Debt collectors chasing old debt

hoverFrog1

Back in late 2018, early 2019 I wrote to all my credit card companies asking for confirmation that the debt was enforceable under Sections 77 to 79 of the Consumer Credit Act. Most of these companies failed to respond at all so I stopped paying them. I did write to explain why. Two companies did provide this information and I entered into an arrangement with them, which I have stuck to ever since. Utility bills, mortgage, and council tax have been up to date for the same period. Things were actually starting to turn around, even with the cost of living crisis biting.

This week I have received two letters from companies threatening legal action, Lowell and Kearns. I wrote back with virtually the same wording as my last letter to the previous debt collection company, not acknowledging the debt and asking for a copy of the credit agreement. A third company, Equivo, have written to me about another debt, which I have been paying back, saying that the time frame for the arrangement has elapsed and I need to renegotiate it. I have offered them about 50% of the debt as a full and final offer.

My question though is why, after five years, have these old debts emerged again? My last payment to the credit card debt that Lowell are managing\have purchased was on 20th November 2018. The others are around the same time. Are they just hoping to get a payment so that the debt countdown can start all over again?

DjangoUnchained

after 5 years they probably decided to hurry it up before it becomes statute barred befor 6years.

sourcrates

Just to let you know, failure to respond to a CCA request renders the account unenforceable, and it stays that way till they do comply, you only send it once, there is no need to send again, it can be used as a defence to a court claim.

fatbelly

My question though is why, after five years, have these old debts emerged again? My last payment to the credit card debt that Lowell are managing\have purchased was on 20th November 2018. The others are around the same time. Are they just hoping to get a payment so that the debt countdown can start all over again?

Yes.

There is a new FCA Consumer duty coming in at the end of July and the CEOs of the Debt Purchasing firms have received a long letter with particular instructions about statute barred debts.

So there does seem to be a flurry of activity at the moment

hoverFrog1

I'm just getting to the point in my life when I can move beyond years of debt and worry and they suddenly descend on me from the shadows. That's how it feels anyway. Thanks.

@sourcrates, is that the case when the company changes too? With Lowell and with Kearns I originally requested this information from different third parties. I still have copies of the old letters. I assume if they sold the debt on to someone else then they should do their due diligence before writing to me. I understand that they probably haven't though.

sourcrates

hoverFrog1 said:

I'm just getting to the point in my life when I can move beyond years of debt and worry and they suddenly descend on me from the shadows. That's how it feels anyway. Thanks.

@sourcrates, is that the case when the company changes too? With Lowell and with Kearns I originally requested this information from different third parties. I still have copies of the old letters. I assume if they sold the debt on to someone else then they should do their due diligence before writing to me. I understand that they probably haven't though.

Yes, you may have to remind any new owner of the debts status, as they probably will not be aware of it.

It could possibly prompt them to look for evidence of liability as well, thus repeating the process again.

hoverFrog1

Kearns replied with a copy of the credit agreement but without a copy of their complaints procedure that I asked for and without proof that the relevant limitation period under Section 5 of the Limitation Act, did not accrue. I believe the account defaulted on 30 November 2017 but I'd quite like them to confirm this just in case it was earlier.

Do you think it is worth pushing this or should I just try to make them an offer now?

Also I've signed up to the three credit score sites and I can't find any record of other credit card debts that I had around about the same time. Should I assume that these have been written off already? I don't want to kick the hornet's nest to find out just in case they decide to try chasing them too.

sourcrates

Still wouldn't be statute barred even if defaulted in 2017, and you have acknowledged it now by asking for the CCA.

I think your options have run out on this one, you could wait and see if they pursue legal action, as always time to do a deal if they did, or get on with it now, its your decision really.

Your other debts may have been sold, and the new owner is not yet reporting on them, they may or may not be chased, or reported on, it comes down to commercial decisions.

hoverFrog1

sourcrates said:

Still wouldn't be statute barred even if defaulted in 2017, and you have acknowledged it now by asking for the CCA.

Sorry but how is asking for the credit agreement acknowledging the debt? Isn't it just asking for them to prove that there is a liability? Would writing back to ask them to prove that it isn't statute barred do any good?

sourcrates

hoverFrog1 said:

sourcrates said:

Still wouldn't be statute barred even if defaulted in 2017, and you have acknowledged it now by asking for the CCA.

Sorry but how is asking for the credit agreement acknowledging the debt? Isn't it just asking for them to prove that there is a liability? Would writing back to ask them to prove that it isn't statute barred do any good?

It is grey area, I think I might retract what I said previously, as you actually have the right to ask for a copy of any credit agreement, not necessarily your own, and depending on the wording of the letter, it doesn't actually acknowledge anything.

So they have sent you proof in the form of a copy credit agreement, is the copy a compliant one ?
Does it contain everything it is supposed to contain, name/address/type and amount of credit/interest rates applicable/is it a legible copy/terms and conditions included ?

hoverFrog1

sourcrates said:

So they have sent you proof in the form of a copy credit agreement, is the copy a compliant one ?
Does it contain everything it is supposed to contain, name/address/type and amount of credit/interest rates applicable/is it a legible copy/terms and conditions included ?

Yes, as far as I know anyway. It all looks legitimate.

I'm writing back asking for proof that the relevant limitation period has no accrued and to reiterate that I have requested their complaints procedure, all things I asked for in the first letter.