Motor Insurance Bureau - Help

markl1980

Hi all

I was involved in a road traffic accident in October 2002 which was my fault. However at the time I had no insurance and this was dealt with. However the other parties proceeded to make a claim and now, 7 years since I last heard anything, I have received a letter from Close Credit Management saying that they must receive payment of £14718 within 7 days or court proceedings would be started. I wanted to go into a DRO as I have other debts of approx £10k and only earn £10k per annum but my adviser as now told me that because of this debt that came out of the blue then a DRO is not possible. However he did mention that this debt could be statute barred as this was the first I had heard from them since 2004. Are they chancing their arm??.. Any advice would be helpful. Thank you.

Mark

king100

markl1980 wrote: »

Hi all

I was involved in a road traffic accident in October 2002 which was my fault. However at the time I had no insurance and this was dealt with. However the other parties proceeded to make a claim and now, 7 years since I last heard anything, I have received a letter from Close Credit Management saying that they must receive payment of £14718 within 7 days or court proceedings would be started. I wanted to go into a DRO as I have other debts of approx £10k and only earn £10k per annum but my adviser as now told me that because of this debt that came out of the blue then a DRO is not possible. However he did mention that this debt could be statute barred as this was the first I had heard from them since 2004. Are they chancing their arm??.. Any advice would be helpful. Thank you.

Mark

How do you mean that you havent heard from them since 2004?

Where did they get £14718 from, did they take you to court over this?

markl1980

The MIB paid out the compensation in 2004 but have never contacted me to try and recover it. I spoke to a solicitor back then and he informed me that they might not ever chase me for the amount but now 7 years later they are expecting me to pay it back. I have no assets so could just as easily go bankrupt but as I am on a low income I would rather go through a DRO..

king100

markl1980 wrote: »

The MIB paid out the compensation in 2004 but have never contacted me to try and recover it. I spoke to a solicitor back then and he informed me that they might not ever chase me for the amount but now 7 years later they are expecting me to pay it back. I have no assets so could just as easily go bankrupt but as I am on a low income I would rather go through a DRO..

So its the MIB that are claiming the money not the individuals whos car you crashed?

king100

Right after going onto CAG thisis what I have found

http://www.consumeractiongroup.co.uk/forum/showthread.php?287914-MIB-Close-Credit-Management-Claim-issued

Its SB I havent read all 14 pages.

markl1980

Yes it is the MIB that is going after me..!!! I will have a look at that info you sent through.. Thank you..!!! Much appreciated..!!

McKneff

Wouldnt the debt be statute barred after 6 years

markl1980

McKneff wrote: »

Wouldnt the debt be statute barred after 6 years

Thats what we are thinking but does it apply to this??.. :think:

Tixy

One thing I'm not clear on with DROs is that whilst you have to owe less than £15k I don't know how statute barred debts are treated. After all just because a debt is statute barred doesn't mean it isn't owed.

If anyone knows for certain how SB debts are treated in terms of the limit for a DRO I'd be interested to know.

king100

Just send the SB letter and see what they come back with?

markl1980

Tixy wrote: »

One thing I'm not clear on with DROs is that whilst you have to owe less than £15k I don't know how statute barred debts are treated. After all just because a debt is statute barred doesn't mean it isn't owed.

If anyone knows for certain how SB debts are treated in terms of the limit for a DRO I'd be interested to know.

That is another stumbling block with this case and no matter how this debt works out I don't think a DRO is going to be possible. Spoke to National Debt Line and unfortunately they have had no successful outcomes in this case yet although they are aware of it.