I took out a loan 7 years ago and I've heard nothing about since?

BlueKangaroo

In 2004 I was a student. I walked into a major UK bank in the city centre and applied for a £500 student overdraft. I used the £500 up, moved house, and I've never heard from them since.

It's 2011 - will the bank bother to find me and if so will the amount I've to pay back be more because of the time that has passed?

iolanthe07

If the loan was 7 years ago and there has been no contact, no CCJ and no admission of liability from you, then the loan will be Statute Barred. It is not written off, but it cannot be enforced through the courts. I don't think they would bother chasing such a small amount after 7 years.

ViolaLass

And yes, it will have gone up. The odds of them not charging you interest all this time are pretty tiny.

Do the right thing, pay it back.

BlueKangaroo

And yes, it will have gone up. The odds of them not charging you interest all this time are pretty tiny.

Really? Where's that in the law? Where does it say they can do that? I'm not saying you're wrong but I'd like to know the name of the procedure that allows them to add to the amount without notifying me - regardless of who is morally right.

ViolaLass

BlueKangaroo wrote: »

Really? Where's that in the law? Where does it say they can do that? I'm not saying you're wrong but I'd like to know the name of the procedure that allows them to add to the amount without notifying me - regardless of who is morally right.

I can only speak in terms of probabilities since I don't know the details but if it was a student overdraft, I would imagine that it was interest free when you took it, but probably stopped being so when you stopped being a student (judging by my experience of student overdrafts).

Also, you don't know that they haven't informed you - they could well have sent letters to the address on the account. The fact that you haven't updated it isn't their fault.

scottishblondie

It's entirely possible they've obtained a CCJ against you for the debt in the intervening years - have you checked your credit report?

opinions4u

BlueKangaroo wrote: »

Really? Where's that in the law? Where does it say they can do that? I'm not saying you're wrong but I'd like to know the name of the procedure that allows them to add to the amount without notifying me - regardless of who is morally right.

They can notify you at the last address they held for you.

Unless you can show the terms and conditions of the account to be an unfair contract they are legally enforceable.

I do hope they catch up with you soon.

Google 'statute barred' and write to them.

Tixy

This might be statute barred - although its possible they already have a court judgement against you - if they have then it would never go SB.
If you are thinking of writing to them to say its SB I would check first if you have a CCJ from them.

cobblers_boy

i didn't think that the statute barred legislation covered overdrafts. i think it only applies to loans and credit cards

KingElvis

I would check out the Registry Trust here to see if you have any CCJs against you at previous addresses.

http://www.trustonline.org.uk/

I would imagine it's possible they have one.

Good luck.

Culex

Tixy wrote: »

This might be statute barred - although its possible they already have a court judgement against you - if they have then it would never go SB.

Have you read section 24 of the Limitation Act 1980?

24. Time limit for actions to enforce judgments.

1. An action shall not be brought upon any judgment after the expiration of six years from the date on which the judgment became enforceable.
2. No arrears of interest in respect of any judgment debt shall be recovered after the expiration of six years from the date on which the interest became due.

I am not a lawyer, but that does seem to suggest that, after six years, any court judgement in the claimant's favour could not be enforced, nor could interest thereon accrue beyond the six year limit.