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

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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 in the county court. 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
    Fantastic result!

    Well done to all!

    Comment


    • #3
      Jo
      That is just brilliant news

      It's a shame all my accounts with unlicensed debt purchasers are statute barred :-(

      Does this mean people with a cci from an unlicensed firm can now get them set aside and dismissed?

      Comment


      • #4
        It is a brilliant achievement!!
        It also reinforces the AAD Diary format as the best starting format! sic
        Account owner (who is writing to you, a DCA or the lender): ??

        Comment


        • #5
          Originally posted by Warwick65 View Post
          Jo
          That is just brilliant news

          It's a shame all my accounts with unlicensed debt purchasers are statute barred :-(

          Does this mean people with a cci from an unlicensed firm can now get them set aside and dismissed?
          A good Question?
          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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          • #6
            Could that be why MCS on behalf of MEIII is offering "generous reductions to help clear the debt"?

            Comment


            • #7
              It may well be
              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.

              Comment

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