Statute-Barred Debt - Lloyds Bank

MachoShirts

Hello,

I've used the advice within this community for many years, but I'm at a loss with this current situation.

I have an outstanding debt with Lloyds Bank (I suffered a year of anxiety problems and accrued a debt of £4,300 from unplanned overdraft charges, etc. - the initial overdraft was only £250) stemming from late 2008-early 2009. I'm unable to place the debt on Noddle as it's not showing on the account, though I've applied for a Statutory Reports with Experian and Equifax to chase this up further. In its' place, from March 2014, the debt has been placed with 1st Credit Limited.

From what I can gather, a debt becomes statute-barred six years after the first default from the said debt if no acknowledgement of the debt is made. But I have some questions:

• How do I put in to have a debt statute-barred?
• If the debt has been sold onto 1st Credit Limited, does this mean the six year period has started again? (I've not responded to them at all).
• I've still used the Advantage Saver card I received when I opened the current account, but they've made no mention of the debt in a very long time. Will this affect the debt being statute-barred?

I'm just trying to get a grasp on which steps I need to take - this one debt has been hanging over my head for a long time and is the last part from a bad transitional period.

MachoShirts

I find it important to mention that I have no CCJs on my current credit file and have, to my knowledge, have never been served one about this debt (I've checked my full credit report through various agencies annually since 2011 and have never seen a CCJ registered to myself).

sourcrates

Hi,

A debt does not nessessarily become SB from the default date, or the date you last made a payment, or acknowledged the debt in writing, it would be when the "cause of action" took place, the point in time the creditor could of taken legal action to recover the debt, normally after 3 to 6 missed payments.

If you believe the debt to be statute barred, you would send them the SB template letter, a good one can be found on the National Debtline website.
Debts are sold on all the time, this does not restart the countdown clock, defaults etc, will disappear 6 years after been registered, no matter what.

It may change things if you have been using the account though, in order to be SB, there has to have been a 6 year period of no use, payment, or written acknowledgement.

fatbelly

For an overdraft, the cause of action is when the overdraft is called in. If you were still using the account within its terms and conditions for a few years this might not have happened until much later than 2009.

MachoShirts

Thanks for your replies.

The account in question was also closed down in 2009. Both accounts are separate entities, as far as I'm aware, though they were both opened at the same time. If I was to call Lloyds and ask for the exact date when the account was closed, am I right in assuming this wouldn't restart the clock?

sourcrates

MachoShirts wrote: »

Thanks for your replies.

The account in question was also closed down in 2009. Both accounts are separate entities, as far as I'm aware, though they were both opened at the same time. If I was to call Lloyds and ask for the exact date when the account was closed, am I right in assuming this wouldn't restart the clock?

I think provit letter to 1st credit would be the way to go, that may glean you the information you need, without acknowledging anything.

https://forums.moneysavingexpert.com/discussion/2607247

MachoShirts

So send the PI letter to them and, if they respond with the information clarifying my ownership of the debt, take the steps towards having it removed through my credit rating (providing it's statute-barred)?

happy_bunny_2

Send the prove it letter as advised. That will help get info, see what comes back before deciding the next step.

Is it on Experian or Equifax? If so, is it defaulted? What's the date?

MachoShirts

With 1st Credit, the first default's on March 2014 with Noddle (CallCredit) and there's no sign of the debt with Lloyds. As for Experian/Equifax, I'll need to wait until Tuesday to view my report with them (or slightly longer if I wait for the £2 reports to be sent out). The first default would've been around September 2008 though (five months after the initial agreement was broken).

Sorry for not having all of the information to hand when first posting. I suppose I was quite anxious to know if there was actually a ball to get rolling.

sourcrates

MachoShirts wrote: »

With 1st Credit, the first default's on March 2014 with Noddle (CallCredit) and there's no sign of the debt with Lloyds. As for Experian/Equifax, I'll need to wait until Tuesday to view my report with them (or slightly longer if I wait for the £2 reports to be sent out). The first default would've been around September 2008 though (five months after the initial agreement was broken).

Sorry for not having all of the information to hand when first posting. I suppose I was quite anxious to know if there was actually a ball to get rolling.

Provit letter first, see what 1st credit/lloyds come up with, it may take a few weeks, so be patient !!

When you have a response, we can advise further.

happy_bunny_2

MachoShirts wrote: »

With 1st Credit, the first default's on March 2014 with Noddle (CallCredit) and there's no sign of the debt with Lloyds. As for Experian/Equifax, I'll need to wait until Tuesday to view my report with them (or slightly longer if I wait for the £2 reports to be sent out). The first default would've been around September 2008 though (five months after the initial agreement was broken).

Sorry for not having all of the information to hand when first posting. I suppose I was quite anxious to know if there was actually a ball to get rolling.

If on noddle, likely on the others too.

You don't need to have all info to post

Find out ifs it SB first based on the prove it letter etc.

4.5 k from a £250 overdraft is a joke and it's likely you can complain about that.

It would also hint that they didn't call it in for a while, as that's a heck of a lot of charges.

Keep us posted.

HB