NSW Statement of Claim for Unpaid Debt?

[louise89]

I have received a statement of claim and I am not 100% sure what to do. I have tried to resolve the issue with the company and they are extremely rude and unhelpful. I was making a payment plan and completed two payments for a debt I still apparently had after 2 years and I haven't received any letters just my account attempting to be debited $355 with a different direct debit user id. It took the company 1 week to provide me proof of attempts to contact me and still couldn't explain why I was debiting such a random amount. I tried making a finally payment arrangement before my payment plan and they wouldn't accept this, so I made the two payments and then they were trying to force me to pay the total amount by the 14/05 which I didn't as I was trying to continue my payment plan and I was then basically. spoken to in such a degrading manner via email and then received the statement of claim on the 18/05 after I sent an email on the 15/05 no reply.

Please help!!

 

[Tracy B]

Hi Louise89,

1. What type of company is this? Are they a finance company or debt collectors?
2. Is the debt under or up to $100,000?
3. Are you disputing the debt amount claimed?
4. Is the statement of claim endorsed by (i.e. lodged with) the court?

Assuming the statement of claim has also been lodged with the court by the company, this means they have commenced legal action against you. The statement of claim should have instructions on what you must do. You MUST file a Notice of Defence within 28 days of service of the Statement of Claim. If you do not, it indicates to court that you accept full responsibility of the claimed debt, in which case, the court may make an order for payment against you for the full amount claimed and this will be a binding order the company can enforce. If you are disputing the amount claimed, you should state this in your notice. If the amount is less than $100,000 the company must make attempts to settle during the proceedings.

You can find forms from here or contact the Local Court.

 

[louise89]

Hello Tracy.

Thank you for your help.

1. What type of company is this? Are they a finance company or debt collectors?
* Finance company (Small Finance company), they threatened legal action 4 weeks ago and were verbally rude on the phone and made the verbal threat of court action. They do not record their conversations and will only email me.
2. Is the debt under or up to $100,000?
*The debt is only $265
3. Are you disputing the debt amount claimed?
* No I have tried to resolve agreeing to a payment date without any luck.
4. Is the statement of claim endorsed (i.e. lodged with) the court?
Yes it has a court notice advising the 28 days.

If I pay this before the 28 days what do I need to do.

I do want to expose the bad service and way they have treated me.

 

[Tracy B]

Hi Louise89,

1. Complaining about their service

You can lodge a complaint against the finance company with the Financial Ombudsman Service.

2. Repay your debt

You can repay the debt within the 28 days, if you do not dispute the claim, by lodging a "confess and apply to repay in instalments" form to court and the company applicant within the 28 days instead of the Notice of Defence.