When banks wipe off your debt??

shropshire1007

Hi I'm new here.

Lloyds TSB and Captial One have wiped my debt off and confirmed this over the phone to me. They said it no longer exists and that they will put it in writing to me.

What I want to know is, what law or act does this come under when they do this?

Yes it's fine they have wiped it off but I want to know that it's been wiped off in line with what ever act or law so I can tell the debt collection agency that don't believe me that it has.

rising_from_the_ashes

I'm a bit confused about how it can have been "wiped off" but a DCA is chasing you for the money?

Are you sure it's not just been sold on? (it wouldn't show on their books anymore as the debts been passed to someone else)

shropshire1007

Nope, it has not been sold on, the DCA wee just assigned to chase it by the lender. The debt has definately been wiped in full.

XXSCOTSLASSXX

Id contact Cap one and Lloyds again and make sure they state in their letters the debts have not been passed on to any DCA... Company I used to work for as soon as DCA was brought in it was no longer classed as the Companies debt so it was 'in effect' written off by the Company ..... Id just double check and get all in writing that is written off in full and has not been passed/sold to any DCA....

can I ask (if not too cheeky) for what reasons they both allowed the debt to be written off? Im not law/act savvy however others might be able to answer ur question re laws/acts more fully if the reason for debt being written off is given x

shropshire1007

Got the written confirmation from both.

They both said that twice a year banks will wipe off debt to make the books balance and in the Lloyds TSB case that time is currently now as well as Captial One. They confirmed that initially it was passed to a DCA to collect but now its wiped the debt does not exist and the DCA cannot chase for it. They also both confirmed that once wiped the debt cannot be re-activated as it would mean the debtor having to sign new paperwork/agreements which would not happen. It's even off my credit file too.

Just want to know what law it comes under that's all. Is it the Administration Act?

Tixy

I doubt very much it comes under any law - it sounds like it was simply a commercial decision. Unless there is more info you could provide about why they were apparently wiped off.

The only law I know about where a debt would be wiped out is the Scottish Limitation Act (obviously relevant on in Scotland and relates to when there has been no payment or written acknowledgement by the debtor for 5years).

I'd simply suggest that if you have a DCA who is chasing for one of these debts still that you send a copy your letter from the bank to them.

XXSCOTSLASSXX

shropshire1007 wrote: »

Got the written confirmation from both.

They both said that twice a year banks will wipe off debt to make the books balance and in the Lloyds TSB case that time is currently now as well as Captial One. They confirmed that initially it was passed to a DCA to collect but now its wiped the debt does not exist and the DCA cannot chase for it. They also both confirmed that once wiped the debt cannot be re-activated as it would mean the debtor having to sign new paperwork/agreements which would not happen. It's even off my credit file too.

Apologies .... you had said in 1st post both were 'going' to put in writing for you... didnt realise you already had the letters have they not stated in the letter the Act concerned? I would just copy the letters and pass onto DCA if all info there dont think you need full info re any Act etc if u have letters stating all in full.... or give them a call re your letters and ask them to advise the law/act it comes under