Unsure on action

16newbie16

Hi all,

Found this forum looking for some general advice as the Internet seems to offer every answer as advice.

In 2002 I went to university after already having worked for a few years. I had a decent credit rating, several credit cards that I kept at 0, overdraft etc. By the time I finished in 2006 I hadn't missed payments on anything but my debt had grown to about £12k, not including my student loan. I had opened a student account with HSBC as they informed me once I graduated and found a full time job I could get a low ish interest graduate loan to consolidate and have one payment a month. It took me a good half year after graduating working part time in the co-op until.i got a full time job. I still met all minimum payments. HSBC subsequently refused my graduate loan application telling me to get a second job at McDonalds. I lost my temper and swore not to repay anything. I stopped all payments to all companies. Early 2007 I started one of those things with those companies when you pay of a fraction of the amount owed. I realised however that I was paying more to the company who arranged it than my debtors. I went off the grid and in 2009 eventually moved abroad to land work.

I am however now older, wiser and want to know what I should do about my debts. I am in no means wealthy and it would be a big struggle to repay but I have a family now and don't want to be taken to court or refused jobs should I ever return to the uk. I understand my student loan will never be gone but have my other debts defaulted? I don't want to try to pay debts I don't have to. I don't even remember all the companies or exact amounts.

Sorry for such a long intro, thought background may be useful to know. My question is as it's been 8 years since I had any contact with them, and them with me are the debts now just gone? I'm wary to start contacting companies announcing my whereabouts if.i don't need to. All debts were credit cards, overdraft and possibly a loan and some rent to the council.

Second question is if I do ever return to the uk and open a bank account, firstly will I be able to, secondly will it be a big red flag and target for these companies?

Thanks in advance

midnitegremlin

Essentially, this boils down to HSBC saying they could give you a graduate loan, and then refusing? Was it perhaps by word-of-mouth that they told you this? It would be very unlikely they would be legally bound by it, and therefore it's unlikely they would put it in writing.

However, refusing to pay anything seems a bit of an over reaction.

While you were abroad, did you have a UK address? They will have been some "chasing up" letters from them no doubt. But if debts are as old as you say, I think they might be "statue bared" or something. Others will know more.

sourcrates

Hi,

Statute of limitations allows creditors 6 years to take action to recover there money, if they haven't taken legal action after this time, accounts will be statute barred, and you most likley, won't have to pay them.

Most creditors only keep records for 6 years, some a little longer, but they don't have the capacity to store data much longer than this.

midnitegremlin

Really obvious question, but when does the 6 years "start" presumably from your first missed payment?

Ie, I have a credit card blance of £10000 since 2010, and I default in 2012. I'd assume they have until 2018 to "grab" it. Or because the debt was made in 2010 is that the scope of the 6 years?

fatbelly

16newbie16 wrote: »

Sorry for such a long intro, thought background may be useful to know. My question is as it's been 8 years since I had any contact with them, and them with me are the debts now just gone? I'm wary to start contacting companies announcing my whereabouts if.i don't need to. All debts were credit cards, overdraft and possibly a loan and some rent to the council.

Second question is if I do ever return to the uk and open a bank account, firstly will I be able to, secondly will it be a big red flag and target for these companies?

Thanks in advance

The debts will not be 'gone' under England-Wales law but will be unenforceable now if the creditor has not already got a ccj.

You may have a problem opening a bank account if the bank's records still show you as a defaulter, and they can keep their own records for as long as they like and interpret them as they wish.

However there are a lot of banks you can try now.

And if anyone did try to collect on the debt, there is FCA guidance to say they should cease once you point out that the debt is statute barred.

16newbie16

Like I said I have matured more now and it was more the attitude of the bank worker. To answer your question I had no uk contact details since 2007, I was technically homeless for the time I stopped contact and moved abroad.

fatbelly

midnitegremlin wrote: »

Really obvious question, but when does the 6 years "start" presumably from your first missed payment?

Ie, I have a credit card blance of £10000 since 2010, and I default in 2012. I'd assume they have until 2018 to "grab" it. Or because the debt was made in 2010 is that the scope of the 6 years?

Yes, although you may find debt collectors trying to deny this.

If you stop making the contractual payment in 2012 they have until 2018 to start a court claim, even though they may not formally issue a default notice until later.

There are certain forms of conditional sale agreements where the default notice DOES constitute the cause of action, but I assume that doesn't apply here.

16newbie16

Thank you all.

I guess I will do nothing and if I ever do return to the uk, take it as it comes. I have a bank account and good credit in my current country.

midnitegremlin

It's one of those things, though, do you want it hanging over you? That would stress me a bit. But equally, I don't think anyone in all honesty would pay something back if they didn't need to.

redpete

midnitegremlin wrote: »

It's one of those things, though, do you want it hanging over you? That would stress me a bit. But equally, I don't think anyone in all honesty would pay something back if they didn't need to.

Some might be more influenced by their sense of the 'right' thing to do rather than legal obligations.

andyfromotley

So let me just double check,

bank worker makes smart a.s.s comment - you stiff the bank for £12k??

This is one of the very very few cases where i wish there wasnt statute barring on debts. However yup, you should be free to return without debt worries.