Received Claim Form from ELS & Cole Solicitors

[naeemsyed]

Hello All

 

I had an Alliance and Leicester Credit Card which I could not repay; hence a default repayment was setup for £5.00 per month. The Debt was passed to a Debt Collection Company and I continued paying the £5.00 per month. A few months back my debt was taken over by ARROW GLOBAL LIMITED who called me and said that as this debt (£2252.00) has gone on far too long and they will only accept £5.00 per month and if I agree to a Voluntary Mortgage over my property. I refused but instead offered that I could arrange to pay £450 as full and final settlement of my account. But they rejected my offer and said they were going to proceed towards litigation against me.

 

Today I received a Claim Form from ELS & COLE SOLICITORS claiming the full amount of £2252. But they added the £75.00 (Court Fee) + £80.00 (Solicitors Cost) which has brought the total to £2407.

 

1. I have never defaulted since the repayments started.

 

2. What should Ido?

 

3. Can I not offer any defence to their aggressive and harassing gesture.

 

The debt has now unnecessary increased by these added court fees by £155.00

 

Please advice? I only have 14 days to reply.

 

Thanks

Edited February 28, 2012 by naeemsyed

[cymruambyth]

Hi, the first thing you need to do is to acknowledge service (AOS) of the claim. you then have to decide if you want to defend this. How old is the card and have you made any requests for the original CCA. If you do not want to defend or have no grounds for defence I believe that you can admit the whole sum and request an instalment order from the court to establish a repayment scheme. This will result in a CCJ.

If you want to defend you have a total of 33 days to get your defence in.

Read the claim form and carefully note all dates and timescales.

[havinastella]

Are there any charges, late payment fees, PPI, etc on this account?

 

Jogs

 

And what does the POC say, leaving out personnal details!

[asokn]

What exactly were the terms of the default repayment plan you set up? Are you certain you never defaulted by a single penny or a single day late?

 

It may be that an estoppel arises, thoughts anyone?

[42man]

Did you have an agreement with Alliance and Leicester to pay £5 per month ? Have you continued to pay the £5 per month to Alliance and Leicester if so then you should have promissiory estoppel strongly in your favour....which would in all events kick their claim out...

[42man]

Please tell me that you have continued with your agreement with A & L

[naeemsyed]

On default payment to Allianceand Leicester. My outstanding debt wastaken over by the Debt Collection Company. Last year in Jan 2011 they agreed to accept £5.00 per month (I have a letter from them acknowledging this). But this year in Jan 2012 they rang me and said they would only continue with the £5.00 per month repayment provided I did a ‘Voluntary Mortgage over my Property’. When I declined to do this, that’s when they started the litigation and sent me the County Court Claim Form for £2252.

 

I have been searching around trying to get more information. I spoke to one Legal Advise helpline. The advisor suggested that though I have received a Claim Form from their solicitor, there is no harm in writing to them and accepting their ‘Voluntary Mortgage over my Property’ and also offering to make an increased repayment of £10.00 if they withdraw their Claim.

 

I am concerned about this ‘Voluntary Mortgage over my Property’ and what it pertains?

[42man]

Did they put the 'volutary mortgage over your property' in writing ? So are you still paying the £5 to them ? Basically what it means is that they will have a charge over your house, and can repossess (as a last resort) if you fail to make the payments.....The reason I ask about the £5 is because if you are still paying it and have statements to prove this then in my defence I would be getting their claim thrown out doe to promissory estoppel....

[The Mould]

On default payment to Allianceand Leicester. My outstanding debt wastaken over by the Debt Collection Company. Last year in Jan 2011 they agreed to accept £5.00 per month (I have a letter from them acknowledging this). But this year in Jan 2012 they rang me and said they would only continue with the £5.00 per month repayment provided I did a ‘Voluntary Mortgage over my Property’. When I declined to do this, that’s when they started the litigation and sent me the County Court Claim Form for £2252.

 

I have been searching around trying to get more information. I spoke to one Legal Advise helpline. The advisor suggested that though I have received a Claim Form from their solicitor, there is no harm in writing to them and accepting their ‘Voluntary Mortgage over my Property’ and also offering to make an increased repayment of £10.00 if they withdraw their Claim.

 

I am concerned about this ‘Voluntary Mortgage over my Property’ and what it pertains?

 

Can you post up the terms of the reduced agreement contract (the letter acknowledging the same, as above).

 

Kind regards

 

The Mould

[havinastella]

Just a quick question, if you get the case thrown out due to promissory estoppel, is the debt cleared?

 

Jogs

[Jasper1965]

you are getting very good advice from those advocating you defend on the basis of promissory estoppel

 

Requirements of promissory estoppel:

 

 

 

1. A pre-existing contract or legal obligation which is then modified. Yes ~ the repayment obligations of the original cca were modified by the OC.
   
   
2. There must be a clear an unambiguous promise. Yes you can prove it by the letter you mention
   
   
3. Change of position. Yes they tried to invoke the VM/CO and demanded more money.
   
   
4. It must be inequitable to allow the promisor to go back on their promise. lots of ways to spell this out.
   
   

[The Mould]

Just a quick question, if you get the case thrown out due to promissory estoppel, is the debt cleared?

 

Jogs

 

Not in the circumstances described to this case, the said reduced payment agreement will endure, the creditor cannot insist on his strict rights (we do of course, still require sight of the said letter of acknowledgement in order to establish the terms of said agreement).

 

Kind regards

 

The Mould