Bank account advice needed

TrevorWebb

Hi all, I am wanting to finally sort out my credit rating so this morning I got a credit check from Experian.

It came back as 'very Poor' and the main concern seems to be 2 bank accounts with the same bank that I had over 10 years ago. I won't go into too much detail but my girlfriend at the time used my card without permission and left me with the debt.

I went into the branch at the time but they said that as I didn't want to report my girlfriend, the only thing they could do is freeze the accounts so that they would not accrue any further interest or charges.

After going into the bank again today, I have been told that 1 account has been passed to a debt collection company and the other is accruing a small amount of interest every month.

After this long, I had hoped that the debt would have cleared. I have heard that after 6-7 years, any debts are wiped. I believe the last time I used either account was back in 2002 and I haven't had any letters or contact since then.

I spoke to a person in store and on the phone today and neither person was able to find any information on the account dating further back than 2011 so neither person could tell me how much the original debt was before all of this interest was added on.

I would like to sort this out one way or another and have an appointment on friday 10th jan to talk about it further but any help I get get on here before then would be greatly appreciated.

Should the debt be cleared or is that just wishful thinking?

If they can't give details on the original debt then where do I go from there?

If I do need to pay anything, will they be open to offers of partial payment or will they expect the full amount?

Thank you for any help

Tixy

Hi

Are the entries on your credit file still in the name of the bank? not a debt collector?

It sounds like the debts may well be statute barred. Which would mean you are not legally obliged to repay the debt (although it is not strictly written off). Debts become statute barred 6 years after the last payment or written acknowledgement of the debt if the creditor doesn't take court action.

For an overdraft that 6year date usually starts on the later of the date the account was last used or the date the overdraft was recalled or the date you last wrote to them admitting the debt existed.

When was it that you went in to the branch about this (when you said you didn't want to report her)? Did you sign anything at that time do you think?

The entry on the credit file is separate to being statute barred. What do the credit file entries show - do they show a 'default date', if so when? or do they show a row of missed payments? or what?

TrevorWebb

Both entries are in the name of the bank. There are no entries at all in the name of any debt collection companies.

I went into the branch some time back in 2002 which was when the account went overdrawn. I definitely didn't sign anything on that day and have not been back into the bank until today.

Account 1's status is 'Default' and the balance is 'satisfied'. It was last updated on 07/10/12.

This is the account that has now been closed and a debt collection agency have purchased the debt.

Account 2's status is '6 Payments Late' and the balance is the amount that it is overdrawn by. This one was last updated on 01/12/13.

Hope this helps?

Sazzie23

Even if not statute barred surely the accrual of interest would be invalid as they said they were freezing the account ?

Tixy

TrevorWebb wrote: »

Account 1's status is 'Default' and the balance is 'satisfied'. It was last updated on 07/10/12.

This is the account that has now been closed and a debt collection agency have purchased the debt.

Account 2's status is '6 Payments Late' and the balance is the amount that it is overdrawn by. This one was last updated on 01/12/13.

What is the default date shown on the account for debt 1?
This is the key date and the entry will fall off your record 6years after that date.

For this debt you probably need to write to the bank to state that the entry on your credit file in incorrect and unfair. Point out that the ICO Guidance - Filing defaults with credit reference agencies states that a default should normally be entered within 6months of you falling behind with repayments (see section 11 of that link) and that the default date of x is not a fair reflection of the account.
(The aim is that they backdate the default to sometime before 2007 and so the whole account disappears off your file.

For debt 2 have the '6 late payment markers' been going on for years? Again you need a letter to the bank to state that the credit file entry is unfair and not in accordance with the ICO guidelines. Refer to section 4 (highlighed by fermi in red on that same link). Again ask them to correct your file as you believe a default should have been entered no later than xx date (sometime in 2003 probably).

If the debt collection agency writes to you regarding these outstanding debts then you likely want to be sending them the statute barred template letters - see here - Statute barred debts and the Limitation Acts