Dealing with debts and debt disputes

Hi

If you don’t yet have a firm agreement with the trader, you can change your mind without having to pay anything. You should contact the trader at once to say you don’t want to go ahead with the service and then confirm this in writing.

You may not be sure whether you’ve made a firm agreement with the trader. If you’ve signed an agreement or definitely told the trader in some other way that they can do the work, it’s likely you’ve made a firm agreement. For example, if you’ve fixed a starting date or paid a deposit, this is likely to be a firm agreement.

If you have made a firm agreement

Once you’ve made a firm agreement with a trader, you have a legal contract with them, even if there is nothing in writing. If you cancel a service under these circumstances and there’s nothing in your contract to say you can cancel, you’ll have broken your contract with the trader. You will probably lose any deposit you have paid and the trader may even take you to court to claim back the loss of the profit they would have made on the job.

Your agreement with the trader may contain specific terms about cancellation which may include a fixed cancellation charge. If you feel the cancellation charge is so high that it’s unfair, you could challenge it. This is particularly advisable if it’s a standard term in the trader’s contact and not one you were able to negotiate with the trader yourself. You should see whether it’s possible to negotiate a lower charge with the trader.

You could also contact Citizens Advice Consumer on 08454 04 05 06 for free confidential advice. You could also visit www adviceguide.org.uk/wales for further advice on consumer issues

Hi Andrew268, thank you for your query regarding default satisfied.
Whether you can dispute the default and ask the company to erase it from your credit file will depend on when the default was registered and whether there was a debt outstanding on that date. If you had paid the debt in full before the default was registered then I would suggest you write to the company and request they remove the default. If you had an outstanding debt which you do not dispute owing then there is very little you can do except add a notice of correction explaining the reason for the default and that you attempted to make payments. You can find more information about putting a notice of correction on your credit file at https://www.adviceguide.org.uk.
Hope this is of assistance.

Hi Charitycase, thank you for your query regarding county court claim.
Unless there is a reason why you dispute the amount you owe, such as you have paid the debt previously or never owed the debt in the first place, or want to counter claim as you think the claimant owes you the only option you have is to complete the admission. If you do nothing you will have a default judgement entered against you are will be at risk of enforcement such as a bailiff warrant or a charging order if you own your home. The admission gives you an opportunity to state a date by which you can make payment in full or to make an offer for an instalment order which will require you to complete an income and expenditure form. If you do not pay the debt in full within 30 days of the judgement date then it will be recorded on the register of judgements and be registered on your credit reference. I would suggest you complete an income and expenditure and make an offer of repayment which if accepted by the court will avoid further enforcement action.

Regarding your query about a county court judgement effecting your chances of finding work. A county court judgement is different from a criminal record and will not show up on a CRB check but an unsatisfied judgement can effect certain jobs, especially those in the legal or accountancy profession so it will depend on the type of work you are looking for.

Hope this is of assistance.