What if a bank can't prove the amount owed?

Gig

My wife had a long outstanding debt with Nat West (going back to the late 80's).

We were paying an amount monthly for a while but stopped due to circumstances and as a result of various student and post-student house moves, have no statements.

Nat West have tried to use various agencies and methods over the years to try and get her to start paying again, but are either unwilling or unable to provide proof of what she owes.

We'd heard nothing from them for over 3 yrs until today when she got another letter from a new agency etc etc

I know they have 7yrs(?) to establish contact each time, but this will just go round and round again as we are not prepared to pay for something they can't prove. Surely if it ever went to court, they'd have to prove it???

Any advice?

Freddie_Snowbits

It depends really. There are limitations, but that does not mean to say just because you stopped paying and ignored them, they will go away. The main problem is that your other half may have recently applied for credit and the name matches up on some record.

The best advice would be see the CAB and not ignore it. Have you actually asked them for proof of the debt?

a link may help you

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_25.php3#1

Robert_Sterling_3

How much do they say is owed?
How much do you think is owed?

Gig

Hi - Thanks for the replies.

Yes, we've asked them many times over the years and no, we've definitely not applied for anything recently as we've been in deep over the last few years and gone through the CAB, got concessionary agreements going with a number of lenders etc

As for how much, it might sound daft, but we literally have no records as mentioned due to student house moves etc. So when they contacted after x number of years saying she owed £x, the 1st thing we did was ask how this was made up (in order to see if we had any room to negotiate because of late payment charges, admin fees etc), but they have never been able to provide proof. ???

Robert_Sterling_3

??? ??? ???

deemy2004

Anything youve sent in writing acknowledging that you owe them 'something' could be used in court.

At worst they could calc up a rough statement and say pay this or we will add on costs for non payment etc.

I think You need to deal with it, as others have said go down to CAB, get proper advice and not let it fester. You CAN'T BEAT THE BANK ! Especially when your in the wrong !

Jen_Jen_5

if the natwest go to court, yes you could defend claim saying that they need to prove the debt. Any agreement made under the Consumer Credit Act (which it is likely to be) should be able to produce the original document. If they cant prove how much you owe the court cant make a judgement.

The fact that they are a bank and should have records is likely to go against them and if they havent started action yet maybe its because they havent got the pwork and know they will fail. Just ensure you dont acwknowledge the debt in writing or make a payment as this starts the limitation time running again.

Get proper advice

Debt_Free_Chick

Get proper advice

Indeed. And get it for free from

https://www.nationaldebtline.co.uk

or call them on 0808 808 4000

hopefulfooluk

Just to clear up the confusion, I don't think it's 7 years since you acknowledge the debt, it's 7 years since the creditor last tried contacting you about it that it gets annulled.

So say you've moved house and not given them your new address, but they have been sending letters to your old address - that is classed as chasing the debt and the 7yr period will get reset every time they send a letter. You do not have to have received that letter for the 7yr thing to apply.

Cheers,

Chris

Jen_Jen_5

Sorry to argue but I think you're wrong.

Limitations is acknowledgement of the debt in writing or by making a payment. The debt is unenforcible after the acknowledgement.

Debt_Free_Chick

>:(PLEASE read this

Liability for Debts and the Limitation Act

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_25.php3

In particular, it contains guidance from the OFT (Office of Fair Trading) as to what they consider fair behaviour by the creditor.

Freddie_Snowbits already linked to this in the first reply. Stop guessing, please, and read the information which sets out your rights and those of the creditor.

And then, here

http://www.nationaldebtline.co.uk/pdf_files/england/shp_credit_debts.pdf

The fifth page of that document states

You have the right to ask for a copy of your credit agreement. You may have lost your original agreement and need to check the terms such as the interest rate. Write to the creditor and ask for a copy of the agreement under The Consumer Credit Act 1974, section 77-78. You must send a fee of £1.00 with the letter. If your creditor does not send you a copy of your
agreement within 12 working days then they are not
allowed to take further action against you until they send you the agreement.

So - this will prove that your wife signed an agreement and the copy will set out the terms of that agreement. So if NatWest send the copy of the agreement, you will be able to see what she borrowed and on what terms.

If this is a loan, then you generally don't get any statements - you just stick to the original agreement. I guess you/your wife don't know what you've paid off so far .... see what accompanies the Credit Agreement, if NatWest send it.

If you cannot afford to pay them what they are asking, then make them an offer. But you must accompany this with your budget, so they can see what you can afford. Otherwise, they'll just assume that you're trying it on. So send your budget to demonstrate you can only afford £x

Please visit the National Debtline website. If you can't be bothered then call them - it's even a freephone number

0808 808 4000