Old debt 'purchased' - being hassled when debt over 7 years olf

Deva2005

Hi all

I have recently received a letter from PRA Group who claim they have 'recently' purchased an old Welcome Finance debt. I think this relates to a loan I took in 2006. I defaulted on it soon afterwards and it has been, as far as I knew, dead since then.

I told PRA this and that the debt should be barred under the time limit, but they claim to have received an alleged payment of £1 in January 2015, which means the debt is still live.

I challenged them to Sent me the proof of this debt, they have failed to do so, but keep calling me several times a week.

Does anyone have any ideas about how to deal with this?

They are clearly lying about the £1 payment, why in earth after 8+ years would I ssend then £1 and resurrect a £3 plus old debt!

They are driving me nuts, I have enough with legitimate debts I am trying to manage.

Would I have recourse to the Financial ombudsman and to claim compensation from PRA for the continued harassment?

Any ideas will be gratefully received.

Many thanks
David

fatbelly

david.richards27 wrote: »

Hi all

I have recently received a letter from PRA Group who claim they have 'recently' purchased an old Welcome Finance debt. I think this relates to a loan I took in 2006. I defaulted on it soon afterwards and it has been, as far as I knew, dead since then.

I told PRA this and that the debt should be barred under the time limit, but they claim to have received an alleged payment of £1 in January 2015, which means the debt is still live.

I challenged them to Sent me the proof of this debt, they have failed to do so, but keep calling me several times a week.

Does anyone have any ideas about how to deal with this?

Send them this and then do not engage unless you get a court claim.

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

I do not acknowledge any debt to you or any other company or organisation that you claim to be representing.

Dear Sir/Madam

Account No:

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

I would point out that under the Limitation Act 1980 Section 5:

“An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

I note that you have claimed that a payment or acknowledgement made after the limitation period has expired means that a debt is no longer statute barred.

That appears to be a deliberate attempt to mislead and misrepresent the correct legal position, contrary to FCA Rules. I will be reporting this deceptive conduct and will bring it to the attention of the court if required.

The Limitation Act 1980 Section 29(7) clearly states:

"a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment"

It is clear that there was a period of 6 years where no acknowledgement or payment of this debt was made.

<Give dates if you have them, and deny that the later payment came from you or your agent.>

Consequently this debt is and remains statute barred under the Limitation Act 1980.

Unless you can provide evidence of payment or written acknowledgement from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.

I would also point out that in their Consumer Credit sourcebook, the Financial Conduct Authority states the following rules:

"...a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period." 7.15.4

"A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred." 7.15.8

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

Yours faithfully

That should do it.