Capquest & Arrow Global Debt Collectors: Don't Pay Yet (Section 78 Guide)

Overview: How Capquest & Arrow Global Operate in the UK

If you have received collection letters, emails, or SMS demands from Capquest Debt Recovery Limited—or noticed Arrow Global Limited / Arrow Global Guernsey Limited registered on your Experian, Equifax, or TransUnion credit report—you are dealing with the UK consumer debt servicing arm of Arrow Global Group (headquartered at Belvedere, 12 Booth Street, Manchester, with operational offices at Capella Building, Glasgow).

Here is how the Arrow Global / Capquest structure works:

• Arrow Global Limited / Arrow Global Massey / Erudio Student Loans: The underlying investment funds that purchase bulk portfolios of defaulted UK credit cards, personal loans, overdrafts, mail-order catalogues, and historical student loans from Halifax, Lloyds Bank, MBNA, Barclaycard, NatWest, Virgin Money, Shop Direct (Very/Littlewoods), and Vodafone.
• Capquest Debt Recovery Limited: The FCA-authorised servicing agency that chases payments on Arrow Global's portfolios.
• Litigation Solicitors: When Capquest escalates an account toward the County Court, Arrow Global typically instructs Drydensfairfax Solicitors, Restons Solicitors, or Overdales / BW Legal to issue a Pre-Action Letter of Claim or an N1 County Court Claim Form.

Because Arrow Global frequently holds historic portfolios (including offshore Arrow Global Guernsey Limited assignments and pre-1998 mortgage-style Erudio Student Loans), demanding strict statutory proof under the Consumer Credit Act 1974 before paying a penny is essential.

3 Powerful Legal Defences Against Capquest & Arrow Global

graph TD
    A["Capquest / Arrow Global Demand"] --> B["1. Section 77/78 CCA Request (12-Working-Day Freeze)"]
    A --> C["2. Arrow Global Guernsey / s.136 LPA 1925 Assignment Audit"]
    A --> D["3. Limitation Act 1980 s.5 Statute-Barred Defence (6 Years)"]

    B --> E["No Original Executed Agreement in 12 Working Days -> s.78(6) Bar"]
    C --> F["Must Prove Unbroken Chain of Assignment & Original s.87 Default Notice"]
    D --> G["6 Years (5 in Scotland) of Inactivity -> Unenforceable Under CONC 7.15"]

1. The 12-Working-Day Section 77/78 Consumer Credit Act Freeze

Under Section 77 (fixed-sum loans) and Section 78 (credit cards & store catalogues) of the Consumer Credit Act 1974, serving a formal written request with an endorsed £1.00 Postal Order forces Capquest / Arrow Global to supply a true copy of your original executed credit agreement, inception terms, all variation notices, and a signed statement of account within 12 working days.

• Statutory Unenforceability (Section 78(6)): Because Capquest only holds electronic summary data when Arrow Global buys a portfolio, they must request the archived agreement from the original bank. If they fail to provide a compliant copy within 12 working days, Arrow Global is legally barred from enforcing the debt in any UK court while the default continues.
• Pre-April 2007 Agreements (Section 127(3)): Many Arrow Global / Capquest accounts were originally opened before 6 April 2007. For pre-April 2007 agreements, a mere reconstructed template is insufficient for court enforcement if no properly executed agreement containing all prescribed terms was signed at inception.

2. Challenging Arrow Global Assignments & Defective Default Notices

When Arrow Global assigns accounts between internal group vehicles (such as *Arrow Global Guernsey Limited*, *Arrow Global Receivables Management Ltd*, and *Arrow Global Limited*), strict statutory requirements apply:

• Section 136 of the Law of Property Act 1925: Arrow Global cannot bring legal action in its own name unless it proves an unbroken chain of written legal assignment AND proves that express written Notice of Assignment was served on you.
• Section 87 & 88 CCA 1974: Put Capquest to strict proof that the original lender served a compliant Section 87(1) Default Notice giving at least 14 clear days to remedy the arrears prior to termination.

3. Statute-Barred Audit (6 Years in England & Wales / 5 Years in Scotland)

Capquest and Arrow Global actively chase older defaulted accounts that have crossed the statutory limitation threshold:

• Under Section 5 of the Limitation Act 1980, if 6 consecutive years have passed since the cause of action accrued (the expiry of the Default Notice or your last payment/written acknowledgment) without a County Court Judgment, the debt is statute-barred.
• In Scotland (where Capquest operates its major Glasgow call centre at the Capella Building), Section 6 of the Prescription and Limitation (Scotland) Act 1973 completely extinguishes the debt after 5 continuous years of inactivity!
• Serving a formal CONC 7.15.8R Statute-Barred Notice legally compels Capquest to cease all collection demands immediately.

Verified Capquest & Arrow Global Corporate Profile

Step-by-Step Protocol When Chased by Capquest or Arrow Global

graph TD
    A["Step 1: Check Whether Letter Is From Capquest or Panel Solicitors"] --> B["Step 2: Send Section 78 CCA Request + £1 Postal Order to Manchester HQ"]
    B --> C{"12 Working Days Elapsed"}
    C -->|"No Compliant Agreement Supplied"| D["Issue Section 78(6) Unenforceability & CONC 7.14 Freeze Notice"]
    C -->|"Drydensfairfax / Restons Letter of Claim"| E["Return Annex 1 Box I Within 30 Days to Freeze Court Proceedings"]

Step 1: Send Your Section 77/78 Request via Royal Mail Signed For

Never discuss the account over the phone or make a "token £1 card payment" (which can reset the 6-year limitation clock). Post our free Section 77/78 CCA Request Letter enclosing a £1.00 Postal Order (endorsed on the reverse *"Statutory fee under Section 78 CCA 1974 only — not a payment towards any debt"*) via Royal Mail Signed For to *Capquest Debt Recovery Limited, Belvedere, 12 Booth Street, Manchester, M2 4AW*.

Step 2: If Drydensfairfax or Restons Solicitors Writes to You

If Capquest transfers your file to Drydensfairfax Solicitors or Restons Solicitors and you receive a Pre-Action Protocol Letter of Claim, return the Annex 1 Reply Form within 30 calendar days ticking Box D and Box I to request the executed credit agreement, Default Notice, and Notice of Assignment—freezing court action for at least 30 days after they produce the documents.

Step 3: Check Arrow Global's Credit File Entry Across All 3 Bureaus

Inspect your statutory reports at Experian, Equifax, and TransUnion. Ensure that Arrow Global Limited has recorded the exact same original default date as the original bank (Halifax, MBNA, Barclaycard, or Very). If Arrow Global registered a later default date, challenge it immediately under Data Protection Act 2018 Principle (d) (see how to remove defaults from your credit file).

Frequently Asked Questions

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