Help & Advice needed on letter from collection agency

sarah03_2

I have been viewing this site for months & have now found that I need advice on something - I am a newbie so please be gentle and apologies if I have posted in wrong place.

In 2001 I took out a loan with HFC (now known as household bank I believe) for around £5000, I was having payment difficulties after having my hours at work cut so I spoke with them and after a few heated discussions they agreed to reduce my payments by £10 a month which didn't really help me but agreed this - then through the post a few days later I received a direct debit mandate which hadn't been signed so they were asking me to sign & return, being young and stupid (this was before I had children so had no responsibilities) I stupidly didn't sign it, they chased me for a few months but then I moved. I then received a letter from Connaught collections uk LTD in 2006 stating that I owed £17.144.29! I did contact them explained I had just had my 2nd baby and was on maternity leave so was only able to offer a small amount - to be honest the guy on the phone was not pleasant to speak to, then a month later I again moved house (this was planned not due to avoiding this debt), last week 2 years after the first letter from them I received another stating again that I owed £17.144.29 - It also said on it 'IT IS NOW OUR INTENTION TO ISSUE A STATUTORTY DEMAND UNDER THE INSOLVENCY ACT 1986 (BANKRUPTCY)', I rang them and agreed to pay £30 a month & have just realised that I didn't even question the amount, I realise that there will be interest etc added, am I entitled to a breakdown of what the £17.144.29 is made up of?I realise that by only paying £30 a month i'll probally be paying it for the rest of my life! I have tried to contact my local CAB without success, I just need some advice before I send the direct debit mandate back - can they make me bankrupt? this is not showing on my experian credit report, I was under the impression that after a certain length of time you wouldn't be chased for debts. I realise that this is my own fault and want to get it sorted out but I just don't have the knowledge to do so -

Thanks in advance to anyone that can help
sarah

homer_j_3

Do not panic.. These letters are forms of intimidation.

What you need to do is write to them asking for proof that they own the debt and a copy of the signed credit agreement. Do you have a copy of the original agreement?

http://forums.moneysavingexpert.com/showthread.html?p=10087259 will give you an idea of why you need to do this.

If they cannot prove they legally own the debt, then no debt exists and you should be more than happy to attend court.

sarah03_2

many thanks homer - i don't have a copy of the original agreement, shall I write and ask them these questions before I return the signed d/d mandate?

homer_j_3

http://forums.moneysavingexpert.com/showthread.html?t=736709&highlight=DCA+Proof+of+debt+ownership

I will be back with more info so hang in there while I get the old google and search working for you.

http://forums.moneysavingexpert.com/showthread.html?t=924873&highlight=CCA+1974

I would note comments about signatures...

sarah03_2

signatures?

homer_j_3

yes, do not put one on your letter that can be copied. Apparently these honest lenders with ethical lending policies like to copy them onto agreements.

homer_j_3

Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

1. We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request; your obligation also extends to providing a statement of account. . We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

2. A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

We understand a copy of our credit agreement should be supplied within 12 working days.

3. You are notified that you are obliged to supply these documents, whether you are the original creditor or not under S189 of the CCA 1974.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully
Mr A N Other

Remember not to sign it, just print your name!

sarah03_2

thank you so much - your help is greatly apprecciated! i'll let you know happens

sarah03_2

hi all,
this one has reared its ugly head again, so I sent the above letter last year and the dca at the time sent me a letter back stating they wanted no further contact with me-so they obviously didn't have cca, and that they would passed back to 1st credit ltd. I received a letter from 1st credit ltd last week (a year after my cca request to connaught!) asking for the debt to be paid in full, I again sent the cca letter and today have received a letter from them stating the document I have requested is retained by our client and we will inform them of your request and documents will be forwarded to me.
It also states on the letter about deed of assignment- section 136 of the law of property act 1925 - is anyone familiar with this? oh and they want me to pay £10.00 for copy of statements.
thanks in advance
sarah

petermb_2

sarah03 wrote: »

hi all,
this one has reared its ugly head again, so I sent the above letter last year and the dca at the time sent me a letter back stating they wanted no further contact with me-so they obviously didn't have cca, and that they would passed back to 1st credit ltd. I received a letter from 1st credit ltd last week (a year after my cca request to connaught!) asking for the debt to be paid in full, I again sent the cca letter and today have received a letter from them stating the document I have requested is retained by our client and we will inform them of your request and documents will be forwarded to me.
It also states on the letter about deed of assignment- section 136 of the law of property act 1925 - is anyone familiar with this? oh and they want me to pay £10.00 for copy of statements.
thanks in advance
sarah

It sounds as though they are now threatening to try to turn the loan into a secured one so that they can repossess you if you do not pay the debt. I would hold fire on anything until they have complied with your request for a copy of the agreement. They must now do this before they can take any more action.

sarah03_2

thanks petermb for your reply - nothing to secure a loan onto, i'm in rented house, car on finanace but in my mums name so wouldn't be of benefit to them to try and turn it into a secured loan - surely they can't change a unsecured loan into a secured one?this debt is statue barred in november 09, didn't think I would hear anything back after the letter last year