How long to collect a debt?

BevvyB

Hi folks, first time in this bit

I know a debt is a debt, but is there a cutoff to how long a bank can chase you for a debt? I really thought that a very old debt would have been written off by now, but I've just had a letter from a company saying that they had bought my debt from the bank and were now pursuing it themselves.

The debt was from around 8 years ago when I became incredibly broke, but didn't go bankrupt, but never the less have not been in a position to pay it since

Would just like to know if time means anything, or if there is a cut-off timeframe (as there is with certain taxes etc)

Thanks

B

Crown

If you havent been contacted by the creditor within 6 years the debt becomes statute barred and they have no legal way to reclaim the money (ie taking you to court). If on the other hand they have been writing to you in this time and you have just ignored there letters then they would still be in there rights to chase up the payment.

By the sounds of it this is a typical attempt by a a company that has bought a "bad debt book" and are hoping to harrass you into making a payment.

Take a look at this sample letter on the National Debtlines website
http://www.nationaldebtline.co.uk/england_wales/temp/8138_15361.pdf

Before you send it though please can you provide some more details if the creditor has tried to make any contact with you within the last 6 years

CLAPTON

basically normal debts are statute barred after 6 years

read the following sites for more info... the nationldebtline has useful letters that you can send.


http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

http://www.hmrc.gov.uk/manuals/IHTmanual/IHTM28384.htm


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

BevvyB

I've lived in many places since the original debt - including three years immediately after the debt of not really living anywhere at all
So this is the first letter I've ever actually received as I've only just gone onto the electoral roll for the first time in years
The company in question is Lowell Portfolio

rog2

Providing you have made no payments to, nor acknowledged the 'alleged debt' in writing, for a period of Six years (five in Scotland) then the 'alleged debt' falls within the terms of the Limitations Act 1980 and will, with a few exceptions, will be statute barred.
This means that, once you have informed the creditor, or dca, that you will not be paying the 'alleged debt' because it is statute barred (THAT IS THE ONLY REASON YOU NEED GIVE) they can no longer pursue it through the courts.
A template letter, that should be sent to the dca, can be found on the following link:

http://www.nationaldebtline.co.uk/england_wales/temp/7482_31511.pdf

Hope this helps.

Sorry Crown - the phone rang as I was typing my reply - still great minds, eh.

BevvyB

Bloody marvelous
My blood has now gone back down to the appropriate temperature
I love this place
Thanks a million!
B

RAS

Hi

If you have not paid anything in the last 6 years, nor acknowledged it in writing during that period, it is statute barred. They may suggest that you are morally indebted but if you do not want to pay and tell them this, then they cannot take any action against you.

Kevicho

RAS wrote: »

Hi

If you have not paid anything in the last 6 years, nor acknowledged it in writing during that period, it is statute barred. They may suggest that you are morally indebted but if you do not want to pay and tell them this, then they cannot take any action against you.

As if DCAs can hold themselves up on a moral highground

bluecoxy

Hi

I to recived a letter from Lowell yesterday about a debt i had from back in 1999.I have moved house since andhave been living here since May 2001 and not heard a thing from anybody until i recived a letter from Mackenzie Hall last week.

Are these companies the same people or seperate companies trying to claim the same debt

The debit is for a loan with HSBC.

I have made no attempt to contact them for fear of acknowledging the debt,iwas thinking of sending the letter from national debtline but would this in therory be acknowledgment.I have not made anyrepayments on this since i was at my old address.There was never a CCJ took out against me,also i have checked my credit file on two of the main agencies and there is nothing

Please Help

fermi

bluecoxy wrote: »

I have made no attempt to contact them for fear of acknowledging the debt,iwas thinking of sending the letter from national debtline but would this in therory be acknowledgment.

The National Debtline letter is carefully worded so that debt is not acknowledged. Some advice sites suggest adding an additional line at the beginning just to make sure.

Add:

"I/we* do not acknowledge any debt to you or any other company or organisation that you claim to be representing"

debt_doctor

Just to add to the above, If the debt ( s) were the result of a mortgage shortfall, then the statute barred time period is 12 years. However if the lender was / is a member of the council of mortgage lenders ( CML) then they have a code of practice that reverts it back to the 6 year limit as per money only claims. This code of practice has different rules from the statute barred law. CML say that if a lender has written to you at an address you actually lived at when the letter was written, after the 6 yr period but within the 12 year period and you chose not to respond then the 12 year rule will apply.

Sorry thats heavy I know !!

Best wishes

DD