Can someone help?!

katester

I wonder if anyone can give me some advice....

On leaving university four years ago I started my own business (sole trader) and a high street bank lent me 15k (partly a graduate loan and partly a small business loan) to set up the business. Within a year my business could not survive the monthly repayments and I had to fold the company. As the time I told the bank I could not afford the repayments and they just kept lending me more and more money unsecured as I had no house, no car and nothing of any value.

I closed the buisness and started full time employment in May 2001. Since then I have heard absolutely nothing from the bank, I have changed addresses twice but have always had my post forwarded. In 2002 I spoke to CAB about my debts as although the bank had still not contacted me I was worried about my future ability to buy a house, CAB contacted the bank, but still nothing.

Now, four years on I am in a position to buy a house, I have obtained my credit file from Experian and there is nothing on there from this particular bank apart from the fact that I took out the loan in 2000.

I don't really want to contact the bank as they have not contacted me, but alternatively I do not want to live under a cloud of uncertainty where I always wonder if they are going too contact me again and demand money.


Can anyone help?

DiggingOut

I'm no expert on this, but a few thoughts. Do you know for certain CAB contacted the bank? Do you have anything in writing to prove that? That will make it a lot easier for you to prove that you haven't just done a runner on your debt.

I think you need to be preparing for the time they ask for the money. They may never do so, if so it will be a nice lump sum for you when you retire.

You don't say how much the total debt ended up, sounds like it was more than £15K. I would figure out the total debt plus interest until now. Then, I would figure out what the monthly interest on that debt would be now, and be saving at least that much plus £50 every month into a savings account.

As time goes by, the gap between what you have in savings and the debt will narrow, and if they ever come back and ask you for money, you will have some to give them.

If you have proof that they were contacted in 2002, it may be that they will not be able to charge you any interest after that time, but they certainly have the right (legally and morally) to the money loaned and any interest up to that time. Be preparing for when they finally wake up, if they ever do.

I don't know whether you have any legal (or moral) obligation to contact them again. It seems to me that your moral duty (as far as contacting them) was discharged when you contacted them through CAB. If you feel guilty about it, though, by all means contact them, a clear conscience is worth a lot. It would be wise to find out if there is any legal duty, though.

Fran

The trouble with changing addresses is that you can't be sure that the bank has known your new address - even though you had it forwarded presumably this was for a limited time so you might have missed important letters.

I don't agree with D_O that your legal and moral duty was discharged when you asked the CAB to contact the bank. You say they contacted the bank - by letter or by phone or both? Didn't they receive a reply? Just because you have asked a third party to act on your behalf I would have thought that it was still up to you to chase them (CAB) if you heard nothing and it doesn't mean you lose any of the responsibility for the debt or that the CAB are in any way liable.

What D_O says about collecting money for any future contact the bank might make is a good idea if you decide not to contact them. The other alternative is to contact them and make an arrangement to pay the debt at an affordable rate when at least you would know where you stand.

DiggingOut

I don't agree with D_O that your legal and moral duty was discharged when you asked the CAB to contact the bank. You say they contacted the bank - by letter or by phone or both? Didn't they receive a reply? Just because you have asked a third party to act on your behalf I would have thought that it was still up to you to chase them (CAB) if you heard nothing and it doesn't mean you lose any of the responsibility for the debt or that the CAB are in any way liable.

Fran is certainly right if there was only a phone call. If you have written proof (a copy of a letter from CAB to the bank, for instance), then it seems to me the moral responsibility, at least, lies with the bank to respond. Sorry if I implied that there was any responsibility on CAB's part here, certainly didn't mean to do so.

As I said, you still may have a legal responsibility to contact the bank even if CAB wrote to them. You should find out.

I re-read your post. You say you had your post forwarded, but sometimes legal/financial documents will say on the envelope that they are not to be forwarded. Did you also notify the bank of your address change? If not, I suspect you are obligated to do so. I doubt you are obligated to write them a letter asking if they want their money, but a simple change of address notification was probably a requirement of the loan agreement you signed.

[Deleted User]

My understanding is that the debt is still payable, and thru the courts if necessary if it is less than 12 years old.

If the debtor has not been contacted by the lender for a clear period of 6 years - within that 12 year period - then the debt will automatically be quashed.

I have been out of the CAB for a while so am not sure if this is up to date. I believe this used to mainly apply where houses had been reposessed during the negative equity slump a few years back. Due to the economic upturn and people who had been repossessed now having more money again they were then being chased by lenders.

gibby

good news!

from my experiece of helping friends


some banks dont chase piddly business debts - and this is one of them - possibly

a friend had a loan with 2 banks - barclays and natwest.

barclays were sods for a very small amount - but nat west forgot all about it well after the 6 years.

the main thing is natwest dont mark your credit file so if its not there you will not have problems - unless you are using one of their firms for a mortgage.

if they wait for more than 6 years they cant collect it.

however - there are at least 3 firms that hold credit info on you - check all 3.

I think you will be ok as many ppl do the same

G