Old debts (that old chesnut!!)

HannaB

Hello all,

I am hoping you might be able to help me. My partner has been receiving letters from a couple of those blood-sucking companies who buy-up and chase old debts. I keep telling him about this site and all the advice offered (I love you guys!!), but he just keeps putting these letters in the bin. We have been together for over four years and these debts are definitely from before we met, as I’m the obsessively organised one who wears the “financial trousers” (sorry hun!). We think that this debt may be between 5 and 6 years old. If possible, we would like some help on the couple of pointers below:

* Please can someone direct me to the letter template that begins “I do not acknowledge a debt to your company…”? As I cannot seem to find it.

* Also, there's a chance that these debts might not be statutory barred yet (as under 6 years old). So he’s concerned that contacting them will just confirm our home address. What are our options if this happens?

If anyone can offer any other ideas, we would definitely welcome them.

H x

fermi

The letter for statute barred debts and some links to the National Debtline factsheets are HERE.

The 6 (or 5 in Scotland) years runs from the last time he acknowledged the debt by making a payment or himself in writing.

Is there any urgency to get this sorted out? Sounds like he has been sitting on this for a long time anyway.

rog2

Hi HannaB - It will all depend on when he either made the last payment towards, or acknowledged, in writing, these 'debts' as to whether or not they are still pursuable through the courts.
In England and Wales, the 'Limitation Period' is six years, after which the creditor, or dca, can no longer pursue the 'debt' through the Courts, once the debtor has told the creditor that he will no longer be paying as the 'debt' is now statute barred. At that stage the dca should, also, cease any other attempts at pursuing the 'debt':

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

There is a template letter, at the end of this link, which he can send. I would always suggest that he prefaces this, or any letter to a dca, with the words:

"I do NOT acknowledge any debt to your company, or to any compay/organisation that you claim to represent."

HannaB

fermi wrote: »

Is there any urgency to get this sorted out? Sounds like he has been sitting on this for a long time anyway.

Many thanks for the replies. I guess there isn't an urgency, I'm just panicking:o . We just don't want to end up with balliffs at the door. I think he's just concerned because they've found out our address. He had a lot of problems a few years ago and his debts took a back seat. He's now a lot more settled down and these letters just remind him of his past.

fermi

Well, it's not always sure that the chasing company knows for certain that they have the correct person or address.

Some of these companies (against OFT guidelines) just send out letters to a range of people with the correct or similar name in the hope that "fishing" like this will get a bite.:rolleyes:

Some people would probably suggest sitting tight for a bit....

If you did send the "statute barred" letter it puts the onus on them to prove that there has been less than 6 years since the last payment or acknowledgement of the debt.

Even if it turns out that there has been, then it is often worth checking that the company has the proper documentation relating to the debt. These companies often buy these debts without the correct legal paperwork entitling them to collect. If this is a type of debt that should have signed a credit agreement for, then you can use the letter in the following link to check if it comes to that:

Factsheet | Getting a copy of your credit agreement, account details and a statement of account.