Is My Debt Statute Barred, What Do I Do Next……?

RedBullGivesYouWings

Back in May 2004 I took a loan out with Black Horse LTD for £7,000 over 5 years while I was still living at my parents house in Scotland.
About a year later in 2005 I lost my job and was unable to maintain the repayments on the loan. I contacted Black Horse to explain my situation, but they were not very understanding. After making this phone call and hearing what they had to say I panicked and decided to ignore all there phone calls and letters they sent to me demanding payment and bury my head in the sand. I was only 18 years old at the time which I know now was a pretty stupid thing to do.
Anyway this continued for about 6 months until I moved house to my current address in 2005. Since moving house I have never heard any more about this Debt from Black Horse, any Debt Collection Company’s or was it ever recorded on my Credit Expert Report.
This all changed 2 weeks ago (May 2011) when I received a letter in the post form Direct Legal & Collections stating that I owe them £13,800. In the letter it says that the creditor is “Hillesden Security LTD formally Black Horse LTD”. I went straight online and done a credit check on myself and Hillesden Security LTD has put a Default on my record, saying I defaulted on Feb 2008. Where they got this Date from is beyond me as I have never spoken to anyone about this debt since that phone call back in 2005 and this default has only been added to my record within the last month.
This is what I have done. I contacted Credit Expert telling them that I do not acknowledge any debt with this company, so they are trying to contact Hillesden Security to investigate my dispute. I also sent the CCA letter along with the £1 postal order to Direct Legal & Collections clearly stating I do not acknowledge any debt with their company.
Well today Hillesden Security LTD wrote to me acknowledging my £1 fee for the data I requested under the Consumer Credit Act 1974. They also said they are still awaiting my original agreement and statement of account from the original lender Black Horse LTD and when they become available they will be forwarded to me. I also found out today that Direct Legal & Collections and Hillesden Security LTD are part of the same company.
So what do I do now, I am really worried about this? Is my debt Statute Barred? What can I do to get the default off my report? Will I have to end up paying this money back?
Any help would be very much appreciated

CH27

A default stays on your account for 6 years.

RedBullGivesYouWings

CH27 wrote: »

A default stays on your account for 6 years.

I understand that a default stays on your record for 6 years. What i dont understand is how Hillesden Security LTD put the Default on my record when Black Horse never did and also they have only just added it when they have put on my report I defaulted in Feb 2008?

stclair

First of all you should ask them to prove you owe the debt and request a statement of account this may help you tally up the dates

If the debt was statue barred when the default was registered you should request its removal.

Do you live in scotland or england?

mo786uk

It is SB if you have made no payments or acknowledge the debt for 6 years. Ergo it will become SB sometime in 2011.

Unless you have the exact date then you will never know.

RedBullGivesYouWings

stclair wrote: »

First of all you should ask them to prove you owe the debt and request a statement of account this may help you tally up the dates

If the debt was statue barred when the default was registered you should request its removal.

Do you live in scotland or england?

I belive in Scotland that a debt is statue barred after 5 years. Now I know for sure i stopped making repayments on the loan in 2005, how would i go about proving this? Also Hillesden Security LTD has put on my Credit Report that i defaulted in Feb 2008 which is absolute rubbish, will this be a problem for me requesting it's removal, when they have only just added it to my file this month as i check my Credit report regularly?

stclair

RedBullGivesYouWings wrote: »

I belive in Scotland that a debt is statue barred after 5 years. Now I know for sure i stopped making repayments on the loan in 2005, how would i go about proving this? Also Hillesden Security LTD has put on my Credit Report that i defaulted in Feb 2008 which is absolute rubbish, will this be a problem for me requesting it's removal, when they have only just added it to my file this month as i check my Credit report regularly?

Yeah sorry i noticed after wards you are in scotland thats why I asked the question. In your case then the debt will be statue barred if you have not acknowledge the debt or made a payment in the last 5 years. Send them this letter recorded delivery and tell them to take a long run and jump My understanding they would need to amend the default date to when the account actually went into default not years afterwards.

Statute Barred Letter (Scotland only)

Dear Sirs,

Re: Statute Barred Account - Numbered - XXXXXXXXXXXXXXXX

You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under The Prescription and Limitation (Scotland) Act 1973 Part 1 Section 6 "If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:

(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged, then as from the expiration of that period the obligation shall be extinguished:"

I would also point out that the OFT say under their Debt Collection Guidance on Statute Barred debt, that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last acknowledgement of this alleged debt was made over five years ago. Unless you can provide evidence of payment or written contact from myself in the relevant period under Part 1 Section 6 of The Prescription and Limitation (Scotland) Act 1973 , I would respectfully suggest that you are no longer able to take any court action against myself to recover the alleged amount claimed.

Should you continue to pursue this account without providing this evidence I shall seek an interdict and damages accordingly. A formal complaint will also be made to Trading Standards along with a report to the OFT questioning your fitness to hold a consumer credit license.

I await your written confirmation that this matter is now closed and that no further contact will be made concerning the above account after that last letter.

I look forward to your reply.

Yours faithfully




Sign digitally

mo786uk

Its not upto you to prove it

its upto them to take you to court and prove you owe the money

by all accounts they will keep harassing you until you either pay, they give up or take you to court.

if you write back telling them it is SB once you know for sure then they shouldnt keep contacting you - if they do then report them to trading standards.

RedBullGivesYouWings

Thank you so much you guys, you have no idea how worried i've been about this, this debt has been living in the back of my mind for many years, i have not even told my wife about it. I'll get straight on that letter and get it sent into them. What will happen once they recive it? Will they have to remove the default from my account? Also if Hillesden Security LTD does back off and accept the Debt is SB will i get bothered by any other Deb Colection Companies?

stclair

RedBullGivesYouWings wrote: »

Thank you so much you guys, you have no idea how worried i've been about this, this debt has been living in the back of my mind for many years, i have not even told my wife about it. I'll get straight on that letter and get it sent into them. What will happen once they recive it? Will they have to remove the default from my account? Also if Hillesden Security LTD does back off and accept the Debt is SB will i get bothered by any other Deb Colection Companies?

Hey im sure it must be very worrying for you. However take a deep breath now and grab yourself a beer its the weekend after all. Once you have sent the Statue barred letter they will write to you to confirm the case is now closed for once and for all. However you will need to challenge the removal of your default.

BoGoF

Is it that easy to shirk your responsibilites.....hide for 5 years?