debt collection agency can't find loan agreement.

PaddyMc

Hi there my wife took out a loan about 12 years ago, since then this loan has been in the hands of a debt management plan but the original loan has been passed from debt collection agency to debt collection agency quite a few times, today my wife asked for the a copy of the contract to which no one can work out if it even exists. We know that the bank RBS don't have it as we asked about PPI last year, we can prove how much we have paid but can't determine how much of the loan is left to pay. I mean each company could in theory could say the debt is "X" amount.

What would happen if we stopped playing them?

P.s. The loan was taken out in Scotland live in Scotland

Many thanks

ALIBOBSY

Might be worth checking her credit report, if she is still making payments it may show on there. Even if they can't find the loan agreement they are obliged to provide a full statement if requested.

If this was defaulted over 6 years ago and has dropped off the credit file and you stopped paying they could try to reinstate the default on her file-not allowed but some DCA's try it. Or they could try to go to court, but this would be difficult without any paper trail to backup.

IF they went to court you would have to go to court and defend on the basis that no original credit agreement exists. This would then depend on the judge as to if you won, most cases do win, a small number have lost.

Have a read on here and other debt/consumer forums (consumer action group or legal beagles are pretty good)to see the options regarding once a request for the agreement has been made and failed. If I recall there are timescales after which you can serve them with a notice and stop payment.

However there is always a risk of court action. TBH given the age and the no paperwork issue, court action is unlikely, but if a large amount is still left they may take a punt and give it a go.

All the above assume she has been making payments, if there has been no payments for 6 years, different advice applies.

BTW as you posted on the loans board and not the debt board you may well get some people having a moan about paying up your debts, but not actually giving any advice at all lol.

Ali x

ALIBOBSY

Google CCA request for further info on the timescales.

Ali x

ALIBOBSY

BTW failure to produce the agreement only makes a debt legally "unenforcable" not that the debt dissappears.

The FCA guidence is here:- http://fshandbook.info/FS/html/FCA/CONC/13/1

Personally I would go back wanting further details and statements to establish what is owed, and perhaps look to negotiate a F and F payment to get rid permanently.

Or I have seen someone writing to the company and saying they were temporarily suspending payment until the CCA request was complied with. One company simply wrote off the debt, one produced a really old 11 yr old agreement.

Either way its reasonable that you want full statements to establish exactly what is owed.

Good Luck

Ali x

PaddyMc

Cheers Ali you have been a Fantastically Fervent!help ill let you know how it goes