defaulted unknown loan

whittlewhittle

Hi
My husband and I applied for a mortgage, the application was refused and we were advised to look at our credit files. Mine came back all ok. My husbands however has a loan for 17k taken out I'm 2009 of which he has no recollection. The loan is unpaid and defaulted in 2011. I do believe it's quite plausible that my husbands ex took out this loan and started to repay it but soon stopped I.e a month or two later. He is disputing the loan with the creditors but I'm worried he will have to repay this money. If it remains unpaid will it become stated barred in 2015 or 2017? Any advice?

Thrugelmir

whittlewhittle wrote: »

If it remains unpaid will it become stated barred in 2015 or 2017? Any advice?

Creditor may take other action to recover the debt. Such as obtaining a CCJ.

McKneff

Statute Barred means 6 years.


Of course a CCJ could be obtained any time within that 6 years.


Let us know how he gets on pleas.e

Tixy

In England/Wales a debt becomes statute barred 6 years after the last payment or written acknowledgement of the debt, and only if the creditor has not commenced court action before that date.

The default date on his credit file is not relevant to when a debt becomes statute barred.

It is rare for a creditor to allow a £17k debt to become statute barred. They will very likely take action before that happens.

If it does turn out that the debt was fraudulently obtained by another person then he would be better off focusing on proving that and reporting the fraudster to the police.

whittlewhittle

thanks for the replies.

The company whom the loan is with say 'there is no outstanding amount as we have written it off'. They sold the debt to a third party debt collector, so can that third party create a CCJ? to date no CCJ on his credit report.

thebritishbloke

whittlewhittle wrote: »

thanks for the replies.

The company whom the loan is with say 'there is no outstanding amount as we have written it off'. They sold the debt to a third party debt collector, so can that third party create a CCJ? to date no CCJ on his credit report.

They could do, but you should still get this looked into if he never actually borrowed the money, I wouldn't just ignore it.