Do we have to pay an 10 year old debt??

bikerbabe500

Hi there, hope I can get some advice please from someone more knowledgeable than myself on these matters.

My hubby and I were married 2002 and moved into a rented property for 3 years and have been in our current property for 5.

Today we received a letter from a debt recovery company in relation to an overdraft my husband had back at University and didn't clear for the amount of £2311.

This is the first letter we have had relating to the debt, and over the years we have had several Experian credit reports on ourselves that never mentioned this debt.

I don't want to ring the company as this will make them aware we are here and alive and then I guess we will have to repay it.

I just want to know if they can do this after 10 or so years, and if there is a way round it legally?

I've read about a thing called a statute barred debt but not sure if this is classed as one.

Any advice would be really appreciated.

Thanks

Tixy

Hi and welcome
It sounds like it will probably be statute barred.

A debt becomes statute barred if there is a period of 6years when you pay nothing to the debt or write to acknowledge that you owe the money and providing the creditor has not obtained a CCJ.
So if you think it is statute barred then he won't need to pay it back. What you can do is to write using a SB template and after that the creditor/debt collector has to stop chasing (or prove a reason why its not SB).

You are right nnot to ring them.

RAS

if they have not already got a CCJ, then this debt will probably be statute barred. Once he tells them he is not paying, they have to stop trying to collect it.

bikerbabe500

So do you think we should fill in a SB form and see where we go from there? I guess the debt recovery people will know what one is, are they obliged then to tell me the status of the debt or can they keep trying to get us to repay?

Really appreciate your replies so far - thanks

Tixy

Send the SB template - Statute barred debts and the Limitation Acts
if they contact you again or try to say it isn't SB then come back and update us and we should be able to advise further..

bikerbabe500

Great advice - thanks so much. Have sent the template letter off today and will keep you posted as to what happens. Thanks again

bikerbabe500

Hi again

I just wanted to update and thank the kind people who gave me advice regarding our debt.

We filled in and sent off the Statute Barred template letter last week, and on Saturday received a reply - "thank you for your letter, this has been passed back to the original creditor and your account has now been closed"!!

So a MASSIVE thank you for the advice :T, saved ourselves £2300!!

I just feel sorry for those that don't know about this loop hole and end up having to repay the debts.

Thanks again

peteuk

Its a dog eat dog world out there, and I am sure every company is now looking to regain some debts....

Glad you got it sorted and didnt pay them! but your right what happens to those who dont know about these loop holes.

McKneff

I have to disagree, i dont feel sorry for people who dont pay their debts at all. It has a knock on affect on all of us.

Perhaps if people paid their debts when they were due they wouldnt need to know about loopholes etc.

Not personally directed at you but you must see what I mean.

Im glad you got sorted anyway.

Good luck.

RAS

bikerbabe500 wrote: »

I just feel sorry for those that don't know about this loop hole and end up having to repay the debts.

Hi

It is not a legal loop-hole. It is the decision of Parliament, the courts and the OFT.

The original creditor almost certainly wrote down this debt years ago.

If you were to pay back the original creditor, fine. But to pay back the original sum to a DCA who may well have bought the debt for as little as 5% of the value (based on the Full and finals some DCAs were offering last year) seems to me perverse.

If you want to make an donation to a good cause, I suggest a charity rather than a DCA.

WRINKLES

McKneff wrote: »

I have to disagree, i dont feel sorry for people who dont pay their debts at all. It has a knock on affect on all of us.

Perhaps if people paid their debts when they were due they wouldnt need to know about loopholes etc.

Not personally directed at you but you must see what I mean.

Im glad you got sorted anyway.

Good luck.

You dont feel sorry for people who dont pay their debts,, that is a very sweeping statement, most people who get into trouble with their finances are pushed into that position by the banks, insurance companies, payday loans, or some rotten DCA, they heap charges on charges if you miss a payment , I have no sympathy with them they almost bankrupted the whole world with their greed, if you cant give someone a little impartial advice perhaps you are on the wrong forum.