old debt

bodyguard

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First time poster so please be patient with me!!I have read somewhere that after 6 years a debt is 'written off' - is this correct?Is it true that companies sell your debt to credit agencys?Basically, I got myself into debt due to a disfuctional partner who didn't work, I did and had two children who I had to pay childcare for - this was before childcare credit etc and I was paying more than a morgage.I defaulted on 2 credit cards, catalogues and council tax - I was basically robbing peter to pay paul.Got rid of the rubbish partner and concentrated on the major debt, ie rent, utilities, and council tax.I received communication form the companies I owed, but ignored them -frighten to face reality.I cleared the rent and council tax, still paying back utilities. I am currently 'creditworthy' and can access credit, but I am morgaged to the hilt.I have started to receive requests for mony from a credit agency, asking for money from differnt companies they say I owe - I can't remember as these debts are very old and will certainly be over 6 years old.What should I do?? I could possibly afford a few pounds a month, but have two sons ready for college who can't get EMA so I am finacially responsable for them - they are actively looking work to assit, but I don't want to mess up their education.Any advice gratefull!

SarahNeedle1872

You need to write to each credit company and ask for a CCA...... can someone please post the link to the letter needed.....

Sarah x

postingalwaysposting

if you know that any of these debts are over 6 years old i would send off a status barred letter ~

Dear Sir/Madam

Acc/Ref Noxxxxxxxx

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

We would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation
period”.

The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time.

Unless you can provide evidence of payment or written contact from us in the
relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to
section 40 (1) of the Administration of Justice Act 1970”.

We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

We look forward to your reply.

Yours faithfully

However if you arnt sure heres a cca letter ~

(Your home address)
Date:
To:

Dear Sir/Madam

Account/Ref No:

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully



Your name.

Or you can check by applying for your credit reports and check if there are any debts on your reports

SarahNeedle1872

Thanks hun, u know I'm rubbish with all the technical stuff!x

fermi

bodyguard wrote: »

First time poster so please be patient with me!!I have read somewhere that after 6 years a debt is 'written off' - is this correct?

Sort of. The debts are not "written off" but they can become unenforceable through the courts (Statute Barred).

However this requires that you have not acknowledged the debt yourself either in writing or by making a payment for a period of 6 years.

It is explained here:

Link: Liability for Debts and the Limitation Act

If you believe that applies to any of your debts, then you can send the first of the two letters given by postingalwaysposting.

Make sure you head the letter:

I do not acknowledge any debt to you or any other company or organisation that you claim to be representing

bodyguard wrote: »

Is it true that companies sell your debt to credit agencys?

Yes. Debts can be sold (assigned) to another company. This is often for quite a small percentage of the original debt.

In other circumstances these companies can simply be working on behalf of the original creditor without actually having to buy the debt.

For outstanding catalogue debts have a look at this factsheet:

Link: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=32_catalogue_debts

The second letter provided by postingalwaysposting can be used to request an agreement for both the catalogue accounts and the Credit Cards.

The general principle that the agreement is only enforceable if the can provide a genuine and correct copy applies to the credit cards as well.

poppy10_2

SarahNeedle1872 wrote: »

You need to write to each credit company and ask for a CCA...... can someone please post the link to the letter needed.....

Sarah x

No, don't do this, this could count as you acknowledging that you owe the money. Send the statute-barred letter in post 3 instead.

fermi

poppy10 wrote: »

No, don't do this, this could count as you acknowledging that you owe the money. Send the statute-barred letter in post 3 instead.

If you preface the letter with the disclaimer in my post, that should not acknowledge the debt.

However, yes, if it is certain or even possible that there has been no acknowledgement for 6 years it may be safer to send the SB letter first.