Debt advice virgin! Help please!

bluben79_2

Unfortunately I defaulted on a bank loan 5 years ago as I was laid off work and couldn't afford repayments. I initially got the loan as I couldn't afford my rent as I was in a poorly paid job and found it difficult to cope finacially day to day. At that time I suffered a bereavment and my mental health deteriorated considerably. I moved address frequently and tried to put the debt to the back of my mind. I have paid off several debts totalling £700 recently but the loan I defaulted is in excess of £10,000. Alot of this was charges and overdraft penalties. I recently contacted Experian and checked my credit history which indicates that the loan has been settled. I contacted Experian and asked them if this means it has been passed on to a debt recovery agency but they said they didn't know. Today I've received a letter from Wescot addressed to me at my home address and a text message asking to contact them urgently to verify my address. I only have ten months until the debt can be statute barred and I'm not even sure that Wescot are pursuing this debt. What should I do? I know to some it might seem immoral to not want to pay it back but the debt caused me an almost unbearable misery and the banks have swindled far more money than I. Can anybody please advise me of my options? Many thanks!

fermi

Well, until Wesot can be bothered to actually write with details of whatever they are chasing, then I would ignore them.

fatbelly

fermi wrote: »

Well, until Wesot can be bothered to actually write with details of whatever they are chasing, then I would ignore them.

Exactly!

...and a text message asking to contact them urgently to verify my address.

cheeky sods ! (surpised that escaped the swear filter - obviously mainly used as a gardening term)

bottleofred

Hi bluben and welcome to the forum,

I totally agree with what the others have said. Just wait and see what it's about and then let us know.

GeorgeUK

Until they actually state what it is they are chasing you for, ignore them.
If they provide details of the debt and it is yours, you could then send a CCA request.
All of this will take time and bring you closer to the SB date.

bluben79_2

UPDATE!

Today I received a red topped letter stating that I owe £298.44 to Arrow Global Limited - FV-1 Inc. This debt is regarding a closed HSBC account that was linked to the HSBC loan detailed in the opening post. Both debts will be statute barred in December 2011. I don't mind paying this smaller debt as it will hopefully clear the default but I'm worried that if I do this it might lead to me receiving correspondence about the outsatnding loan which is linked to the account. The letter states further recovery action will occur if that letter is ignored. Any suggestions? Thanks in advance!

fatbelly

If you're sure it's your debt and you want to clear it, I'd suggest a settlement offer at maybe 25-30% (probably twice what Arrow bought it for). The threat of court action is probably a bluff but if they are going to do it they will realise that they have only a few months left in which to do it.

Your default stays on your file for six years regardless.

The option of a CCA request is [STRIKE]still [/STRIKE]NOT open to you if this is a current account

The loan probably was sold elsewhere - it doesn't appear linked from what you've said - but you could respond with a CCA request if anyone contacts you on this.

bluben79_2

Presuming I offered a settlement and paid it off and then I was chased for the original loan if I requested a CCA what sort of timescale would it be from an original correspondence to receiving a CCA? I would hate to think they will catch up with me before December 2011.

lvm

The time would depend on if they had the information or not - you could be unlucky enough that they have a nice littel file with everything in it or you could get some good news in that they have nothing.

I've been dealing with Arrow Global recently and they've been quite quick at replying...BUT I've been asking for F&F settlement and they won't budget on 20% discount. Andd this is only for a £95 debt. I offered 20% then about 30% and all they say is "as a gesture of goodwill we'll extend our offer to pay 80%".

Good luck!

GeorgeUK

How was the account linked to the loan?

Have they offered any proof that this is your account, or just provided the amount due and the creditor?

bluben79_2

GeorgeUK wrote: »

How was the account linked to the loan?

Have they offered any proof that this is your account, or just provided the amount due and the creditor?

They have just said the money is owed to Arrow Global FV-1. Does that mean I can request a CCA? The bank account account I had was with HSBC as was the loan. The account was closed by HSBC after I defaulted on the loan.