Default Current account/ Ruthbridge/Cabot

plzhelpme

Ok Guy's/ Girls.

This is my first ever post so please be patient :-)
Back in 2004 when I was a skint student I was banking with Bank of Scotland. I had a Student current account with a 0 % overdraft of £2000.

I was very close to being £2000 overdrawn a lot of the time when I noticed on one of my statements in 2005 that my overdraft limit was £9000.

I was shocked that this was the case as I hadn't requested it. More to the point I never thought that they could just up the ammount like that. Being a silly nieve teenager at the time I continued to stay overdrawn.

Sometime in 05/06 I got a letter saying that my Overdraft was up for remewal. The bank of course did not renew it and left me with a huge debt needing re-paid strait away. When I went into the bank the manager said that someone must of made a "keeying in error" on my account!!!

I couldn't afford to re-pay them strait away and was to ashamed of what had happened to tell my family.

I opened another current account strait away with an other bank and began using them. I pretended the letters weren't coming through the door and ignored the problem( which I know I shouldn't have). I then moved a couple of times renting different places.

Fast forward to the present day and I have a degree under my belt, a morgage which is payed in full every month (santander) a Credit Card with a £3000 limit which is almost always paid in full every month and no debts appart from a default on my credit file from Cabot for £5677.

This has a start date of 10/05/2004 and a default date of 19/10/2006.

I am sure the debt at the time was no where near as much as that but I have no way of prooving it as I don't have any documents.

I hadn't heard anything from any DCA's or anybody relating to the above mentioned debt untill this week. I recieved the "You have been traced letter" from Ruthbridge. I know I should of faced up to my debt at the time but I really had know where or know one to turn to for help.

They have not provided any proof of a Credit Agreement of Anything and the letter simply asks me to contact them- after reading this forum there is no-way I will be doing that.

On my credit file that default is under Cabot but the letter is from Ruthbridge.

I live in Scotland and am aware that the debt will of expired by 16/08/2011. In fact I don't know when the last time was that I acknowledged the debt. I am making this assumption based on the date on my credit file.

Is this correct?

I have been managing my finances to the penny since 05/06 and have never even been Over Drawn since then.

I am at a complete loss of what to do next. Should I Ignore the letters? Do defaults come off after 6years? Even in Scotland? Are Ruthbridge hoping to get the money withing the next 5months before it Expires?

Please any help or advice would be so so great!! Thanks

plzhelpme

Is an overdraft an un-insured debt? I have a Defaulted Overdfraft that according to my credit file will be 5years old this October.

Ruthbridge are chasing it and I haven't responded to them.

Should I bother or just ride the storm to October??

fermi

The default will stay on for 6 years from the default date. Even in Scotland.

The debt will be statute barred in Scotland 5 years after the bank called in the overdraft and demanded repayment in full. Or a later date if you acknowledged the debt in writing or made a payment once they had called it in.

The default date can be significantly later than those above dates, so it's not a reliable marker to use when working out if the debt is statute barred.

You really need to know the date that the bank demanded the full overdraft back, and/or the date of any later payment or acknowledgement in writing that you made (if you made any).

plzhelpme

fermi thankyou so much for ur quick reply.
I took out the new bank account in June 06 and never maid any payments/ wrote any letters since I opened the new account.

fermi

plzhelpme wrote: »

fermi thankyou so much for ur quick reply.
I took out the new bank account in June 06 and never maid any payments/ wrote any letters since I opened the new account.

As said, for an overdraft the 5 years starts running the first time when the creditor demands the overdraft back in full.

After that, each time you acknowledge the debt in writing or make a payment, that restarts the 5 years. If you don't do that, obviously the beginning of the 5 years remains as the "calling in" date.

If you are certain of those dates, then the debt would be statute barred in Scotland by June 2011 at the latest. Possibly before, depending on the exact timing and what you did just prior to that.

It's hard to get to grips with these things on a forum.

I would suggest that you give National Debtline a call FREE on 0808 808 4000

See: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

They can probably in a few minutes help you work out whether to send the appropriate letter now or just wait. Plus that will be the opinion of a professional debt advisor.

If it was me I would hang back for a bit.... But see what they say.

plzhelpme

I honestly don't know what we would do with out such nice caring ppl!!!
Thankyou for your help. I shall call them and re-post the response on this thread!
Thanks again

plzhelpme

Ok so I contacted the national Debt helpline and they couldn't of been nicer. The Gent on the Phone advised me to wait and see what the next letter I recieve from Ruthbridge is. As all they say so far is to contact them by phone which he said to NEVER DO. He said there specialillity is Statuate Barred Debt/ Extinguised Debt. As we couldn't be 100% sure if mine has quite reached the 5year mark yet he said to do nothing. I'll Wait a week and see what comes in the post then fire off the "Extinguished Debt letter".
He never mentioned anything about a "proove it letter". i see lots of people talking about that on here..
Any help is thanked for in advance :-)

fermi

Good.

plzhelpme wrote: »

He never mentioned anything about a "proove it letter". i see lots of people talking about that on here..
Any help is thanked for in advance :-)

A "prove it" letter could be two things.

a) A letter stating that you do not recognise and have never owed this debt.

b) A request for a copy of the credit agreement/paperwork to see whther the debt is enforceable.

(a) doesn't apply as you do recognise this debt, and (b) doesn't apply either as an overdraft doesn't need a signed credit agreement for it to be enforceable.

Also, if the debt is statute barred, then that is the end of the matter. No need to dispute the debt in any other way.

So that is the first thing to do when or if you decide to write.