Help please on old debt and payments to collection agency

desperate-dan_5

Hello

Posting on behalf of my partner, he has been tracked down by a deb collection agency called 1st credit. He had an overdraft with barclays which was closed and the over draft not setted for £500 this was roughly 4 years ago he did have a deault on is credit file which has just come off.

Anyway they contacted him and said the debt was now £800 and he needs to pay it monthly or all at once and he could pay approx £600. Hewas worried what I would say so didnt tell me staight away he had bried his had in the and and this was obviously going t catch up with him.

I have advised him not to pay for a couple of months and then we may be in a better positionto bargain a reduced amount to pay it all back am I right in thinking thinking this and does anyone know what is the least they would accept? The total owed is now over £800!!!

Pus just go a letter saying INSTALMENT DEFAULT NOTICE am I right in thinking this doesnt mean aanother default n his credit file? It also says legal action will be taken if we dont ring? How long should we leave it?

Thanks for advice anyone

desperate-dan_5

sorry abot al the missing letters my keyboard is not working!

Tixy

Hi

If he already has a default for this account then he shouldn't be able to get another for it (that said 1st credit aren't known for playing fair so he might need to check at some point that they haven't incorrectly updated the default date). Does he have a hard copy of his credit file showing the default from 6years ago? if so it would be worth hanging on to that (or a copy of the original default notice sent from the bank 6years ago if he has it).

If this is the first contact from them and he hasn't paid anything yet then his first response should be to send the prove it letter to get proof he owes the money and proof that they have a right to collect it - (http://forums.moneysavingexpert.com/showpost.html?p=11570893&postcount=2).

You say it is 4years since he paid this, are you sure it is only 4years and not longer than that? If his default has come off the report then it is 6years since he defaulted, do you think he carried on making payments to the account for a couple of years after than?

Final quick question - can you confirm you are in England/Wales rather than Scotland?

desperate-dan_5

hi,

thanks for resonse - we live in England.

He has acknowledged the debt by arranging to pay £45 per month but then I tod him to stop the default has deinately dropped off and I am not sure how asthe account wasnt closed until 4 years ago???

He doesn have a hard copy of the file with the default or original letters but I kno he definetly got one! obiously dont want him getting another as he has already seved his time.

I doesnt mention his credit file etc on this just says payment default with them?

What is the least they will accept on an offer for full andfinal settlement?

Thnaks

ladybez

If 6 years have elapsed between him last paying the account and the time when he agreed to pay the £45.00 per month, then as far as I know, the account remains statute barred. I'm sure someone with more knowledge will be along shortly to advise you

fatbelly

ladybez wrote: »

If 6 years have elapsed between him last paying the account and the time when he agreed to pay the £45.00 per month, then as far as I know, the account remains statute barred. I'm sure someone with more knowledge will be along shortly to advise you

That's correct. And the 'agreed to pay the £45.00' only counts as acknowledgement if either (1) he actually made a payment or (2) he confirmed in writing that he would be doing so. Just agreeing to something over the phone does not count as acknowledgement.

desperate-dan_5

I dont think six years has elapsed though but the default on the file must have ben placed on there at an earlier ate for the same account but this is only 4 years ago. Its just all so confusing.....

what will we do if hey default the file again? we have no proof of the original default will barclays??

plus if we offer a full and final settlement whats th least thy generally accept?