issue with overdraft debt from 2014 - advice needed

photoworks · 17 February 2019 at 6:02PM

hello, new here.

I live in Scotland.

Due to health issue, I lost my job in 2014 (28/04/2014)

I had then an overdraft of 1408.27 with the Bank of Scotland.

I was unable to pay the debt.
I have been since then suffering from depression and I have not been working since 04/2014

I received today a letter asking me to make payment and I don't know what to do. I am panicking because they are threatening to go to court:

From SHOOSMITH LLP solicitors (scotland)

Dear sir,

Balance outstanding: 1408.27

You have failed to repay the amount outstanding on your above account or agree repayment terms with our client.

Please contact us immediately on 03700868120 with your repayment proposals. Our intention is to reach an agreement with you in order to avoid the necessity of Court action. If it is not convenient for you to telephone during the office hours shown above, please leave a message on the above number to confirm, the most appropriate time of day and the relevant telephone number for us to call you.

If we cannot agree during the next 14 days how you will repay the amount outstanding to Arrow Global Limited, we will issue Court Proceedings against you for the full sum outstanding together with legal costs. We will not contact you again to warn you that the proceedings will be issued. Any judgment issued by the Court against you will be registered at Credit Reference Agencies. This may affect your ability to obtain credit in the future.

If you are in any doubt as to your position, we recommend that you consult your Solicitor, Legal Advice Centre or Citizen’s Advice Bureau as a matter of urgency, taking this letter with you.

Please give this matter your immediate attention.

Yours faithfully

Advice would be very much appreciated.

sourcrates · 17 February 2019 at 6:19PM

Hi,

I have moved your post to the general forum, as stepchange debt advisors will not be around again till tommorow.

You have received what is termed "a letter before claim", as you obviously accept the debt is yours, you need to write to shoesmiths and make an offer of payment to them, it would not be statute barred in Scotland for at least another two months, dependant on the default date, which you don`t mention.

You need to inform them of your circumstances, and make a token offer of payment for say £1 a month, or whatever you can afford, also include a copy of your budget to show your income and expenditure.

Whatever you do, do not ignore this, otherwise they will grant a judgement in default against you, and the full amount will become payable, its possible to get this changed to installments, but its a lot of unnessessary hassle, so respond quickly.

photoworks · 17 February 2019 at 6:48PM

The issue is that I am on benefits (ESA and housing benefit).

However, my expenses (bills, food, etc) are more than my income. So how can I offer them a repayment plan? and If i cannot offer them a repayment plan, regardless if I contact them or not, they will start court proceeding. So What can I do?

photoworks · 17 February 2019 at 7:01PM

the letter says : "If we cannot agree during the next 14 days how you will repay the amount outstanding to Arrow Global Limited, we will issue Court Proceedings against you". So even if I contact them, I won't be able to get a repayment plan as once my living expenses have been paid, I don't have any money left (and, most of the time, I am in overdraft). So no matter what, they will start court proceedings against me anyway. That is why I am panicking.

Willing2Learn · 17 February 2019 at 7:06PM

Are you able to offer £1/month? Do you have any other debts hidden away?

sourcrates · 17 February 2019 at 7:12PM

photoworks wrote: »

the letter says : "If we cannot agree during the next 14 days how you will repay the amount outstanding to Arrow Global Limited, we will issue Court Proceedings against you". So even if I contact them, I won't be able to get a repayment plan as once my living expenses have been paid, I don't have any money left (and, most of the time, I am in overdraft). So no matter what, they will start court proceedings against me anyway. That is why I am panicking.

No need to panic, its just a procedure to go through, you don`t actually go to court, its all done by post and online, this is why i said write and explain your circumstances to them, they won`t spend money on taking someone to court who has no disposable income, its just a standard LBA you have received.

Tell them you have nothing, back it up with a copy of your budget, and please try to keep a cool head and not panic over this, it can easily be dealt wih.

photoworks · 19 February 2019 at 1:19PM

I have sent them an email (stating my situation like you advised), two days ago but they have not replied to me yet and I am afraid that the 14 days deadline will pass and they, not replying to me, will start Court Proceedings.

WhenIam64 · 19 February 2019 at 2:03PM

There is no pre-action protocol in Scotland so the next letter you may get is a claim under the new Simple Procedure in the Sheriff court. If you do not have any money and can demonstrate this to the court, then allowing it to go there may be a better option - or indeed your only option.

https://www.scotcourts.gov.uk/about-the-scottish-court-service/scs-news/2016/11/29/new-simple-procedure

The use of the word "will" by Shoosmiths suggests it a likelihood rather than a threat which then brings up the question as to why they intend to proceed, given that there will be a lot of information about your financial situation available to them already. Perhaps they can see something you can't.

issue with overdraft debt from 2014 - advice needed

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