Loan written off?

ptvw

I have £6k left on a loan which the lending company seem to have forgotten about.At the end of last year I get a statement showing that I still owe this money yet (delivered to my home) they never chase me for payment.

I actually paid a credit card off with the same company but not this loan.I told them in a phone conversation that I had paid it off (worth a try I thought) and amazingly they seem to have bought my story but haven't closed my account.

Will this debt ever become unrecoverable for them? It has been over year now and still haven't noticed.

Tixy

They will notice - and its likely that in the meantime you are incurring charges and interest so the debt will be growing.

However they have 6years from your last payment or last time you acknowledged that you owed the money in writing to chase you and to take you to court.

If it went 6years before they took you to court (pretty unlikely these days) then the debt would be statute barred. That means it would still exist/not be written off but they could not take you to court over it and if you wrote to them to say you didn't intend to pay then they have to stop chasing you for it.

(NB unless you took out the loan in Scotland, in which case they only have 5years to chase you/take you to court, and the debt is written off after those 5years).

ptvw

interesting... theres definitely no interest being added on the account because each month shows the same balance, as does the year end on the statement