Advice required on old debt - over 10 years old

collydoggie

Hello everyone.

In the mid -nineties I had a bit of a breakdown (debt and bereavement related) and ended up in a lot of debt. The majority of this I eventually paid off, a little at a time over the next seven years, however there remained an unpaid item: a credit card (£2000) which seemed to slip though the net.

I have heard nothing about this debt since 1997, and so was shocked to received a final demand letter from a credit agency this week (for almost £4000). Foolishly, I contacted them wondering why I had received a demand for immediate payment of a debt that wasn't mine (I had completely forgotten the debt, I am currently in good financial shape and totally legitimate in all my financial dealings). They informed me it was the credit card I had forgotten about and immediately offered a final settlement on it. I agreed that I did live at the address they suggested and that the debt could be mine.

I am under the impression that this debt is now void? Since I have heard nothing for 10 years, do I legally have to repay this debt? If I refuse, will it have an impact on my current credit rating? Are they likely to try to prove the debt is mine? Or would I be better paying the settlement amount and forgetting about it?

This whole thing has taken me back to the dark days of my breakdown. Please advise on what I should do next. Thank you.

bwgames

It's statute barred.

http://www.bdl.org.uk/images/25_liability_for_debts_and_the_limitation_act.pdf

"You can argue that the creditor is out of time or “statute barred” from taking you to court for this debt:
if
• The creditor has not already obtained a judgment against you
and
• You, or any one else owing the money (on a debt in joint names) have not made a payment on the debt during the last six years
and
• You have not written to the creditor admitting you owe the debt during the last six years."

HappierTimes_2

Hi Colly

Debts are statute barred after six years in the UK provided you haven't had any communication with your creditors within that time. If you go on to the national debtline website for England, choose the letter template. Follow it exactly and send it on to the creditors. You must write and tell them that the debt is barred under the statute of limitations or they will sue you for the money. You shouldn't phone them and get into a conversation about it as it could start the clock ticking again and the debt will be active.

National debtline are really good so call them if you have any concerns.

Good luck.

HT

collydoggie

Thank you so much for your replies. The collection agency contacted me first thing again today, demanding immediate payment or they withdraw the settlement offer.

I assume that since we have had two (very vague) telephone conversations, the debt has not been reactivated?

Thanks again for your replies.