Advice from an old debt

qwrefsdoiu · 19 October 2006 at 10:57AM

Hi there everyone,

First time on the site...I have a mate who is trying to get some advice on his situation at the moment. I'm giving him a hand and this site looked good! Please don't judge him or be harsh, he's a very good person and whatever happened happened and that's that in my book.

Around 2000 he had a credit card that he couldn't afford to pay so he handed it over to a debt management company for reduced payments which was all ok. For whatever reason (don't ask me I don't know) he defaulted on the payments and obviously got letters to his old address etc asking for payment but he'd moved. All went quiet for around 5 years until a few months back at his old address he got a letter from a company saying they'd bought the debt (£900odd quid) and he now owed them the full ammount. Obviously the letter was sent back. So it went on until a few weeks ago he received a letter at his current address asking for the money from a well known scottish debt collection company (no mentioning names but they've got a reputation for being !!!!!!!s). He wasn't around at the time, so missed the first letter and the subsequent one threatening court action...the latest I think is they're trying to call him at home.

Sorry for the strange tale, but in my eyes (I'm no lawyer) an old debt that was defaulted a few years back can't be registered with a credit agency again can it? I know he's made no attempts to get intouch...just take this as the way it is...I know it's not the right thing to do. Can they really do anything to him after all this time? and can this company demand money and take him to court?. It all sounds a bit fishy to me...I couldn't believe there are companies out there that buy debts for a fraction of the cost and then hunt down the debtors years on for the full ammounts even when the original debt has long since been recovered by the insurance company (please excuse my ignorance).

Any advice I can give, apart from call them up...it's more a matter of principle I think now. Thanks for any thoughts

J

immoral_angeluk · 19 October 2006 at 11:00AM

Yep, unfortunately for your mate they can still chase old debts even if he's defaulted on them until the debt is settled. He could face court action and baliffs knocking at his door to he needs to get his head out of the sand ASAP.

qwrefsdoiu · 19 October 2006 at 11:05AM

that's mad! Thanks for the reply btw

So even though it's not the original creditor chasing him? and isn't there a limit on a debt around 5-6 years? And (sorry for all the qs but I'm getting there) how can they send bailiffs round if they don't take him to court and get a judgement against him?...and if the debt isn't secured surely the worse they can do is knacker up his knackered credit further...

immoral_angeluk · 19 October 2006 at 11:13AM

the 5-6 yrs is how long something stays on your credit record but the can chase older debts to be paid. Baliffs can only come round with a court order but if he keeps ignoring the debt inevitabley the next step by the agency will be to get a CCJ against him and send the baliffs out. The CCJ will effect his rating for 6 years after it's issued, and obviously baliffs coming round is the last thing you want especially if he's got a car or valuable items in his house.. If it were me I'd be calling up the collection agency and offering to pay in installments if he can't afford the full lot. It's better to start sorting it now before they take it further and start adding further charges to the debt for court costs, home visits etc.

qwrefsdoiu · 19 October 2006 at 11:20AM

I see your point there now...

It seems I was misinformed

I dunno what he'll do tbh but I'll tell him what you've said about it...I think because it's been so long he really doesn't want to drag up the past and all that. Can they really send the bailifs in? I thought that was only on secured debts?...my bad again.

I've told him to call a solicitor for a free chat aswell, think that may help him.

Thanks for the advice so far

immoral_angeluk · 19 October 2006 at 11:31AM

Get him to call the CCCS or Citizens advice as well as they're a charity and will give him advice regarding his debts for free.
Baliffs can be sent in for any debt regardless of whether it's secure or not, and they'll stick hefty fees on top of the debt for the 'priviledge' of them coming to see you.
Wish him all the best from us!

file_wizzard · 19 October 2006 at 11:38AM

qwrefsdoiu wrote:

I see your point there now...

It seems I was misinformed I dunno what he'll do tbh but I'll tell him what you've said about it...I think because it's been so long he really doesn't want to drag up the past and all that. Can they really send the bailifs in? I thought that was only on secured debts?...my bad again.

I've told him to call a solicitor for a free chat aswell, think that may help him.

Thanks for the advice so far

Just to clarify the above, under both U.K & Scottish law the 1980 Statute of limitation Act will prevent any further enforcement action on any contract or debt which was either last acknowledged or had payment made against in excess of 6 years ago (5 in Scotland)

If the last acknowledgement or payment of the debt was in excess of the statutory time allowance then no further court action may be commenced, however the company can lawfully ask for payment until you inform them that the debt is statute barred (if indeed it is in this case)

In term of bailiffs, if indeed an order was obtained from the court (being mindful of the above) and this order was subsequently defaulted on, then yes an execution warrant may be issued and bailiffs instructed.

In terms of the credit file entry then this may be re-submitted to the CRA under the following conditions

1) not more than one instance of the debt should appear on his file
2) that the default date registered CAN ONLY BE the original default date, and once 6 years have expired from this date the data will naturally expire whether the debt is satisfied or not

qwrefsdoiu · 19 October 2006 at 11:45AM

Thanks File wizzard..I think it's bordering on 6 years for him that maybe why they're so keen. According to him the last payment (it's a long time ago!!) was about August/September of 2000..that was with the debt management people.

So if that's the case, he can write to them and say...in a roundabout way, that this debt is over 6 years old, there's nothing you can do..go and get a real job?

lol...sorry I still can't get over some evil git deciding to buy old debts and dig up peoples misery.

rog2 · 19 October 2006 at 11:48AM

I would not advise phoning the DCA for the moment. Have a look on the National Debtline link (above). If you are in Scotland you need to click the Scotland option. Then look at the 'letter templates' there is a template letter for disputing a 'debt' under the 'statute barred' legislation (% yrs Scotland - 6 yrs England/Wales). If that applies, then post the letter to the DCA.
You may also wish to dispute any debt to DCA and ask them to supply a true copy of the original credit agreement, signed by you. If it's the well-known Scottish DCA that I am thinking of, they specialise in trying to collect old debts.

file_wizzard · 19 October 2006 at 11:55AM

qwrefsdoiu wrote:

Thanks File wizzard..I think it's bordering on 6 years for him that maybe why they're so keen. According to him the last payment (it's a long time ago!!) was about August/September of 2000..that was with the debt management people.

So if that's the case, he can write to them and say...in a roundabout way, that this debt is over 6 years old, there's nothing you can do..go and get a real job?

lol...sorry I still can't get over some evil git deciding to buy old debts and dig up peoples misery.

If he is 100% sure it is over 6 years try the following;

Courtesy of https://www.debthelpuk.co.uk

Name of Creditor
Address of Creditor

WITHOUT PREJUDICE

Dear Sir/Madam

Re: Account No/Reference No:

No debt is acknowledged to you. You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”.

The last correspondence/payment/acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to your reply.

Yours faithfully

(Your signature)

External references

http://www.lawcom.gov.uk/docs/cp151apa.pdf

The moral issue on repayment is something he will have to decided for him self

qwrefsdoiu · 19 October 2006 at 2:26PM

cheers again...I've told him what I've found so far (including all the help on here) and we'll see what he does.

A few other 'Enemy of the State' thoughts by me...the call he got was from the DCA? how did they get an ex directory unlisted new number?. If they even speak to him how do they prove he is the one owing the debt?...sorry for all the q's but I'm kind of a fight the power type person lol so's he.

Rog2, I think you know the company...a little digging on google is worrying.

Advice from an old debt

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