Can they do this?...

ThatCrag

I've received a letter from Global debt Recovery Ltd this morning saying that if I don't settle a debt of £769.89 they have "no alternative but to proceed further"

They also state that "as a goodwill gesture, our client has stated that we may negotiate a substantial reduction for early settlement of this debt"

Now I know for a fact, that I've haven't made any contact or payment with them for at least 6 years, it'll be 7 years this year, my debts started accruing.

Are they just winging it and hoping I panic and get in touch with them? I don't believe for one second they would reduce the payment, it kind of feels like they tempting me to get in touch, if you know what I mean

Should I just ignore this letter?

Blahah

If you haven't had any contact or made payments for 6 years the debt is statute barred. However, they are probably being genuine when they say they would settle for a reduced amount. But since it's statute barred it doesn't really matter. Send the letter from the unenforceability templater letters thread.

bottleofred

Hi,

Like all debt collection agencies they're chancing their arm in the hope you'll pay it. Are you sure it's over 6 years since you paid or acknowledged the debt? If it is, then the debt is statute barred. However, if there is any doubt regarding the 6 year gap you could send the prove it letter first and see if you get a response. If you get a response you could then ask for a schedule of payments to see if 6 years have definately passed since the last payment or acknowledgement. I'll attach both letters below, but only send one initially (your choice depending on what you think about the 6 years!). You could of course ignore them and see if they go away, but these letters should put an end to further contact if the dates etc are correct.

1 High Street,
Newtown,
Kent
R21 4RH
October 9, 2007

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

Dear Sir/Madam

Ref: xxxxxxxxxxx

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

We would point out that we have no knowledge of any such debt being owed to The Loan Company.

We are familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

We would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore, ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

We would ask that no further contact be made concerning the above accounts unless you can provide evidence as to our liability for the debt in question.

We await your written confirmation that this matter is now closed. Otherwise we will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

We look forward to your reply.

Yours faithfully





Mrs A N Other

THIS LETTER IS DESIGNED TO HELP YOU DISPUTE LIABLITY FOR A DEBT WHERE A CREDITOR HAS NOT CONTACTED YOU FOR OVER SIX YEARS AND YOU HAVE NOT MADE A PAYMENT OR WRITTEN ACKNOWLEGING THAT YOU OWE THE DEBT DURING THIS PERIOD.

Your Name:
Your Address:
Date

To:

WITHOUT PREJUDICE

Dear Sir/Madam
Account No:
You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.
I/we would point out that under the Limitation Act 1980 Section 5 "an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued".
I/we would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".
The last correspondence/payment/acknowledgement or payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.
The OFT Debt Collection Guidance states further that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".
I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
I/we look forward to your reply.
Yours faithfully
(Your signature)

Numpty_Monkey

I think you have answered your own question,
yes they are winging it
they will offer a reduced settlement for a Statute Barred debt,
It's upto you
Ignore them if you want their isn't anything they can do
or send them the "Prove It" letter
or the "Statute Barred" letter

More info on SB from National Debtline

WRINKLES

Be very sure before contacting them that it has been over six years since your last contact or payment

ThatCrag

Thank you for the speedy responses

And yes, I am absolutely positive that it's been six years since any contact has been made to resolve the debt and no payments have been made what so ever either.

I left my current address 7 years ago this September, which is when I also started racking up my debts obviously. Now unless it took them over a year to start chasing me for the debts? I'm ok, so to speak

Thanks for the letter template as well, much appreciated, I'm may just to ignore it for now and see what happens and double check the dates on a credit report.

Also one more tiny little thing, my name is mis-spelt on the letter, would that make any difference, or could that be easily rectified by them??

bottleofred

Hi,

I'm not sure the name mispelling would make that much difference. However, with any luck you won't have to worry about that. You can check your credit file free online with a 30 day introductory offer and this will let you see if 6 years have definately elapsed from the default date. Be sure to cancel before the 30 days though or you'll be charged.

ThatCrag

The default date being the time they started trying to recover it or when I stopped making my payments which put me in debt? Sorry if that sounds like a silly question

WRINKLES

I would send for my credit report by post, they want too much information if you get it on line, send with a two pound postal order ,not a cheque no point in giving them a present ,ie your signature ,and print your name on the request for your report

WRINKLES

A debt becomes statute barred six years from the time you last made a payment or acnowleged aDEBT IN WRITING, some dca try to make you think it is from the date of default

Numpty_Monkey

ThatCrag wrote: »

The default date being the time they started trying to recover it or when I stopped making my payments which put me in debt? Sorry if that sounds like a silly question

The default date is usually 3-6 months after you made your last payment and will be placed by the original lender