Very Old Debts Time Barred? Irresponsible lending? - Unemployed with £14k CC Debt

2319WeHaveA2319

Hello, 

I am trying to help my mother out who has been going through a terrible time, including the loss of my father after several years of battling terminal cancer. Some of their finances are in a total mess and I would like to see what can be done with the debt, and I am wondering if anyone else may have an idea. 

There are only two debts luckily, the debt on the credit file is 

£6000 - Credit Card Company - Started in 2014 and defaulted in December 2019. 
£7000 - Debt collection company (Ex credit card). Started in 2012 and defaulted in June 2018. 

Both accounts since the default have had payments made to them, every month however very small amounts around £1-20 or so a month. I am unsure if interest has been stopped on the Credit Card account, however I believe it has done if it has been in default for so long. 

Their income is around £16000 a year now, from salary and befits and they are running a house by themself. 


In regards to the debt, and the age of the account at what point does the account become barred? Or would this be from now, as they have still made very little payments to the account? Would this debt stick ultimately until the payments are fully made in 2055 or so...


Due to the defaults being so long ago, are they still in risk of getting a CCJ? Could this potentially be looked at for until the 6 year mark, and then debt collectors come visiting looking for assets? 


I am also considering making a complaint to both of the initial lenders regarding irresponsible lending. I am very much on the fence with this term personally, one side of me "you should have said no" to taking the credit but also, the same for "you should have said no to giving the credit". 

When both accounts were initially applied for, my mother was unemployed. With only my father’s low income coming into the family home, with some benefits, before moving to her low income job. I just find it unbelievable that a person who is unemployed, with dependants, on some benefits is allowed to rack up a debt of near £14000 with a tiny income. With credit limit increases. Plus, the additional late fees, interest on top. The amount on credit cards (There was actually some others at the time but they are long gone), of available credit being so much higher than the homes annual income I find shocking. 

However, I am aware that, making a claim for irresponsible lending now so far after the initial take out of could be too far in the past and may be declined. Does anyone have any experience on this? With one account still being active defaulted (But with the original lender) account or anything? Would the situation with my father and the horrible events that went on for her especially personally help with any extenuating circumstances? 

I am also scared of "poking the bear" they have been quiet, taking such low amounts each month, I'd hate for them both to decide on CCJ's and making this worse. 

Thank You

 

fatbelly

1. They will go statute barred 6 years after your mother stops paying, provided they do not start a court clwim in the meantime.

2. She can claim that they did not follow lending guidance, but it would be under the rules in place at the time. As this was more than six years ago I would not be hopeful of success. Ask me if you still want a link

3. Are the current payments affordable on her 16k income? If so she may be best to continue. If not she should ask for writeoffs on affordability grounds

4. Are you sure that the only debts she is now paying are the ones in her name? If she is unsure, and these are consumer credit debts then it would be a good tactic to do a CCA request. This would be a win if they could not comply either because she was not the signatory or they can't find the paperwork

enthusiasticsaver

I would forget about CCJs.  There is no way they will initiate court proceedings for unsecured debt for a widow on a low income. Are the debts in her name? If she is making nominal payments they are not statute barred as by paying these she is acknowledging the debt.  If I were her I would stop paying them. 

2319WeHaveA2319

So it transpires there is actually another credit card, with around £3000 on however this is not reporting to any of the CRA we can see. I am unsure why they are not doing this, or if the debt has been barred and they are just chancing the payments. 

There is also a utility bill for around £1500, this is a historic account from years back and had been moved onto pre payment meters until the debt is paid. 

I have considered with all of the above, and the reality that none if it is ever going to be paid off that a DRO would be an option. I have checked what I can on Citizens Advice. Other than a negative mark for 6 years, I don't understand what the negatives are about this. 

I would assume all the debt has been paid ever so slightly, so that none of it is statute barred. 


All the debt is in her name, and all was obtained in around 2012/2014. I find it mad that one person (when unemployed or on a part time low paid job) could rack up such a level of debt and just be handed it all. 

fatbelly

If the third debt was defaulted more than 6 years ago, it would not show on the credit file. If payments continued to be made, it would not be statute barred.

You have suggested 3 strategies for her

Affordability complaints
Debt management
Debt relief order

How does your mum feel about these options?

fatbelly

If the third debt was defaulted more than 6 years ago, it would not show on the credit file. If payments continued to be made, it would not be statute barred.

You have suggested 3 strategies for her

Affordability complaints
Debt management
Debt relief order

How does your mum feel about these options?