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  • Debt purchasers not authorised by the Financial Conduct Authority cannot sue in the county courts

    On 24 April 2019 I was successful in a consumer credit claim appeal. The Claimant debt purchaser admitted they were not authorised by the Financial Conduct Authority but said they could rely on the S.55 FSMA 2000 exemption because they had a valid servicing agreement in place with an affiliated 3rd party who was authorised by the Financial Conduct Authority.

    It was accepted on the facts of the case by both parties that there was a valid servicing agreement in place. The issue was could the Claimant debt purchaser rely on the S.55 Exemption to issue proceedings in the county court.

    The Circuit Judge held as a general principle of law that the Claimant debt purchaser was not able to rely on the FCA authorisation of an affiliated 3rd party (and the exemption under s.55 FSMA) for the purpose of bringing a claim. The agreement was unenforceable, and the order of the court below was set aside, and the Claim dismissed
    Legal Disclaimer
    I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk.

    If you need to contact me you can send me a message by clicking my username or by emailing me at jo@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340.

  • #2

    Great result, another blow for the debt purchasers, How ide have loved to have seen the ceo"s face once he heard the result )

    I have a couple of debts with Cabot and Intrum so am very interested in these recent developments.

    Why are these debt purchasing companies allowed to carry on issuing court claims if they are not authorised to do so,
    I know they play on the fact that most debtors wont contest the case and they will get judgement by default, but why are the authorities than govern them not clamping down on it , surely its an abuse of process if there is no authorisation in the first place ? even more so now a court has agreed..

    Could these unauthorised debt purchases upon realising they could be challenged in the court on this issue simply just sell the debt on to another company/subsidery who does hold the correct authorisation ?

    Thanks
    Last edited by BigAl1968; 11 September 2019, 10:28.

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    • #3
      Its a complex legal argument as I understand.

      But anybody can lodge a claim.

      Comment


      • #4
        Originally posted by BigAl1968 View Post
        Great result, another blow for the debt purchasers, How ide have loved to have seen the ceo"s face once he heard the result )

        I have a couple of debts with Cabot and Intrum so am very interested in these recent developments.

        Why are these debt purchasing companies allowed to carry on issuing court claims if they are not authorised to do so,
        I know they play on the fact that most debtors wont contest the case and they will get judgement by default, but why are the authorities than govern them not clamping down on it , surely its an abuse of process if there is no authorisation in the first place ? even more so now a court has agreed..

        Could these unauthorised debt purchases upon realising they could be challenged in the court on this issue simply just sell the debt on to another company/subsidery who does hold the correct authorisation ?

        Thanks
        The problem they have is that there are tens of thousands of these debts owned by non regulated companies. The other point is that only a tiny minority ever get defended let alone by someone who can back up their argument so why not chance their arm and go ahead . If someone instructs Joanna Connolly they can always discontinue

        You do ask a very relevant question- why are they allowed to carry on- why indeed. From my point of view it is called corrupt capitalism but that is just my own personal political viewpoint ( I don't have a quote from Marx in my avatar for no reason)

        Comment


        • #5
          This is interesting, in so much that Cabot have recently contacted me regarding a CCJ I had against me from Black horse in 2010, I had not heard anything until late alst year so I tried out a statute barred letter and got back today details of the CCJ from Cabot
          What can they do now to enforce I realise it would have to go back to court if it were blackhorse and it would be inlikely to be enforced due to the time delay

          How should I reply to the "not statute barred letter"

          Only me again

          Comment


          • #6
            A CCJ does not get statute Barred BUT if it has been in existence for quite few years they would need a dam good excuse as to why actioned not earlier? sure others will verify if I am right or wrong?
            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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            • #7
              Just a couple of questions- ok maybe 3

              1) Who got the CCJ against you, BH or Cabot?
              2) When did you last pay anything towards it?
              3) is there some history on the forum about this debt ?


              So if I have read this correctly the CCJ was granted in 2010 . Technically there are no limitations on CCJs but if a company want to enforce after they need to go back to court. If this is more than 6 years after the CCJ they need specific permissions and would need a good reason as to why they didn't do so beforehand.

              Assuming there are no good reasons (for example you vanished/went abroad/went to prison (half joking)) then personally I would do nothing at the moment.

              Comment


              • #8
                Wow you guys are on the ball this morning thank you.
                I dont have another thread about this I may have posted many years ago about the black horse debt
                Black horse gained the ccj I have not paid or acknoweldged the debt to them since CCJ was issued
                I cant see Cabot trying to go back to court especially given the success shown in the original psot on this thread, (if that success is relevant)
                They havent threatend going back to court only telling me to call to make an arrangement plan whcih of course I will not

                I havent been hiding at all same address for 12 years and no communication from cabot til late last year when I tried a statute barred letter just incas they didnt have the info re CCJ I dont hink they will chance their arm but I want to reply letting them know that they cant enforce and I dont know how to phrase it

                Comment


                • #9
                  Originally posted by ohitsonlyme View Post
                  Black horse gained the ccj I have not paid or acknoweldged the debt to them since CCJ was issued
                  I cant see Cabot trying to go back to court especially given the success shown in the original psot on this thread, (if that success is relevant)
                  They havent threatend going back to court only telling me to call to make an arrangement plan whcih of course I will not

                  I havent been hiding at all same address for 12 years and no communication from cabot til late last year when I tried a statute barred letter just incas they didnt have the info re CCJ I dont hink they will chance their arm but I want to reply letting them know that they cant enforce and I dont know how to phrase it

                  I wouldn't reply to that letter from Cabot in case it only provokes them to seek enforcement. Whether they'd be successful or not is another matter.

                  You can't tell Cabot that they can't enforce the CCJ, only a Judge can decide that.

                  What was the reason you didn't pay anything following the CCJ in 2010, did nobody even ask for the payments ever? Was it a 'forthwith' Order (everything there and then) or was it an 'instalment' Order?

                  How much is the CCJ?

                  Di
                  Last edited by Joanna Connolly Solicitors; 1 February 2020, 14:02. Reason: typo

                  Comment


                  • #10
                    Originally posted by Diana Mayhew View Post


                    I wouldn't reply to that letter from Cabot in case it only provokes them to seek enforcement. Whether they'd be successful or not is another matter.

                    You can't tell Cabot that they can't enforce the CCJ, only a Judge can decide that.

                    What was the reason you didn't pay anything following the CCJ in 2010, did nobody even ask for the payments ever? Was it a 'forthwith' Order (everything there and then) or was it an 'instalment' Order?

                    How much is the CCJ?

                    Di
                    Hi Di Thanks for the reply,
                    The ccj was for £11k and it was forthwith , but was never followed up by black horse,I have been on the electoral roll at my current address and easily traceable for at least 10years, the ccj was addressed at my old address which I still rent out and I have always received the mail
                    my old and new address are on the credit agency sites as linked addresses
                    I didnt pay as I could not to afford to

                    Onlymeagain
                    Last edited by ohitsonlyme; 1 February 2020, 16:25.

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