Debt Cut Off Time

pendragonuk_2

Just a quick question if you don't mind.

Just been speaking to a friend of mine who had a loan many years ago from Lloyds TSB when she was about 18. she owed them £8500. She is now 28 years old.
She just stopped paying them and has never been in touch. she has just received a letter out of the blue demanding the money and they are threatening bankruptcy , she has had 3 letters, from 3 different firms asking for the money! Lowells, Red debt collection services and Hamptons legal.

Now as this debt is way over 6 yrs old, where does she stand? Should she ignore, or write back? Can they chase her for this debt after way over 6 years ?
If not is there a standard letter somewhere on here she can use ?

Mnay thanks
Keith

pendragonuk_2

Can anyone help ?

loopy.magic

You mention that she stopped paying them, did the loan agreement actually end? or did she simply stop paying them?

pendragonuk_2

As I understand it she just stopped paying them but they left it nearly 10 years to chase it up.

woody01

pendragonuk wrote: »

As I understand it she just stopped paying them but they left it nearly 10 years to chase it up.

Well hopefully they got a CCJ issued then and they chase her down (although unlikely).

Can't pay is one thing.
Refuse to pay is something very different and receives little sympathy.

blind-as-a-bat_2

If there has been a clear six year gap (five in scotland) where no paymant has been made, or that she has acknowledged the debt in writing, it is now statute barred, unless they did get a CCJ.

assuming no CCJ They are in breach of the OFT guidelines threatening BR, or any action on a statute barred debt.

pendragonuk_2

woody01 wrote: »

Well hopefully they got a CCJ issued then and they chase her down (although unlikely).

Can't pay is one thing.
Refuse to pay is something very different and receives little sympathy.

Thanks. Not here to discuss the rights and wrongs of this case even though I agree with you entirely.

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blind-as-a-bat

Thanks for your reply. No CCJs were issued at any time and neither has she been in touch with them at any stage.

Do you know if there is a standard letter on this site somewhere that can be copied and sent to them and also where would I find the official ruling on the 6 year limitation ?

Regards
Keith

blind-as-a-bat_2

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/599-letter-sent-when-debt-is-statute-barred

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/578-letter-to-dca-persistant-after-statute-barred

You may have to register to view it, and adapt it to suit, but it gives all the details you need to know

fermi

Or just here on MSE.

http://forums.moneysavingexpert.com/showpost.html?p=11571227&postcount=3

pendragonuk_2

blind-as-a-bat wrote: »

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/599-letter-sent-when-debt-is-statute-barred

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/578-letter-to-dca-persistant-after-statute-barred

You may have to register to view it, and adapt it to suit, but it gives all the details you need to know

Thank you very much for your help. The letter on their is just what I was looking for.

Again, thank you.

Regards
Keith