Bank using set off to pay statute barred credit card debt

Loimy

I had a credit card with Natwest that regrettably defaulted in 2007. This became statute barred in 2013 and dropped off my credit file.

I've just received a letter from Natwest reminding me of this defaulted account and stating their Right to set off the outstanding amount with funds held in my other Natwest accounts (I have a current and savings account).

However, the letter also states that the default is now managed by Apex Management and that I should contact them "urgently" to discuss my repayment options. They quoted a phone number for Apex which is no longer a valid number. I have moved house recently and don't have any recollection of any letters from Apex.

My questions are:
- can they still set off the outstanding balance even after the default has been statute barred after 6 years? Especially since they no longer own the debt after selling it on to Apex?
- if they have sold off the debt to a debt management company who have not contacted me for the past 6 years, is this letter something to worry about or is it just scare tactics from the bank?
- if I contact Natwest to query this letter and offer to pay back the debt, will this reinstate the defaulted account on my credit report?

Many thanks in advance for any advice.

L

ricer10

I'd just be binning the letter personally.

pvt

Being statute barred means they cannot pursue you through the courts to recover their money. However, I doubt that would affect their rights to use set off, which you almost certainly agreed to in the Ts & Cs of all the accounts you've openned with them.

JuneS

Loimy wrote: »

I had a credit card with Natwest that regrettably defaulted in 2007. This became statute barred in 2013 and dropped off my credit file.

I've just received a letter from Natwest reminding me of this defaulted account and stating their Right to set off the outstanding amount with funds held in my other Natwest accounts (I have a current and savings account).

However, the letter also states that the default is now managed by Apex Management and that I should contact them "urgently" to discuss my repayment options. They quoted a phone number for Apex which is no longer a valid number. I have moved house recently and don't have any recollection of any letters from Apex.

My questions are:
- can they still set off the outstanding balance even after the default has been statute barred after 6 years? Especially since they no longer own the debt after selling it on to Apex?
- if they have sold off the debt to a debt management company who have not contacted me for the past 6 years, is this letter something to worry about or is it just scare tactics from the bank?
- if I contact Natwest to query this letter and offer to pay back the debt, will this reinstate the defaulted account on my credit report?

Many thanks in advance for any advice.

L

pvt wrote: »

Being statute barred means they cannot pursue you through the courts to recover their money. However, I doubt that would affect their rights to use set off, which you almost certainly agreed to in the Ts & Cs of all the accounts you've openned with them.

Correct.

All the Act does is to prevent enforcement of collection of the debt by legal means.

However, the debt is still owed.

If the debtor gives the creditor money, there is no surprise that it is then used to repay the outstanding debt.

There is no indication the debt has been sold on - the communication simply says the debt is being managed by a third party.

There should be no further entry on the OP's credit history regarding this matter.

fatbelly

This illustrates that you should never bank where you have debts.

Now that they have given you advance warning of this, you should move all your money out of both accounts, and stop paying into them.

If you find on Monday morning that they've already raided them, you can of course complain. But you wouldn't have a leg to stand on.

If you still have the credit card debt, then you can engage with Apex about your belief that your debt is statute barred. Dropping off your credit file is irrelevant to this, as is the date a default was registered.

matttye

Post #2 is a bad idea - at least if you don't do something about it before binning it.

I'm another that's of the opinion you need to get your money out of there fast.

sourcrates

Agreed, remove your money first thing in the morning, never, ever bank where you have debts, the debt has probably been assigned to this DCA, lets be clear, they are a debt collection agency, not a debt management company, two completely different things, but both are out to screw you, you need to wait until this DCA write to you, then in response send the provit letter to them, basically they have to prove your liability for the debt, its not up to you to prove you don't, see what, if anything comes back to you. A debt is only statute barred after a period of 6 years passes without any payment or acknowledgement taking place.

Loimy

fatbelly wrote: »

This illustrates that you should never bank where you have debts.

Now that they have given you advance warning of this, you should move all your money out of both accounts, and stop paying into them.

If you find on Monday morning that they've already raided them, you can of course complain. But you wouldn't have a leg to stand on.

If you still have the credit card debt, then you can engage with Apex about your belief that your debt is statute barred. Dropping off your credit file is irrelevant to this, as is the date a default was registered.

Thanks for all your thoughts on this. I've made some errors in the past with finances and am now in a much better position financially. The debt is definitely stature barred. I am just reaching a position where I will be able to repay the debt in full, and am intending to do so, but am worried that Natwest might then register a "satisfied" status on a statute barred defaulted debt that will trigger a reappearance on my credit file and remain on it for another 6 years for potential future creditors to see.

Am I right in thinking that once a debt has been statute barred then it can't be re-registered on one's credit file again?

I'm not comfortable with ignoring this like I did 6 years ago, as it's just likely to keep coming back. I'd just hate to be penalised for trying to wipe the slate clean and make a fresh start.

L

fermi

You say the defaulted account has dropped off your credit files, so it was on there as a defaulted account before?

If so, then they are not allowed to do anything that could put it back on. Once dropped off they must stay off. If for some mistaken reason it did reappear you would be able to complain and have it removed.

thewhiteavenger

Loimy wrote: »

Am I right in thinking that once a debt has been statute barred then it can't be re-registered on one's credit file again?

L

Once a debt is statute barred it stays unenforceable, so you always have a defence to any court action.


Once a credit reference agency registers a default or a settled status, the entry drops off 6 years after this.


The enforceability of the debt, and what a credit reference agency does, are two separate things.

Loimy

fermi wrote: »

You say the defaulted account has dropped off your credit files, so it was on there as a defaulted account before?

If so, then they are not allowed to do anything that could put it back on. Once dropped off they must stay off. If for some mistaken reason it did reappear you would be able to complain and have it removed.

Yes, the default was recorded on the credit report for 6 years, and dropped off in April 2013.

I'm hoping that any attempt to pay off any outstanding debt won't lead to the old default being logged as "satisfied" by the bank and CRAs, hence leaving me stuck again with a blemish on my credit report for another 6 years. From what I've read on here, this seems to be an unlikely outcome (although unfair, if it did happen), now that the default has served its 6 year time on my credit file.

Does anyone think it would be worthwhile writing to the bank offering to pay the outstanding debt providing they don't log anything new on my credit file? Or would that just acknowledge the debt and start the clock again??

I'm not surprised if some people are tempted not to pay off any old debts, for fear of being penalised on their credit file.

Thanks for all your responses.

L