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    • BadDebtor
    • By BadDebtor 21st May 18, 7:59 PM
    • 24Posts
    • 8Thanks
    BadDebtor
    Consumer Debt Legal Action
    • #1
    • 21st May 18, 7:59 PM
    Consumer Debt Legal Action 21st May 18 at 7:59 PM
    I have a lot of old debt that is due to go off statute this year and next.

    The debt has been sold several times over and I have not engaged any of them, I actually found their set of letters quite interesting.

    They seem to go from offering special reductions, threats because they have not heard from you, a promise of sympathy to a PRE-LEGAL ASSESSMENT, the latter says it meets the INITIAL CRITERIA to be considered for legal action,

    To me it is all a ploy to get me to contact them to acknowledge the debt, but it got me wondering whether these kind of letters breach some guidelines.

    I know in the past some debt collecting companies got a slap for inventing law firms, here they are threatening to pass the debt to a law firm and saying they would ask for legal fees to add to the debt,

    As far as I am aware they cannot really take me to Court for consumer debt, if they could I am sure that they would have done so by now!

    I imagine that some people might be really scared by this, is there not some sort of code of conduct for these companies that prevents them making baseless threats to harass and intimidate people?

    I made the mistake of services these debts for years, then paid token amounts for years longer, unaware that making these payments kept the debt alive. I did not want to use any options, debt was too high anyway, so insolvency was only option. My only regret is making those payments, these could have been done with 5 years ago.

    I have about 7 accounts that will go off statute soon, I plan to wait until the last one is done before I tell them to foxtrot oscar.
Page 1
    • sourcrates
    • By sourcrates 21st May 18, 9:15 PM
    • 15,718 Posts
    • 14,783 Thanks
    sourcrates
    • #2
    • 21st May 18, 9:15 PM
    • #2
    • 21st May 18, 9:15 PM
    Hmmm, what makes you think they cant take you to court for consumer debt ?

    It is true a lot of the letters are bluff, but creditors can, and do take consumer debt to court everyday.

    Most accounts just get passed from DCA to DCA, but occasionally a creditor will try to enforce their rights through the courts, this is most likely to happen in the months leading up to a debt becoming statute barred.

    So keep an eye out for the pre action letters.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • BadDebtor
    • By BadDebtor 21st May 18, 10:13 PM
    • 24 Posts
    • 8 Thanks
    BadDebtor
    • #3
    • 21st May 18, 10:13 PM
    • #3
    • 21st May 18, 10:13 PM
    Hmmm, what makes you think they cant take you to court for consumer debt ?

    It is true a lot of the letters are bluff, but creditors can, and do take consumer debt to court everyday.

    Most accounts just get passed from DCA to DCA, but occasionally a creditor will try to enforce their rights through the courts, this is most likely to happen in the months leading up to a debt becoming statute barred.

    So keep an eye out for the pre action letters.
    Originally posted by sourcrates
    Why do I think they will not go to Court?

    First and foremost I doubt that they can prove the debt.

    Secondly, I have seen the same letter before, several times over.

    I think the first rule for them to take legal action would be to be sure I can actually pay, otherwise they are throwing good money after bad.

    Even if they send pre-action letters I will not engage, if it costs them more then so much the better.

    The original debts cost the original debtor a fraction of what they "lend", I paid a ton of interest for years, so they made a profit. The DCA's buy these debts for a fraction of the debt, some do not even pay, they have a go and pass back, the original debt is covered by insurance (which is why they lend irresponsibly).

    In the unlikely situation that they did take legal action and got a CCJ what would be the point, I have 3 CCJ's for civil debts, they can see that they have not been satisfied. One even escalated to HCEO's and did not get a bean.

    I gather that they can't escalate consumer debt to HCEO's so really no point in getting a CCJ, unless they want to spend even more money on generating letters and paying postage.

    Final option would be to just go bankrupt, I have no income, no assets and no prospect of things changing, EVER. So their threats are empty and pointless.

    I think they are a bit like the TV licence, they send the same scary letters in a loop. Surely they must realise that sending the same letters over and over is futile.

    They offer between 50% and 90% off, but as I said all their letters are just a ploy to get me to engage and acknowledge the debt

    I am really looking forward to the debt going off statute so I can tell them they have been wasting their time and money.
    • sourcrates
    • By sourcrates 21st May 18, 10:27 PM
    • 15,718 Posts
    • 14,783 Thanks
    sourcrates
    • #4
    • 21st May 18, 10:27 PM
    • #4
    • 21st May 18, 10:27 PM
    You are correct that with no income or assets, they are indeed wasting their time.

    But if you were working and/or had assets, then that would not be a recommended cause of action.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • BadDebtor
    • By BadDebtor 22nd May 18, 10:12 AM
    • 24 Posts
    • 8 Thanks
    BadDebtor
    • #5
    • 22nd May 18, 10:12 AM
    • #5
    • 22nd May 18, 10:12 AM
    You are correct that with no income or assets, they are indeed wasting their time.

    But if you were working and/or had assets, then that would not be a recommended cause of action.
    Originally posted by sourcrates
    Thanks for your reply.

    I can see why you give that advice for those who have an income, although my advice would be to never avail yourself of credit in the first place, I am not particularly religious but I can understand why usury (under the original definition of interest of any kind) was condemned in most religions.

    Actually for me the evil of it is that the money was never their to lend in the first place, it never existed and they created it, so it seems to me that bad debt recovery should be based on the amount of profit made by the lender. Many of these lenders recover their costs in less than 6 months into the borrowing and after that it is all profit. Even when the debt goes bad they get their money back from insurance less the 5p in the pound they sell the debt for, so we are effectively paying a debt that has been settled by the insurance, albeit that the money never existed in the first place.

    So the way they would decide on whether to proceed with the threatened legal action would be to determine if I had the ability to pay.

    I imagine the only way they can do that would be through the credit reference databases, the last connection I had with that was about 18 months ago when my bank cut my overdraft and I needed a year to get to the new level.

    For people that have an income but are struggling I guess it depends on whether you want to be part of this credit system. Other than my bank who have been reducing my overdraft for years I do not take credit, my bank have been pretty decent and I hope to get it down to zero this year at which point I imagine they will remove the facility. One might wonder if I can service that why can't I service the other debt and it is because the amounts are so small that they are insignificant. The reality is that the overdraft merely covers the ups and downs of bills.

    My next target was going to be to pay the civil debts, ironically the company that escalated to HCEO's simply guaranteed that I will never pay them one penny. All they are about is adding their own fees and percentages, if I were to pay them any money it would go to HCEO company not the original debtor. I am not funding those scumbag merchants of misery who have illegally evicted hundreds of people, which has exposed the Landlords to potential 50k+ for forced eviction. You can expect claims companies to get in on that action soon.

    Once I get the consumer debt off statute I will work on the creditors who did not escalate, one of whom told me they only did it to get the VAT back. Once it is below 20k then I guess a DRO is an option, if course if the HCEO's keep adding interest at 8% then that will not be possible. They will still get nothing.

    Come to think of it, don't the civil CCJ's go off statute after 6 years if not escalated?

    I can see that people may be tempted by paying 80 to escalate an CCJ to HCEO's but for me as a debtor it is the one way to guarantee that they will never be paid.
    • BadDebtor
    • By BadDebtor 9th Nov 18, 9:34 AM
    • 24 Posts
    • 8 Thanks
    BadDebtor
    • #6
    • 9th Nov 18, 9:34 AM
    • #6
    • 9th Nov 18, 9:34 AM
    Sourcrates you were right!

    I did keep an eye out for a claim but one got a back door CCJ without my knowledge just before it went off statute.

    Clearly just a way to extend the debt misery from 6 years to 12 years

    Question now is whether others will follow suit?

    I know bankruptcy is an option but no funds for that and no charities doing it either, besides why should a charity have to pay for that when it is an unscrupulous debt co abusing the legal process to serve their own ends.

    I still have nothing so it will do them no good, but the waste of Court time and abuse of fees etc needs to be stopped.

    It would be very distressing for most people but I have already been through suicidal stage of debt misery.

    It is actually quite liberating having nothing, It makes their threats meaningless, it makes their action pointless and it makes their enforcement futile.

    The only benefit is that I know it is costing them money to waste their time, but others should not be put through this abuse of process.
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