Advise needed please

Grover7

My partner took out a bank loan of £3000 in 2002, she only paid off a couple of payments and was then made redundant, she stuck her head in the sand and ignored the letters from the creditor, her last contact with them was 3/4 years ago, she then moved address without telling the creditors.

She got a letter from the creditor this month and the debt has now amassed to just under £5000. Unfortunately, she is not in a position to be able to pay it back in full or either pay anything over £50 per month - which she realises would take some considerable time to pay back.

She is wondering specifically what her options are, she knows that if she tries to make a payment plan with the creditor that they don't necessarily have to accept that and she's worried what happens then? Will part of the loan be written off or would she be expected to pay it all? She was also considering what happened if she does not contact the creditor, and moves house again, what the implications of that were? As we know the loans are written off after 6 years, could she potentially dodge them for a couple more years and get the loan written off. Is there any way of checking how long is left on the loan without actually contacting the creditor?

tbasterisk

Hi Grover,

I know absolutely nothing about this subject, but if I were in that position the first thing I would do is write a professional but friendly letter to the creditor stating that you are sorry for the lack of contact due to moving house. I would then try to discuss some kind of offer, since if you are unable to pay the requested amount you can at least be seen to be making an effort.

I think that just trying to dodge the creditor could just land you with court appearances and the associated costs. I would always aim to get an agreement in writing, but if you could discuss the matter with them on the phone first you might find the person on the other end isn't as scary as you thought and might even be able to negotiate something for you if you ask them nicely.

Just a thought.

deedee_3

Can I just say never phone, always write and send things recorded delivery and keep copies of all letters sent. This way you have a paper trail and can prove what was said.

Have a look on the National Debtline site for copys of letters you should write

National Debtline - Website: National Debtline Telephone: 0808 808 4000

Damoclese

From what i have read on the board she needs to request a copy of the customer credit agreement that she signed. CCA

If they are unable to produce this then the debt is not enforcable.
After 6 years without making a payment and without writing to acknowledge the debt, it becomes statute barred.

Grover7

Thanks for the advise everyone. Do you contact your creditor to get a CCA?

RAS

Hi

This debt is almost certainly statute barred or will be shortly, which means she does not have to pay. Please do not contact the DCA until I post back with the information.

RAS

Hi

Please read this.

If the debt is from 2002 and you have not paid it or acknowledged it in writing yourself in the last 6 years (5 in Scotland), then the debt is "statute barred" under the Limitation Acts and is legally unenforceable.

Your partner needs to work out when she last paidor acknowledged in writing.

The debt collector will know this, and is hoping that you don't. :rolleyes:

From a previous thread:

A debt will be "Statute Barred" if there has been no acknowledgement of the debt by you making a payment or in writing within the relevant limitation period.

If you are in England/Wales then the limitation period is 6 years and you should read:

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

If you are in Scotland then the limitation period is 5 years and you should read:

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

If you feel the debt is "Statute Barred", then there is a letter to write at the end of each factsheet.

If you are unsure of anything, then give National Debtline a call free on 0808 808 4000 to talk your situation through with a professional advisor.