Got a court order form for a credit card

Bings99 · 17 August 2019 at 1:02AM

A month or so ago I got a letter from arrow who had my credit debt debt . They wrote that they had made mistakes etc and would be sending regular updates. Next thing I know I get through a letter saying I’m being taken to court. I was paying the statutory minimum . I don’t have good credit that I can pay it off or anything. I’m about to put the house on the market so I can clear debts but I won’t have money till sold. What do I do? I’ve felt so upset today that I could not function at all.

Suseka97 · 17 August 2019 at 8:25AM

A bit more info might get a few more responses.

When you say they had 'made mistakes' - what were those? Where you on some sort of repayment plan (you mention making minimum payments). Had you stopped making them for any reason? It's odd that a DCA would threaten court action if you are making payments on an agreed repayment plan.

The letter you've received may just be a 'threat' of court action, or could be a 'letter before action' - which is usually sent if debtors are not in any form of repayment plan. Both are simply warnings of further action and allow you the opportunity to agree on a way forward.

Bings99 · 17 August 2019 at 9:21AM

I was on a pound a month as was no longer earning enough money and have other debts so only way forward is to sell. On the 11th June I got 2 letters by a company called arrow. One says remediation of account then writes under the consumer credit act 1974 we are required to send you statutory notices with the prescribed timescales to inform you about the status of your account. Although we always strive to provide clients with a high quality service we haven’t recently complied with the above. Please accept our apologies. Then the second letter on same date gives a periodic statement with the 1 pound minimum I have been making. Then the next letter I got from Dryden solicitors on 3rd May saying I needed to get back to them by the 10th but I only just recently saw this letter then I got court papers through for this Tuesday. I hope someone can help. I know eventually I will be able to clear it but it’s the additional stress I have been put through

WhenIam64 · 17 August 2019 at 10:15AM

How much is the debt for?

It would appear that you may have equity that they want to access (eventually). With a CCJ, it becomes a secured debt rather than an unsecured one. They then can convert it to a Charging Order and have it attached to your home. You are obliged to inform those with Charging Orders on your home when you do actually sell. [Though you do not need to. A CCJ/CO usually is enough for the creditor]

See https://forums.moneysavingexpert.com/showthread.php?t=1839539&page=206#topofpage

Did you tell them you were going to sell as this may have prompted them to take the action they are considering. Not all threats are carried through?

Perhaps you need to go back to a debt advising charity for a re-assessment of your options.

"Statutory minimums" as you call them do not prevent creditors taking action. They just keep the debt live so they don't fall foul of the Limitations Act.

Bings99 · 17 August 2019 at 10:31AM

Please explain what the limitations act is. I didn’t mention anything about selling a house just got this through. Where I have a problem is them saying to me that they have made errors and then then they send me this letter.

sourcrates · 17 August 2019 at 10:36AM

These "court papers" is it a hearing you have been summoned too ?
What does the letter actually say ?

Limitations act not applicable here as you have been paying the debt, no need to complicate matters further.

Bings99 · 17 August 2019 at 11:03AM

It says the particulars of the claim says that the defendant failed to maintain payment. I was paying 1 pound a month till could things out so I m not sure why they say I didn’t maintain payments. It was very unclear.

sourcrates · 17 August 2019 at 11:48AM

Bings99 wrote: »

It says the particulars of the claim says that the defendant failed to maintain payment. I was paying 1 pound a month till could things out so I m not sure why they say I didn’t maintain payments. It was very unclear.

So do you have had a CCJ awarded against you ?

Did you fail to maintain the payments demanded by the court, which leads us to where we are now.

Did you just decide to pay the £1 a month off your own back, instead of applying to the court to have the payment varied using form N-245 ?

Its not clear what stage of the proceedings you are at.

WhenIam64 · 17 August 2019 at 2:59PM

It says the particulars of the claim

It actually sounds like a claim and not a CCJ. What is the date in the top right hand box of the form?

The particulars will be correct in that you paid an amount that was less than the debt required you to. What you'll need to do is to Acknowledge the claim, and the debt and then make an offer. You can state £1 a month again if you wish.

What will happen is that it will go to a judge and he/she will decide based on your stated Income and Expenditure. You should draw up a list of what you get and what you spend it on.

But the main issue is the stage you are at. Date on the form please. And the amount of the debt as that has an influence too.

Got a court order form for a credit card

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