Loan default 9 years ago, Advice Needed

rfquigley

Hello all,
I could do with some advice.
In 1996 I took out a graduate loan which I passed on to a member of my family.(I know already what you are all saying!!!)
Now almost ten years later, due to the fact that my relative did not pay it off a debt recovery company has tracked me down.

Facts:
Debt Due £3,718.28, but they have stated that they will accept a settlement figure of £2,400.
They have stated that it defaulted in late 1997.
They stated that it went to court in 2001.

I did not know about any of this until 3 days ago. I presumed that it had been payed off.

I have currently got two mortgages and credit card etc.

I realise that although i gave the money to a relative, the agreement was in my name and my responsibility but any advice would be appreciated.

Is the time scale a factor?
Thanks for any help,
RFQ

jonesMUFCforever

Statute of limitations restrict debts to 6 years but I don't understand if it went to court and got a CCJ against you how you were able to get a mortgage and credit card.
Have you checked your credit files?
Regardless of what you did with the initial money it is you who had made the repayments not your family member - loss of memory is no excuse.
As the court date was 2001 they can legimately chase you to at least 2007.
Without knowing exactly the verdict in the court case in 2001 it is difficult to give accurate advice - for all we know it might well have got to court but thrown out for a technicality. If this is the case then they must be out of time now.

rfquigley

I realise only too well that it was my responsibility. my relative set up a standing order to repay it. I was probably wrong to trust.
nothing showing up with experian.
Don't understand it.
Is it 6 years from the time that it defaulted or is it 6 years from the time it goes to court?
Advice really appreciated!!
Is it worth me making an offer to the company?
RFQ

silvercar

go carefully on this one, what you don't want to do is acknowledge a debt that restarts the 6 year clock.

by the fact that we are so near to 2007, it could well be an attempt to do just that.

rfquigley

dont really understand what you mean. Is it that after six years the debt is nul and void? Is it six years from default or from court date. Is it worth my while contacting the debt recovery company and ask them to forward to me all the official paperwork about the case. they say that it has been to court in 2001, but i have never had any problem getting credit.

Tootsie_Roll

silvercar wrote:

go carefully on this one, what you don't want to do is acknowledge a debt that restarts the 6 year clock.

by the fact that we are so near to 2007, it could well be an attempt to do just that.

This does not apply in this case as there is a court judgement which can still be enforced. I would say take their offer and run !! It is a reasonable discount and you may even be able to negotiate it down a bit more. One thing though - ensure that they register the judgment as 'satisfied'.

rfquigley

Tootsie_Roll wrote:

This does not apply in this case as there is a court judgement which can still be enforced. I would say take their offer and run !! It is a reasonable discount and you may even be able to negotiate it down a bit more. One thing though - ensure that they register the judgment as 'satisfied'.

Thanks for your help. Do you know how i could go about finding out about the judgement from the court?

Sparky67

Quote - "they say it went to court in 2001"

But, question is, did they get judgment?? Or did they just go to court and the case was dismissed or something like that? Were they more specific and you are paraphrasing or is this what they actually said...

Get a copy of your credit reports from Experian etc. I'm not certain, but they should throw up a CCJ.

Until you have confirmation that there is an enforceable judgement, I would be very wary of contacting the loan company/debt company, as they may be trying to get you to acknowledge the debt and get round the expiry of limitation (ie 6 years). Try asking at your local court as well.

If there is judgment, you're going to have to pay up, but its worth doing your homework first.

mmcmahon

When I was getting my credit score I remember having to go to experian and equifax. My info was spread between the two.