help with Student Loan - Scotland

steve31red

Hi folks

I had my student loan from 1994 -1997 - I was unable to pay it off when I started working because I was earning 12 grand a year at the time.

I was contacted in December 2009 by Capquest demanding payment - the tone of the letters was mildly threatening - as in we will come to the house, take good and generally make life pretty difficult - in a bit of a panic I started paying - before I really researched it all - I think that they were chancing their arm on a loan which they should not have been pursuing.

In december this year a clerical error on their part cancelled the payment and now they have passed it on to a scottish company who are going down the same line - they have also registered a search on my credit file which I am furious about

I have worked hard to build a decent credit rating and am now worried that it will all go to pot.

Is the loan statute barred even though I made payment on it to Capquest ? And do I have a recourse to get that money back ?

What do I do with the new people - just send the standard letter ?

Any advice greatly appreciated

Steve

ElmerFudd

I'm afraid I don't think I can help much with this, but I'm sure someone more in the know than me will come along soon. Was there no way you could defer the loan? Was it with the Student Loan Company originally??
From what I have read here and elsewhere a search on your credit report like this will not adversely effect your credit rating however the clerical error which cancelled the payment will. Was this a clerical error on their part (i.e. a direct debit etc) or yours?
Since you have started making payments the loan is not statute barred as far as I know.
Have they given you a breakdown of how much they claim you owe and what the monthly payments will be, and can you meet those payments?

nottoolate

ElmerFudd wrote: »

Since you have started making payments the loan is not statute barred as far as I know.

not true. if the debt was already statute barred before they started making paymentys then it still is.

steve31red

thanks Elmer - the error was theirs

I had read that if it was statute barred then they shouldnt have been pursuing it but know that they take a chance and bombard people to get them to pay up

Capquest left it alone and passed it to someone else

The debt would have been gone for about 12 or 13 years although it is sizeable and I can see why they are chasing it

ElmerFudd

nottoolate wrote: »

not true. if the debt was already statute barred before they started making paymentys then it still is.

That's good to know and hopefully something the OP can pursue.

steve31red wrote: »

thanks Elmer - the error was theirs

I had read that if it was statute barred then they shouldnt have been pursuing it but know that they take a chance and bombard people to get them to pay up

Capquest left it alone and passed it to someone else

The debt would have been gone for about 12 or 13 years although it is sizeable and I can see why they are chasing it

Firstly nottoolate mentioned that if your debt was already statute barred before payments then it still is (not sure if the rules are the same in Scotland but you should check into that). Secondly if you can't go down that route then Capquest messed up so you could potentially take that further. I think you are right that they were just trying their arm on it. Hopefully someone will be able to help you with this soon. Good luck.

nottoolate

in scotland after 5 years the debt is legally extinguished when it becomes statute barred.

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=23_prescription_and_limitation_act

so no one should be asking for paymant once that happens as the debt no longer legally exists

in england the debt is statute barred after 6 years

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

once it is statute barred that is permanent. even if you start making paymnts again after

nottoolate

ElmerFudd wrote: »

Out of curiosity nottoolate my student loan was deferred each year from 2001 until this year, does that mean its not statute barred since I "acknowledged" it by deferring it (not that I am refusing to pay a debt I accrued just curious)?

yes. deferment counts as acknowledgement

beanielou

I dont think student loans become statute barred?

nottoolate

beanielou wrote: »

I dont think student loans become statute barred?

yes they can

have a look at the national debline link

"Old style ‘mortgage’ student loans are Consumer Credit Act agreements. Payments cannot be automatically deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the time limits can apply if you have not paid or acknowledged the debt for over five years."

steve31red

Hi folks

Just to update I got a letter back recently saying that because I started making payments then the debt was no longer statute barred. I am composing another one back to both companies at present - the debt has been passed to MacKenzie Hall who have noted a search on my credit report and left voicemail messages on my phone and the one at my previous address and now I came into one in my office.

I'm pretty annoyed about this - should I send the same reply ? Any advice appreciated

Thanks