Overdraft Problem ... Interesting Issue

wellandpower

Hi all,

Don't post often but I thought someone here might be able to help me with this.

My partner has just had a solicitors letter which relates to an old debt (around 6 years ago). This debt was run up by her former partner, on there joint bank account. (He essentially refused to get her name removed from it and then ran it up).

He seems to have managed to get his name removed from the debt by either going bankrupt of entering an IVA so they are persuing her.

I understand she is jointly liable, they seem unwilling to discuss it (unsurprisingly).

So whats the best course of action.

Firstly, I have no "proof" that the debt exisits, so assume we should ask for some. What is "proof" of a debt? Will they be able to provide some? Do they need to provide you proof before taking you to court?

Or all in all should I just pay it and be done?

What do you recomend the best course of action is?

Its worth noting the reason it got this far is because her ex just kept saying he would "sort it out" which he never did and he seems to have just made it worse (by ignoring these things that is what happens i guess.)

the_insider

Proof of debt is tricky with an overdraft due to there not being a CCA for informal lending such as an overdraft. However, if you were to made a DSAR request (which will cost £10) it will show exactly how the debt came about. Before they actually take your partner to court they will need to provide her or her representative with all relevant paperwork pertaining to the claim (the name eludes me at the moment).
Is this the first correspondence she has received about the account? Has she been receiving statements or arrears letters showing that there is an amount owing and has she entered into any negotiations with the bank? And out of interest, which bank is it?

wellandpower

The bank have passed it to a debt collection agency, but it was initially with Abbey.
Its now with "Lovells" the debt collection agency.

It is not the first, but they have been intermittant and her ex dealt with all the paperwork, so she has nto really put anything into the process yet herself.

Regards

Charlie

inmypocketnottheirs

If your partner has not had any correspondence or communication/statements for this account for a period of six years, then it is subject to the Statute of Limitations Act. Therefore it is uncollectable.

inmypocketnottheirs

Cross posted with the OP, the debt collectors you mention are scum of the earth who are about as low down the food chain in the financial services industry as it is possible to be. I would suggest your partner writes, stating the debt is subject to Statue of Limitation, and therefore there is no liability.

Alternatively, ignore all communication.

bargainhunter90

inmypocketnottheirs wrote: »

I would suggest your partner writes, stating the debt is subject to Statue of Limitation, and therefore there is no liability.

Alternatively, ignore all communication.

Don't ignore their letters, respond to them in writing (typed) preparing your letter well and double checking it when you reply and maybe sending it recorded depending on what you write..

The limitation issue which you will prob. know is 6 years for a debt....

I would def refuse to discuss it over the telephone..

Challenge them to provide a copy of the original CCA if one cannot be provided they are unable to enforce the agreement. A useful forum is over at www.consumeractiongroup.co.uk/ Its a special debt forum with lots of advice on the subject...

the_insider

bargainhunter90 wrote: »

Don't ignore their letters, respond to them in writing (typed) preparing your letter well and double checking it when you reply and maybe sending it recorded depending on what you write..

The limitation issue which you will prob. know is 6 years for a debt....

I would def refuse to discuss it over the telephone..

Challenge them to provide a copy of the original CCA if one cannot be provided they are unable to enforce the agreement. A useful forum is over at www.consumeractiongroup.co.uk/ Its a special debt forum with lots of advice on the subject...

The CCA does not apply to an overdraft so that's a non-starter. And the OP has confirmed that she has received correspondence in the last six years. It is almost impossible to have a debt written off as statute barred as the lender only has to be able to prove that they have made reasonable attempts to contact the debtor and it's unlikely that it will have sat unnoticed for 6 years. The best bet is to go back to the bank and discuss it (I always recommend calling but frequently get shouted down for it because posters refuse to believe that Customer Relations staff at the bank know what they're talking about).
Is your partner in a position to make any payments to the balance to prevent further action? Unfortunately she is liable for it but she may be able to take her ex to small claims court for the amount owed if she can prove that he ran up the bill. But this is a civil matter and the bank won't be able to get involved, other than sending statements and confirming which card etc was used for the transactions.

inmypocketnottheirs

Do not acknowledge the debt and do not at this stage make any payment.

wellandpower

OK, thanks for all your answers.

The plan is as follows. Just ring the solicitor and say we dont think we owe the money that he is trying to chase.

We will happily pay it if he can prove to us that the money is owed. So all we want is the details of the account showing when the money was spent and who spent if if spent on a card.

Once we have proof its owed, while we might not be able to pay it all straight away, we'll come to some arrangement on it.

I think thats good because, we're not admiting we owe it and simply saying if they can prove we owe it, we'll pay it.

Surely if it goes to court and they have never shown us we owe it, it would be on dodgy ground anyway, as they must have the burden of proof? Surely if the solicitor is not in the posistion to prove to us its owed, he is not in the posistion to take us to court?

eira

Were they married? Did the bank know that they had split up ? Was the bank notified that both partners had not agreed to maintaining the joint account ? from bitter experience- joint accounts can be emptied/utilised by either party. When the inevitable happens the banks willl go after whoever is handy as there is joint liability. I do think it would be worth digging out exactly what was said and done

Xbigman

For gods sake do not phone the solicitors and say you will happily pay it. Those are the only words they will hear out of the entire conversation. Only ever communicate with them in writing and send it recorded delivery.

There is a lot of differing advice in this thread so lets all take a deep breath and take it step by step. The first question is; has the OP contacted anybody about this debt in the last 6 years? Not about 6 years but actually six years. If its close then just ignore all their current correspondance and wait for well over six years before doing anything.

The answer to this question needs to be established first.
Regards



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