Help! What are my rights?

sacha28

Hey guys just wondering if there's anyone out there who can help with a problem that has just come to light..........

Back in 2005 I (very stupidly) took out a small loan of £1000, from welcome finance, for my now ex-boyfriend, on the basis that he would make the monthly payments. This is a classic school girl error and started kicking myself 2 months later when he decided he really couldn't be bothered to pay . Being very young and pathetic, I decided the best thing to do was ignore it and then about 3 months after the last payment was recieved by them, we moved to a different town. I'm not going to bore you with my awful relationship but it was financially abusive (I earned the money working 3 jobs whilst he had sole access to the joint account). I finally managed to leave him in March 2008 :j and began to pick up the financial pieces of the bills he didn't pay that I had no idea about. It was hard but I'm nearly there!!

2 Months ago I got a letter from a company that I'd never heard, demanding £4,500. I obviously phoned immediately and was told that welcome finance had gone bust and they had bought the company, taking over their debts, and wanted me to start making payments of £200 a month to clear this debt :eek:. I told them the original loan was for £1000 so I didn't accept I owed the amount they're asking for and asked them to provide proof that I owed this amount. They said that they would send me a copy of the loan agreement, then phoned back a week later to say they couldn't find the loan agreement but I need to start making payments. I refused on the grounds that I don't believe I owe anywhere near what they are saying.

Please can anyone advise me on where I stand? I'm just getting myself sorted and can't stand the thought of another massive bill from a relationship that took 10 years to get out of!

Tixy

Hi

When was a payment last made toward this debt? either by you or ex?
Its possible that this debt could be statute barred either already or soon.
Which UK country are you in?

dunstonh

They said that they would send me a copy of the loan agreement, then phoned back a week later to say they couldn't find the loan agreement but I need to start making payments. I refused on the grounds that I don't believe I owe anywhere near what they are saying.

Until they can show that you actually have a liability for the debt, then you do nothing.

They cant just expect you to pay (and not court would expect you to) without evidence that you have a debt with them. So, whilst they huff and puff and even threaten you, until they prove otherwise, you dont pay them a penny.

sacha28

The last payment would have been in june 2005. I don't really understand how the statute barred thing really works, I've spoken to them so does that mean it's not? I'm in sunny Devon

Since the last phone call, almost 2 months ago, I've not heard anything so I'm kind of in limbo. To be honest I put the phone down on the advisor after saying I wanted proof of this debt, I guess I was just disappointed that something else had come to bite me on the a**e!!!

Tixy

Sounds like the debt is very soon to become statute barred.

Speaking to them does not count as legally acknowledging the debt. A debt becomes statute barred in England 6years after the last payment or the last written acknowledgment of the debt and assuming that the lender hasn't taken out a CCJ or started court proceedings within that 6years. Have you checked there is no CCJ?

So pay them nothing. If they write to you again then once you are certain the debt would be statute barred (presumably by July you will be certain?) then you can send them a statute barred letter template.
If you want to write anything to them in the meantime the only letter you should send is the prove it letter (which specifically does not acknowledge that you owe the money).

If they come back to say the debt is not statute barred for any reason then don't agree to pay them and come back here for more advice (DCAs are not above making up payments that they claim were made when the debtor knows full well they were not).

Templates, info and factsheets here Statute barred debts and the Limitation Acts

Prove it letter template http://forums.moneysavingexpert.com/showpost.php?p=11570893&postcount=2

sacha28

Thank you to both tixy and dunstonh you've both made me feel better!!

Just one question though - if it's still in the hands of a recovery agency does that mean it hasn't been passed to the cc?

jonnyd281

Did you tell the loan company when you moved away or have they had to track you down?
I seem to remember someone saying on another thread that this stopped the Statue Barred clock, perhaps someone with a bit more knowledge (or a better memory) than me can confirm (or not) this, it will make a difference to the OP if they try to claim it is Statute Barred (it could maybe be argued that it is acknowledgement of the debt maybe).

sacha28

I just upped and left......well the same apartment block but a different flat!!! I know it was a very, very stupid thing to do but the ex had already stated he didn't want to pay anymore. As I said, I had no control over anything financial, even my bank card was shredded to ensure I had no access to the account!! I'm so proud that I've managed to clear most of it, anything you could think off he didn't pay it..........phone bills, council tax, loans etc. I was very naive and allowed him to apply for these things in my name as he was bankrupt. D'Oh!! A very hard lesson to learn (when I finally saw things for how they were).

Tixy

jonnyd281 wrote: »

Did you tell the loan company when you moved away or have they had to track you down?
I seem to remember someone saying on another thread that this stopped the Statue Barred clock, perhaps someone with a bit more knowledge (or a better memory) than me can confirm (or not) this, it will make a difference to the OP if they try to claim it is Statute Barred (it could maybe be argued that it is acknowledgement of the debt maybe).

Doesn't make a difference. It would still become statute barred unless the debtor specifically acknowledged in writing that they owed the creditor money. I.e. a letter to say this is my new address in connection with the outstanding debt I have to your company, or words to that effect.
If the debtor doesn't tell the creditor their new address the creditor could still choose to start court proceedings/take out a CCJ (as this only has to be sent to the last known address). If they don't take this action when they could then the debt still becomes statute barred.