Statute Barred Debt and Off Setting

Trailing_muck

To cut a long story short, my partner recently recieved a letter from Macenzie Hall about an old debt from 2003-ish. We immediately sent the National Debtline "statute barred" letter and got a letter back from MH basically saying "oops, sorry, we've checked and it is indeed statute barred and we will be taking no more action" :beer:

They're passing the file back to their clients (CL Finance) - who presumably won't be able to do anything either as there's no CCJ and it IS statute barred.

It looks to me as if it's game over... my only worry is that CL Finance may pass the file back to THEIR clients, the bank where the debt came from in the first place and where my partner has her current account and some savings. If they did that, could the bank offset her savings against a debt that was defaulted 8 or 9 years ago and is now statute barred?

Tixy

Well the debt does still legally exist so I would have thought this might be possible if the debt was still owned by the bank.

But I would have thought the bank would have sold on the debt. Do you know if CL own the debt or were collecting on behalf?

If the bank still owned the debt I would have thought they would have already offset her savings.

Trailing_muck

Tixy wrote: »

Well the debt does still legally exist so I would have thought this might be possible if the debt was still owned by the bank.

But I would have thought the bank would have sold on the debt. Do you know if CL own the debt or were collecting on behalf?

If the bank still owned the debt I would have thought they would have already offset her savings.

I'm pretty sure they sold it - they've given her another loan since for a car, too (her financial position's much better now), so I think they must have defaulted it, sold it and it's gone from their records for now.