Lantern Debt Recovery (TFG Lantern): Don't Pay Yet (Section 77/78 Guide)

Overview: Why Is Lantern Debt Recovery Contacting You?

If you have received collection letters, emails, or SMS messages from Lantern (the trading name of TFG Lantern Limited, formerly *Motormile Finance UK Limited / MMF*, headquartered at Protection House, 83 Bradford Road, Pudsey, Leeds, LS28 6AT), they are claiming to have purchased an alleged defaulted debt from an original UK lender.

Unlike prime high-street debt buyers, Lantern specialises heavily in purchasing UK high-cost short-term credit (HCSTC / payday & instalment loans), guarantor loans, subprime credit cards, car finance shortfalls, and utility arrears, including portfolios originally issued by:

• Subprime & Instalment Lenders: Bamboo Loans, Everyday Loans, Uncle Buck (in administration), Sunny / Elevate Credit, Lending Stream (GAIN Credit), Satsuma Loans (Provident), Peachy, QuickQuid (CashEuroNet UK), and PiggyBank.
• Subprime Credit Cards & Catalogues: Vanquis Bank, NewDay (Aqua / Marbles), Capital One, and Studio Retail.
• Litigation & Collection Partners: Lantern frequently uses internal collection campaigns or instructs panel debt litigation firms such as Gladstone Brookes Solicitors, Overdales Solicitors, or TM Legal Services to issue Pre-Action Protocol Letters of Claim.

Because high-cost short-term credit and defunct payday lenders (many of which collapsed into administration following FCA unaffordable lending crackdowns) have notoriously incomplete agreement archives and defective default records, you should never pay or admit liability to Lantern without first serving a formal statutory proof demand.

3 Powerful Legal Defences Against Lantern (TFG Lantern Ltd)

graph TD
    A["Lantern (TFG Lantern Ltd) Demand"] --> B["1. Section 77/78 CCA 1974 Request (12-Working-Day Freeze)"]
    A --> C["2. Defunct HCSTC Lender Audit & Unaffordable Rollover Challenge"]
    A --> D["3. Limitation Act 1980 s.5 Statute-Barred Check (6 Years)"]

    B --> E["No Executed Agreement / IP Digital Signature Audit Trail -> s.77(4)/78(6) Bar"]
    C --> F["Challenge Defaulted Interest & Unfair Relationship Under s.140A CCA 1974"]
    D --> G["Over 6 Years Since Cause of Action -> Unenforceable Under CONC 7.15"]

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

Under Section 77 (fixed-sum loans/payday & instalment loans) and Section 78 (running-account credit cards) of the Consumer Credit Act 1974, you have the statutory right to demand a true copy of your original executed credit agreement, the inception terms and conditions, and a signed statement of account by sending a written request with a £1.00 statutory fee (by crossed Postal Order).

• Statutory Unenforceability: Lantern has 12 working days to comply. When an original payday or subprime lender (such as *Uncle Buck*, *Sunny*, *QuickQuid*, or *Satsuma*) has entered administration, Lantern often holds only a basic CSV spreadsheet of balances and cannot retrieve the original executed digital credit agreement or IP/timestamp audit log.
• Under Section 77(4) / Section 78(6) CCA 1974, while Lantern remains in default of your request, they are legally prohibited from enforcing the agreement in any UK court.

2. Challenging Defective Default Notices & Unfair High-Cost Credit (Section 87 & Section 140A)

Many accounts sold to Lantern carry heavily inflated balances caused by default fees and triple-digit APR interest added before the account was terminated:

• Section 87(1) Default Notice Proof: Put Lantern to strict proof that the original lender served a valid, compliant Default Notice giving at least 14 clear days to remedy the breach before terminating the facility.
• Section 140A Unfair Relationship & Irresponsible Lending (CONC 5.2A): If the original high-cost lender granted repeated loans or credit limit increases without verifying your income and expenditure—or if the lender collapsed due to systemic affordability failures—you can formally dispute the validity of the interest and charges and demand full account eradication.

3. Statute-Barred Audit (6 Years Under Limitation Act 1980 s.5)

Because Lantern still holds historical portfolios inherited from its *Motormile Finance (MMF)* era and defunct 2014–2020 payday loan books, a high proportion of Lantern demands involve statute-barred debts:

• Under Section 5 of the Limitation Act 1980, if 6 consecutive years (5 years in Scotland under the Prescription and Limitation (Scotland) Act 1973) have elapsed since the cause of action accrued without any payment, written acknowledgment, or County Court Judgment, the debt is statute-barred.
• Under FCA Handbook CONC 7.15.8R, once you serve a formal Statute-Barred Notice stating you will not pay, Lantern must immediately cease all collection activity.

Verified Lantern (TFG Lantern Ltd) Corporate Profile

Step-by-Step Action Plan to Stop Lantern Debt Recovery

1. Check the Age of the Original Debt First: Pull your statutory credit reports from Experian, Equifax, and TransUnion. Remember: if a default is more than 6 years old, it drops off your credit report automatically under Section 9 of the Principles for the Reporting of Arrears, Arrangements and Defaults—even if Lantern is still sending you letters!

2. If Over 6 Years Old: Send our Limitation Act 1980 Section 5 Statute-Barred Notice by Royal Mail Signed For to Protection House, Pudsey (`LS28 6AT`). Do not make any "token £1 payment" over the phone.

3. If Under 6 Years Old: Serve a Section 77/78 Consumer Credit Act 1974 Request with a crossed £1.00 Postal Order endorsed *"For statutory Section 77/78 CCA 1974 fee only — not to be credited to any alleged balance."*

4. If Gladstone Brookes or Overdales Sends a Pre-Action Letter of Claim: Return Annex 1 Section I within 30 days requesting copies of the original executed agreement, the Notice of Assignment under Section 136 Law of Property Act 1925, and the original Section 87 Default Notice.

Frequently Asked Questions (Lantern Debt Recovery & Gladstone Brookes)