Overdraft - pay it back?!

MegandNicsmum

Hi....we've just received a letter for an old account that is apparently now over £3000 overdrawn!!!!!!!!!!!!! We haven't used this account in well over six years, they've never chased us for it and it's never appeared on our credit rating....can we still be chased by this as the letter states that the debt has NOW been purchased by a debt recovery company. We're in Scotland so can we send them the letters that have been very kindly made available on the forum?!?!?! We're working on reducing our debt as well as still having a life as a lot of our old debt was through stupidity but this old overdraft has come as quite a shock!!!

DarkConvict

If you have not made written acknowledgement or paid any money on this debt for 5 years (Scotland), send the Scottish template. https://forums.moneysavingexpert.com/discussion/comment/11571227#Comment_11571227

Note in Scotland debts are extinguished and legally do not exist.

MegandNicsmum

Really....even for a bank overdraft!?!?! Seriously not trying to dodge our debt, believe me there's a lot that's NOT in my signature that we've cleared but very happy about this one being avoided as we thought we finally had a grip on the situation.

Just to ask again....are the letters usable in an overdraft situation?!?!

THank you for your very prompt and helpful reply x

DarkConvict

It covers all debts, although contracts under seal (mortgages) have 12 years to seek payment.

If however the creditor has taken out a CCJ (decree in Scotland i think) it will prevent it going statute barred, however if it is an old decree they need to goto court and give a reason why it was never used to enforce the debt. If they don't give a good reason it won't be "re-activiated" and the debt with be statute barred.

So yes it does cover the overdrafts, and it is upto them to prove that the debt is not statute barred (written acknowledgement, payment, court order). If they cannot, it is unlawful harassment for them to continue asking for payment.

MegandNicsmum

That's fantastic news....thank you.

Sadly before I found this site I would have been panicking about what to do and probably would have tried to get a loan to pay it off even though it was statute barred....with my new found understanding of the law and your help today 'DC' the outlook is much brighter. Woohoo!!!!