Unenforceable debt/settlement agreement reached

nearlydunit

I need some advice please, struggling to find a straightforward answer!

The short story is about an MBNA credit card debt that defaulted 6 years ago and will come off my credit file by the end of June.

The debt was sold to Link and I have been making minimal payments the whole time. The remaining debt is just over £11k and would take me another 20 years to clear at the current rate I'm paying.

At the start of this year I found this forum and began trying to negotiate a settlement. They weren't helpful so I applied for the CCA. I have recieved a letter today that states the lender sent the required documentation but it is illegible, therefore the account is classed as unenforceable.

Meanwhile, at the end of last week, Link agreed a settlement amount of £5,600 which at just under 50% is possibly the best I might get from them

My question is, do I settle and know that that part of my past is finished with, or given that the debt is now 6 years old and unenforceable, should I walk away from it and leave the settlement money into my very low house deposit fund?

I definitely regret not knowing about the CCA 6 years ago!

Grumpelstiltskin

If they can't produce the CCA then you pay nothing, it's a pity you didn't ask for the CCA sooner then you would have paid them less. BTW They will still say you should pay but they can't get a CCJ so just ignore them.

nearlydunit

Thank you for responding so quickly!

Doing nothing makes me nervous as I have visions of people turning up at my house or work!

Given that I have the letters from Link to confirm it is unenforceable, should I respond to confirm that no further payments will be made? The letter says that the debt must still be paid and any creditors can register it.

If I do nothing and stop paying, could I be chased again in the future or could it reappear on credit file?

Sorry for all the questions!

Grumpelstiltskin

Don't panic about anyone turning up at your home, it's not common and if they do you treat them as you would unwanted religious door knockers, they are not bailiffs they are just door knockers trying to get you to pay something you need not and there is no chance of them turning up at your work.

Once the default goes from your credit file it cannot be put back on, you do realize it would have gone after 6 years even if you had never paid another penny off it.

sourcrates

Lets clear up one thing, the debt will not be statute barred at the 6 year point, as you have been making payments towards it, but it will disappear for ever from your file, and nothing can resurrect it.

However, their letter stating that the debt is unenforceable is good news for you, keep it safe, as its your defence to any future court claim.

Of course they will say the debt must be paid, they want your money, but they can now only ask you to pay, they can`t take action through the courts to force you to pay, although they may attempt to do this, go to the brink, and back down last minute, as without legible evidence of your liability, they can`t obtain a CCJ unless you fail to defend the claim.

You don`t really have to do anything now, if they want to continue collection activity, that`s up to them, unless you get a court claim, just ignore them.

The companies that come knocking on your door are usually engaged to "re-introduce" you to the debt buyer, all they will do is leave a card, or if your home, tell you you have a "personal matter" to deal with, and leave you Link`s contact info, they won`t be after any money, think Jehovah`s witness, or double glazing salesman, and treat accordingly, people get so wound up about a doorstep visit, they have zero rights to do anything, and you can just close the door on them, if you wish.

Nothing to fret about honestly.

fatbelly

I think Grump gave you the straightforward answer you asked for in post#2

If you do write, you must understand that this is once only, and do not get involved in a to and fro with them.

Something like ' thank you for your letter of x/m/y in which you confirm that account 123456 is unenforceable. I will retain this for my records. Please be aware that i will not be making payment because I am prioritising my enforceable debts and if this changes I will let you know. There is no need for you to write further to me and I will not be responding'

Guidance says that where you tell a creditor that you will not be making further payment to a debt because it is unenforceable through being statute barred, they must cease 'collection activity' It is not quite the same in this case as sb debts cannot reverse their status, whereas yours could if a legible copy appeared. It is most unlikely though

nearlydunit

Thank you everyone, I am confidently going to pay nothing more, I'm going to refuse to engage in any communication with Link or anyone in the future regarding this debt and I'm going to keep my unenforceable letter very safe in case I should ever need it!

Thank you again!