Letter about very old debt

Golfer1990

Good morning,

Back when I was young, I wasn't great with money and got in some debt with credit cards. We are talking around minimum 9 years ago. Since then I have been much better with money. I never actually paid off the previous debts (I think one was £3k and the other £7k)

Today I received a letter from Arrow Global about one of the debts saying it remains outstanding and has been passed to resolve call who will call at my house to arrange payment. 

From my limited knowledge, and advice I received back when I was in this debt, these debts are no longer enforceable and I guess these companies just send out letters hoping to scare people into paying. I was also told never to acknowledge the debts or even reply to letters I received.

I'm not proud of never paying off these debts, but although I am now in a much better financial position, I don't have money lying around to pay them. How is best to go forward? Should I write to them informing them they are statute barred? ignore them? I dont really want the hassle of someone calling round at my house.

Many thanks

sourcrates

After 9 years its very likely that it will be statute barred yes.

The limitation act see`s to it you are not punished for bad financial decisions forever, a creditor has 6 years in which to pursue a debt (England & Wales, in Scotland its 5 years) as long as no legal action has been taken, and you have not paid or acknowledged the debt in writing for any period of 6 years or more, then send the statute barred letter.

It can be found here -

Statute barred debts and the Limitation Act — MoneySavingExpert Forum

(Scroll up to top of page)

Exodi

Hi Golfer1990,

You have the right view on this - the debt will not be enforceable.

Please see: https://debtcamel.co.uk/statute-barred-debt/

You could disregard the letter (though this may end up in having a baliff at your door), or you can be proactive and send a letter - the national debtline has a handy template you can use: 
https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx

Exodi

Golfer1990 said:

I'm not proud of never paying off these debts, but although I am now in a much better financial position, I don't have money lying around to pay them. 

We try not to involve ourselves in the moral aspects.

sourcrates

Exodi said:

Hi Golfer1990,

You have the right view on this - the debt will not be enforceable.

Please see: https://debtcamel.co.uk/statute-barred-debt/

You could disregard the letter (though this may end up in having a baliff at your door), or you can be proactive and send a letter - the national debtline has a handy template you can use: 
https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx

Its always best to send the letter, because even though the debt is statute barred, a creditor can still take legal action and obtain judgement, if the debtor fails to defend the case, so best to make your position crystal clear.

Exodi

sourcrates said:

Exodi said:

Hi Golfer1990,

You have the right view on this - the debt will not be enforceable.

Please see: https://debtcamel.co.uk/statute-barred-debt/

You could disregard the letter (though this may end up in having a baliff at your door), or you can be proactive and send a letter - the national debtline has a handy template you can use: 
https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx

Its always best to send the letter, because even though the debt is statute barred, a creditor can still take legal action and obtain judgement, if the debtor fails to defend the case, so best to make your position crystal clear.

Very useful insight.