Can I ask for a F&F?

redmel1621

Hi.

We have a debt with Lloyds Bank that has now been sold on to Robinson Way. The account was opened in 2009 and due to moving a number of times, health issues and babies, we have just never serviced this debt at all.

So this letter arrives from RW and says it is going to court to seek a CCJ if they don't hear from us in 30 days. I sent a reply stating the account was statute barred (2009 until now surely it had to be) however the reply we got is that it was not 'defaulted' until 2013. We accept this as from reading around, this can happen and the statute barred period only goes from when the account was defaulted - PLEASE correct me if I am wrong!

Our next step is to make an arrangement to pay, if we can't dispute the statute barred status, but I was wondering if I can make an offer to pay less and if so, can that still be paid in installments? Obviously if they accept our offer. If not then we will have to suck it up and pay the full amount.

Advice please.

Willing2Learn

Hi,

[STRIKE]Statute Barred goes from the date you last acknowledged the debt in some way. It doesn't go from the date of default...

So in your case, the clock started ticking in 2009[/STRIKE]…

Edit: Incorrect information as the debt is an overdraft.

sourcrates

Hi,

Was it a bank account/overdraft ?

If so, then they are correct, you do not make any regular repayment with an overdraft, so the default date is classed as the cause of action date.

So on that basis it would not be statute barred.

Yes of course you can offer them a deal, they will be glad to get anything I would think, make the offer, see what they say, debt purchasing companies can be really flexible with repayments.

sourcrates

Willing2Learn wrote: »

Hi,

Statute Barred goes from the date you last acknowledged the debt in some way. It doesn't go from the date of default...

So in your case, the clock started ticking in 2009...

Not if it was an overdraft it doesn’t.

redmel1621

The reply they sent said that it was defaulted Dec 2013 and is therefore not statute barred. We have never acknowledged the debt, as I say we have moved etc and don't have any paperwork or anything from the debt.
It was a student overdraft that was taken out in 2009.

I have read on some sites that the length of time for a statute barred status can run from the date it was defaulted, depending on the type of debt.

sourcrates

redmel1621 wrote: »

The reply they sent said that it was defaulted Dec 2013 and is therefore not statute barred. We have never acknowledged the debt, as I say we have moved etc and don't have any paperwork or anything from the debt.
It was a student overdraft that was taken out in 2009.

I have read on some sites that the length of time for a statute barred status can run from the date it was defaulted, depending on the type of debt.

That is correct, see my post above.

fatbelly

With an overdraft, the 'cause of action' is when the account was terminated. There is no contractual monthly payment so you can walk away from a current account and it can be many years before a monthly fee or a forgotten direct debit takes you over the overdraft limit.

Having said that, four years is a long time, and that's now 5 years ago. Not in Scotland are you?

If RW now own the debt (suspect it may actually be Hoist Portfolio) they will have bought it for maybe around 10% of the balance.

Yes,they should be open to an offer. Use the National Debtline template as it does not acknowledge the debt and still keeps them wondering if you would attempt a statute barred defence in a court claim

redmel1621

sourcrates wrote: »

Hi,

Was it a bank account/overdraft ?

If so, then they are correct, you do not make any regular repayment with an overdraft, so the default date is classed as the cause of action date.

So on that basis it would not be statute barred.

Yes of course you can offer them a deal, they will be glad to get anything I would think, make the offer, see what they say, debt purchasing companies can be really flexible with repayments.

Thank you. That will be it then as it was a student overdraft, which would not have become repayable until about 2011/2012 ish...

I will try and find a template asking for a reduced amount to pay back and for them to accept installments.

They have enclosed an SOA template with the letter. Should I send that back with my offer or just ask for a reduced amount first?

sourcrates

redmel1621 wrote: »

Thank you. That will be it then as it was a student overdraft, which would not have become repayable until about 2011/2012 ish...

I will try and find a template asking for a reduced amount to pay back and for them to accept installments.

They have enclosed an SOA template with the letter. Should I send that back with my offer or just ask for a reduced amount first?

Use this letter to make your offers :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

redmel1621

fatbelly wrote: »

With an overdraft, the 'cause of action' is when the account was terminated. There is no contractual monthly payment so you can walk away from a current account and it can be many years before a monthly fee or a forgotten direct debit takes you over the overdraft limit.

Having said that, four years is a long time, and that's now 5 years ago. Not in Scotland are you?

If RW now own the debt (suspect it may actually be Hoist Portfolio) they will have bought it for maybe around 10% of the balance.

Yes,they should be open to an offer. Use the National Debtline template as it does not acknowledge the debt and still keeps them wondering if you would attempt a statute barred defence in a court claim

Thank you.

We are in England. I will look out the National Debtline template and send that next week.

Should I send our SOA with the offer to show affordability? Or wait until out offer is accepted.

sourcrates

redmel1621 wrote: »

Thank you.

We are in England. I will look out the National Debtline template and send that next week.

Should I send our SOA with the offer to show affordability? Or wait until out offer is accepted.

You can include it with your letter.