First contact about CC debt over a year after default. Is this legal?

180000bees

This isn't my first time around the block - I've previously been bankrupt and found this forum extremely helpful back then, but lost my old account. However I am poor and ended up back in debt, though much less of it this time.

I defaulted on a fairly hefty credit card debt some time ago - I had applied for a 6 month payment holiday while having issues with my disability benefits, then missed the window to restart payments (the CC company didn't contact me, just defaulted, bit of a pattern here)

When I realised what had happened I spoke to the CC company and they said they had sold the debt, so I waited to hear from the company they'd sold to and.... nothing! I didn't even know which company it was.

Yesterday I got a letter from Lowell telling me they had bought the debt from NewDay Ltd, but it's been about 14 months since NewDay bought the debt from the CC company and I never heard from them. 

I seem to remember that companies have 6 months to contact you about a debt, after which you don't have to pay. Is this correct? I was last in debt decades ago so my memory is rusty and things may have changed anyway. How would I go about letting them know they're too late if that is the case? If I'm wrong I will offer to pay them a few quid a month forever I guess!

la531983

180000bees said:

 

I seem to remember that companies have 6 months to contact you about a debt, after which you don't have to pay. Is this correct?

Years.....

180000bees

Ah poop! Thanks for the clarification... Ah well, guess it's plan B then

RAS

Read up on debtcamel bout affordability complaints?

180000bees

I had not, but I have now....

I mean it definitely fits predatory lending practices, they increased the credit limit repeatedly so what started out as about a £200 limit, which I just used for emergencies became a £5000 limit, with them repeatedly putting it up while I was making minimum payments.

But I am a little worried about making a fuss because when I realised I wasn't going to be able to pay it off and would have to default, I went on a (much needed) holiday with it and just blasted the last £2.5k which is probably also illegal right?

My current intention is just to drag out paying back the debt collection company until they give up tbh but if I can fight with the original lenders without getting myself in more !!!!!! I absolutely will. 

RAS

The holiday may not have been wise, but many here will know the feeling that if you've got unsustainable debt which will take years to clear, there's no real mental barrier to adding a bit more before tightening your belt.

It's certainly not illegal. 

And the creditor allowed you a limit which enabled you to do it. 

As for the rest, absolutely fine for an affordability claim. Remember, if you win you'll probably get the interest reimbursed. And since you never paid off the holiday, you won't get interest back for that. So temper your expectations.

sourcrates

Debts are sold in bulk, and it can take time for the new owner to contact every debtor, sometimes they just sell forward what they have bought, which seems to be what`s happened here with Lowell.

As for this:

"But I am a little worried about making a fuss because when I realised I wasn't going to be able to pay it off and would have to default, I went on a (much needed) holiday with it and just blasted the last £2.5k which is probably also illegal right?"

Its not uncommon for those about to go bankrupt, to use cash from a credit card to pay the bankruptcy fees, or to use a credit card to do a big shop before defaulting on payment, or add some other large debt knowing you will soon be defaulting, it happens a lot more than you would think, and you know what? no one cares, the lender doesn't care, no one does, I would not even bat an eyelid over this, I would seriously advise you to get affordability complaints registered with your lenders if you think its deserved, don`t worry about what you spent the money on, that`s water under the bridge now.

180000bees

OK thank you, I appreciate the advice. I will see about making a complaint with low expectations of an outcome, and I'll also start making arrangements to pay off what I owe, very very very slowly.