old debts

nursepalm

As a new comer to the forum I am seeking advice. 10 years ago I managed to get myself in a financial mess which resulted in the use of a debt management agency. After a number of years I realised I could do the same job myself without the ever increasing management fees. Over the years I paid my creditors on a monthly basis ( a total of 7 creditors with various sized debts) After a period of 4 years one of my creditors stopped collecting the money. 30 months ago I agreed various settlements with all my creditors but was unable to contact the one who had stopped collecting payments as the debt had been sold on.
5 years on since the last payment was collected a new agency has found me and is demanding the money. I have checked my credit score with all major companies and they are showing a healthy rating with no debts owing. In fact I have had credit in recent years without issue. At the moment I am a mature student at University and have no income other than limited student loan and the nature of the degree gives me no opportunity to gain substantial employment to even attempt to pay the debt. I have offered to pay at the end of my course next year when employment will be possible but this has been refused.
Has anybody any idea's the best way forward ? Why isn't this debt on my credit score ? Any thoughts ?

sourcrates

Hi,

Defaulted accounts only stay on your file for 6 years, then they drop off.

You say you last paid 5 years ago, are you in Scotland at all ?

The reason I ask is that the limitations period in Scotland is 5 years, in England and Wales it's 6.

Best bet for now is send them a provit letter, see if they have the correct paperwork to collect this debt :

https://forums.moneysavingexpert.com/discussion/2607247

fatbelly

With 5 years of no payment the debt would be statute barred in Scotland.

I assume you're in England or Wales where the period is 6 years.

How did you 'offer to pay next year' - was that by phone or did you write?

It won't be on your credit report because it defaulted more than 6 years ago.

nursepalm

Many thanks for your help. I will be going forward by using the letter you linked to me. kind regards

nursepalm

Many thanks for your reply. I replied by email. The company seen ruthless and haven't taken into account my degree is 45 weeks a year with unpaid placements. I live in England. Kind regards

fatbelly

That does count as 'in writing' and was therefore an acknowledgement, and an unnecessary one as you were not intending to pay in the 6-year window.

The prove-it may seem a bit odd now but I would send it and see what comes back.