Question about debt no longer on credit file.

Vidar

Hi Guys,

I'm not one for wanting to shirk my debts off but this relates to a credit card I'd supposedly had with Egg, I'd disputed this because I'd never applied for a card with them, yet despite trying their fraud team who weren't very helpful because I couldn't answer security questions I didn't know and due to suffering with long term clinical depression I chose to ignore the debt.

Now it's been six years and the debt has vanished off my credit file but I am now being harrassed by a company called Cabot who are claiming that they bought the debt, that it wont show up on my credit file but I'm apparantly still legally obligated to pay.

My question is, what are my rights? Am I legally obgligated to enter into an arrangement with them to pay the debt? I'm already under a debt management plan and guess I could spare some more to pay back this debt but I shouldn't have to.

The next time they get in touch, what can I tell them?

fermi

No, you are not obliged to pay these chancers a penny.

If you need to reply then you could adapt the letter here:

--->Letter when you know nothing about about the debt - AKA "Prove it" letter

Would need some tweaking as it's about a dispute you were already of aware of and had disputed liability with Egg.

If Cabot don't back of you can then do

http://forums.moneysavingexpert.com/showpost.php?p=57703407&postcount=3

and take them to the FOS etc.

Vidar

Thank you for the response Fermi, I've just been googling and discovered the Limitation Act 1980 that says basically "The creditor can still contact you and they are entitled to chase the outstanding debt, even if the debt has been statute barred, but they are unable to use legal proceedings to force you to pay." - cleardebt.co.uk

Would it not be easier for me to just tell them it's statute barred and I won't be paying? I remember speaking to Cabot in December I think where I initially agreed to pay them £1 per month but asked them for payment details and never received anything which is what has been prompting the calls after 2 months of nothing.

fermi

Vidar wrote: »

Thank you for the response Fermi, I've just been googling and discovered the Limitation Act 1980

I would still mention the original dispute and that you categorically deny that they debt was ever yours.

There is an alternative letter you could adapt here

Link ----> http://forums.moneysavingexpert.com/showpost.php?p=34906257&postcount=5

That raises both issues of dispute.

Lemonsqueezer78

Vidar wrote: »

Thank you for the response Fermi, I've just been googling and discovered the Limitation Act 1980 that says basically "The creditor can still contact you and they are entitled to chase the outstanding debt, even if the debt has been statute barred, but they are unable to use legal proceedings to force you to pay." - cleardebt.co.uk

Would it not be easier for me to just tell them it's statute barred and I won't be paying? I remember speaking to Cabot in December I think where I initially agreed to pay them £1 per month but asked them for payment details and never received anything which is what has been prompting the calls after 2 months of nothing.

In fact, the FCA's own Consumer Credit Sourcebook states that it considers it improper/unfair for a creditor (or their agent) to continue to pursue a debt, once a consumer has told them they do not intend to pay because the debt is statute barred.

Continuing to contact you and/or ask for payment once you have stated you will not pay a statute barred debt could therefore be considered harassment in the eyes of the FCA/FOS.
.

Vidar

Thanks for all your advice guys, they called me again and I quoted the information from the links Fermi provided to the letters and told them that A, I had disputed this balance and B that it was Statute barred. They didn't even try arguing, just put me on hold for a few moments and told me they'd sorted it. I'm going to fire off the letter tomorrow just to be safe though

TheDebtinator

awesome result

fermi

TheDebtinator wrote: »

awesome result

Indeed. Glad that helped.