ccj threat from Cabot via marlin financial for 1yr old lloyds graduate overdraft debt

[kierono1984]

Hello and good day to all,
Firstly, I have spent most of today reading through the threads on this site and have found the information very useful and informative.So, thanks to all moderators and contributors for building and maintaining this site.

Now, for my specific debt story and debt problems.

My account and how I managed to end up at collections and later with Cabot.
In 2006 I went to University and whilst there, opened a Lloyds TSB student account(always using maximum free overdraft facility) . I used this account throughout my time at university until I graduated in 2010 when I switched to a graduate account (again keeping the maximum interest free overdraft) . Now, the interest free overdraft decreases by £500 per year after graduation. So 1st yr after graduation the interest free overdraft is £2000 , 2nd year £1500 and 3rd year £1000. I apparently* made an error in remembering this tiered system and kept £1500 in the account when I only had an interest free overdraft of £1000, (this is 2012 - 2013 academic year). I did not properly monitor this account and thus incurred charges (currently around £130, equaling £1630 with the overdraft) because of the above situation. This took me to collections and quickly to the debt management company cabot financial.

Advice on what to do from friend
I did not realise my account had even gone to collections until September 2013. At this point I had completely arranged to go to South East Asia travelling. I asked a friend of a friend (she works for collections close to where I live) what to do and she attempted to manage the situation but couldn't because it had gone to Cabot.Her subsequent advice was - because of the amount it was unlikely I would have to go to court/ccj etc, so ignore it until you come back and then offer no more than 40%

Since being back in Country
Well, I have been back in the country since mid June and have collected letters from local post office pick up point* and I have several letters from Cabot and 1 this week (14/07/2014) from Marlin financial announcing
"we are now in the process of advising our client to take litigation action against you to recover the amount".
"Currently it is our intention to instruct a solicitor to issue court proceedings against you to seek a county court judgement"
You may submit a defense. It will be registered against you for six years."If no payment plan is made we will advise your creditor to proceed with the above course"

So my questions to you are Is the letter from Marlin a bluff (I think this purely because it is couched in very soft terms like "process of advising our client".

If not what should my course of action be? Overdraft CCA?, offer 20% (I cannot afford anymore)? ignore/play dumb and use my absence from the country, poor address and no response to them as a counter if they do take me to court?

THANKS IN ADVANCE

IMPORTANT NOTES
I have never spoken/written a single word to Lloyds/Cabot/Marlin.
I live at my parents address (which has always been my registered address since I left uni in 2010) and to my knowledge they have no confirmation that I even live at this address.I can not contact the friend who gave the initial advice.

*i write apparently because I went into my local branch around November, December January 2012 because I was being charged o/d charges on this account then! I went into my branch told him of my situation and a manager removed all charges on my alc saying it was an error and I was being charged to early, I have extended the interest free period for 1 more year!

*I do this as there are two properties with the same address in the County where I live, thus we have had a lot of post sent to the wrong address so i set up a collection only account with royal mail

[Pixie]

Re: ccj threat from Cabot via marlin financial for 1yr old lloyds graduate overdraft debt

I got caught out with the reducing OD for a student/graduate account. I was a mature student so I should have known better!

You could try sending the OD CCA letter http://forums.all-about-debt.co.uk/s...CA-Information and see what they come back with and then, if necessary, make a F&F offer starting at 10%.

I'm afraid your friend is wrong about it being unlikely to go to court. Others have received claim forms for less The ones I'm thinking about were seen off with a F&F (they weren't an OD)

[kierono1984]

Re: ccj threat from Cabot via marlin financial for 1yr old lloyds graduate overdraft debt

Ok thanks for your quick response. Unfortunately I have another battery of questions for you.

Firstly how did your od issue pan out?

Do you think ignoring it would be a bad idea? Remember they don't even know I live here currently. Although, to be completely honest with you I dont mind paying the debt off at 30% or below despite Lloyds incompetence. This whole thing started from incorrect advice by a Personal Account Manager in my local branch.

Anyways, the letter sent by Marlin on 14/07/2014 (quoted above) had a week to respond (it should of reached them today, or I should of called them today, obviously I will not call them). If I receive a ccj summons would I still follow your line of response as a defense to it? Can I make an 10% offer despite the ccj or will they want it all? What happens if I ignore a CCJ? I own nothing of value (car, house, savings, investments etc), what am I losing by not paying?

With regaard to the OD CCA link - Do I simply copy and paste the 1st letter template on the link, input my specific bank , ref etc, and send off to Marlin keeping proof of postage, then sit and wait for a response?

Thanks again

[Pixie]

Re: ccj threat from Cabot via marlin financial for 1yr old lloyds graduate overdraft debt

A synopsis of my OD is here ---> http://forums.all-about-debt.co.uk/s...l=1#post372038 I was a student from 2004- 07.

It's a shame you didn't complain in writing about Lloyds incompetence but it's too late for that now.

What is the address that they're writing to you at? An old uni address?

As you're collecting your post you'll find out if they send you a claim form and it's still possible to negotiate a settlement when you've received a claim. As for what they'll accept in settlement, there's no hard and fast rule and they don't seem to follow any specific logic. One member had a 20% offer accepted on a £10K debt, others have had higher offers rejected on smaller amounts.nothing I said in post #2 is a defence for a possible ccj. As far as I can see you haven't really got a defence except for Lloyds giving you the wrong advice and you wouldn't be able to prove that (that's why we say everything in writing.)

If you decide you want to send the OD CCA letter, yes you just do as you've said.