Going directly to 'debt jail' - no chance to dispute

[dstratton]

Today I have been sent a County Court Response Pack. This has come as a bolt out of the blue as this has been sold to a third party bunch of solicitors (obviously purchased the alleged debt) without the original creditors EVER contacting me by letter or 'phone.

 

This is a tricky one because it stems from a spread-betting account with a London based outfit. There was an intial debt but it stemmed from a software\platform\technical failure on their system (margin call) and speaking to the customer service desk it was resolved and the 'debt' was zero'd way back in mid-November. I thought that was the end of it but, no, today this bombshell dropped on the mat. Thus, I have hit this site today to try and gain some knowledge to fight my corner.

 

From what I can make out, I have somehow managed to bypass the intial debt collection stage therefore not having a chance to argue my point and ask for a breakdown\explanation of what on earth is going on. The chance of me launching a CCA looks to have gone out of the window. These forms have to be returned pronto

 

I have never had problems like this before and am stressing about my future credit history. The disputed amount is £829 with costs and fees. Not exactly a fortune but of course, its the principle

 

Thank you for reading and I hope someone can give advice on what I could do next. I think I need some empowerment help here.

 

Regards,

 

fuming

[silverfox1961]

Hi,

Sorry, I'm not able to help but by replying will "bump" your post up so someone with the right knowledge can have a look.

 

I do think you need to contact the betting company to get confirmation it was zeroed but also get the court claim set aside.

[rippedoffagain]

Interesting one.

 

As an individual, you apply for an account with a spread betting company, and as such the account should fall under the Consumer Credit Act. What is the date of the claim, and from where is it issued?

[Elelbee]

Hi there,

 

Do you mean to indicate that there is actually no debt at all?

 

I'm studying for the New York bar, so my advice can't be directly applicable, but most of the principles in both systems are the same. Take the following advice with a pinch of salt:

 

One has a right to (1) 'due process' and (2) the opportunity to be heard.

 

(1) Due process means that summons to court must have been served on you and you must have been given a certain time in which to reply, to avoid a default judgement.

 

It appears to me that your original creditors have not even tried to recover the 'debt' (if it exists). I believe that they are within their rights to sell the debt on, and as long as you are given a chance to dispute it *when it is taken to court*, no wrong has occurred against you. On the evidence given, it does not appear that any default judgement has already been made against you by the original creditor.

 

Re: Your new creditor: I presume your County Court response form was accompanied by the summons to court? If this is the case, then you can simply fill in the paperwork, asserting your response that no debt was actually incurred. The court will then look at the complaint and the response and will either make a decision or adjourn for a later hearing.

 

If the response pack didn't have a summons or you didn't receive a summons prior to it, then your time to respond does not begin until a summons is involved. Beware that under English law, posting is sometimes sufficient for service to be complete - you will have to check with an English lawyer as to whether posting or receiving the summons is the key date.

 

(2) Your response is your opportunity to be heard. You can respond on paper or in court, or both, but doing neither will result in a default judgement against you.

 

As for reaching an agreement with the DCA, if you don't owe anything, why would you bother? If you think you do owe money, then draw up a contract (something very simple will suffice) with the DCA prior to trial, stating that whatever payment you make to them is to be full and complete service of the debt and no further monies are recoverable. Ensure that you have written confirmation from them that no further monies can be recovered from you, as there are contract law implications if you don't (i.e. the full amount will still be recoverable).

 

In terms of practicality, DCAs always want the easy route. They will probably hear you out on a decent proposal.

 

 

All the best for your case, and anyone who knows English legal process better than I do, please comment without fear of offence.

 

El x

[Kaiser99]

I'm not 100% sure of this but I was under the impression that gambling debts are not legally enforcable? It might be worth exploring that avenue.

[fiftypence]

I'm not 100% sure of this but I was under the impression that gambling debts are not legally enforcable? It might be worth exploring that avenue.

 

Unfortunately I can't quote the exact legislation but I believe that one has been repealed

 

You must obtain confirmation ASAP from the company that the balance is zero and that will kill this action stone dead.

[Gary29]

I'm not 100% sure of this but I was under the impression that gambling debts are not legally enforcable? It might be worth exploring that avenue.

 

Sorry, under the Gambling Act 2005 gambling debts are now legally enforceable.

 

This is a two way street as it also means that bookies can't refuse to payout on large wins.

[dstratton]

Hi everyone and thanx for the replies. OK, to answer a few points raised. The Court papers (Acknowledgement of Service) are dated 09 March and issued from Northampton. I have only just returned from work and will be dealing with the paperwork tomorrow when I have time.

 

Initially, I was told that there was NO DEBT. This was a 'phone call and I was dumb enough not to record it.

 

Elelbee - thanx for your input. Indeed, I didn't know I owed anything but I thought it was a matter of course for a series of DCA's to contact first with threats asnd stuff - like so many cases on these threads. I have had none of that. Just a summons whipping me to Northampton at some time in the future.

 

Anyway, I am defending this to the hilt and will be swotting up tomorrow morning on my options. Thanx all once again.

[dstratton]

Right, I have got started. I have copied\pasted some excellent templates here

 

This one;-

Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974

 

at http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

is being sent to the solicitors who didn't bother to contact me in the first place. I will customize it with the first paragraphh asking why they didn't contact me in the 1st. place. The really annoying thing is on the back of the Court Claim form they add under particulars of claim that 'statement of account was sent by the Claimants solicitors to the defendant under cover of a letter before action'.

 

NO SUCH CORRESPONDENCE CAME HERE.

 

N9 Response Pack & Form N9B will be whistling their way recorded to the actual Court.

[gymfreak1978]

problem with spread betting you can lose more than you have in your betting account,