Help with Debt Agency

devonmark

Hi Everyone.

My Partner received a letter about 10days ago regarding a debt that she hasn't had anyhting to do with for about 8 years (Student Loan)

I have had a few problems myself and have looked into the Stated Bared route. After looking into it again I thought that her case was 100% Stated bared, as she has had no contact with the company for about 8 years and has never admitted the debt.

We wrote to the comapny (Thames Credit) with the standard letter from National Debt Helpline, but we have today received a letter that says the following.

" Your reference to the statue of limitations is not relevant. We do of course fully understand Statute but is very often misinterrpreted by debtors and their advisors. We have neither threatened nor suggested litigation, hence it is repeated that reference to the act is not relevant.

There is no legislation that precludes a creditor from legitimatley requesting payment of a debt which remains outstanding and due. indeed we could argue that any debtor who recognises that such a debt exists, has a moral obligation to address his respondibility. A credit facility has been provided by a bank or finance house, consequently it is up to that customer to honour his obligations.

Halifax PLC has confirmed that there is an outstanding balance currently amounting to £xxxxx. If you believe that the account has been fully repaid, would you please provide evidence of such repayment, perhaps by way of a receipt or a paid in full letter. Halifax PLC has no account of the account being repaid.

If it is the case that you have simply overlooked this account because of its age, we are prepared to be constructive and apply a significant discount rather than consulting with our solicitors about potential further action. Therefore we will accept 50% of the current outstanding balance in order to bring matters to a close, provided payment is made within a short period of time. We need to receive payment of the discounted balance by 8/7/07.

We look forward to hearing from you soon etc etc"

My question is: What the Heck are they talking about, are they entitled to still chase and persue the debt or is this one final attempt to get something out of her?

Any advice would be great thanks.

Regards

Mark

inmypocketnottheirs

Excuse my language, but their letter is a load of cobblers. Just ignore it. They are just trying to frighten people into making a payment. The statute of liitations act is well proven in court. No solicitor with even half a brain (and that would be more than most of the legal profession have) is going to commence action. They are simply trying it on. Ignore them.

RAS

There is no legislation that precludes a creditor from legitimatley requesting payment of a debt which remains outstanding and due. indeed we could argue that any debtor who recognises that such a debt exists, has a moral obligation to address his respondibility.

This is correct.

Note however that it refers to moral obligation, not legal obligation.

However, if she decline to accept her moral obligation, there is nothing that they can do to force her to pay, nor can they make an adverse comment on her credit record.

fermi

inmypocketnottheirs wrote: »

Excuse my language, but their letter is a load of cobblers. Just ignore it. They are just trying to frighten people into making a payment. The statute of liitations act is well proven in court. No solicitor with even half a brain (and that would be more than most of the legal profession have) is going to commence action. They are simply trying it on. Ignore them.

Totally agree with that.

This is the advice given by a respected mod on another forum.

From:http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=16949

Statute Barred Debts

If you have not acknowledged the debt in writing for 6 years or over then the Statute of Limitation Act 1980 comes into force.

http://www.lawcom.gov.uk/docs/cp151apa.pdf

In which section 5 clearly states

Time limit for actions founded on simple contract
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.

Many many DCA's will ignore this little fact and try and scare you into paying up, relying on the fact very few people know about it.

They will try and tell you that any telephone calls made count as acknowledgement, they DO NOT the law is clear, they will even try and claim that they have written to you and that even classes as acknowledgement – it does NOT!

I also recommend that you head each letter to them as follows:

I DO NOT ACKNOWLEDGE ANY DEBT TO YOU OR ANY OTHER ORGANISATION OR COMPANY YOU CLAIM TO REPRESENT.

DO NOT just use ‘Without Prejudice’ as there has been a recent test case on this matter, and ‘Without Prejudice’ is no longer sufficient!

What you need to do now is send the letter (by recorded delivery) to them, which can be found here:

http://www.nationaldebtline.co.uk/england_wales/forms/sample_letter_h.php

If the DCA is working on behalf of the original creditor then send both the DCA and the original creditor one!

The good thing is you then have the evidence that they are trying to pursue a barred debt so if they were stupid enough to try and go to court, then that is you immediate defence, which stands up in court.

However, as with all statute barred debts they can’t take you to court but they can continue to hassle you!!

Hope this helps a bit

Tim

EDIT: And hassle here means reasonable requests for payment only.

rog2

In the UNLIKELY event that Thames Credit were to take you to court, then your ONLY required defence would be that since you have had no written contact with the creditor, nor made any payment, within the last six years, the debt falls under the 'Statute of Limitations' and can not be collected.

inmypocketnottheirs

rog2 wrote: »

In the UNLIKELY event that Thames Credit were to take you to court, then your ONLY required defence would be that since you have had no written contact with the creditor, nor made any payment, within the last six years, the debt falls under the 'Statute of Limitations' and can not be collected.

Absolutely spot on. Could not have put it better myself.

devonmark

What do you think i should say to them? Shall i write to them again?

Mark

rog2

devonmark wrote: »

What do you think i should say to them? Shall i write to them again?

Mark

Personally - I would just ignore them. However, you could just send the National DebtLine letter again, by recorded delivery. Should they revert to telephone calls, or other similar harassment, simply read out the letter over the phone, ask them to leave you alone and tell them that you will report them to the Trading Standards Office.
The OFT guidelines on debt collection clearly state :

'continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970.'

devonmark

Does anyone know what this link is?

http://www.nationaldebtline.co.uk/en...6330_92061.pdf

It was mentioned aboved but i can't get it to work.

inmypocketnottheirs

devonmark wrote: »

What do you think i should say to them? Shall i write to them again?

Mark

As rog2 says, ignore them. What are they going to do? Just harass and bully that is all. They are toothless tigers.

fermi

devonmark wrote: »

Does anyone know what this link is?

http://www.nationaldebtline.co.uk/en...6330_92061.pdf

It was mentioned aboved but i can't get it to work.

That was a link to the template letter on statute barred debts, provided by National Debtline. I expect it has been updated since the original text was written.

It sounds like you have already sent the letter, so I wouldn't worry about it not working.

An updated link to generate a new letter is here.

http://www.nationaldebtline.co.uk/england_wales/forms/sample_letter_h.php