When does debt die?!?!?

CLAPTON

for a 10 year old debt where there has been no contact, the debt is unenforceable.....pattiemay situation is quite different because it was a secured debt (mortgage on the house) which is enforceable for 12 years.

in your parent's situation

a. is the debt actually theirs? (seems a con to me).
b. if it is then if there has been no contact for 6 years its unenforceable?

i'll post a draft letter tomorrow that you may consider sending or you can contact CAB on your parent's behalf.

Rgc_3

Could it be a scam??

just seems strange when a debt collection agency would know they can do little about it after ten years

sindy_2

CLAPTON wrote:

for a 10 year old debt where there has been no contact, the debt is unenforceable.....pattiemay situation is quite different because it was a secured debt (mortgage on the house) which is enforceable for 12 years.

in your parent's situation

a. is the debt actually theirs? (seems a con to me).
b. if it is then if there has been no contact for 6 years its unenforceable?

i'll post a draft letter tomorrow that you may consider sending or you can contact CAB on your parent's behalf.

Thankyou so much!..that letter would be a great help...much appreciated

CLAPTON

as i see it your parents dont remember buying the PC;
many DCA buy up old debts at very low prices and hope to make money by frightening people into paying. often the debts are genuine but are sent to the wrong people etc.

obviously in this case we dont know whether or not your parent did owe the money or not.
and also even if they did owe the money it might well be statute barred as there has been no acknowledgement for 6 years. of course if it does turn out that your parent do owe the money then they can still opt to pay it if they want to.

anyway, when writing to the creditor it is important that you dont accidental admit the debt as the 6 years will restart, so start all letters 'i do not acknowledge any debt to your company or your clients' to be on the safe side.


i would suggest something like this

I do not acknowledge any debt to your company or your client. I require you to supply the following documentation before I will correspond any further on this matter.

Supply me with a signed copy of the alleged agreement that you refer to. And supply me with a copy of the statement of account for the alleged agreement.
Under the terms of the Consumer Credit Act 1974 you are obliged to provide these documents. I enclose the statutory fee of £1 (postal order number xxxx).
Please respond within 14 days.
Please note that any legal action you may contemplate will be defended and contested.



Obviously keep a copy of the correspondance and sent it my recorded delivery.

Lets us know what happens....depending upon their reaction you may need to write again.

sindy_2

Thankyou for that...would it be wise to mention "for a 10 year old debt where there has been no contact, the debt is unenforceable"?

Thats if it is their debt?...obviously wording it without admitting it's their debt?

CLAPTON

at this stage make no admission of debt so start the letter as suggested.

yes you could continue the letter by saying that although you do not acknowledge the debt in any way, as the alleged debt is over 6 year old it is anyway unenforceable by way of the statute of limitations.

sindy_2

Thanks again.you've been a Huge help!!

rog2

sindy wrote:

Ok.....My elderley Mum and Dad have recently been contacted by a debt recovery agency...they said that they owe £700 pounds from 10 years ago....they are claiming that Mum and Dad bought a PC on finance at that time and only made one payment against it then never paid again.

They can't recollect buying the "PC" and if they did (and have forgotten about it) buy it.....that's why I asked my question iniitally.

That would appear to come under the 'Statute Barred' legislation, and unenforceable under law. Beware though, some DCA's buy this type of debt for pennies and rely on the debtor's ignorance of the law to 'bully' them into paying it.
If you look at the National Debt Helpline site (Link at top of page) there is a template letter which you can send to the DCA.

Lara44

So if you get a debt and then change your address and wait 6 years you can't be taken to court for it (generally speaking for unsecured debt)? That's mad.

Does it stay on your credit history for ever or do you just wait another 6 years and your credit file goes back to normal?

CLAPTON

close but not quite right.
they can take the case to court and a CCJ could be issued in which the debt is not statute barred.
but essentially yes, if you disappear for six years then the unsecured ordinary debt is unenforceable after that time.
the debt will stay on your credit file for six years from the date of it being defaulted.