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Letter About Old Loan

rachpid
rachpid Posts: 48 Forumite
Part of the Furniture 10 Posts Combo Breaker

I got a letter today from Barclay's about a Career Development loan that I took out in 2004. As far as I was concerned, this was all paid off when I was on a Debt Management Plan between the years of 2012 and 2018. I don't remember hearing anything about it since then. We bought a new house using a Barclay's mortgage back in November, so I think this might be linked? The letter states that the loan is £482.50 DR (does this mean in debt?). What it doesn't say is when I have to pay this by, or any info other than that.

What should I do? Does this count as Statute Barred as it's been so long? Should I contact Barclays?

Comments

  • MEM62
    MEM62 Posts: 5,725 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper

    Should I contact Barclays?

    Your questions are likely to remain unanswered unless you do. Apart, of course, from the statute barred one as the time limit for this is specifically stated.

  • Brie
    Brie Posts: 17,814 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper

    It should be statute barred by now assuming you still owe anything (which it sounds like you think you don't) and if you haven't paid or admitted in writing any liability for the debt (it you did owe it) in the last 6 years. On that basis I would sit tight and see if they come back to you with anything else.

    If they do (or even if you just get twitchy and don't want to let it lie) then you can send a statute barred letter. A template for that is linked here… (point 3)

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  • rachpid
    rachpid Posts: 48 Forumite
    Part of the Furniture 10 Posts Combo Breaker

    Thanks both, I just went through my old folder of banking type stuff, which luckily went back that far, and I've found letters from both StepChange and Barclays confirming the settlement amount and the amount StepChange paid Barclays. Interestingly the amount they've put as the balance is roughly the full amount minus the settlement so hopefully it's a misunderstanding. Will call in the morning to sort it. And like you say if they do say I owe that amount then the last time they contacted me was 2018 so it will have gone Statute Barred.

  • silvercar
    silvercar Posts: 51,419 Ambassador
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    I'd read the terms and conditions of your mortgage. Check that they don't include that the mortgage also acts as security for any loan you owe to Barclays. This is a common condition and often why people steer clear of mortgage companies that they previously owed money to.

    It seems suspicious that the amount owed is the difference between what has been settled previously and the loan taken. It could be that by signing up for the mortgage you accepted in the T&Cs that any money previously owed to Barclays is also covered, even if statute barred.

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  • rachpid
    rachpid Posts: 48 Forumite
    Part of the Furniture 10 Posts Combo Breaker

    I called Barclays and it's all sorted out, it was an error and I owe nothing to them! Glad I kept all my old files as was about to have a clearcut and get rid of some stuff.

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