Debt collectors -where do I stand?

*Summertime*

In 2006 I took out a £5k loan - the direct debit was set up and regular payments were made - the last payment was made on Nov 16th 2009.

I have heard nothing since then - only to receive a debt collector letter saying I owe £1212.80 and that legal action was pending. I am so upset as I thought all the payments were made, I am waiting to hear back from my bank to see if I had accidentally cancelled the direct debit - if it ran its own course then surely it is their (Alliance and Leiester - now Santander) fault?

If I owe the money I have no problem with paying, although I can't pay in full as I am 7 months pregnant and getting married next month so money is tight. What I am mad about is that not once have Santander tried to contact me by letter/phone/email.....

Has anyone got any advice?

GeorgeUK

Have you checked your credit file?
There should be something on there.

Do you have the loan documentation? It should have the start date and tell you how many months the payment was for. If not, you may be able to request this from the bank - if they don't give you it, you could do a subject access request (SAR costs £10) and under the Data Protection Act, they need to give you whatever information the hold on you.

Do you know if you paid PPI on the loan?
Was it possible missold? If so you may be able to reclaim it.