreeable payment monthly they would end a pre-legal door-step collector who would take my details etc., then report back to their legal dept.,
Payplan have said there is nothing else I can do but wait and see what they do.
Thing that gets me is I'm prepared to pay back all my debts...even if it does take 13yrs.....so if they make me bankrupt not only will they not get any money neither will any of my other creditors?????

Let me know how things go with them.

fermi

Most Statutory Demands from 1st Credit are just a bluff and an attempt to scare and put psychological pressure on you.

The first thing to do is talk to a professional debt advisor to get their opinion on how likely it is that the will actually petition for your bankruptcy.

See: Non-profit Debt Counsellors' List

How much do you owe and what sort of debt is this?

There is also very useful information on SDs here: http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

I would highly recommend reading the information in the above link through.

levineg10

You can't negotiate with 1st Credit, they won't listen to you. You either clear the debt in 84 months or they take legal action which could be CCJ (although i can do n245 through the courts) or bankruptcy petition.

1st credit have and will issue bankruptcy petition (especially if you are a homeowner with equity)

No other creditor as far as I know is anything like 1st credit.

send me PM and i will give you tel number for manager of 1st credit to complain

fermi

EDIT: I remember your original thread now. I PM'd you the location of some people who might be able to help.

Sorry, but it is still very very unusual for 1st Credit to petition for someones bankruptcy.

To do so would involve then incurring up front costs and legal fees of up to £1,700 with absolutely no guarantee of even getting those back, let alone alone the original debt. They may be a pain in the backside, but they are not stupid.

From memory I can only a recall a handful cases (out of so many ones threatened I have lost count) of 1st Credit/Connaughts actually going ahead with a bankruptcy petition following a Statutory Demand.

In one can remember, they were so incompetent and obviously inexperienced in carrying out the bankruptcy petition that the bankruptcy was easily overturned.

Another case is yours, and I believe you have a hearing shortly (in June).

As previously stated, the first thing to do is talk to a professional debt advisor.

See: Non-profit Debt Counsellors' List

Or seek urgent legal advice.

Knowing 1st Credit, you may well have had grounds to get the original Statutory Demand set aside. And you might still have grounds to defend the petition.

skibadee

The last letter I had from 1st Credit read....

FINAL REMINDER
Debt purchased from., Citi Financial
Debt., £6,041.81

I regret that we have been unable to reach a mutually acceptable arrangement to clear this debt.
If we are unable to do so, we will have no option but to pass your details to our local Doorstep Debt Collector. This individual will visit your address to confirm that you are still resident and prepare ' Pre-Legal Reoprt ', This report will then be passed to our legal department.

I will delay the visit for three days to allow you time to contact us and arrange to settle this debt.

DO NOT UNDERESTIMATE THE SERIOUSNESS OF THIS MATTER.

Yours Faithfully

Collections Department
[Letter was dated 15th April ] sent recorded delivery reply which they recieved on 21st April.
I do not own my own home, and what I cannot understand is why they would petition for my bankruptcy when it will mean that they and my other creditors will get nothing then.
I am currently in DMP with Payplan and 1st Credit and Citi Financial are the only two creditors who haven't accepted offer of payment.

I just don't know what to expect next from them!!!!!!!!!!!

skibadee

The debt is for credit card I had with Citi Cards....debt £6,041.00.

Reply I sent them was along the lines...

You will of recieved copies of my income and expenditure forms from Payplan, you will see, that I am not in a position to increase my offer of payment. My Payplan ID number is...... I am well aware of the seriousness of this, but as you can see from Payplan I have taken strides to deal with this situation.

fermi

When was the original agreement taken out?

I'm sure I have seen discussions of Consumer Credit Agreement requests on the DMP Mutual Support thread?

Depending on how long ago the original agreement was taken out, it may be worth considering making the formal request under the Consumer Credit Act 1974.

But since you are on a DMP with PayPlan, you would need to clear that with them first.

Also, I'm not necessary suggesting a CCA request so that you can dispute the debt and stop payments. If you wish you can use the request as a way of checking whether they possess (or can obtain) the valid legal documentation that they would require to successfully take you to court and obtain a judgement.

At the very least, a CCA request would slow 1st Credit down. And maybe make them more amenable when accepting payments.

skibadee

I get confused with all the different aspects......
The original agreement was probably taken out about approx 6 yrs ago.

So what exactly does this mean......I ask 1st Credit for a copy of CCA?

Sorry to be so vague!!

fermi

No need to apologise. It can get quite involved.

National Debtline has a factsheet that explains it here:

Link: Getting a copy of your credit agreement and account details

That should explain a lot.

The reason I have suggested it is because if you request the agreement and 1st Credit cant supply it, then if they should issue you a Statutory Demand their failure to provide the agreement gives you a valid reason to get the Statutory Demand set aside and prevent them going for bankruptcy.

But please, if you are going to consider doing this then it is wise to talk it through with PayPlan first.