Student account stat barred?

Tixy

Momat wrote: »

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.

A student bank account would not automatically close nor the overdraft be automatically recalled when you graduated.

The bank would not have known when or if you graduated.

Momat

Tixy wrote: »

A student bank account would not automatically close nor the overdraft be automatically recalled when you graduated.

The bank would not have known when or if you graduated.

Well their credit limit is set by what year of study you are in (x amount in year 1 y amount in year 2 etc) and they ask for proof of this when opening the account so they would know what year of study you were in and thus when your course finishes.

Mine finished in 2007 which they would have had know as they ask for proof of what year of study I was in when opening the account yet they didn't issue the default until 2011, that's four years after I was a student, I doubt they extend graduate account for four years.

Also I believe that making regular payments to the account was part of the agreement to the terms and conditions to keep the account open thus I would have defaulted shortly after opening the account in 2006 for not making any payments/showing any activity on the account at all.

I will try to claim stat barred on these grounds.

Is there anyway this can backfire on me if I claim stat barred and they argue its not?

Momat

Please see section 17.4 b in the Lloyd's studnet account terms and conditions where it says they may withdraw an account if you do not use it for 12 months. Sorry as a new user I am not allowed to post links.

Herbalus

Breaking the terms by not paying in regularly doesn't mean you defaulted on payments (they could have decided to cancel the account and demand payment because you weren't paying in, but they didn't so that's not relevant).

Graduate accounts typically last for 3 years, so I don't think it's unreasonable for them to finally 'call in' this debt after four years. Even if they should've done it after 3, it may have taken a while to process, or it would still be 2010. Plus, it's their choice when to call in the debt so I don't think you can win any arguments by saying they should've asked for the money back sooner.

Considering the above, I don't think your claim for statute barring will be successful. It won't worsen your case but won't improve it either.

Sorry if that's not what you want to hear.

Herbalus

Momat wrote: »

Please see section 17.4 b in the Lloyd's studnet account terms and conditions where it says they may withdraw an account if you do not use it for 12 months. Sorry as a new user I am not allowed to post links.

The key word is "may". It doesn't obligate them to do it, and in practise they often don't. You won't be able to rely on that by saying they should have withdrawn the account, because the terms don't force that.

Tixy

May withdraw an account due to inactivity does not mean that they will or they have to.

If you are being chased for the debt then yes you could send them a letter to say you believe it is statute barred. And wait to see what their response is.

It is unlikely to make much difference, although I guess it may just slightly increase the chance that they look to see when they think it will become statute barred and decide to take court action before that date rather than let it become sb.

Informing them you think it is sb won't change the default date on your credit file. If you wanted to argue the default date is incorrect then that would be a separate issue.

JasX

Tixy wrote: »

A student bank account would not automatically close nor the overdraft be automatically recalled when you graduated.

The bank would not have known when or if you graduated.

+1, perfectly permitted, perfectly fair.

Also it makes no difference in this case as they could have changed the name of the account to 'bog standard LloydsTSB bank account' on the day you graduated and then all other events could/would have easily played out in exactly the same way with them giving you a default on the same date.

I don't think saying you didn't like the name/classification of the account will give you any leg to stand on here?

(actually I even have a counter example as I was with Lloyds and they let me keep my student account with fee free overdraft for about for 12 months after graduating due to their tardiness -I certainly didn't complain over getting the extra 12months of fee free overdraft this gave me -so are lloyds in the wrong for not closing my account on time? should I be due compensation/ favourable credit record treatment because of their 'mistake' here? )

fermi

National_Debtline wrote: »

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.

Yes, I'm sure that is true and is what I've always been told.

However, I did come across this snippet the other day that is interesting to say the least, even though I doubt it applies in the way it sounds.

Momat

Thanks for that fermi, could you send me a link to that page. I'd like to do some more reading.

fermi

No freely available link that I know of. Sorry.