Letter Before Action or Statutory Demand ?
A Statutory Demand is a written request from someone who is owed money for a payment of a debt which is undisputed.
The debt must be over £5000 if owed by an individual or £750 if owed by a company.
An individual has 21 days to settle the debt or 18 days to ask the court to set aside the Demand.
A company has 21 days to settle the debt or they can request that the court restrain the creditor from issuing a winding up petition.
Advantages of a Statutory Demand:-
- The debtor realises how serious the debt has become. Often Service of the Statutory Demand will lead to payment or negotiating a payment plan.
- You do not have to issue through a court therefore no court fees are payable – reducing costs.
- You can withdraw the Demand at any time (once a court claim has been commenced it is much harder to discontinue), however you may have to pay the debtor’s costs.
- Preparation of the Demand can be done quickly.
Disadvantages of a Statutory Demand:-
- The Demand must be for a specific and quantifiable amount.
- The rules governing how a Demand must be served are very specific and detailed, especially when dealing with an individual.
- Statutory Demands should not be used if a debtor can raise a bona fide defence.
- If the Statutory Demand is not responded to, it could result in a winding up order being made (if a company) or bankruptcy (if an individual).
CLAIM YOUR FREE LETTER BEFORE ACTION HERE
Non Disputed Debts and new clients only.
The New Consumer Rights Act
The Consumer Rights Act 2015 which came into effect in October 2015 replaces three big pieces of consumer legislation – the Sale of Goods Act, Unfair Terms in Consumer Contracts Regulations and the Supply of Goods and Services Act.
The Consumer Rights Act introduces:
- 30 days to get a refund – A Consumer can reject a faulty item and get a full refund within a 30 days’ timeframe
- A ‘tiered’ remedy system – In place for faulty goods, digital content and services, this means a consumers rights to a refund are now more clearly set out. Whether they are entitled to a refund depends on how long they have owned the product.
- Failed repairs – After one failed attempt by a retailer to repair or replace a faulty item, the Consumer is entitled to ask for a refund or price reduction.
- A second repair or replacement – If a consumer does not want a refund or price reduction, they have the right to request another repair or replacement at no cost.
- Deductions from refunds – No deduction can be made from a refund in the first six months after purchase. The only exception to this is motor vehicles, where a reasonable reduction may be made for the use the consumer had of the vehicle.
- Digital content rights – This new law gives consumers rights in relation to online digital content that is paid for, digital content supplied free with other paid for items and digital content supplied on a physical medium, such as a DVD.
- Unfair terms in consumer contracts – It will now be easier for consumers to challenge hidden fees and charges. Now the key terms of a contract, including price, may be assessed for fairness unless they’re both prominent and transparent.
Pre-contract information – The Consumer Rights Act states that if a retailer provides pre-contract information in relation to a service and the consumer takes this information into account, the service must comply with that information
To find out more click here Consumer Rights Act 2015
Richard Goodman – Life Saver
Richard is a Litigation Executive in our Collections Department and has been with Lane & Co for 19 years.
For the last 36 years Richard has been donating blood and has now given over 80 pints of blood, (the average male has approximately 8 pints of blood) so he has given 10 times his own blood volume over the years.
On one occasion he was contacted late at night to go down to A & E to give blood for a gentleman who had suffered multiple stab wounds – Our Hero!!
To find out more about blood donations, how they are used and how to become a donor follow the link below
The Big 50 !
In February John Pitt (Director who runs the Collections Department), reached the big 50.
As a huge Aston Villa – oops – Wolverhampton Wanderers supporter the team at Lane & Co bought him the appropriate top.
Leave your debts in our capable hands
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