The end was near... Now maybe not. Help!!.

Distiller72

I am needing some help.
I had a large amount of unsecured debt in 2010, around £50,000 all very eyewatering but managable but then I was diagnosed with a brain tumor. I ultimately lost my job in 2011 as I was no longer able. Benefits were 10% of my earning and income protection would not pay out as they classed my unemployment as choice. Payments were defaulted on, debts mounted up but ultimately treatment worked and i am alive and healthy.

Anyway fast forward almost 7 years and the end is in sight. I have around £2500 to pay or so i thought. Today i have received a statement from 'Arrow Global' regarding a fixed sum credit agreement. The agreement was for 120 months and started in December 2007. They say there is £8009 of arrears outstanding and interest being charged is 0% from Feb 2012. There is a paragraph stating there is a requirement to have adequate building insurance in place for reinstatement of property as without insurance any damage to property would be my financial responsibility.
Now i have no knowledge what so ever of this debt. That in itself is not unusual as I lost a great deal of memories due to treatment but I can certainly say without a lie that this is the first i have heard of it.
I have checked my credit file and this debt is shown with a default date in Feb 2012.
Now if this debt is mine I do not understand why it has taken so long for anyone to be in contact or why it was not picked up when i started to repay everything when i returned to work in 2013. Can anyone offer any advice?

SusieT

I think with the dates that I would send them a prove it letter (use the template on here) next week, as from the dates it looks as if you have not had any contact with them since 2011 and the default date was February 2012 so if it is not already statute barred from the last payment or communication, then it will be very soon if they aregue that the default date is the one that should be used. Whatever happens do not phone them and if they call you refuse to speak to them or give any security details, so that everything is in writing. Good luck

Distiller72

Thanks Susie.
I am in Scotland so I think its 5 years for Statue Barred debts so that would of been 2017.

National_Debtline

Hi Distiller72


Welcome to the forum and apologies for any confusion as this is a different Susie posting.


You are right that limitation periods for statute barred debts are different in Scotland to those in England and Wales. But it's also worth pointing out that the limitation periods for what were originally secured debts are different to unsecured debts. I mention this as your original post talks about a paragraph referring to buildings insurance.


Is there any possibility that this is a debt that was once secured on a property you owned? I would recommend seeking some specialist Scottish advice from one of the free debt advice agencies to know exactly where you stand.


Susie
@natdebtline

Distiller72

Hi Susie.
I very much doubt loan was secured. I did own property in 2007 but it was sold in early 2009 when i seperated from my partner. I then rented for a bit in a new area before buying again.
I have no idea why the building insurance atatement is in there, i wondered if it was an underhand way to imply it was a secured loan.

pennystretcher

Did a quick search on Arrow Global and looks like they have a tendency to chase payments where people have already gone bankcrupt or actually didn't owe any money. (A lot of posts in MSE forums) Definitely send a prove it letter to them.

Template is here https://forums.moneysavingexpert.com/discussion/2607247

Distiller72

Prove it letter sent 11th January 1st class. No response yet.