Advice please - 1st Credit Ltd

jgibso26

Hi there.

So...I made a full and final offer of 20% of my £3000 student overdraft that is being chased by 1st credit ltd. This offer was rejected, however they did offer me a settlement of 50% instead. A few months back they offered me to pay around 25% but I didn't have funds available at the time so couldn't take them up on it so I know there is still a bit of leverage.

I had a strong suspicion that the debt was statute barred ( 5 years in Scotland) as the default date on experian was showing December 2010 but it turns out they are telling me I was making payments up until May 2011.

They have come back saying they are going to get in touch with the original creditor to confirm this via relevant documents and that my account has been put on hold until then. If this is confirmed I'm afraid I might have restarted the limitation period as I didn't put "without prejudice" at the top of my offer (rookie mistake I know).

I'm very nervous about possible court action as the last thing I wan't is this on my credit file just as this default is about to drop off. Do they have to warn you about this? Not once have they threatened court action in 5 years, only more letters and phone calls.

I'm guessing the next move is to see what they come back with and if they can provide proof just suck it up and offer a payment plan?

Thanks for your time,

Jay.

sourcrates

jgibso26 wrote: »

Hi there.

So...I made a full and final offer of 20% of my £3000 student overdraft that is being chased by 1st credit ltd. This offer was rejected, however they did offer me a settlement of 50% instead. A few months back they offered me to pay around 25% but I didn't have funds available at the time so couldn't take them up on it so I know there is still a bit of leverage.

I had a strong suspicion that the debt was statute barred ( 5 years in Scotland) as the default date on experian was showing December 2010 but it turns out they are telling me I was making payments up until May 2011.

They have come back saying they are going to get in touch with the original creditor to confirm this via relevant documents and that my account has been put on hold until then. If this is confirmed I'm afraid I might have restarted the limitation period as I didn't put "without prejudice" at the top of my offer (rookie mistake I know).

I'm very nervous about possible court action as the last thing I wan't is this on my credit file just as this default is about to drop off. Do they have to warn you about this? Not once have they threatened court action in 5 years, only more letters and phone calls.

I'm guessing the next move is to see what they come back with and if they can provide proof just suck it up and offer a payment plan?

Thanks for your time,

Jay.

Hi,

You may of re-started the time clock unfortunatly, see what they come back to you with.

In order for a creditor to take legal action against you, they must follow the civil procedure rules- pre-action protocol, this means they have to write to you to tell you they will commence court action if you don't come to an amicable agreement with them.

These rules are there to encourage both parties to settle the matter without the need to take it any further, if you ignore this, then you risk a judgement by default.