Help with collection agency

natanddan1

Hi
I had my own business some 7 years ago. i wound up the business (not limited) due to non payers and suffered some debt. I had heard nothing on this for 7 years until today when i received a letter from a collection company asking for £2,200!!!!
Does anyone know where I stand with this debt, am i at liberty to ask for a breakdown of costs to assess if this amount is mostly charges? Should i offer a settlement. The debt is in my wifes name but she does not work and we have no morgage! Although things are great now and we seem to have a good credit rating, we have 3 credit cards with large amounts of credit available, we owe nothing on the credit cards and make sure we pay them off every ,month.
is there a time limit in which the debt is written off? (i am not avoiding my responsibility here but want to know what my options are)

Any help would be appreciated.

CLAPTON

if there has been no contact for over six years then the debt is unenforceable (assuming a normal unsecured debt) and so you do not need to pay it.

see this site for more details of the Statute of Limitations

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

natanddan1

CLAPTON wrote:

if there has been no contact for over six years then the debt is unenforceable (assuming a normal unsecured debt) and so you do not need to pay it.

see this site for more details of the Statute of Limitations

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

Thanks for that, if i make c ontact with the agency will that cause me to lose the 6 year right?
I dont even know where the amount came from so was going to write to them asking for a breakdown. I have not received any correspondence for over 6 years? The first i heard was today when they wrote to my wife stating
'We have been instructed by ******* to recover debt. It is our intention to issue a statutory demand under the insolvency act (1986)(bankrupcy), as we are unaware of any reason for your non payment'

It is at least 7 years since i finished the business and received no correspondence?

nrsql

Someone posted that once the 6 years is up the debt is unenforcable and nothing can change that.

I would preface anything you send with a statement that you do not recognise the debt though. Maybe have a trip to CAB?
There might be different rules for businesses but sounds like this would be considered personal debt.

Certainly don't offer a settlement. They may be just fishing.

CLAPTON

well firstly, how do you know they actually own the debt?

but if you dont want to pay then use the statute of limitation ... use the draft letter on the nationaldetline site....if you go the the site (as i gave above) and page down to the bottom you will see a suitable letter.

Dr.Shoe_2

I would ask for a copy of the credit agreement and a letter from your original lender to them authorising them to collect the debt. Make sure the copies are certified.

More often than not they will not be able to provide this information.

natanddan1

Thanks to all the posters, after looking at the website and reading the advice it appears there is no way they can enforce it, it is well post 6 years and was a personal debt (not secured) i think they are counting on my wife just offering a settlement which would throw a whole problem to it. I am sending the letter as advised recorded delivery and we will see how they respond.

Many thanks, dont know what i would do without this site.