Forgotten debt advice please

icicle26 · 21 August 2007 at 3:49PM

Hello everyone,

This is the first time I've posted on here, so bear with me if I'm in the wrong place.

My Husband's father called today to say that they received a letter from cabot financial this morning saying that my husband (Rich) owes money. Rich called them, they said he owes 826 or 810 pounds (he called twice and was told 2 different amounts) from a credit card he had 7 years ago, they have said he needs to pay this in full over the next three months, which we can in no way afford. Rich vaguely remembers getting a credit card from Barclays, so he probably does owe this money, but he got a credit report 6 months ago that mentioned nothing of any outstanding debts, and he has heard nothing of this debt in 7 years.

Does this sound like the usual way of things? I've heard that some company's can buy debts that have been written off and then try and make you pay, how would I be able to find out if this is still active and if we actually do owe this money?

Thanks in advance for any advice you can give,

Rachel

plumduff-2 · 21 August 2007 at 4:09PM

Hi, sounds like this debt is statute barred under the Limitation Act, if he has definately had no contact for 7 years with any company regarding htis matter or they have not taken legal action...

Look at this link from National Debtline which explains the Limitation Act:

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

National Debtline also have a sample letter to send to creditors when you are faced with this scenario:

http://www.nationaldebtline.co.uk/england_wales/temp/5441_72121.pdf

And lastly, read through this forum post from SWARB, mainly about divorce, but this post also touches on the same topic.. see bakedalaska's advice starting on page one, 2nd post from the bottom...

http://swarb.co.uk/phpbb/viewtopic.php?t=4889

Hope this helps.. x

icicle26 · 21 August 2007 at 4:29PM

Thanks very much for replying so quickly. Your advice is very helpful.

Just one question (probably a stupid one) - if we send letter saying the debt is statute barred will that then effect my husband's credit rating?

Thanks x

rayday2 · 21 August 2007 at 4:29PM

Not by any chance Capquest is it, I know Barclays do sometimes sell to them if it is they still like to chase outstanding debts so be careful not to acknowledge in anyway and follow advice above.