Old Loan/DCA

Hellion

I have a loan which was with Northern Rock. After getting into financial difficulties in 2008/09 I came to an agreement with them to pay £1 per month, this ran until they advised they would no longer accept this in mid 2011, and requested I start repaying the required monthly payments, I didn't (default was May 2011) and the £1 continued to be paid up until December 2015 when I cancelled it.
In the meantime, sometime shortly after mid 2011 the loan was sold to Cabot. Although I was still paying Northern Rock £1 per month.
Now Cabot have started sending letters regarding paying the loan and having it reviewed for legal action.
I have had no contact with Cabot and have not acknowledged the loan with them. My feeling is that the loan is statute barred as the default was with NR in mid 2011. Although I was still paying Nr £1 per month, even though they no longer owned the loan up until 2015.Does anyone have any advice on this in terms of would it still be statute barred?

sourcrates

Hi,

For a debt to be statute barred there must of been a period of 6 years without payment or written acknowledgement.

You admit paying the £1 a month up until December 2015.

Makes no difference you not having a contract with Cabot, they will of been legally assigned your debt, Northern Rock would of passed on those payments, so it won't be statute barred, no.

Hellion

Thanks for the reply.


So even though I wasn't paying the new creditor or acknowledging the loan the £1 a month to NR still counts as acknowledgement? This was a standing order I forgot to cancel.
Even though the £1 was no longer a valid agreement?

sourcrates

Hellion wrote: »

Thanks for the reply.


So even though I wasn't paying the new creditor or acknowledging the loan the £1 a month to NR still counts as acknowledgement? This was a standing order I forgot to cancel.
Even though the £1 was no longer a valid agreement?

You were paying it, makes no difference if you consider it a "valid agreement" or not, as I said the debt will of been legally assigned to Cabot, so they inherit all rights and privileges of the original creditor.

The only way you could use that defence is if Northern rock didn't pass on those payments after it was sold.

Hellion

Sorry for going on a bit, but in one of the statements Cabot claim there were some payments of £150 ( this is not true as I never made these 150 payments) and the £1 payments they have referenced don't tie up with the payment dates I made. Guess Im clutching at straws a bit but not in a good place at the moment.

sourcrates

Its not unheard of for debt collectors to "invent" phantom payments.

You could ask Cabot for a full statement of account ?