Loan Default - 10 years on

TheOtters

Hi All
I would be grateful for your collective wisdom.
10 years ago I had a personal loan that I was managing to cover with no real issues. The loan was unsecured to pay for renovations to the family home.
Woke up one day to be made redundant. My world quickly unravelled but I was able to stay resolute during the recession and started a small business.
I explained to the bank that I was having severe financial difficulties and would they work with me to clear the debt at a more manageable level.
They refused and defaulted the loan.
I agreed to pay the £9,000 loan at £10 a month as I was without a job.
The loan was unsecured, but they tried to take me to court and even tried to force me to sell the property - it was like the wild west in those days.
Soon afterwards they sold the loan on to a debt collection agency.
I continued to make payments.
They then sold the loan onto a second company and I was then paying back £10 to each company. Recently the loan has been sold again to another company and I am also paying them a further £10.
The default has now dropped off my credit score and I have since found work.
In all of this time, I have never had a statement regarding the debt.
The bank have now washed their hands of the debt and these recovery companies are awful.
Apart from paying the debt off...is there anything else I can do?
I did read somewhere that if the original company no longer owns the loan and no statement or list of payments is received, then the debt is no longer enforceable.
Is this correct?

If this is in the wrong part of the forum, then please let me know where it should be posted.
Also if there are previous posts similar to that one, I am happy to do my own research, however this seems to be a great place to start.

Thanks for your assistance.
J x

sourcrates

Hi,


Can i ask why are you paying 3 creditors for the same loan ?
When a debt is sold, you just pay the new owner, you don`t continue paying the old ones as well.

This has all the hallmarks of a very confused situation.
You are thinking of the limitations act, but that does not apply in your case as payments have been made, there has to be 6 clear years of non payment before a debt can become staute barred.


Who currently owns this account, and who are you paying ?

TheOtters

Hi Sourcrates
That is the problem, I don't know who these companies are, or even why they are taking funds.
I don't even recall setting up payments with any other companies and have never received any communication from them.
I don't know who currently owns the account.

If I stop paying them, is there anything they can do?

sourcrates

So how are they been paid ?


Your post is very confusing, you say you are paying each company in your opening post, now you say you didnt set up payments, so which is it ?

Clive_Woody

TheOtters wrote: »

Hi Sourcrates
That is the problem, I don't know who these companies are, or even why they are taking funds.
I don't even recall setting up payments with any other companies and have never received any communication from them.
I don't know who currently owns the account.

If I stop paying them, is there anything they can do?

How are the payments being made (direct debit, standing order, credit card)?

You must have been contacted in order to set up these payments for your debt. What are the names of the three companies?

As mentioned if the debt has been sold on each time then you should only pay the current "owner" of the debt. Cancel the old payments.

TripleH

It is also worth going over your bank statements and working out how much you have paid to each of these debt collection companies, over what period and the reference you have used.

I suspect you may well need to write to the older agencies who no longer manage your debt and obtain a full breakdown of account from them of what you have paid off the loan. I would work out what they have been paid before you do so you can check they haven't 'mis-filed' any payments you have made. Sadly I think you will need to spend some more time unraveling this, but in the long run it is better everything is sorted out.

With regards to the debt collection agencies you are paying who no longer manage this loan, stop paying them, if they write to challenge why, don't worry, it will give a better idea as to what exactly is going on with this situation. Do however come back for more advice if they do.

foxy-stoat

I would imagine the £10er payment was just so you are still acknowledging the debt. The total amount owed will now likely be many times more than the original loan due to the interest and other fees.

Stop paying now, cancel the direct debit and wait to see who asks for the money first.

sourcrates

TheOtters wrote: »

They refused and defaulted the loan.

Loan was defaulted, so once that happens no further interest or charges can legally be applied.
I agree he should stop paying and see who crawls out of the woodwork.

TheOtters

Hi again
Thank you so much for the advice, I have now cancelled the DD and lets see who starts chasing. I am sure because the loan was defaulted, they can't charge interest or fees.
I wonder if I can go back to the original company and see if they will accept a figure to settle the loan. Although I doubt this as the company who has now bought the debt will be the one to settle with. Yet to find out who really owns the debt now.
As I have never had a statement, I wonder if there is anyone I can complain to and on what grounds. Would the FCA be interested?
I have put a PPI complaint in as well, just in case there are grounds that I may have been mis-sold the loan - not sure if this has any legs though.

sourcrates

TheOtters wrote: »

Hi again
Thank you so much for the advice, I have now cancelled the DD and lets see who starts chasing. I am sure because the loan was defaulted, they can't charge interest or fees.
I wonder if I can go back to the original company and see if they will accept a figure to settle the loan. Although I doubt this as the company who has now bought the debt will be the one to settle with. Yet to find out who really owns the debt now.
As I have never had a statement, I wonder if there is anyone I can complain to and on what grounds. Would the FCA be interested?
I have put a PPI complaint in as well, just in case there are grounds that I may have been mis-sold the loan - not sure if this has any legs though.

When you are contacted, you need to establish certain things, such as, a statement of account should be provided, ownership of the debt needs to be established, as it may be a collector acting on behalf of a client that writes to you.


If you wish to make a complaint, do so in writing, to the address of whoever writes to you, they have a complaints procedure to follow, which usually takes up to 8 weeks, if you remain unsatisfied after that time, the FOS is the body to escalate to.


PPI and loan mis-selling, are two very different issues, and the cut off point for PPI complaints has now passed.