Paragon Car finance

stupot_99

Hi there, this is my first post.
I took out car finace with Paragon on 18/10/2000 for 60 months and i defaulted on oct 2004 i just today got a letter from them asking me to contact them to discuss the account, hmmm me thinks not. My question is this, is the account SB im based in scotland and they are in England. Also i checked my credit report and they havent said i've defaulted on the account there is only [6] in red and it says im 6 months behind my payments which i dont understand.

Any help or info would be greatly welcomed.

Thanks all

stupot_99

any help, anybody.....

DarkConvict

In Scotland the limit is 5 years.

So if last payment/written acknowledgement was Oct 2004, it went SB in Oct 2009.

Not the law in Scotland is stronger, debts are extinguished, and no longer exist. If they had taken any money (not that they have) from you it must be repaid as the debt does not exist and should not have been paid against. Only if the creditor has taken out a Decree (same as a CCJ in England/Wales) would the debt still be enforceable, and even then it needs to be a recent enough court order (within 5 years).

Send them this letter as a reply, make sure you use the Scottish version - https://forums.moneysavingexpert.com/discussion/comment/11571227#Comment_11571227

stupot_99

I've now recieved another letter stating that a repayment plan agreed in relation to the account has not been maintained, now i dont remember agreeing to any repayment plan and i defo have had no written contact with them, i never send letters to ppl i owe money to, i may have agreed to something over the phone years ago is this binding if they dont have it in writing and can i still claim its SB. Thanks

DarkConvict

Verbal agreements can be binding, however the statute barred rule is clear, it must be written communication.

They must prove that you sent a written letter (that acknowledged you owed the money), or made a payment on the account, otherwise they will fail to court if you use the statute barred defence.

DVardysShadow

stupot_99 wrote: »

I've now recieved another letter stating that a repayment plan agreed in relation to the account has not been maintained, now i dont remember agreeing to any repayment plan and i defo have had no written contact with them, i never send letters to ppl i owe money to, i may have agreed to something over the phone years ago is this binding if they dont have it in writing and can i still claim its SB. Thanks

Really, it depends on the strength of their evidence.

As for Scotland or England, it depends where the contract was executed. Did you live in England at the time? And as it is car finance, was it executed through the dealer? And if so, where was the dealer based?

BLT_2

stupot_99 wrote: »

I've now recieved another letter stating that a repayment plan agreed in relation to the account has not been maintained, now i dont remember agreeing to any repayment plan and i defo have had no written contact with them, i never send letters to ppl i owe money to, i may have agreed to something over the phone years ago is this binding if they dont have it in writing and can i still claim its SB. Thanks

Well aren't you a nice guy

DVardysShadow

BLT wrote: »

Well aren't you a nice guy

Apparently, he speaks to them on the phone., which I think is genuinely far more what DCA's want rather than a letter. But I would still suggest that it is better to write than to phone.

stupot_99

I was a bit silly speaking to them on the phone, it was a few years ago and i didn't know where i stood or what rights i had. The finance was taken out with Arnold Clark based in scotland, the contract was executed in scotland, i've never lived in england.

DVardysShadow

Then Scottish law will apply for Statute Barring - unless there is a clause in the small print which says that the Laws of England will apply. That could be interesting.

I am not sure about your credit record - whether it should come off at 5 years or 6 - but the time is from the original default - not form the date of the entry on the file.