How long does a debt last?

yorkie1980

Hi all,

Hope this is in right forum - searched everywhere, but can't seem to find an appropriate place?!

I'll start with my situation. In comparison with the people's I've been reading on here over the last 6 months or so, it seems quite small.

Ok, so I had a Capital One Credit Card (started 08/2001), which on my Credit file shows as Delinquent. So, first question - what is delinquent in this context, and how is this interpreted by potential lenders?

Secondly, this was sold to a Credit Reference Agency (Lowell I think) in 2004. This shows as a Default on my Credit File. I entered an agreement with Red Financial (I presume operating on behalf of Lowell?) in Feb 2007, whereby I pay them £141 a month for three months. I gave them my card details and waited, and waited, and waited. They have never taken any money from me, nor had any further correspondence!

Now I have heard the rumour that a debt is wiped off after 5 years, which made me wonder if I should just leave it?

My gf and I want to get a mortgage next year, and this is my only debt, so would like rid of it asap. At the same time, don't want to send £450 to them if the debt is now extinct.

Any advice please?

Anyone any ideas as to why they've just stopped contacting me without taking payment?


Thanks,

Yorkie1980

immoral_angeluk

a debt is statute barred after 6 years from the original default date as long as there has been no payments or written acknowledgment of the debt.

yorkie1980

Thanks Immoral Angel.

I was told that if the debt is passed to a different (collection) company then it resets the date of the debt.

I have not paid anything to them.

Not sure what would constitue as acknowledging the debt?

Thanks very much for your help, really appreciated, :beer:

Yorkie1980

immoral_angeluk

yorkie1980 wrote: »

Thanks Immoral Angel.

I was told that if the debt is passed to a different (collection) company then it resets the date of the debt.

I have not paid anything to them.

Not sure what would constitue as acknowledging the debt?

Thanks very much for your help, really appreciated, :beer:

Yorkie1980

No if you haven't acknowledged the debt then it doesn't matter how many DCA's it gets passed to. Acknowledgment would be you making a payment or putting something in writing to say that you will pay or something like that.
We've had a couple companies trying to chase DH for statute barred debts, we sent them this letter and we haven't heard anything from either of them since.

Name of Creditor
Address of Creditor


Dear Sir/Madam

Re: Account No/Reference No:

No debt is acknowledged to you. You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”.

The last correspondence/payment/acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to your reply.

Yours faithfully

(Your signature)

SallyAnn9

Immoral Angel & YORKIE,

I have just had a similar thing happen to me. I received a letter from a debt collecting company CCS recntly demanding repayment of I believe an MBNA Visa Gold card I held in 1994. Since 1996 I have had no contact with them. Until 1995 when I applied for new credit which was given to me. I have fully paid the most recent card. Does the 6 year locked plan apply to me too for the first card? Would love to know your thoughts or anybody elses.
any inofrmation would be gratefully received

Speak soon
Regards
Sally Ann

fermi

SallyAnn, it sounds as if this debt is "statute barred".

A debt will be "Statute Barred" if there has been no acknowledgement of the debt by you making a payment or in writing within the limitation period.

If you are in England/Wales then the limitation period is 6 years and you should read this factsheet:

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

If you feel the debt is "Statute Barred", then there is a letter to write at the end of that factsheet. (Same as the one from immoral_angeluk).

If you are unsure of anything, then give National Debtline a call free on 0808 808 4000 to talk your situation through with a professional advisor.

SallyAnn9

Fermi, Thank you so much for coming back to me. I have used the letter and am hoping it will resolve the matter

Best wishes
SallyAnn

bevan77

Hi guys,

I recently recieved a letter from EQL asking if I lived at this address, so I called them. They told me I owe them from a debt from the late 1990's of over £1600, but they were willing to accept £600. As I am a student I cannot afford even this reduced amount, but said I would talk to friends and family to see what I could do. Then I found this website. I sent the letter you printed saying the debt was statute barred and recieved a letter back stating that they acknowledged the debt as statute barred, but however they claim that as I said I would talk to friends/family about the debt counts as an acknowledgment and I am still liable. It is my understanding that I have to acknowledge it in writing or by making a payment which I haven't done. How do I stand?

Thank you.

bevan77.

boogiemaster

Acknowledgment has to be in writing and they acknowledged the fact its statue barred so just ignore them because they cannot take you to court with it being statue barred.

I had a debt in 1995 and they threatened to take me to court and I told them it was statue barred and I wasn't paying it and I haven't heard anything since.

They bought the debt for peanuts and try to scare you into paying it making them a nice little profit but remember debt collectors are worse than MP's for lying.

bevan77

Thanks boogiemaster,

I thought it was the case that any acknowledgement had to be in writing.

Cheers.
:T

Su1

We used one of these letters 9 months ago and it worked as they did not contact us again but then it was passed to another company ,same outcome. Now we have one from a 3rd company who say they have visited the house ! Is there any way we can put an end to it ? To our knowledge we have no unpaid debts. Its very upsetting.:(