Statute Barred Debt? Advice Needed

doofa_2

Hi, I am a newbie here, but a big fan of the site.

I have been fighting with debt forever it seems and am finally getting to a place where I can see light with the help of sites like this with its good sound advice.

However, I recently received a letter from a debt collection agency asking me to pay a debt that was from 1999, when i was working in Dubai (I had to leave in a hurry for family reasons and then couldnt go back), at the time I was young and foolish and buried my head and hoped it would go away and have heard nothing about it until now.

The letter was from a company called Oriel Collections in Cheltenham and they stated that they were representing the bank that I owed money to (included a photocopy of a letter from an Indian collection agency in Dubai saying that was authorisation from the bank to work on their behalf, but the letter was neither from the bank itself nor did it specifically name the bank or me ). The Oriel letter stated it was a final demand and threathened to take me to court if I didnt pay the full amount immediatly.

I am not in a position to do so, and after some research am thinking that this debt is Statute Barred, but am not sure as the debt originated overseas. I have had no communications with the bank or anyone else about this since I left Dubai in Jan 2000 and have been living in Scotland since returning.

Please can you advise? I am at my wits end, if I have to deal with this now it will put me back to start of the long battle with debt that I am just climbing out of.

Thanks, doofa.

rog2

Irrespective of the 'status' of this alleged debt, I doubt very much that a 'photocopy of a letter from an Indian dca in Dubai would constitute any authority whatsoever for a UK Debt Collection Agency to pursue the debt.

I am a little confused as to where this debt originated - if, as I suspect, it is a debt with a Dubai Bank, then I am fairly sure that it can not be pursued through the UK Courts.

doofa_2

Thank for responding.

The debt originates from a Dubai based bank and was a credit card and unsecured personal loan.

I must admit that I was a bit suspect about the 'Authorisation Letter' as it also only had a mobile phone number on the letterhead, not even an office number.

Besides that though, they do seem to have all my details and I need to respond to them and am just wondering what is the best way to go about it. The legalities of Statute Barred debt to overseas debtors not being something I can find information on, even down to whether I can be persued for it through the UK Courts.

Basically, where do i go from here?

rog2

doofa wrote: »

The legalities of Statute Barred debt to overseas debtors not being something I can find information on, even down to whether I can be persued for it through the UK Courts.

Basically, where do i go from here?

The Limitation Act, 1980, applies only to UK debt.

There may well be an equivalent act in Dubai, but it will have no jurisdiction in the UK.

All that Oriel Collections can do is to 'ask' you if you wish to make a payment towards your 'Dubai' debt. They can not enforce it through any UK Court.

Equally, if a Court Order had been obtained in a Dubai Court, that order would not be enforceable in the UK.

There seems little point in sending Oriel the Statute Barred letter - I will see if there is a letter somewhere that suits your situation, but, basically, you can simply tell Oriel, if they contact you again, that they have no legal power to collect this 'debt'.

jayss

Do you plan to revisit Dubai?

doofa_2

Go back to Dubai? No way, there are laws there regarding unpaid debts that would scare the bejeebers of a Navvie.

I am not at all proud of what I did and have been living in fear of this happening for the last 10 years, but at the time I had no choice.

I really need to know where I stand and how I should deal with this DCA. I have being doing some more reading about debt in Dubai, and there seems to be nothing like Statute Barring there, but can they legally persue me in this country?

Even though the debt itself may not have originated in the UK, would the Limitations Act stop a UK DCA from harrassing me for it?

rog2

doofa wrote: »

I really need to know where I stand and how I should deal with this DCA. I have being doing some more reading about debt in Dubai, and there seems to be nothing like Statute Barring there, but can they legally persue me in this country?

Even though the debt itself may not have originated in the UK, would the Limitations Act stop a UK DCA from harrassing me for it?

I have just been researching 'Debt' in Dubai and it is, indeed frightening to see just how few 'rights' debtors have and the way that they are treated.

However, you are in the UK now and Dubai 'law' (or lack of it) has no jurisdiction here.

Likewise, Oriel have no authority whatsoever to use UK legal channels to collect on a Dubai 'debt'.

It is, in all honesty, a case of trying to find a nice way of telling them to 'naff off'.

It may be worth a chat with a solicitor, who could write them a letter telling them that the 'debt' is unenforceable through the UK Courts and that they must cease all attempts at further 'collection'.

I am still looking to see if there is a suitable letter that you could send them, but so far, no progress.

doofa_2

Thanks Rog2, if you can find a letter template that would be great. Its a weird one I know.

doofa_2

A quick thought, would it make a difference with the Limitations Act if the bank in question has a UK branch (London)?

rog2

doofa wrote: »

Thanks Rog2, if you can find a letter template that would be great. Its a weird one I know.

It's not 'wierd' at all, doofa, and we often see people on this forum who are being pursued for debts incurred abroad. Whilst the Law regarding EC incurred debt has, to a certain extent, been clarified, there are very few occasions where overseas consumer debt can be pursued through the Courts in this Country.
I, certainly, know of no reciprocal arrangement, or agreement between the Uk and the UAE, regarding Consumer Debt, and Oriel are literally chancing their arm, in the hope that you will be unaware that the 'debt' has no validity in the UK.
Oriel are, in my opinion, 'presenting information in such a way that it creates a false or misleading impression or exploits the debtor's lack of knowledge' in direct contravention of Section 2.2b of the OFT Debt Collection Guidelines, to which they should be adhering like glue.
They are probably, also, breaking many other parts of these guidelines, which can be seen, and downloaded, on the following link:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

It's just a case of how best to tell them.

rog2

doofa wrote: »

A quick thought, would it make a difference with the Limitations Act if the bank in question has a UK branch (London)?

None whatsoever, doofa - if the agreement was taken out in the UAE, then it would be subject to the conditions as defined in that country.