Bank and old debt advice please.

carbonel

Hi all,
Can anyone out there give me some advice please?
My partners daughter got into huge financial trouble about 7 years ago, partly due to her irresponsible ex husband, partly due to her irresponsible self. Anyway, Her dad and I managed to get most of it sorted and we 'persuaded' her ex that the bank loan (in her name) was his responsibility and he agreed to pay it off.
We have heard nothing about this, no correspondence at all, for about 6 years when suddenly she has had a letter from the bank which is in the format of a 'statement' on the loan account - no mention of a demand for the money - which is just over £11000. Obviously her ex did absolutely nothing about paying it off - no surprises there, but I am wondering whether we should do anything about this. I am aware of the 6 year statute barred rule and if this was from a debt collection agency we would be sending them the usual 'get lost' letter. However, as it's from the bank - TSB by the way - I'm not sure what the next move should/could be. I need to double check old paperwork to be certain but I am fairly sure the last correspondence of any sort was 6 years ago.
Should we send them the 'get lost' letter, or should we sit tight and see what happens next?
Thanks in anticipation.
Carbo.:D

rog2

I certainly would not get into any correspondence with the Bank, at this stage, as that may be construed as 'acknowledging the debt'.
Was there any mention, on the 'statement' of when last a payment was made?
Do you have any written acknowledgement, from your daughter's ex, accepting responsibility for this 'debt'?

carbonel

No, this is why it's a bit confusing. The 'statement' gives very little information, doesn't actually ask for/demand money but makes it clear in a roundabout way that repayment is expected.
Yes, there is some evidence that the ex agreed to pay off the debt - he sent a letter to the solicitors agreeing to transfer the house and pay off the loan account. We have contacted the solicitors and asked them to search their records and find the letter so we have the evidence - just hope they haven't destroyed it yet. Their policy is to destroy paperwork between 2 and 12 years so fingers crossed it's the latter on this one.
What do you think would be the best move if we do get the evidence, and alternatively if we don't get the evidence. I don't want to contact the bank and find that it starts the 6 years all over again?

rog2

Personally, I think that you/your partner's daughter should be seeking advice from one of the Debt Counselling Charities, such as:

• National Debtline - http://www.nationaldebtline.co.uk/ Tel. 0808 808 4000
• CCCS - http://www.cccs.co.uk/ Tel. 0800 138 1111
• Or a Debt Adviser at your local CAB

All of the above organisations will give you free, professional and confidential advice on how to deal with this 'problem'. National Debtline have 'template letters' that have been specifically written, so as not to 'acknowledge the alleged debt'.
In the event that she does need to write to her Bank, then she should start each letter with the words:

"I do not acknowledge any debt to your Company, or to any oranisation that you claim to represent"

I do hope that your solicitor can find the relative correspondence - it seems strange to have a policy to destroy documents after as short a time as two years - especially given their legal significance and potential importance.

If, as I hope, you do get a copy of the letter, then you may need to take legal advice - possibly your solicitor will give you some free, initial, advice.

Equally, you need to establish exactly when any last payment to, or written acknowledgement of, this debt was made. Given that it is a bit complicated, in that responsibility could hinge on this elusive document, from your solicitor, I would do nothing for the moment until it is established whether or not this letter still exists and can be found.

You are legally entitled to request a full statement of the account, although, given the time-scale, you/your partner's daughter may need to make a 'Subject Access Request' to the Bank, in order to get the full details.

Certainly, though, in order to put your mind at rest, if a limitation period of six years has elapsed (and this is what you need to establish) then discussing, even acknowledging or makin a payment towards, the debt after this period will not change the 'Statute Barred' status of the 'debt'. Whilst the 'debt' does not disappear, it would not be enforceable through the courts.

But, for the moment, your best move is to try and get the document from your solicitor - then we, and the Debt Charities, will be in a better position to advise.

carbonel

Thanks Rog, that's clarified my thoughts quite a bit. I will wait and see what the solicitor comes up with and take it from there. Fortunately we got my partners daughter to keep all the paperwork regarding her past debts so it should be relatively easy - although a bit tedious - to work through and find out exactly when the last contact was with the bank.
Thanks again.......I may be back!:D