Old credit card debt

tonyenkiducx

Apologies if this is in the wrong forum, I'm not entirely sure where it should go. I had an EGG card approximately 7 years ago, and as I had quite a high paying job at the time I got a limit of £3000 which was extended to £3500 just before I lost my job. Through a series of misfortunes I ended up moving a great distance and I lost all contact with the debt, apart from a single letter about 4 or 5 years ago offering me a chance to clear the debt for half the total owed amount.

Now this morning I have received a letter from a debt collection agency telling me that I owe them the full amount(Plus some unknown extras) of £3799.14. There is no real conceivable way that I can afford to pay this debt off in the short term as I am now on a far lower salary, I have just taken on a mortgage and I am about to have a child(Well, my wife's doing most of the work). So I guess I'm looking for some advice. Is there a way to get the debt reduced? Is it legal for them to bring this debt up from so long ago? Anything else I need to know before speaking to them?

Thanks in advance,
Tony.

CLAPTON

If you haven't acknowledged the debt in the last six years.. i.e. haven't paid any money or offered to pay any money or written to them, then the debt is statute barred and they can't enforce the debt see for more details.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

tonyenkiducx

That's just what I wanted to hear, I know I haven't acknowledged it in writing or paid any of the total sum. I'm just a bit confused as to what the start of the debt is. It will be approximately 6 years this december that I took the final money from the credit card and stopped making payments. But it is already well over 6 years since I got the credit card. Does anyone know exactly when the start of this debt would be or how I can find out?

CLAPTON

its not the start of the debt but when you last made a payment or indeed used the card.

tonyenkiducx

Unfortunately I got a call today from the debt collection agency, and the guy said that the last payment I made was in June 2002(How true that is I dont know). Now, he was being very very pushy about getting even a small payment out of me, which is I presume because he wanted me to admit to the debt? I did in the end give him my bank details and promised that I would start a payment plan for £120 a month over 2 years, and £1000 knocked of the almost £4000 debt. But I was clear to say that I was only going to allow the payment to leave my account by direct debit if I was happy with the information he sent out. I requested everything he had on the debt, but I don't know if he will send everything.

Is there anywhere I can go from here? I wasn't too bothered originally about having to pay it, I could have managed just about if I had too, but I'm very annoyed that they don't even contact me for nearly 5 years, and then all of a sudden turn up and demand £4000 of me and start threatening court action! It wasn't even on my credit report last time I checked it.

John_in_the_city

Tony,

your debt was probably packaged and sold on at a discount, and this may have been repeated over the years. Now, the agency you are dealing with have traced you probably using electoral roll. Unfortunately you have now acknowledged the debt and proposed a repayment plan so the statute-barred approach is no longer valid for you. You say they knocked £1000 off the debt, but presumably the £3799 extras still stand! And will more be accumulating while you make your payments? That was an expensive phone call. Depending upon your situation you may want to seek some advice.

tonyenkiducx

The £3779 was the total amount with the extras... So they are now proposing £120 a month for 24 months and that will be the full amount minus the £1000 or so, approx £2800 in total.

But looking at the dates, it will not be a full 6 years until next june, so I couldn't have got the debt written off, or could I? I assume they would have dragged me through the courts before next June?

I also presumed because all I did was give him my bank details and made it clear in the conversation that I would not acknowledge the debt until I had received the full details that I had in fact not screwed myself? If I cancel the direct debit as soon as it is put on my account then I wont have made a payment or acknowledged the debt in writing as the statute says?

I could really do with some good advice here, if they call back again I might make another colossal mess of it.

tonyenkiducx

In fact having read the details of the exact wording, I have to acknowledge the debt in writing or make a payment. Neither of which I have done, but I will have to deal with this very soon as the direct debit forms will be with me soon.