Statute Barred, can they be sold on?

Spaceboules

Out of curiosity from seeing a few topics.

I've noticed a few people who have had Statute Barred Debts be taken for court and had to defend. Once a debt is SB is it a case of always checking the CRA for any hidden judgements? I know it drops of the credit report but I guess these guys won't stop chasing for money so once you have sent the SB letter what's the next step?

Can the agencies just sell it onto another agency and so it becomes a vicious circle? Or will it stop with the agency you send the SB letter to?

Thank you.

poppasmurf_bewdley

Statute Barred loans can, and are, certainly sold on.

Whether they can be sold on after a DCA is told the debt is SB is a moot point. DCA's are not supposed to pursue a debt they know is SB, so it's easier just to sell it on to another DCA. And then that can be repeated numerous times.

There must be so many million SB accounts floating around the system that nobody could possibly keep track of them.

Spaceboules

That's quite scary.

So I'm guessing a lot debts get left with the 'bottom of the barrel' DCA's who probably buy them for a few pence and then hound people with threatening letters trying to make a profit.

Will there ever be a more controlled system for DCA's? I've read about certain companies breaking rules (from a decade ago) various complaints, not doing things by the book and they're still running.

I'd love to know how this whole selling of debt works, is it like a bad ebay where they won't tell them something is SB or is this more reason to buy it as it'd be cheaper I guess.

Willing2Learn

We often get people posting here who have paid an account that is SB, unenforceable, or just simply not their debt. I think they just pay for a quiet life...

CakeCrusader

Statute barred debts still exist, it just means that any lender (or debt collector) can't use the courts to reclaim the money as they have left it too late. Debt companies usually buy debts in bulk for a fraction of what the debt is actually worth, and they will chase the debt up in the hope that the debtor doesn't know the law and will pay up. They won't necessarily know which ones are statute barred.

sourcrates

Dosent happen as much nowadays, as more people are aware of the regulations, etc, thanks to the internet, and to sites such as this one, and others.
But there are still a significant number of people who don`t know anything about the industry, and they can be caught out by the DCA`s first approach letter.

Certain debt collectors used to specialize in buying old statute barred debt, or debts with no compliant paperwork, them attempt to chase them down, some still do so, some even "invent" phantom payments to make it look as though its not statute barred.

Make no mistake, this nicey, nicey image these companies portray nowadays, its all a smokesceen to comply with FCA regulation, they will lie through their teeth that such payments were genuine, then when it gets to court, they mysteriously discontinue, funny that isnt it !!

Moneylending and morals make very uneasy bedmates in my book, and its not uncommon for these type of debts to do the rounds with various collection companies, but having said that, several high profile players in the industry were hauled over the coals by the FCA a few years ago and heavily fined for bad buisness practices, which seems to have had some effect on their behaviour, the old names have now changed to something more modern and uplifting, but leopards do not change their spots, its all PR these days.

Spaceboules

Willing2Learn wrote: »

We often get people posting here who have paid an account that is SB, unenforceable, or just simply not their debt. I think they just pay for a quiet life...

After experiencing hassle from DCA's I can fully understand them. And once they pay off the DCA XYZ does XYZ then take it out of the 'pool' for everyone or is the debt just left with the last DCA and locked up in a file?

CakeCrusader wrote: »

Statute barred debts still exist, it just means that any lender (or debt collector) can't use the courts to reclaim the money as they have left it too late. Debt companies usually buy debts in bulk for a fraction of what the debt is actually worth, and they will chase the debt up in the hope that the debtor doesn't know the law and will pay up. They won't necessarily know which ones are statute barred.

Isn't the process automatic where they can still apply for a CCJ and plead ignorance that they didn't know it was SB'd otherwise would they have to prove to the courts it's still within 5/6 years? That's what I noticed with a lot of threads about fighting a CCJ which appeared to be SB'd. Whether or not they were actually SB I don't know.

This was posted in another thread on here about a CCJ after BD'd
"If the debt was statute barred at the time that the CCJ was issued then the court expects that you should defend the judgment within the time limits that apply. If you didn’t update your address or receive the claim form, this wouldn’t be suitable defence as it’s your responsibility to keep this updated."

There seems to be a lot of loop holes for them.

sourcrates wrote: »

Dosent happen as much nowadays, as more people are aware of the regulations, etc, thanks to the internet, and to sites such as this one, and others.
But there are still a significant number of people who don`t know anything about the industry, and they can be caught out by the DCA`s first approach letter.

Certain debt collectors used to specialize in buying old statute barred debt, or debts with no compliant paperwork, them attempt to chase them down, some still do so, some even "invent" phantom payments to make it look as though its not statute barred.

Make no mistake, this nicey, nicey image these companies portray nowadays, its all a smokesceen to comply with FCA regulation, they will lie through their teeth that such payments were genuine, then when it gets to court, they mysteriously discontinue, funny that isnt it !!

Moneylending and morals make very uneasy bedmates in my book, and its not uncommon for these type of debts to do the rounds with various collection companies, but having said that, several high profile players in the industry were hauled over the coals by the FCA a few years ago and heavily fined for bad buisness practices, which seems to have had some effect on their behaviour, the old names have now changed to something more modern and uplifting, but leopards do not change their spots, its all PR these days.

I noticed that a lot of companies have sister companies and all are LTD so churning more and more companies when one gets 'told off'. I've always wondered who works for these companies, surely we all must know someone, a friend, family member. Ha. It's like those insurance phone calls we all get.

It seems like a good money maker for them though, especially if debts can be purchased for as little as £1.

Spaceboules

Also guys, whilst on this subject. If you move, is it best to update your address with the original creditor or the DCA who's sending letters? It just worries me reading about how if they do try to get a CCJ they can send to last known address but how is that updated exactly?

Or once you send a SB letter I guess the address at the top is enough?