Debt advice please

Heathy82

Hi All, hoping for some advice. Here goes the spiel:

So hubby had a loan which he took out in 1998 whilst at college which HSBC increased time and time again for him (he's adamant it would be eligible for PPI claim). He stopped paying that loan in May 2008 default date 22/08/08. The outstanding amount is £9k. I know I know, he's stupid! It has caused us no end of stress I can assure you. We bought our first house last year and were very limited as we could only get a mortgage in my name. I am sensible with debt! Anyway, he's had enough lectures from me.


So now MKDP are writing to him saying they bought this debt from HSBC and they want it paid blah blah blah. We have had 3 letters of this nature. I told him not to do anything yet as the debt is soooooo close to dropping off his credit file and then next year he could come on the mortgage with me and we could buy a bigger house with our combined earnings.


MKDP have now written saying that as he has not responded they will pass the case onto another department to investigate further and possibly pursue a CCJ and threatened him with losing his house or wages. You know the drill. Good luck! The house is in my name and he's self employed.


So my questions are:

• If they do give him a CCJ is it true that we can have that removed from his credit file as long as he settles the full amount within 1 month
• If he were to start paying MKDP installments, would the amount increase with interest and by acknowledging the debt would it then stay on his file?

At the end of the day, my priority here is cleaning up his credit report. I've done a pretty good job so far. It was a right mess. I've just managed to get him a credit card which is a huge step forward. I don't want him getting a CCJ and I also don't want to 'waken' up that debt so that it doesn't come off the file in August. Should I ride this out and if he gets the CCJ just pay it off within the month, if it's true that it won't stay on the file for 6 years, or start paying MKDP now by installments?



Please help. Stressed and pregnant are not a good combination

Tixy

Hi

1) yes, if paid in full within a month of judgement then the CCJ is removed from the registery trust and therefore from his credit file (or possibly never put on his file).

2) Starting to pay / acknowledge the debt won't alter how long it is on file.

Is he definite on May 08 being the last payment and he hasn't written to them at all since? if so this debt is very nearly statute barred and that is likely why they are getting agressive with the debt collection and threatening court.

If he doesn't acknowledge it for the next month and if they don't commence court action within that time frame then the debt becomes statute barred (and he is no longer legally obliged to repay it). More info here https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Default.aspx


If you are in Scotland then it would already be statute barred and the debt would no longer exist.

Heathy82

Thanks Tixy. Yes definitely May 2008. He has not acknowledged the debt in any way shape or form. I am sure he has filed most letters in the bin. Although now I am in charge of his credit I do keep them as a record. I spoke to a freephone advice line earlier today and she told me it was absolutely not statute barred since my husband did not inform HSBC when he changed addresses? I guess the best option at this point is to wait it out a little longer and deal promptly with a CCJ should he receive one from MKDP?

Tixy

Not informing them of the change of address doesn't stop it becoming statute barred.

They could still have chosen to obtain a CCJ against him using his last known address. If they didn't do that then it is likely to become statute barred soon (although not yet obviously).

If they commence court action in the next month and he is in a position to pay then pay it.

If they commence court action after that then file a defence to say you believe the debt is statute barred. In the unlikely event they could prove it was not and the court disagreed with your claim then pay within a month of the judgement to prevent the CCJ appearing on file.

I wouldn't call them again and wouldn't mention it becoming statute barred again until you know for certain that it is.

Heathy82

Does the fact that they have contacted him since Feb 2014 mean that it won't be statute barred though?

Should he send the 'prove it' letter?

Do MKDP accept offers for lower settlement? I imagine they paid a hell of alot less than £9500 for the debt!

Heathy82

Should he send the statute barred letter? Should he ask for lower final settlement? I am nervous to ignore it as would rather pay less if he can/has to?

~Beanie~

The fact that they have contacted him makes no difference to it being statute barred. As long as he hasn't acknowledged or paid anything towards the debt since May 2008, it will be statute barred next month.

Do not ask for a lower settlement as this will count as acknowledging that he owes it!

Heathy82

Ok thanks. Speaking to hubby about this just now, he was travelling in the USA from Feb 2008 to end April 2008 and is certain that he stopped making payments just before he left the UK so that would infact make it statute barred since Feb 2014? Although on Experian the default wasn't registered until August 2008. Should I send them the statute barred letter (of course not acknowledging the debt)

Tixy

Yes. If/once he is certain it is more than 6years since he paid then send the statute barred template letter.

Heathy82

I just wanted to update everyone on this incase they found my thread when searching for advice.

So, yesterday I came home to a letter for hubby from MKDP basically saying


' Please accept our sincere apologies for any inconvenience caused........the above account has now been closed and MKDP will no longer pursue you for this debt'


They have also put £0.00 as the outstanding balance at the top of the page.


Very relieved! Will certainly keep this letter and have taken scanned copies just incase it rears it's ugly head, but thanks everyone for their advice. The statute barred letter appears to have done the trick.

ML420cdi

Thanks for the update, good to know and must be a weight off your minds.

A lesson well learnt, good luck with your future together.