66 month old debt advice

0james0

My wife received the attached letter from Kearns Solicitors, claiming on behalf of their client LC Asset, who are some form of Link Financial. 

The original debt was a £50k loan from Barclays. 

She defaulted on this loan in April 2020, so she is now just over 6 months away from it being statue barred. There has been no response to any form of the debt owner, or payments from her since that date. 

I've got a feeling with the 6 year date looming, they might start ramping up their efforts to get the money/ go to court now. 

Looking for advice on what the best thing to do next. 

1) just do nothing, the letter sent is a settlement request letter, not a letter before action, so just sit and wait it out and see if anything else comes before April. 

2) reply to Kearns, asking for details about who actually owns the debt and details about it

3) start a complaint with the debt owner, get a final response letter, then go to the FOS about the loan being unaffordable, with my wife only just realising she was able to make such a claim against them (she was on a very low income, had other debts, was given a £50k loan with a monthly payment that was almost equal to her net monthly income, it was clearly irresponsible lending) . Making the complaint against the current debt owner and letting Kearns know that all action should be placed on hold, pending the outcome of the complaint and FOS investigation. This alone would likely drag it past April anyway. 

Any advice would be really appreciated. 

ManyWays

1) just do nothing, the letter sent is a settlement request letter, not a letter before action, so just sit and wait it out and see if anything else comes before April. 
It says "A letter of claim was sent to your most recently provided address" do you have that letter as it may be a letter before action? 

2) reply to Kearns, asking for details about who actually owns the debt and details about it
Have you read the assignment notices they say are attached, they should show who currently owns the debts, as would the february letter?

3) start a complaint with the debt owner, get a final response letter, then go to the FOS about the loan being unaffordable, with my wife only just realising she was able to make such a claim against them (she was on a very low income, had other debts, was given a £50k loan with a monthly payment that was almost equal to her net monthly income, it was clearly irresponsible lending) . Making the complaint against the current debt owner and letting Kearns know that all action should be placed on hold, pending the outcome of the complaint and FOS investigation. This alone would likely drag it past April anyway. 
Not if Kearns start legal action and then suspend it pending the FOS investigation. Does your wife have her bank statements for the time of the loan/ 

What is your wife's financial situation at the moment? 

Brie

According to the letter payments were still being made until October 2021 which means that it won't be statute barred until October 2027 (assuming you are in England).  So your wife still has 2 years to wait out.  I would expect them to take further action within that time.  

On this basis I would definitely consider an unaffordable complaint sooner rather than later.  

fatbelly

The way that reads to me is that there was a Letter Before Claim in Feb this year, so they were then free to start a claim.

The fact that they say court fees of £665 have already been incurred would make me think that a court claim has been started, and it looks like there is a claim reference that you have blanked out at the top.

Statute barring does not apply.

Did you or your wife defend the claim? If so, you need to look closely at what your defence was as it seems likely that it will be tested at a hearing.

sourcrates

To me it sounds as though your received the LBA, and ticked the box for more information, which they have since sent you, this led to the case being stayed, and now they either want you to settle or continue to judgement.

Any of that sound familiar?

This won`t become statute barred now, as legal action has commenced, the limitation act can no longer be applied here.

sgthammer

Brie said:

According to the letter payments were still being made until October 2021 which means that it won't be statute barred until October 2027

That seems the most likely interpretation. But the line could also be read as October 2021 being the original final instalment date.

Perhaps OP's wife could clarify whether she made any repayments after the default was registered.

I would definitely consider an unaffordable complaint sooner rather than later.  

It's worth a punt, but the claimants do already seem to have considered this angle.

0james0

ManyWays said:

1) just do nothing, the letter sent is a settlement request letter, not a letter before action, so just sit and wait it out and see if anything else comes before April. 
It says "A letter of claim was sent to your most recently provided address" do you have that letter as it may be a letter before action? 

2) reply to Kearns, asking for details about who actually owns the debt and details about it
Have you read the assignment notices they say are attached, they should show who currently owns the debts, as would the february letter?

3) start a complaint with the debt owner, get a final response letter, then go to the FOS about the loan being unaffordable, with my wife only just realising she was able to make such a claim against them (she was on a very low income, had other debts, was given a £50k loan with a monthly payment that was almost equal to her net monthly income, it was clearly irresponsible lending) . Making the complaint against the current debt owner and letting Kearns know that all action should be placed on hold, pending the outcome of the complaint and FOS investigation. This alone would likely drag it past April anyway. 
Not if Kearns start legal action and then suspend it pending the FOS investigation. Does your wife have her bank statements for the time of the loan/ 

What is your wife's financial situation at the moment? 

This is the first letter we've had about this debt for years, whatever they say they sent in February, did not arrive. 

All that was actually enclosed were various statements from Barclays, the original loan company. Nothing about who the loan was assigned to. 

We could evidence her income and bank statements at the time. It was a joint account, so although the household income was high, her income was not. 

0james0

fatbelly said:

The way that reads to me is that there was a Letter Before Claim in Feb this year, so they were then free to start a claim.

The fact that they say court fees of £665 have already been incurred would make me think that a court claim has been started, and it looks like there is a claim reference that you have blanked out at the top.

Statute barring does not apply.

Did you or your wife defend the claim? If so, you need to look closely at what your defence was as it seems likely that it will be tested at a hearing.

To the best of my knowledge, there has not currently been any court related documents

0james0

sgthammer said:

Brie said:

According to the letter payments were still being made until October 2021 which means that it won't be statute barred until October 2027

That seems the most likely interpretation. But the line could also be read as October 2021 being the original final instalment date.

Perhaps OP's wife could clarify whether she made any repayments after the default was registered.

I would definitely consider an unaffordable complaint sooner rather than later.  

It's worth a punt, but the claimants do already seem to have considered this angle.

I think I'll start the process regarding the unaffordable complaint and then most of the finer details like this, should be given to us along that process, when they provide their evidence to the FOS

fatbelly

They have charged you court fees and quote a claim reference. You could do with finding out when the claim was started, has it proceeded to a judgement ( sounds not) and get confirmation it is genuine

If it was done through Northampton you should get an answer from

CaseProgression.CNBC@justice.gov.uk

You'll need to quote the reference and the name&address of defendant


Not sure that the Ombudsman can consider a case if there is a court claim.

https://www.financial-ombudsman.org.uk/consumers/complaints-cant-help

sourcrates

Well so far we don`t know if this matter has proceeded to judgement yet or not, as information is sketchy at best.

I would get the complaint logged, and argue the legalities of it later.