Section 77(4) only prevents us from pursuing recovery of the debt through the courts

Debtpet

Hi

Having made a subject access request to Natwest re an old loan debt I received the following response:

'We regret to advise you that the Loan Agreement form has been misfiled and, despite searching our records, we have been unable to locate it. Our record of the setting up of the loan has insufficient detail to enable us to recreate the agreement with the required degree of certainty that is required.

We appreciate that, under Section 77(4) of the Consumer Credit Act, we will be unable to take steps to enforce repayment of the loan should you decide not to meet your obligations under the loan. However, we believe that you should continue to make repayments as the agreement remains valid. You should note that your continuing default will be reported to the Credit Reference Agencies as Section 77(4) only prevents us from pursuing recovery of the debt through the courts.

Please note that if we do not receive an acceptable repayment offer, we may take such actions as are legally permitted to recover the outstanding debt.

We trust this clarifies matters'


Am I correct in taking this to mean that there is no legal obligation on me to pay this debt?

I understand that it is not unusual for a creditor to be unable to locate a copy of the original agreement. However, it does seem strange that they have not provided me with any information whatsoever on the debt.

As things stand I have absolutely no idea how they've arrived at the outstanding balance they are demanding. I just wondered where this leaves me, as clearly I don't want to, and feel I shouldn't have to, be paying an amount they've arbitrarily arrived at! I would be extremely grateful for any and all advice you can offer.

Sparklyfairy

Yes, you are correct. They can't enforce this debt by taking you to the courts. But they can pester you with letters & phone calls & your credit will be shot. I would keep that letter very safe & yes it is odd that they cannot supply you with any info at all - wrong really.

If they start hassling you with phone calls & letters, I would send them a letter asking them to stop as it's harrassment. Hth, SF

Debtpet

Thank you for the speedy response!

The funny thing is that this debt doesn't, and has never, appeared on either my Equifax or Experian crf. I have tried to get my callcredit file to check that too, but I have failed in my attempts to persuade them that I am who I say I am (even though they were happy to accept a subscription fee).

Does it seem likely that they come back to me at some point down the line with more info?

Thanks again

Butti

It means they can't produce the evidence that you owe the money but that they can still do their best to shoot your credit history to hell.

I would have a look on a diary by someone called Gargrave on here. She is busy negotiating HARD with a creditor on exactly this basis. There are plenty of examples on her thread how she has phrased things with them.

RAS

Hi

How old is old? Was there any time when you did not pay for 6 years? 5 years in Scotland?

give_them_FA

How "old" is old, debtpet? When does the default go back to?

If they try to harass you over an unenforceable debt you should be in a good position to claim damages.

Debtpet

Thanks Guys.

The default is from 2 and a half years ago so I don't think the SOL applies?

RAS

The date of the default is irrelevent what matters is when you last paid or made a written acknowledgement.

Gordon_Hose

You've already got a default, which is the worst they can do at this point.

Bear in mind that if they do turn up your CCA, they can enforce through the courts. When did you last make a payment?

vax2002

It is not a "debt" until they obtain a judgement.

pauletruth

daft question how can they prove you defaulted your agreement.