debt letter after 6.5 years

shannianni

hi my wife received a letter this week saying she still owed 1500 pounds from a debt in 2000, she was paying it off until 6.5 years ago when the collection companys collector left the job and no one since has come to collect any money, it has been passed to another company and they now want over 2000 pounds as they say in the letter its added costs to the debt.


this is the first time in over 6 years that we have heard anything, also since then we have got married and her married name is on the letter and not her maiden name when the debt took place.


can anyone help with this please.


many thanks


Ian Aka shannianni

Gaz83

shannianni wrote: »

hi my wife received a letter this week saying she still owed 1500 pounds from a debt in 2000, she was paying it off until 6.5 years ago when the collection companys collector left the job and no one since has come to collect any money, it has been passed to another company and they now want over 2000 pounds as they say in the letter its added costs to the debt.


this is the first time in over 6 years that we have heard anything, also since then we have got married and her married name is on the letter and not her maiden name when the debt took place.


can anyone help with this please.


many thanks


Ian Aka shannianni

When did she last acknowledge the debt in writing?

shannianni

she had arranged to pay the debt via the collection agent calling each week at the door (scottcall) but after about 6 months the guy who collects it left the his job and since then no letters or anyone ringing.
now after 6.5 years we receive another letter from another debt collection agency saying we owed more from costs added, this isn't the same agency


regards

McKneff

Send them a statute barred letter. Im sure someone will put a link on here for you.


If there has been no acknowledgement of the debt on your wifes part then they cannot enforce the debt.


She still owes it, but they cannot take her to court for it.

fermi

Letter here --> https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-06.aspx

Gaz83

If she hasn't made a payment, or acknowledged the debt in writing, for over 6 years then the debt can't be enforced.

It doesn't mean that the company's can't continue to request payment. Just means that they can't enforce it.

National_Debtline

Hi Shannianni

I agree with the others that you should send the sample letter fermi linked to. I don’t think you mentioned what type of debt this is regarding but for most types of debt the limitation period is 6 years, but it will be 12 years for the capital element of a mortgage shortfall debt.

My understanding is that once a creditor is informed that a debt is statute barred they need to prove otherwise or cease collection activity.

In the Consumer Credit Sourcebook the FCA say:

‘CONC 7.15.4 - Notwithstanding that a debt may be recoverable, a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period.’

Also

‘CONC 7.15.8 - A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred.’

http://fshandbook.info/FS/html/handbook/CONC/7/15


James
@natdebtline

shannianni

hi many thanks for the reply,
she was on benefits and the housing association stopped paying her rent and never told her, she owed 1.5 months rent but when she queried it they said it wasn't their fault and she still has to pay it.


as I said she started to pay it over weeks what she could afford but the guy stopped coming and nothing has been said or received for over 6 years but now another company is asking for more, we haven't even been told what charges has been put on it, so is this legal? adding cost without any form of letter or phone call.


many thanks

Tixy

Get her to send the template letter linked to in post #3 (assuming she is in England/Wales).

In which case the additional charges are irrelevant.

(However if it hasn't been more than 6years ago her next stage would have been to write for proof of the outstanding debt and a breakdown of the balance they claim is owed)

National_Debtline

I can’t really advise on the legalities of it but it’s certainly poor practice and doesn’t appear to comply with debt collection regulations. Debt collection agencies are regulated by the Financial Conduct Authority (FCA) and the regulations are laid out in the Consumer Credit Sourcebook (CONC), which is where the points I referenced in the above post are from.

There are various other points regarding things such as firms being required to keep a debtor updated on the status and amount of a debt, and only adding debt collection fees if there is contractual provision.

As Tixy says, the charges will not be an issue if the debt is statute barred. Providing the rent arrears with the Housing Association aren’t going to impact any current rental tenancy they are a low priority and would be unenforceable in court if statute barred.

harveybobbles

Send the SB or Prove It letters and ignore them and their silly demands.