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Student account stat barred?

Long story short I opened a student account in 2006 and made two withdrawals, since then (over 8 years) I have not made a payment or acknowledged the debt in anyway which I believe makes it stat barred?

However the bank (Lloyd's) have the default date as 2011, I believe they have done this by extending the student account far beyond the time I was a student (I graduated in 2007) and then transferred it over to a graduates account.

Are they allowed to extend the account therefor pushing abck the default date or is it stat barred as I have no made any payments into that account of acknowledged it in anyway for over 8 years?

I guess it would partly depend on was I required to make regular payments into the account (which I can't seem to find in the terms and conditions)

Any help you could offer would be much appreciated as I'd rather these defaults didn't stay on my account.

PS. the debt has now been sold to 1st credit.
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Comments

  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Whilst it may be statute barred, this just stops the SLC from going through court to retrieve the debt.

    In your case, as its post 1998, this "court route" isn't required as the HMRC will just deduct the monies from your pay-packet under the PAYE scheme when you hit the threshold.

    Or as Gaz says, you could pay them.
  • Voyager2002
    Voyager2002 Posts: 15,873 Forumite
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    krisdorey wrote: »
    Whilst it may be statute barred, this just stops the SLC from going through court to retrieve the debt.

    In your case, as its post 1998, this "court route" isn't required as the HMRC will just deduct the monies from your pay-packet under the PAYE scheme when you hit the threshold.

    Or as Gaz says, you could pay them.

    Except this is a debt to a bank.
  • Voyager2002
    Voyager2002 Posts: 15,873 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Momat wrote: »
    Long story short I opened a student account in 2006 and made two withdrawals, since then (over 8 years) I have not made a payment or acknowledged the debt in anyway which I believe makes it stat barred?

    However the bank (Lloyd's) have the default date as 2011, I believe they have done this by extending the student account far beyond the time I was a student (I graduated in 2007) and then transferred it over to a graduates account.

    Are they allowed to extend the account therefor pushing abck the default date or is it stat barred as I have no made any payments into that account of acknowledged it in anyway for over 8 years?

    I guess it would partly depend on was I required to make regular payments into the account (which I can't seem to find in the terms and conditions)

    Any help you could offer would be much appreciated as I'd rather these defaults didn't stay on my account.

    PS. the debt has now been sold to 1st credit.

    I suggest that you send them a letter (following the template on this site) saying that it is statute-barred. If they have some reason for disagreeing they will be quick to tell you.
  • Voyager2002
    Voyager2002 Posts: 15,873 Forumite
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    Gaz83 wrote: »
    You could pay them?

    No point, since it has now been sold on to a debt-collector.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Momat wrote: »
    Long story short I opened a student account in 2006 and made two withdrawals, since then (over 8 years) I have not made a payment or acknowledged the debt in anyway which I believe makes it stat barred?

    However the bank (Lloyd's) have the default date as 2011, I believe they have done this by extending the student account far beyond the time I was a student (I graduated in 2007) and then transferred it over to a graduates account.

    Are they allowed to extend the account therefor pushing abck the default date or is it stat barred as I have no made any payments into that account of acknowledged it in anyway for over 8 years?

    I guess it would partly depend on was I required to make regular payments into the account (which I can't seem to find in the terms and conditions)

    Any help you could offer would be much appreciated as I'd rather these defaults didn't stay on my account.

    PS. the debt has now been sold to 1st credit.

    some facts would help

    what were the details of the a/c?

    did it have an over draft facility?

    what do you mean you made two withdrawals : how much and when
  • Tixy
    Tixy Posts: 31,455 Forumite
    With overdrafts the date the relevant date is rather more complicated than other debts.

    It is often 6years from when the overdraft was officially recalled, as that is the point it becomes due for repayment.

    Do you have the paperwork for the account? they will have sent a letter withdrawing the facility and asking you to repay the overdraft (this could well have been some time after when they would have expected you to graduate).

    You could try ringing national debtline for some free advice.

    Or, if you are being chased for the debt, you could try sending the SB template letter (link on this thread Statute barred debts and the Limitation Acts) and see how they respond.
    A smile enriches those who receive without making poorer those who give
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  • Herbalus
    Herbalus Posts: 2,634 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Just because the withdrawals were made in 2006 doesn't mean you defaulted on the debt in 2006. A payment default happens when they ask for the repayment, and you don't pay it, which means you're looking for a final demand letter, or letter withdrawing the overdraft and asking for repayment. That's when the default happens. That could well be 2011.

    Plus, if you had a debt and didn't pay it, a default notice on your credit file seems justified to me.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hello there,

    As Herbalus mentions, the six years could run from when they 'call in' the overdraft. It all depends on the precise terms and conditions. You may wish to argue that the debt is statute barred, however, as the onus would be on the other side to prove that it isn't.

    Very best wishes,

    David @ National Debtline.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Momat
    Momat Posts: 6 Forumite
    CLAPTON wrote: »
    some facts would help

    what were the details of the a/c?

    did it have an over draft facility?

    what do you mean you made two withdrawals : how much and when

    It was a student account with an overdraft, I withdrew money from it twice in 2006 thus going into the overdraft.
  • Momat
    Momat Posts: 6 Forumite
    Herbalus wrote: »
    Just because the withdrawals were made in 2006 doesn't mean you defaulted on the debt in 2006. A payment default happens when they ask for the repayment, and you don't pay it, which means you're looking for a final demand letter, or letter withdrawing the overdraft and asking for repayment. That's when the default happens. That could well be 2011.

    Plus, if you had a debt and didn't pay it, a default notice on your credit file seems justified to me.

    I believe this is how they have arrived at the default shown, however I graduated in 2007. I think they have extended the student account years beyond when I actually was a student which I don't think is fair.
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