Statute barred - when does it start on an overdraft?

scott1358

Hey,

Last few months I've been taking time to get my credit reports and trying to get information on old debt of mine from when I was a student.

I've read a lot on here about statute barred debts and the six year period starting from the last acknowledgement or payment on a debt. But how does this work with an overdraft debt on a current account?

It could be many months between the last payment going in to the account and a default being issued. When does the six year period start for this kind of debt?

Tixy

I believe its from the date the overdraft was officially recalled by the bank. Will try to find you a link.......

edit https://forums.moneysavingexpert.com/discussion/3297554 fermi in post #2 explains re a SB debt. Thats obviously when the 6years can start (although obviously later payments after this would reset the time period).

scott1358

Ahhh thanks. With respect to the date an overdraft is "formally called in" by the bank, would this be the date of a default recorded on a credit file, or could it be earlier?

Tixy

Could be earlier, certainly shouldn't be later.

scott1358

Thanks Tixy... I think I'm in for an August of worry!

Loobeyloop

Hi Scott, I'm the one on the link, I'm still uncertain as to if my overdraft is statute barred but am following the guidance of tixy and others, I sent the standard letter and received one back (Can't do a link but if you view my profile see started threads by me) they didn't acknowledge if it's statute barred or not, so I have hit them back with a second letter from here, it's quite scarey and to the point and I'm pretty frightened it won't go in my favour although the guys on here think after 9 years it should be (I haven't paid anything in since 2002) But I have no idea when or if the bank called the debt in, but you'd like to think they wouldn't have kept it open all these years... The debt collection people are horrid, you can feel the smugness in the letters they write...From reading on here I have learnt that debt collection agencys will buy a debt knowing full well it is SB, but as lots of people don't know that it's SB after 6 years will start payment to the DCA.... I hope you get it sorted, when was the last time you used your OD or had communication from the bank? I'm no expert but I know what you are going through, and it is worrying isn't it?

scott1358

Thanks LL... the overdraft was on a joint account I had with my ex partner 2003-2005. Because it was such a horrendous relationship (and it was initially my account) I asked the bank to change it to just my name and they agreed, so removing his liability for the debt and allowing me to move on from the relationship (even though the debt was only accrued when we were together!). I moved out and the last statement I had was mid 2005 but by this point I had built up an overdraft and hadn't had a wage in about 3 months, so nothing paid in.

Earlier this year I pulled my head out of the sand and started applying for credit reports to try and start cleaning up my credit history and pay off some debts. here was an error on one of the reports that I asked to be amended and I was then told the CRA has contacted the original lender who had agreed to delete the entry on my credit file.... however I have just found out from another CRA that this account defaulted at the end of August 2005.

My worry is, in my attempt to sort out my debts, I have unwittingly given them my new address and if the original creditor passes on the details to the current owner they may start chasing it and potentially get a CCJ. I had a nightmare about this last night! The last letter I have from a DCA for this account was early 2006 which I just ignored happily at the time (being young and not thinking about my future!). I'm pretty confident that after the default date it would be SB but until then I am literally bricking it. I paid off quite a bit of debt earlier this year with a windfall I got but there's no way I'd be able to pay this as well.

I think I'm gonna stick my head back in the sand... it felt safer there.

Loobeyloop

Gutting. you were only trying to sort your life out too!! I really hope it goes in your favour doesn't stop you worrying tho does it? Keep us posted, and keep on here, it really helps to know there is so much support and so many knowledgeable people on here, and so many that are in the same/similar boat!