Do debts expire?

trichuris

Hello...Ive just stumbled across this site and find it really informative and supportive. I was a student in the mid 90's and built up some serious debts, never finished my courses and moved around a lot. Eventually went back to Uni and qualified as a nurse in 2000. I have a good job now as nurse specialist that I enjoy.
When we first tried to buy a house in 2001, we found a building society that was sympathetic about my past (read: higher interest rate) and since then we have bought again and I have managed to repair my credit rating which I am happy about.
Problem: last week I recieved a letter from a debt recovery company stating that they were updating their records and could I confirm that I had lived at an address they included. I didnt respond thinking that if it was related to a debt any confirmation from me would constitute activity on a debt and reactivate it. This address they wrote about and the debt (barclaycard £1500) was in 1996:shocked: 12 years ago, however it is possible that I 'acknowledged this debt as far on as 1999, 9 years ago.
Question: I thought debts expired after 6 years, its not on my credit file, its gone. Are the company just trying it on or can they pursue me for this debt?
We have some equity in the house but no real spare cash (children of 4 1/2, 2 and one due next month) My girlfriend is about to go on maternity leave.
Any advise greatly appreciated.
Thanks
Pete

fermi

Debts don't "expire", but they do become "statute barred" if they have not been acknowledged by YOU in WRITING or by making a PAYMENT for any period of six years.

The debts still exists, but any creditor cannot legally recover it through the courts.

See the National Debtline factsheet linked to below. It includes a letter to write to any creditor who contacts you about a debt like this.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

trichuris

Thanks Fermi. Made me feel a lot better. Definately no acknowledgement in the past 6 years...definately!!
Does that apply, even if a debt has been 'sold off' to a collection company?
Thanks again
Pete

fermi

trichuris wrote: »

Does that apply, even if a debt has been 'sold off' to a collection company?

Yes. It doesn't matter in the slightest.

fermi

Just to add, once you have sent the letter in the factsheet you sometimes get a response like the one in this link:

http://forums.moneysavingexpert.com/showthread.html?t=603878

But, as it says in that thread, you can safely ignore it.

trichuris

cheeky Barstewards:mad:
Have drafted the letter and will relish posting it
Ta
Pete

trichuris

Can someone just clarify for me should I or should I not sign the letter that is going off to Lovell Ltd on Monday? Also, have read that it is best to send recorded delivery but the address is a PO Box no, can it still go recorded??
Thanks
Pete

trichuris

Did as advised and didnt expect any reply.
Received one yesterday saying....

"we are disappointed that the monies you have previously had the benefit of are still outstanding and you have not taken responsibility to clear the outstanding debt.

Your account has now been passed to our specialist recoveries unit who will ultimately decide the best form of action that is to be taken in order to recover the outstanding amount.

To avoid this going any further you must call us and arrange repayment. We WILL have a repayment plan that is affordable to you and that will fit within your current financial budget.

When you spent the monies originally you did it knowing it had to be repaid. You can repay your debt by either payment in full or a monthly repayment plan, to arrange repayment please call

0845 844 4726

blah blah blah blah....."

Sounds as though they legally cant recover this money but I really dont want letters evey week about this.

Any further advice would be most welcome.
Pete

fermi

I love the "specialist recoveries unit" bit. :rolleyes:

That must be a big filing cabinet full of unrecoverable debts.

They can't do anything legally to make you pay. They can ask nicely, but if they write with any implied threat that they can take legal action against you then complain to Trading Standards and/or the OFT.

They will get bored eventually and move on to the next [STRIKE]victim[/STRIKE] err... client.

setmefree

Send them this

Client Ref No
Your Ref. No.
Dear Sir/Madam

You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that I have no knowledge of any such debt being owed to (insert name here).

I am are familiar with the Office of Fair Trading Debt Collection Guidance which states that it unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

I would ask that no further contact be made concerning the above account unless you can provide evidence as to my liability for the debt in question.

I await your written confirmation that this matter is now closed. Otherwise I will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

I look forward to your reply.

Yours faithfully

fermi

You could send another letter similar to setmefree's.

But it would be need to be amended to suit the fact that we are dealing with a "statute Barred" debt here.

It would need to be amended to include at the least:

The OFT Debt Collection Guidance states that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”, which again should you try and proceed to court I/we* will also use this as a defence.