Natwest Overdraft

Peter26

Hi all,

Just after a bit of advice. Years ago, I had a Natwest bank account with an overdraft, I was a really stupid student and failed to pay off the overdraft (£1500) and ignored it. I then realised it had defaulted (showed as Oct 2013 on my credit report) and so I contacted them to find out what was happening.

It had been passed (or so I thought) to a DCA. I began making monthly payments and reduced the balance by about £200. I was quite broke so cancelled the payments in 2014. Since then, I haven't heard a peep about this debt and have just left it.

Fortunately, I am in a relatively good financial position now - I have educated myself, have some savings and zero debt (apart from this).

It still worries me so I contacted Natwest today and after being passed pillar to post, I reached the correct department who advised me that it wasn't sold to a DCA, it was just outsourced for them to chase and in fact, the debt was written off in 2015 and they are no longer pursuing me for it. He also mentioned that it had defaulted in May 2013, not October 2013.

My worry is getting a CCJ through the door and my credit score being destroyed for another 6 years. Does anyone know the likelihood of me being pursued for this debt now? I have the means to pay it off if needs be but if there's not much point, I wont. I asked the guy on the phone and he didn't say much, just that there is a possibility it could get sold on to a DCA.

Any advice would be much appreciated.

Thanks.

Willing2Learn

I believe that the debt would become statute barred six years from the last time you either made a payment to the account or acknowledged the debt in writing. Up until the debt becomes Statute Barred, the creditor could seek a CCJ.

Peter26

Thanks for your reply.

I understand that they could potentially seek a CCJ, however I was told they have written the debt off and are not pursuing me? So I guess my question would be what is the likelihood of them selling it on for someone else to pursue?

Thanks.

Ps. NatWest have an old address on file for me, if I was to update to my current address, if a CCJ was to come through, I’d have enough time to act and pay in full. Would they start chasing me again if I gave them up to date details?

Willing2Learn

I am unable to give a definitive answer. Until the account becomes Statute Barred, Natwest would have the right to seek enforcement. They also still have the right to pass the account on to a DCA for collection.

[Deleted User]

When NatWest say they have wrote the debt off and are no longer pursuing it they mean they have sold the debt off to someone else who may or may not try collecting on it.

Although if defaulted in May 2013 on your credit files then hopefully it will have dropped off by now, and as it's over 6 years a CCJ is unlikely as it sounds like it is statute barred.

I wouldn't trust a word NatWest say over the phone though, They told me that they were not seeking a CCJ on me in 2008 when at the same time Fredricksons who were collecting for them (or had purchased the debt) had issued CCJ claim on me.

sourcrates

Peter26 wrote: »

I contacted Natwest today and after being passed pillar to post, I reached the correct department who advised me that it wasn't sold to a DCA, it was just outsourced for them to chase and in fact, the debt was written off in 2015 and they are no longer pursuing me for it. .

You really need to request this in writing.

If it did indeed default in May 2013, then the debt will be statute barred and that is a full defence to any court claim.

Its 50/50 wether Natwest wrote the debt off or sold it, either way, as long as the default date is correct, you are covered.

Peter26

Hi both,

Thank you so much for the replies.

The problem is I made payments toward the debt until around June 2014 so doesn’t this mean it won’t be statute barred until 2020?

I’m really tempted to leave it but would be absolutely gutted if I got a CCJ in, say 6 months time.

Thanks.

Willing2Learn

According to debtcamel, the fact that you have made payments toward the account, resets the clock and cause of action.

Unsecured debts, including most loans, credit cards, catalogues and overdrafts will normally be statute-barred in England and Wales if you can say YES to all the following four points:

1. it had been more than six years since you last made a payment; and
2. the creditor has a cause of action more than six years ago; and
3. you haven’t acknowledged the debt in writing during this time; and
4. the creditor hasn’t already gone to court for a CCJ.

Source: https://debtcamel.co.uk/statute-barred-debt/