So Lowells had a name for issuing stat demands and bankruptcy petitions a while back. No more than 6-9 months ago i can recall getting 3-5 new instructions a day dealing with these issues.
Interestingly though, all of the stat demands i dealt with were withdrawn or set aside by consent, the theme was that they couldn’t even satisfy s78 Consumer Credit Act 1974 let alone convince the Court that the debt was immediately due and payable which is a big problem if you’re issuing a stat demand.
However that wasn’t the end of the road for these cases as quite often Lowells would issue proceedings through their solicitors via the County Court to recover the monies which they hadn’t recovered by the Stat demands.
However i recently dealt with a case involving Lowells where they had failed badly with a stat demand and had served a letter of claim on the client threatening legal action. The client instructed me to deal with the matter, and i swiftly put a letter on the fax back to Lowells solicitors pointing out that
1) They had been in breach of s78(1) CCA 1974 for over 2 years now
2) They had already issued a stat demand and failed spectacularly
3) Since they were now threatening proceedings they were in breach of the FCA handbook on Consumer Credit
4) Since their letter was a letter of claim, they should provide all relevant documents under the Pre Action Protocol. I also pointed out that all documents must be easily legible citing the previous dross that they had sent.
The reply which was received clearly showed that there had been a lack of attention to the contents of my letter, the documents which were provided were awful, they were illegible and incomplete.
Once again a response was sent pointing out that they should read the correspondence which had been sent to them and also that any proceedings would be vigorously defended and that a complaint to the FCA would be following.
It seems this reply landed on a different desk, as the response was more in line with what was expected, namely we closed our file and thats the end of the matter. Common sense prevailed on this occasion and of course the clients costs were kept to a minimum as well without the need for legal proceedings.