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NSW More Information about Statement of Claim?

Discussion in 'Debt and Bankruptcy Law Forum' started by louise89, 25 June 2015.

  1. louise89

    louise89 Well-Known Member

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  2. Tracy B

    Tracy B Well-Known Member

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    Hi Louise89,

    There is not enough information here to help you.

    What are you asking, specifically, regarding a statement of claim?
     
  3. louise89

    louise89 Well-Known Member

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    I had received a statement of claim which I only paid the amount I owe to this company.
    It was a debt I had personally not known I had still had it. I had tried to make a payment arrangement which was allowed for 2 payments. The company then demanded full payment by the 15th May which I had responded advising it couldn't be completed and could I continue the payment plan once I was able to I would pay the total amount. I had received an email back from the company advising me no and legal action would be taken. I go home on the 18th May and find a statement of claim. I have paid the amount I personally owed but now they want me to pay their legal fees.

    I don't know what to do as they are unhelpful and rude. I have had correspondence from 3 different people and have also noticed on their letters they had sent to me "as they stated" my account number is different. I have contacted the CIO who are unable to assist as this company has stated to them i still owe money which is the filling and service fee
     
  4. Tracy B

    Tracy B Well-Known Member

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    Hi Louise89,

    They are allowed to ask for whatever they please. However, it does not mean you are obliged to pay it.

    From what you have written, paying their legal fees now seems unreasonable, because:

    1. The primary debt as been paid, you managed their expectations throughout the debt owing and they informed you that they would not take any legal action, so this is new to you and they did not mitigate their costs (so if the claim is for legal fees, this would be unreasonable);

    2. Since the debt has been paid, they cannot pursue this claim for the primary debt so they would not "win" this action; and

    3. Usually, a company pays for their own legal fees and expenses.

    However, do you still owe them any primary debt? If not, what is the filing and service fee they claim?

    By "Statement of Claim", have they actually initiated legal action against you? By this, I mean, have they started legal proceedings in court (and not just spoken with a lawyer about it)? You need to clarify whether it is a "Statement of Claim" (court action) or "Letter of Claim" (no court action).

    What type of company is this?
     
  5. louise89

    louise89 Well-Known Member

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    Hi Tracey

    Thank you for your assistance.

    The letter was a statement of claim.

    They had issued this to me due to the fact I wouldn't pay the total amount and wanted to continue making a payment plan. They wouldn't accept this and basically stated the following;


    We confirm if any of your payments are not received by the above dates your arrangement is void, if payments are made on time we will extend the date to finalise this debt to the 14 May 2015.

    However I had not agreed to make the final payment by this date and continually asked for them to extend this as I had my doubts but they wouldnt do this.

    16/04/2015 -$50
    30/04/2015 -$50
    14/05/2015 -$265


    I then received the following email on the 14/05/2015 from a different lady to the one that advised me would be dealing with my complaint and advised me not to deal with anyone other than her.
    The following email I received the following email on the 14/05/2015 due to the fact I didn't pay $265 and was more than happy to pay $50 again. But they didnt care.

    In regards to your previous email in which you stated that you will make total payment of $265.00 on the 27/5/2015.

    This is unacceptable.
    As per email 7/4/2015 the agreement was:
    Thursday 16/4/15 $50.00
    Thursday 30/4/15 $50.00
    Thursday 14/5/15 $265.00

    In the above email it was pointed out to you that if your payments were not received by the above dates the arrangement would be void.

    We require $265.00 to be deposited into our bank account today, with you providing us with receipt details.


    If you fail to adhere to the previous agreement further recovery action will commence which may include court action, this will include fee's and chargers being added to your already outstanding balance

    I had this debt with this company a long time ago back in 2013. & I hadn't known I still had the debt as I hadn't received one letter sent. The company is Abaz Pty Ltd but they trade under money plus.

    I have tried to email them recently to advise them I had paid my total balance due but didnt receive a reply.

    The statement of claim was issued on the 18/05/2015 which was for the total amount due $265 and I have now paid that but have not paid the legal fees (filling and service fee).

    I personally believe they sent it due to the fact I was not willing to pay the total amount and I kept trying to stand my ground as they wouldn't send me any letters and when I requested a copy of all the letters they took 1 week and the letters they sent to me via email were not signed and had two different account numbers.
     
  6. Tracy B

    Tracy B Well-Known Member

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    Hi Louise89,

    Can you answer the following questions?

    1. What kind of company is Abaz Pty Ltd? Are they a finance company?
    2. Do you still owe them primary debt?
    3. Did they actually agree to $50 a week, or did they agree to the following payment plan:


    There's a difference between (a) agreeing to payment plan A and then going back on their agreement, and (b) agreeing to payment plan B but you insist on payment plan A.

    Either case, have you contacted the Financial Ombudsman Service? I suggest you do this if you haven't done so already.
     
  7. louise89

    louise89 Well-Known Member

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    Good Morning Tracy.

    Abaz is a finance company (Money Plus) it was a debt I had 2 years ago that I personally didnt know I still had.

    I have paid the primary debt they have stated owe. I contacted the local NSW courts who have advised no judgement has been placed against me at this point.

    As per your final question


    There's a difference between (a) agreeing to payment plan A and then going back on their agreement, and (b) agreeing to payment plan B but you insist on payment planA.

    They had agreed on payment plan B without my agreement as I kept insisting payment plan A.

    I tried to lodge a complaint through to the Credit and Investment Ombudsman but they can no longer assist due to Abaz advising them I still have $225 to pay which is the filling and service fee charged for lodging the statement of claim.
     
  8. Tracy B

    Tracy B Well-Known Member

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    Hi Louise89,

    As there is no judgment against you, they have not yet "won" the action. This means they cannot claim the costs (legal, filing fee) of the action because the matter is still in dispute (i.e. it's unclear who was in the wrong). Either way, the costs are ordered by the court, so without a court order for costs, they have no right to demand them from you.

    Did they send you a letter before action?

    It appears that because you have already paid off the primary debt, they have no cause of action anymore. The fact that they went ahead and initiated legal action to recover something they have already recovered does not make the costs your costs. Did they initiate legal action before or after you paid off the primary debt?

    Just to confirm, the only amounts owing is (1) there legal costs, and (2) their filing fees to court?

    I understand the Credit and Investment Ombudsman could not help you, did you try the Financial Ombudsman Services? You seem to have two issues here: (a) whether they had a cause of action in the first place to sue you given you were still negotiating the payment arrangement and you believed you had entered into Payment Arrangement A ($50 a week), and (b) whether, even if they had a proper cause of action against you, they can claim their legal costs (lawyers and filing fees) from you without obtaining judgment. FOS could help you with the first question.
     
  9. louise89

    louise89 Well-Known Member

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    Hi Tracy B,

    I had been corresponding to them via email. I hadn't received a letter before the action. They had advised they did send me letter late last year and early this year, but i didn't receive them. If I did I would of actioned them before it got this far.

    It had only gone so far as I had noticed my bank account was randomly debited $315 and I was concerned as to why it happened and I had thought it was a scam so I googled the company and once I noticed the company I contacted them and thata when it all began.

    I had only received the email warning me of legal action before the statement of claim was sent after the fact of myself making the $50 payments and continually trying to work with them to allow me to continue to pay it off without paying it in one go.

    They initiated legal action before I paid off the primary debt as I assume they were not happy that I wasn't willing to pay the total figure and wanted to continue paying the $50 amount as I was in dispute with thwn over how I was treated and with how they could take a week to forward me documents and were not able to explain why they randomly debited my account as they denied doing this.

    I haven't contacted the FIO would they be able to assist me aswell? As I believe this company is extremely unhelpful and unethical. Considering on the CIO website their contact details are different for Abaz Pty Ltd compared to Moneyplus and they will not respond to my email of asking if my debt has been paid off as to my understanding it is as per what they requested. I just dont want them trying to obtain more money and ruin my credit history.

    Thank you.
     
  10. Tracy B

    Tracy B Well-Known Member

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    The company should not have debited any money from your account without your consent. Definitely contact the Financial Ombudsman Services about this and see if they can help you. No company should be debiting from your account without your consent and without a court enforcement order.
     

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