Q&A With Niddy & Joanna Connolly

[Never-In-Doubt]

Hi Everyone,

First I'd like to apologise for not being around as much as I'd like. This is just due to my business interests being extremely busy however I will make a conscious effort to login and help answer any queries you may have, more frequently.

So, to kick-start I've decided to hold an open Q&A session which means you can come here and post any question you like, and myself or Joanna (from our Solicitors) will answer. So if you're having specific hassle, don't know a particular course of action or if you have a generic legal issue (specific to debt / finance etc) then you can ask on here and just point your query to either myself or to Jo using the hashtags (so press @ and start to type our username and when you see the popup suggestion, click our name - like the examples below) -

Niddy - Never-In-Doubt | Jo - Joanna Connolly

The Q&A session will be active until the end of the month so you've got a full two weeks to use us at your will (only for general queries, we aren't here to provide a 1-on-1 debt advisory service).

I'll start with the biggest bugbear currently on the forum - the speed / hanging / delay to load etc. You'll be pleased to know we're upgrading our AAD server yet again to a much faster & more bespoke solution so you'll hopefully see an end to the ghosts of yesteryear! We're the best for a reason and it's a shame that we're having a few I.T glitches - based purely on the sheer size of the site and associated databases which runs into many hundreds of gigabytes of data (none personal though!).

So over the next week or so you'll notice we will be offline for a day whilst we do the server switch. When this occurs you will see a blank page when trying to access the site, don't worry - it'll only be temporary so leave it the whole day and check back the next and it'll be fine. remember to follow us on Facebook as we always update Facebook with outages and planned maintenance periods days in advance. Our Facebook is found on the homepage (down the right side) and also by clicking the following link: https://www.facebook.com/allaboutDEBT/

Fire away guys - ask us anything!

[Joanna Connolly Solicitors]

This forum member has a general question about Default Notices, so I've moved it to this thread for an answer >

Anyone else have any comment on whether or not a DN has to be issued before a creditor is able to make a claim, whether the SB clock can't start until a DN is issued and does the creditor have a free reign to issue a first DN years after the last payment or last contact ?

[Joanna Connolly]

Whether or not a DN has to be issued before a creditor is able to make a claim

If the credit agreement is regulated by the Consumer Credit Act 1974 (CCA) and is a running account agreement such as a credit card or current account overdraft or a Hire Purchase or Conditional Sale Agreement then a Default Notice which is compliant with S.87(1) and S.88 of the CCA must have been served, allowed at least 14 days from service to remedy the alleged breach before the whole balance can be called up as being due for payment and the agreement terminated.

Whether the SB clock can't start until a DN is issued

If the credit agreement is regulated by the CCA and is a running account agreement such as a Credit Card or Current Account Overdraft then a CCA compliant Default Notice must have been served and expired before the Statute Barred clock starts ticking.

If the regulated credit agreement is a fixed term loan, Hire Purchase Agreement or Conditional Sale Agreement then once the term of the loan has expired and no more payments are made then the Statute Barred clock starts ticking. There is no need for a Default Notice to be served for Statute Barred purposes. However if the creditor has served a CCA compliant Default Notice in order to terminate he loan early then the Statute Barred clock starts ticking subject to further payments or an acknowledgment of debt not being made.

Does the creditor have a free reign to issue a first DN years after the last payment or last contact

The short answer is no and if they put it on your credit file then they will have to remove it !


However we have seen many cases sadly where the creditors ignore the above when dealing with individual consumers knowing that any claim has to be properly defended.

[Qotn2011]

Hi!

i have a question for

Joanna Connolly

I have 2 debts - both unenforceable - with PRA (one previously a Barclaycard, one a MasterCard). Both defaulted one in 2014 and the other in 2015.

I was diagnosed with MS in 2013 and as my health got worse, took ill health retirement in June 2018.

My income has has dropped drastically and so I contacted PRA with a full and final offer. I know that as the debts are unenforceable, I don’t have to pay them anything.

PRA responded with a flat no initially; I tried again and they have sent me a list of things I need to provide them so they can consider what to do. This includes letters from my consultant, doctors, nurses, previous employers and an I and e form.

Part of me wants to shut everything in a drawer and forget about it all but really I should be a responsible person and deal with this. Do your us have any suggestions as to how I should proceed with this?

Thank you for reading and if you need any further info, please ask.

Qotn2011

[Never-In-Doubt]

I know you said Jo but I’m curious, how do you know the debts are both UE? And if so why would you wish to settle...?

How much is owed on each account, that plays a part in any legal response also (as if they’re small debts it’s sometimes not beneficial fighting).

[Battendown]

Hi Niddy, Hi Jo,




I haven’t been on here for a long time, I hope everyone’s well.




My question is to do with the banks right to set off or off set a debt.




I have an overdraft with Lloyd’s Bank that I still service as my bank account is still open with them. I also have a credit card debt which I haven’t paid for years but Lloyd’s have never sold it on. It’s not statute barred yet.




I know that Lloyd’s do use this right as they have with me with the same bank account and credit card back in 2009 when I was ill and missed my credit card payment. My SSP went into my bank leaving me still considerably overdrawn but they used most of it to pay my credit card even though I was overdrawn.




I want to pay off my overdraft which is currently at its limit of £1,000. I’m worried that if I do that they will use it to offset my credit card debt. I know HSBC for instance will not use the offset rule if your into your overdraft as they state this, but from past experience I know Lloyd’s have done this.




Is there any rule now where they can use your overdraft to offset a debt ? where your in it and have some available to use or where you’ve paid it off but don’t have any money in your account ?




Many thanks

[Never-In-Doubt]

Battendown

Yes they can use your overdraft to offset - so long as it is an approved overdraft and within limit. The easiest way to pay it off is to actually arrange with the bank a monthly reduction; so for instance each month it reduces by £250 and literally the day you agree the reduction, you make sure you pay in the difference so it doesn't exceed it.

I honestly don't know why you're banking with them - get out while you can, imagine your horror if they took a whole month salary using ROSO!

I'd strongly urge you to get a new account opened urgently!

But to summarise, yes they can use your agreed overdraft so long as it doesn't make you in a worse position. So cannot exceed it, and really unless you lived in it anyway they'd struggle to warrant doing it based on the fact you'd be charged £1 per day for being OD with that bank - so that's £30 per month = worse off so it's unlikely they would, but they might / can.

Easiest solution is swap banks.

[The Tech Clerk]

get a parachute account for use and credit of wages etc into = not a company associated with the one you are with - get control of your finances from a new account

[Qotn2011]

Hi Di,

I know you said Jo but I’m curious, how do you know the debts are both UE? And if so why would you wish to settle...?

How much is owed on each account, that plays a part in any legal response also (as if they’re small debts it’s sometimes not beneficial fighting).

Thank you for your response.

In answer to your questions:

I did a CCA request and when the agreements that were returned to me, I sent them to Niddy who said they were unenforceable.

I have been paying a minimal amount to these debts.

The former Barclaycard debt is c£8,900 and the Mastercard is £1,900.

Any advice is welcome!

Qotn2011

[Battendown]

Never-In-Doubt

Hi




Thank you for your reply.




I don’t use this account anymore as I have an account with Natwest, but the overdraft is maintained around £1,000 which is its limit, and is costing me around £50 a month in charges.




I put money in to cover the charges each month so it doesn’t go over it’s limit, but to be honest, £50 a month could be better used elsewhere.




I don’t want to default on it now as my credit file has started to get better after all these years.




In hindsight I should have let it default when my credit card did. I’ve been hoping for them to sell the debt on, so that I can pay it back without fear of it being used towards my credit card which is around £5,700.

[Never-In-Doubt]

Hi Di,





Thank you for your response.

In answer to your questions:

I did a CCA request and when the agreements that were returned to me, I sent them to Niddy who said they were unenforceable.

I have been paying a minimal amount to these debts.

The former Barclaycard debt is c£8,900 and the Mastercard is £1,900.

Any advice is welcome!

Qotn2011

I’m niddy - not Di

Hard to give any guidance as you’d need to start a diary first then it allows us to properly give you our experiences, relevant to your situation.

Head to the diaries section and start one going.

[charitynjw]

Joanna Connolly

Diana Mayhew

Good morning, ladies.

I trust all is well with you & yours.

My question....are there any current or historic assignment issues re Arrow Global (Guernsey) Ltd?

[stuckinarut]

Joanna Connolly


Hi Joanna. Hope all is well. I have a wee question if i may. My current account overdraught was on an arrangement to pay. for a while (bank of scotland)
Then it was Defaulted and sold the same day. To cabot Financial uk Ltd. i received the alleged Default and assignment notice in the same envelope from cabot. (its as plain as day that the same printer was used) its now ended up with Debt Managers ltd who are claiming on behalf of cabot credit management group Europe.
Also have credit card accounts that were sold and fully assigned to cabot Financial uk ltd. Just wondering if they would have assignment issues if things ended up in court? Thanks in advance Joanna your time is valuable and much appreciated.

[Joanna Connolly Solicitors]

Diana Mayhew


My question....are there any current or historic assignment issues re Arrow Global (Guernsey) Ltd?

Good Morning Charity,

Maybe your question should also ask whether there are there any jurisdiction issues with Arrow Global (Guernsey) Ltd.

Di

[The Tech Clerk]

Good Morning Charity,

Maybe your question should also ask whether there are there any jurisdiction issues with Arrow Global (Guernsey) Ltd.

Di

The answer would be???