17 year old debt, token payment and sudden threats from debt collection company.

TheIzzieWizzie

Hi all,

My brother took out a loan around 2008 and a few months after suffered an accident which left him disabled and unable to work.


My mum took up the mantle to prevent him getting CCJ'd by paying £1 a month to Cabot. Which she's been doing ever since via standing order. 

Apparently, they have sent letters periodically over the years asking for him to contact them for a review, but he's autistic/ADHD and struggles to follow up on anything financial and his carers don't really have the time to assist with this sort of thing either.

Last month Cabot suddenly started sending letters and emails threatening a home visit. They haven't done this once in the past seventeen years this debt has been outstanding.


(I know what his rights are regarding a home visit and he has been advised not to open the door or speak to anyone he's not expecting.)

The communications from Cabot don't reference who the loan was originally taken out with and he can't remember now, neither can my mum was she's now elderly and suffering with dementia. He can't afford to pay anything back, as any available funds he has are taken up in care costs.

If he hadn't paid a penny by now the debt would have been statute barred....but our mum, thinking she was doing the right thing, has been making a token payment every month via standing order.

My question is - can much be done about this now?

Is there any way he can challenge it as statue barred when mum has been making a token payment for all this time? If she stopped, would it inflame matters? 

I know it's not advised to make any acknowledgement of the debt, as it could reset the clock on the statue barring, so would anyone be able to advise on what action to take here?

I'm in the process of applying for POA for both my brother and my mother to get their financial affairs in order, and I'd like to avoid making matters worse on this issue. 

Thanks in advance for any advice/insight.

Grumpelstiltskin

Get  your mother to stop making payments NOW.

Can't be statute barred as payments have always been made.

You will have time to sort out POAs as nothing terrible will happen.

Ignore any phone calls, texts or E Mails but look at any letters sent by snail mail.

I do hope they haven't got your mother's phone number.

TheIzzieWizzie

Grumpelstiltskin said:

Get  your mother to stop making payments NOW.

Can't be statute barred as payments have always been made.

Will this not just allow them to start pursing my brother and potentially CCJ him now? 

Grumpelstiltskin

TheIzzieWizzie said:

Grumpelstiltskin said:

Get  your mother to stop making payments NOW.

Can't be statute barred as payments have always been made.

Will this not just allow them to start pursing my brother and potentially CCJ him now? 

Don't worry about that, any CCJ action would be way down the line and they don't just appear out of thin air, they have to go down the correct legal procedure route.

Brie

I would suggest your brother write to them stating he's looking at his budget and will get back to them within the next 60 days during which time they need to put any action on hold.  The letter should also say that they need to erase all phone numbers and email addresses from their database and that all communications must be in writing.  

Then one alternative is to send them a request for the credit agreement.  After 17 years it's unlikely they will be able to produce this and without it they cannot collect the debt.  

The other alternative (or next step in the unlikely situation they should find a CA) he should get his doctor's surgery to complete a Debt and Mental Health form (free in England and likely in the rest of the UK).  In this they will hopefully note that he is unable to work and due to his ADHD unable to comprehend the debt.  When he has this back a copy (don't send the original in case it gets "lost") can be sent stating that due to his mental health and inability to work he is unlikely to ever be able to repay the debt.  

When I say "your brother write" that might be you with him adding his signature.  Or he could provide a letter of authority for you to act on his behalf.  The LOA would be very simple stating "I, <his name>, give authority to <your name & address> to act in every way on my behalf dealing with my debts."  signed, dated, his address.

The links to the CA letter and DMHF are on this post DFW Sticky-Provit/Statute Barred Letters, Defaults, Mental Health Help and Guidance, all here. — MoneySavingExpert Forum

edited to add:  yes I agree with Rumpel - payments should stop immediately.  And don't worry about a CCJ.  They are just acting tough.

sourcrates

In order for the limitation period to be re-started, and the devil really is in the detail here, payments have to be made by the debtor themselves, or their "agents" acting on the debtors authority.

Now unless mum has a POA for your Brother, or some other authority to act on his behalf, that makes her neither of the above, she is for all intents and purposes, just a 3rd party that took it upon themselves, without consent, to continue paying the debt.

You could still argue that this debt is statute barred under sec 5, limitation act 1980, as payments did not originate from, nor were authorised by either the debtor, or their certified agent.

fatbelly

Yes, it's s30 of LA1980

https://www.legislation.gov.uk/ukpga/1980/58/section/30

Stop paying and tell them it's statute barred.


You may have to explain the circumstances in more detail but i'd save that for a second letter

If it ever went to court, any judge hearing the story would throw it out and Cabot will understand this, but it may take a bit of to and fro