Notice of Pending Legal Action

Kellan_2

Hi, I've received a letter from Howard Cohen & Co Solicitors for an old Nationwide overdraft of over £5k (I was young and stupid).

They are saying;
Unless acceptable proposals for paying the amount you owe are received within 14 days of the date of this letter, we are instructed to issue proceedings in the County Court with a view to obtaining a County Court Judgment against you. If we issue... blah blah... additional fees.. blah blah

The debt is 3 months away from being statute barred, what should I do?

Thank you so much for your advice

sourcrates

Hi,

You should consider that to be a "letter before claim" inline with the pre action protocol, so they are following the rules, nice of them.

Are you sure about your dates here, what default date is registered on your credit file for this debt ?

Kellan_2

Hi, thank you so much for your reply. My default date registered on my credit file is December 2011

sourcrates

Kellan wrote: »

Hi, thank you so much for your reply. My default date registered on my credit file is December 2011

And you dont live in Scotland i take it ? (limitations period 5 years in Scotland).

Kellan_2

Unfortunately not!

sourcrates

Thats ok, as you still have a lifeline here.

The default date, and the "cause of action date" are two different things.

The time clock runs from the cause of action date, the time when the creditor was officially able to take legal action to recover the debt, this is likely to be a few months before the actual default date.

sourcrates

So my advise to you is to respond with the statute barred letter, pointing out the above, and put the ball firmly in there court.

For the avoidance of any doubt, statute barred is a full defense to any court claim.

Kellan_2

Okay, thank you. Could you suggest a letter for me to send, if possible please? I've just spoken to a debt charity, and they say the letter is likely just a threat, but to offer a repayment plan.

Kellan_2

Thank you so much

sourcrates

Kellan wrote: »

Okay, thank you. Could you suggest a letter for me to send, if possible please? I've just spoken to a debt charity, and they say the letter is likely just a threat, but to offer a repayment plan.

It could be a bluff, they may be right, actually i would hold off doing anything for now, wait and see if they issue a claim form, if they do, defend on the basis the debt is statue barred, the more water that runs under the bridge, the better chance of your defense been watertight.

Statue barred letter available here for future reference :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx