Date of default and query over statute barred debt

tigger004

Hello !

This is my first post..I am really sorry if it is in the wrong section or something but I would be very grateful for some advice and help on what to do in our situation,

Today my husband got a county court claim for £5500 through the post and after a bit of research we fond this debt is for a previous bank account that he had in the late nineties. The bank froze and then closed the account around 1999/2000. My husband got into problems when he had to take 9months sick leave ..he tried to sort out a repayment plan but the bank wouldn't accept the amount he could offer and kept piling on the charges as his overdraft was exceeded. It was a really difficult time but things eventually got better and because the bank had frozen the account he changed to another bank and although he initially tried to reach an agreement he stopped contacting them around 2002 and until today we don't think that we have had any communications from them either by phone or letter in all that time. The CAB told him today that the debt will be statute barred and showed him what part of the county court claim form to respond to in order to notify them that it is statute barred. Tonight though we have looked at his experian credit report and seen that the debt collection company registered the debt in default in 2008...my husband cannot remember the date but is certain that he was sent a default notice in 1999/2000 because rang the bank in panic. We would really be grateful for any help and advice. I would like to be able to pay it off but we cant and to start a repayment plan would be tough. He has just started a long term contract following a long search after redundancy and i am recovering from lengthy treatment following a cancer diagnosis. If anyone can offer any advice about the statute barred query I would be grateful . Also can a debt be defaulted more than once? Especially when the latest default is years after the event with no payments or contact? Is it a good idea to contact the debt company to ask for full details ? Just in case it is relevant all but £1000 of the debt is made up of charges. Many thanks in advance Tigger

rizla_king

Default date on the credit file has nothing to do with whether the debt is statute barred or not. Defend the claim, then tell the collector to remove the wrongly dated default.

rizla_king

The CAG legal issues forum can help you defend the claim

Go to http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?170-Legal-Issues

tigger004

Thank you so much for this advice Rizla King...I'm very grateful for such a quick reply. I will contact the CAG in the morning.

Thanks again !

happy_bunny_2

Chances are that the default date recorded is not the real one. They change it to get you to talk to them and to try and persuade you its not SB and to pay.

I would submit a written complaint to the DCA to change it and refer to FOS if they won't. If SB and thrown out of court, that will help also.

Also worth an SAR to the bank. Doubt they have records from that long ago, as they only need to key for 6 years I think. This will also help your case or if they have the records you can see the status of the account history to estimate when it should have defaulted.

Current account defaults are not as straight forward as cards etc and no default notice is required. Usually defaults when you get a letter calling in the OD or they sell it, which can take a while.

fatbelly

Follow CAB advice and concentrate on the claim first. You have 14 days from service of the claim (28 if you acknowledge service) to defend it.

I'd be saying:

I have not acknowledged this debt by payment or in writing since 2002 and the claim is therefore statute barred under the Limitation Act 1980

ace2base_2

Hi Tigger. See my thread "duplicate CCJ and default". I had a similar problem which has just had a good result.