ADVICE? Letting agency taking me to court

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That is Citizens Advice in New Zealand.

Proceedings officially start when the court notifies him a claims form has been filed.

There is some ambiguity that he cna claim about receiving notice or communications as they used the wrong e-mail address, just as there is some dispute about communications they are alleged to have received from him.

He needs to be interviewed so someone can see all the documents and get an accurate picture of whats happened.

Yes they could be be taking action against the guarantor. The point is are they just putting the frighterners on and racking up late fees to force the money or are they really starting proceedings?

They just want the money now as its due. It will be LL's discretion whether they sue, but there will be little point if it will be paid before judgment is obtained. They cna try and evict him, but that would take even longer.

Apologies - good spot. This is the equivalent UK guidance, which is very similar:
https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/creditor-takes-you-to-court-for-debt/

Before taking you to court, someone you owe money to (called a creditor) must send you a warning letter. The letter should tell you that unless you pay back what you owe, they will start legal action within a certain amount of time.

Depending on the type of debt, the letter will either be a default notice or a letter before action.

You will get a default notice if the money you owe is a credit debt, such as a personal loan or credit card debt.

When court action is started, you will get a claim form. If you haven't got a warning letter before you get this claim form or the letter doesn't contain the right details, the court action might not be able to go ahead.

If you don't get a warning letter before court action is started or you want help to check the details, you can get advice from an experienced adviser, for example, at a Citizens Advice Bureau. To search for your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

Both you and your creditor have a duty to try and sort out the case without going to court. If you get a default notice or a letter before action, you should make every effort to reach an agreement with your creditor to pay back what you owe.

Proceedings leading up to court action are when the process begins. By the time the court issues documents, the process is already well underway.

There is no necessity for the OP to be interviewed. The letting agency just have to prove that they have sent the Letter Before Acton. Whether the blocked email constitutes this, is unclear. I would have expected the Letter Before Action to be sent by post. Perhaps this is actually the next step, but the OP needs to determine whether the letting agency already considers this to have happened, or whether this is what is what's happening next. If the Letter Before Action has been issued, then court proceedings are underway.

Waiting for this Letter seems to be a risky strategy. The OP is clear that they owe this money and understands that their guarantor will be in as much trouble as they are. Taking action now is a better way forward than just sitting on it and waiting to see what happens next. The frighteners may be on, but they are fully justified.

I think it would be worth giving the guarantor the option of paying up or potentially facing court action. At the moment, the OP is assuming that their guarantor would prefer the latter which may very well not be the case. A CCJ can have far-reaching consequences for both of them.

Reply 21

moonkatt

I'm just wondering if the OP has told their guarantor about this situation at all, I can't work out if they have from their posts. Might be an idea to tell them before they start getting surprise official letters coming through their letterbox.

Reply 22

999tigger

Original post by Klix88

Apologies - good spot. This is the equivalent UK guidance, which is very similar:
https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/creditor-takes-you-to-court-for-debt/

Proceedings leading up to court action are when the process begins. By the time the court issues documents, the process is already well underway.

There is no necessity for the OP to be interviewed. The letting agency just have to prove that they have sent the Letter Before Acton. Whether the blocked email constitutes this, is unclear. I would have expected the Letter Before Action to be sent by post. Perhaps this is actually the next step, but the OP needs to determine whether the letting agency already considers this to have happened, or whether this is what is what's happening next. If the Letter Before Action has been issued, then court proceedings are underway.

Waiting for this Letter seems to be a risky strategy. The OP is clear that they owe this money and understands that their guarantor will be in as much trouble as they are. Taking action now is a better way forward than just sitting on it and waiting to see what happens next. The frighteners may be on, but they are fully justified.

I think it would be worth giving the guarantor the option of paying up or potentially facing court action. At the moment, the OP is assuming that their guarantor would prefer the latter which may very well not be the case. A CCJ can have far-reaching consequences for both of them.

Official proceedings start are when the letting agent formally lodges a claim form. Thise are the things we are interested in because its when the time limits start to come into play.

The interview was in reference for the OP to go and see someone who can make an accurate assessment of his case including reviewing the correspondence, looking at the tenancy and making contact with the letting agent.

ofc its worth negotiating with them, but my impression was they were in frighterners mode. Intervention by a 3rd party might make them more reasonable.
A simple call from CAB or Shelter can have a positive affect on their willingness to compromise.

Not sure why you are linking to me soemthing id already linked?

Reply 23

Klix88

Original post by moonkatt

Very much agee with this.

We don't know the state of play as of today, but the OP definitely needs to talk to both his guarantor and an advice service such as the CAB (whose advice is thoroughly linked above!) or Shelter.

Doing nothing and waiting to see what happens next, is not recommended.

Reply 24

SirKyrgystan

Original post by Kline25

I really wouldn't recommend playing chicken with the letting agency. However it is worth noting that the process of having you legally evicted can be quite a long and difficult one, That said they can make your life quite a bit tougher by getting debt collectors to harass you into paying up money that you do not have :colone:

and it is very easy for them to affect yours and your guarantor's credit ratings. If I'm not mistaken, it is as simple as filing for a CCJ, which is a quick process. However I might be wrong, as I vaguely recall somewhere saying that if you are paying back your debt in installments, the CCJ will not affect your credit score. But don't quote me on that, you should seek legal advice if you are absolutely unable to pay until late sept.

However, some good news :biggrin:

You should be eligible for a crisis loan, which as the name may suggest, are literally for crises like these. They're processed very quickly due to the nature of the loan, usually very flexible with payment plans (so perhaps negotiate very small payments until september when your loan is in, and then pay the rest in full or whatever), and they're interest free! Best of luck https://www.nidirect.gov.uk/articles/crisis-loans I have a cardboard box you can borrow if this situation goes really far south :h:

Edit: So very sorry, but I believe I've given you false hope. 1) that link as I have just realised is N. ireland's crisis loan page, the rest of the uk is somewhat different. 2) the crisis loan for the uk requires you do be in receipt of some sort of benefit, which I doubt you have unless you're a care-leaver/disabled/have a child. Again sorry I can't be of more help, but to offer one more piece of advice; have you tried discussing paying by installments with the letting agency? Like £5 a week until you get your money in sept. If you ask via email and they refuse in writing, it may go towards your favor with a judge (if it comes to it) that you have made attempts to reconcile your debt, and the letting agency have refused.

(edited 7 years ago)

Reply 25

Kline25

Original post by Klix88

My gaurantor literally can't pay as they've had a bad financial situation happen the same time as I missed my rent (random I know).
The agency asked for my student finance letter and said they'd call me back within the hour.... That was Friday and it's now Monday. They haven't emailed or called me back which I find very strange after all the threats etc? I may call later but not sure if it'll make things worse or I should wait for them to contact me. It's all very odd. She started off saying she's taking me to court if I can't get an overdraft from the bank (which I tried), and she then changed it into I should pay half today then have 5 days to pay the rest... Then changed it to a payment plan and then to asking for my student finance entitlement letter??

Also it's probably worth noting I haven't moved into this property, it's a new house and agency were with. Was looking to move in asap in September. I have repeatedly told them and put it in writing in email for proof that I understand it's my fault I haven't paid rent and I will pay ALL late fees. I'll have to use the bulk of my loan to do so, but I'll work a lot in the first month back to sort my finances out. I have also stated in the email I've no intention to dropout or avoid late fees, and sent copies of my student finance entitlement to show I can pay summer rent + 1st terms rent + late fees all in one.
This is obviously stressing my gaurantor out loads, but we've no family to borrow from, and none of my fellow student friends have the money to lend me either so I literally can't pay until my loan comes in (6weeks today) or when I get paid from work (probs around 10th sept if I start back on 1st).
Awful situation and all my fault! May look into getting a credit card if I get court letters in the next week or so.

Reply 26

Kline25

I really want to take out a credit card to just sort this mess till my loan comes in, but I don't think I'll get granted one as I've already maxed out my overdraft in 1st year when I was money crazy -__- it doesn't sound like it, but apart from this mess (and my overdraft) I'm good at managing money and always pay rent and bills in bulk to avoid this crap lol

Reply 27

Platinum213

Original post by Kline25

Sounds to me that you need to sort yourself out and learn to spend what you can afford.
Whatever happens, make sure this is a hard lesson learned for the future.

Reply 28

Klix88

Original post by Kline25

My gaurantor literally can't pay as they've had a bad financial situation happen the same time as I missed my rent (random I know).

That's very difficult for you both. As long as you're keeping them informed, that's the best you can do.

The agency asked for my student finance letter and said they'd call me back within the hour.... That was Friday and it's now Monday. They haven't emailed or called me back which I find very strange after all the threats etc?

That certainly sounds hopeful to me. They would not need your SF info to take the matter further legally, so at least on Friday, it looks like they were considering giving you the leeway to wait for your next SF installment.

To take the matter to court, they must show that they have taken reasonable steps to resolve the issue first. If you're close to a scheduled and guaranteed SF payment, a court might decide that the agent was being unreasonable by not waiting.

I may call later but not sure if it'll make things worse or I should wait for them to contact me.

In light of the theat of court action, I think you should call and clarify. I'm not sure how that would make things worse if you're already at least under threat of court action. I would rather know than not.

It's all very odd. She started off saying she's taking me to court if I can't get an overdraft from the bank (which I tried), and she then changed it into I should pay half today then have 5 days to pay the rest... Then changed it to a payment plan and then to asking for my student finance entitlement letter??

That all puts rather a different spin on the situaton. If you're being offered a payment plan as well, then the agent is clearly trying to work towards a non-court resolution. I'd take that on face value and continue trying to work wih them.

Also it's probably worth noting I haven't moved into this property, it's a new house and agency were with. Was looking to move in asap in September.

Don't know if that makes it better or worse. Strictly speaking you're already in beach of contract and the agent/owner can withdraw the offer of the accommodaton completely. As long as you're still talking, that option would appear to be on the back burner.

I have repeatedly told them and put it in writing in email for proof that I understand it's my fault I haven't paid rent and I will pay ALL late fees. I'll have to use the bulk of my loan to do so, but I'll work a lot in the first month back to sort my finances out. I have also stated in the email I've no intention to dropout or avoid late fees, and sent copies of my student finance entitlement to show I can pay summer rent + 1st terms rent + late fees all in one.

This is obviously stressing my gaurantor out loads, but we've no family to borrow from, and none of my fellow student friends have the money to lend me either so I literally can't pay until my loan comes in (6weeks today) or when I get paid from work (probs around 10th sept if I start back on 1st).

It's not a good situation, but as long as you're still talking to them, there's still hope.

Awful situation and all my fault! May look into getting a credit card if I get court letters in the next week or so.

The chances of getting a credit card with court action for debt pending, is pretty slim. You need to be acting on that right now if you think it's a direction you'd need to go. You don't need anyone to tell you that racking up credit card debt to pay off other debts, is just compounding the problem. Plus it's temptation to future unaffordable spending. Your call, but I'd be inclined to talk to a financial adviser in your Student Union before going that route. Do it quickly though.

Reply 29

SirKyrgystan

Original post by Kline25

Ah, the clusterf*ck of 1st year :biggrin:

I'm about to head into mine, and due to some troubles with student finance and me currently receiving the minimum amount, I'll be maxing mine out, and spending almost all of my first installment just on catered halls :s-smilie:

And surprisingly I'm still going to start 1st year off financially better than my sister did lol and it doesn't sound at all like you're bad with money going off your original post, just that you've had some extenuating circumstances recently. And being proactive enough to seek advice on how best to deal with the situation only goes toward my impression of you being responsible with stuff like this. Seriously I've known people in their 40's who have gotten themselves into debt, and just ignored the growing number of 'final notice' letters they've been sent :rolleyes:

So I'd say all in all you're handling this pretty well haha
Hope none of that came off as patronizing lol, and if I may say from experience, you'll find a way through this as long as you keep looking for one. or very worst case scenario your credit rating takes a dive (which can be fixed by early/on time repayments with any credit you take on later in life) and have to find a new place to live come September, which isn't all that awful of a worst-case outcome.

Perhaps your mum could apply for a credit card or loan, let you use the credit and you pay her back when you have money? Ofc you don't need to answer if that's viable or not, but as I see it your only two options are toughing this out until sept, or either you or someone that trusts you gets a loan/credit card and you use that to pay off the outstanding arrears. Have you spoken to your uni about any of this btw? perhaps they can assist you financially, after all I think they'd prefer loaning you money than risk you dropping out of uni due to eviction :s-smilie:

at the very least they should have a lot more experience dealing with these kind of circumstances than most people on here (myself included) have

omg good luck man

Original post by ch0c0h01ic

At this stage they are trying to frighten you into paying up - it is quicker and cheaper to threaten court action to reclaim money than it is to actually do it. I had to do the same to one of my old landlords to get my deposit returned.

Would you have actually gone to court over it?

Reply 32

Juichiro

Original post by fallen_acorns

Forget about your dignity, thats ****ed either way for now, and just bassically get on your knees and ask anyone.

I like this bit.

Reply 33

Kline25

Original post by SirKyrgystan

Ah, the clusterf*ck of 1st year :biggrin:

at the very least they should have a lot more experience dealing with these kind of circumstances than most people on here (myself included) have

Haha thanks for the moral support, it helps lol!
I'm seeing my grandfather on the 27th when he's back in the country so I mayyy slip it in then and ask. Just a bit cheeky because I talk to him rarely and now want to ask for 400 odd quid lol. Going to call the agency tomorrow and see what they say. If they've changed their minds again about how I should pay this I may just plead to have till the 28th (I'll say I'm waiting for my grandfather to arrive home).

If I don't want to ask him (or he can't) when he's back, I'm 100% going to get a credit card, pay it and pay it off when my loan comes in. Barclays have said they'll approve me, but it's an interest rate of 34%?! (0% for first three months tho - Barclaycard initial).

I can safely say after using the credit card for this, I'd just use it every other month to buy something small and pay off to keep activity going on the account. I work as senior member of staff in an optician in my university town so I get paid quite well for a student job and after this mess is sorted I'll be fine. Just had some really bad s**t this summer!

(edited 7 years ago)

Reply 34

ch0c0h01ic

Original post by Juichiro

Would you have actually gone to court over it?

Absolutely. It was over £300 and I was unemployed at the time, I needed the money to keep my car running and get me to interviews.

Strangely enough within 24 hours of threatening legal action the landlord released the money.