Old debt

davies1010

Can anyone give me some advice. Over 15 years ago my husband and I took out loans with Lloyds Bank. Unfortunately we got into debt and they closed our bank account down and advised us to default on the loans. We went to CAB and they told us to send a financial statement to the bank and ask them to with hold any interest and make an offer of a monthly payment. We did this and they accepted. The debt was transferred over to BLS Collections and we have been paying them every month ever since (I think the combined loan total was £18k or so) they periodically send us letters with a settlement figure, which is impossible to pay and up our payments every year.

I was wondering, how long can a bank persue a debt, I think I read somewhere that debts over 6 years old should be written off.

My husband and I are getting very suspicious of this and would like to know if anyone has any advice about this or is this a correct way for the banks to recover debt.

jonesMUFCforever

It is 6 year where there has been no contact between the lender and the customer.
As you have been paying an amount monthly the 6 year rule does not apply here.

The normal way for a bank to collect a bad debt is to sell it on to a collection/recovery company.
You have the right for a statement of account showing the original debt any payments you have made and any charges and interest that have been applied to it.