Large debt advice needed please...I'm desperate.

Dutton

Hi there,

Where to begin? I have two debts, one of just over £9000 and one just over £2000. These debts go back to at least ten years ago. Since moving house I've only just started receiving letters demanding payments (the two debt collection agencies are Activ Kapital and the other is Rockell DCA).

I've not heard anything from either company before...mainly because I was hiding my head in the proverbial sand all of this time. I have telephoned both these companies up and have arranged in the last three months or so 'token' payments (I have been on benefits due to illness for the last two years).

Upon starting to make these payments someone has made me aware of something about these debts possibly being 'statute barred'. Can anyone please offer further advice on this matter? Whilst I'm only paying off a small amount each week it's still a sizeable proportion to my actual income.

I'm getting pretty desperate here and I honestly don't know where else to turn.

bottleofred

Hi Dutton,

If you hadn't acknowledged or paid anything towards the debt within the initial 6 years, then the debt would almost certainly have been statute barred. Even though you've made token payments, I think it should still be statute barred, but someone with more knowledge than me will have to confirm that.

Good luck

econnin

you need to find out 1) the date of default 2) if any payments were made after the default by you or another party -were they joint accounts? within 6 years 3) if any acknowledgement of the debt was made by you, a joint account holder or a representative within 6 years

If the date of default / last payment was more than 6 years ago and there has been no acknowledgement -and if in UK- then it is out of time. If someone has acknowledged the debt or made a payment within the first 6 years, then depending on dates, the debt type and when you have made your token payments, then they can legally pursue the debt.

CAB should be able to help, but are slow. If you feel up to it, get more info from the companies about the debt (as above) and we will be able to help more.

KingElvis

As far as I know, when you made a payment you started the ball rolling again. Now they can legally hound you like a dog for the balance. That's why they use the bully boy tatics when they first "locate" you, to scare you into a payment.

Also, for 9k it's highly likely they got a CCJ, I THINK that gives the debt life long enforcability but there are people on here who know more.

I may be wrong, I hope I am.

Good Luck.

NorthernLas

Here is the national debtline that explains what statute barred means (this is for England)

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

If you have been contacted before the time limit and have paid token payments, the time limt starts again. Once the time limit is reached, the debt is statute barred, further payment does NOT restart the time limit.

dancingfairy

I would send them the National Debtline template letter - they will hopefully then give up if it is statute barred or 'offer' you a settlement fee or become more aggressive - stick with it though - don't rely on them being correct in their reply as they may try and argue that you contacting them again after the 6 year period 'restarts the clock' which it doesn't appear is true from the National Debtline website.
You will be able to get this sorted and I would bet that a) it is statute barred and/ or b) the orignal credit agreements have more holes in them that a piece of swiss cheese which also means they can't technically get the money from you.
Above all don't let them bully you.
df

Dutton

Right, thanks to the excellent advice here (and just through a mere phone call) the £2000 debt has been cleared! The £9000 one is being a bit more troublesome; in fact, they are arguing that the debt is four years old (the date when they 'bought' the debt).

I shall, however, pursue this.

Thank you to all that have offered me advice!

RAS

Dutton wrote: »

The £9000 one is being a bit more troublesome; in fact, they are arguing that the debt is four years old (the date when they 'bought' the debt).

I shall, however, pursue this.

Thank you to all that have offered me advice!

Complete rubbish. It is the date of the last payment by you or anyone who was ajoint debtor or written acknowledgement.

it is not unknown by the way for a creditor who is less than reputable to pay say £5 into a debt and then claim the plast payment was within 6 years!

Advise them you will report them to the OFT if the pursue a statute barred debt and that the OFT has already "given advice" in public to a number of DCAs who have tried this on.

Nixxx

Try to avoid speakin on the phone and keep everything in writng where possible. There are a few template letters if you look around the board. Make sure you specify that you do not acknowledge any debt and make them prove that the debt is outstanding and enforceable.

Looking_Walking

Keeping things in writing helps people in the long run. Phone calls are easy for creditors to deny and leaves you holding the bag. When you have your own back ups and own documents, you have more leverage.

Dutton

Well, I've finally finished with the 'letters' route and managed to get my two debts classed as statute barred...and in writing and thanks, once again, to all that have helped me.

Now onto further matters regarding them: even though I've paid off some of the debts (see my original post) and both companies have agreed that the debts are stature barred does this mean they are entitled to keep what money I have already paid them (one has mentioned that they'll accept this as a 'token payment') or am I within my rights to ask for those payments back now?