Being chased for a debt that has been paid off

richiethekid

My other half has been getting chased by some debt collection company for a debt that she paid off several years ago. The debt was an overdraft on a student account with a major high street bank, which she was forced to pay back when she left uni early. This was paid off at least 4 years ago and she's had letters from the bank stating that her account was being closed with a positive balance of around £2 as it hadn't been used. The debt collection company have been sending her letters every few months for the past couple of years. She's contacted the bank in question, who have no record of her as her account was closed, and she's contacted the collection company who are insisting that she pays them £450 at £45 a month for 10 months. The trouble is, she didn't keep the letters stating that she didn't owe any money so she can't prove she's already paid the debt. She contacted the Citizens Advice Bureau and they told her she has to pay.

Can anyone help on this? I'm amazed that this type of thing can be allowed to happen. Either the bank, or the collection company, or both, must be in serious breach of the Data Protection Act. If I could find that letter they wouldn't know what hit them.

Any advice would be greatly appreciated.

Robert_Sterling_3

If an account is closed I thought that the financial institution concerned would have to keep details of the account for quite a few years afterwards and probably for six or more years.

Let us know of any developments.

richiethekid

Thanks for that. That hadn't occured to me, but surely financial records have to be kept for at least five years? She says she's contacted the bank and they say they have no record of her, but I'll write a letter on her behalf, quoting the Data Protection Act and pointing out that their negligence has put her in this position.

Would anyone know if this could prevent her from being able to obtain credit? I know the details of my student account (with the same bank) don't appear on my credit file, but can other banks see things we can't normally see? If it would cause a problem, she'd have to put a notice of correction on her file, but if it wouldn't, I'd suggest just telling the collection company to get stuffed.

file_wizzard

Firstly who is the agency involved?

Secondly to recover the debt they must be able to demonstrate that the debt is owed

You are legally entitled to the following

i) signed copy of the original credit agreement
ii) true and certified copy of the alleged default notice
iii) a statement of account for the alleged debt ( if it is settle it should show on here)


Also how was the debt originally settled? Bank transfer, credit / debit card payment? If you can obtain the old bank statements this will be adequate proof of settlement

Robert_Sterling_3

By all means write a letter to the bank as if from your friend but get your friend to sign it herself.
[Might your friend be mistaken about which bank it was? ]

Loretta

richiethekid wrote:

My other half has been getting chased by some debt collection company for a debt that she paid off several years ago. The debt was an overdraft on a student account with a major high street bank, which she was forced to pay back when she left uni early. This was paid off at least 4 years ago and she's had letters from the bank stating that her account was being closed with a positive balance of around £2 as it hadn't been used. The debt collection company have been sending her letters every few months for the past couple of years. She's contacted the bank in question, who have no record of her as her account was closed, and she's contacted the collection company who are insisting that she pays them £450 at £45 a month for 10 months. The trouble is, she didn't keep the letters stating that she didn't owe any money so she can't prove she's already paid the debt. She contacted the Citizens Advice Bureau and they told her she has to pay.

Can anyone help on this? I'm amazed that this type of thing can be allowed to happen. Either the bank, or the collection company, or both, must be in serious breach of the Data Protection Act. If I could find that letter they wouldn't know what hit them.

Any advice would be greatly appreciated.

I know I keep saying this but there are so many posts about this subject, how come it is allowed to continue, these debt collection people are rudge, arrogant and threatening, please, lets think of something to put a stop to it

richiethekid

I'll write the letter as her, if you know what I mean, and get her to sign it.

The debt was paid in cash (I think) in person to a collector, on a weekly basis. She won't have any documentation to back this up. I'll ask for copies of the credit agreement and default notice in the letter.

file_wizzard

Try the following:

Send by recorded delivery, they have 12 days to respond;


I do not acknowledge ANY debt to your company. I require you to supply the following documentation before I will correspond further on this matter.

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit) - your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number

2. You must supply me with a signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

3. You must supply me with a signed true copy of the default notice for the above referenced agreement that you allege exists.

You are notified that you are obliged to supply these documents, whether you are the original creditor or not.

Please also note that any legal action you contemplate will be vigorously defended. As you will be aware any credit agreement which is not correctly documented in compliance with the CCA is a complete defence to any claim issued.

richiethekid

That's a belter. I'll put that into a letter, get her to sign it and see what happens.

file_wizzard

You can include a cheque for the £1 if that is more convenient, if they fail to respond in 12 days they arr in breach of the Consumer Credit Act. If they still fail to respond after 28 days from original receipt they have committed a criminal offence which should be reported to both trading standards and the office of fair trading.

You didn’t mention who the agency is, Thames (Aktiv) or Wescot i presume ?

richiethekid

I don't actually know the name of the agency without digging out the paperwork. The missus isn't really interested in any of this - she just wants to pay it. But I'll see what I can do.