Please help - old loan haunting

clarky27

Hi this is the first time I have posted a thread..... I hope someone would be kind enough to help me.

I'm a Single Mother working full-time, I'm debt free or more or less, whatever monies owed are being paid off and are in control....however....

This morning I came downstairs to find mail on the mat, one letter was from a debt collection service (red). The letter says that they are trying to recover money from me for a bank loan I had over 6 years ago.... At the time I lost my job and the loan insurance wouldn't cover me....

They are asking for 4 and a half grand... there is no way I can afford to pay this money, I have no savings and only just have enough money for essentials and rent payments etc!!!!!

This letter has frightened the life out of me, I have never had any contact from the bank or any other loan company since moving home 6 years ago and can't understand why they are hassling me now... I'm so worried!!!

Is there some sort of loophole with regards to lapsed time etc? Or should I contact this company and arrange a settlement?

Any help would be much, much appreciated.

Thank you

A very scared & anxious lady x

JasX

Not sure of the detail but i think there is some form of cutoff provided you havent acknowledged the debt in the last 6 years.... perhaps someone else on these boards can clarify.

-its important to check your position quickly before contacting them as I think if you acknowledge the debt you might have to pay... could even be as little as them cold calling you and you mumbling the wrong thing whilst trying to get off the phone. (Again don't know the specifics here myslef but best to be v cautious while you check the facts/law and do so quickly )

loolabelle

If you decide to call them don't akknowledge that you owe them anything, tell yhem you are questioning the amount that they are asking for, be cool and confident and don't sound worried, Debt collection companies rely predominantly on scare tactics, if you admit that you owe them 4 and a half grand they will hassle you no end, ask for proof, ask them for the original credit agreement, and tell them you will send a letter with 1 pound postal order for that credit agreement, you will find a letter on this site that you can ammend and send to them, it will then given them 28 days (i think) to get back to you with the credit agreement, if they haven't got back to you in writing by then you send another letter (again it's somewhere on this site) asking them to not contact you again, they can not take money from you without proof, you need a statement of what you owe, i wouldn't give them your phone number, if they ask you for it tell them you would like communication by post and don't back down, if you have trouble finding the letters let me know and i'll send them to you, i have a good friend who unfortunatley used to work for a debt collection agency and she explained all the legalities involved, if i'm wrong someone please correct me, but without the original credit agreement they cannot take money from you, i hope this helps, please don't worry, the debt collection agencies are targeted like any sales type job, they will try to swindle you out of whatever they can in as little time as possible to get money from you to reach there own targets, and don't give them your telephone number, you'll be treading on eggshells if you do! Good luck.

fermi

The debt may well be "statute barred".

Red (who are actually Lowells) buy a lot of debts like these, and hope people pay up before they discover the debt is legally unenforceable.

Read the factsheet in the link below.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

If you think the debt is statute barred, then there is a letter in that to write.

There is no point requesting credit agreements if the debt is time barred.

stephane_2

do not call them NEVER....EVER.... When was the last time you made a payment towards the loan? Have you acknowledge that loan in writing to lenders over the last 6 years? If not, if debt over 6 years old then it is likely that debt will fall within "statute barred status". First thing first, will be to write to them by recorded delivery asking them to send you a copy the credit agreement (CCA), do not acknowledge the debt to them and DO NOT sign the letter. If you go to the debt free wannabe or if you do a search on this site you will find plenty of template letters regarding this matter including letters to request CCA and letters to send regarding statute barred letters. But please remember do not speak to them over the phone.

sunbeam2009

the debt cannot be collected through the courts as over 6 year rule so they will threaten you with this but they cant do it. and they must also proove the the original creditors tried all means to trace you in the last 6 years. keep cool. good luck

clarky27

Hi Everyone,

Thanks for your help.... with response to some of your questions:

I have never made payment for the loan, this is because I moved home due to my partner leaving me shortly after giving birth to my Daughter, I therefore moved to be closer to my family. I also suffered post-natal depression and it took a while to get myself pulled together.

I have never received any mail regarding this loan at this address, don't know what to do to be honest. As advised by a few of you think I will print the letter and send off, but isn't this acknowledging the debt?

Any more tips?

Thanks so much again x

HellsGranny

First send 'Prove it' letter, then if they reply send 'statute barred' letter.

Don't call them and if they start to call you send them the telephone harrassment letter.

These guys are chancers, they tried to get me for something that was 14 years old! No chance.

Cheers, Hell's granny

I_know_my_ABC_and_my_CMYK

Before you do send anything, you should be able to date when you lost your job and the insurance wouldn't pay out.

If you work back to this date then that should tell you if the 6 years have passed. If so send the letter Fermi pointed you to.

Good luck and don't worry if push came to shove the chances are they wont still have a copy of a signed credit agreement anyway so you would more than likely be able to challenge the debt this way.

never-in-doubt

Remember it is actually 6yrs plus a month so it effectively works as 6yrs from 1st month of first late payment. i.e. you make payments until December 2002 and then miss Jan 2003, Feb 2003 etc etc and that's the last you heard of it. Your official Statute Barred date would be February 2009 because you first missed a payment in january 2003 so 6 yrs from this date is January 2009 and then give a month for the entry to be removed = Feb 2009.

Thats just an example.

So, you'd have to start by sending the following letter, which will get some sort of response:

#3 (similar version to prove it letter)

And assuming they write back to you asking for money, then send them the following letter which will get rid of them, once and for all:

#69 (Statute Barred letter)

Also remember to tell the CRA's to remove the entry (default) as it cannot remain after 6yrs of date of last payment/default date (whichever occurred first).

Have a read here for extra help on bailiffs and the law! http://forums.moneysavingexpert.com/showthread.html?t=1837507