Old Debt from 1997 approx £4k

DBOXMAN

Hi

My Brother-in-law who is now 28 back in '97 aged 17, somehow managed to take out approx £4k from his current account (dont know how he managed it!).

His account was obviously frozen - but weirdly enough he has never been chased about this debt. This only came to light the other day when he was using his mom's debit card to get cash out of an ATM and I noticed. He told me that for the last 5 years he has had his wage paid into her account.

The bank have never come after him about this and in the past four years I have known him noone has come knocking on his door neither has he ever had any letters demanding the repayment.

Does anyone know what his position maybe now going forward - only ask as he does not have a bank account - and is looking to open one up - but will only do so if he knows that noone will come after him for the owed monies.

I understand that he could open up a cash account with a bank with a cashpoint card on the back of a "dodgy credit rating". - Is this right?

jmhgibson123

i think if you do a bit of research there is a 6 year thing where if not contact is made by either party for 6 years the debt is written off-why not sign up for a free trial on the credit report thing from credit expert and see if any thing shows up

Burlesque_Babe

I'm not 100% sure about this - but don't you have to be 18 before you can take out a loan (or was it not a loan)? If he was 17, then I don't think they can chase him as he was too young at the time.

I'm only 80% sure of that though.

Yes, he can open a basic bank account which comes with a Solo or Electron card. Try the Natwest Step account, the Co-op Cashminder or (I think) the basic Barclays account.

DBOXMAN

dont think Natwest will be an option as that is where he had the account!!!!!!!! :rotfl:

I have done some research on on how long it takes to write off the debt and there is so much conflicting info

but general concencous seems to be that no contact means no debt as bank will have either written debt off or sold it onto a third party for them to chase up?! And as it seems to have been so long he should have nothing to worry about.

He has egistered with credit expert - just waiting on the pin numbers to come through now so he can check his credit report - and I guess we will have to take it from there!!!!!

fermi

Whatever else has happened (save a CCJ), then the debt is almost certainly "statute barred".

A debt will be "Statute Barred" if there has been no acknowledgement of the debt you making a payment or in writing within the relevant limitation period.

This is not the same as being "written off", but for all practical purposes and intents it is close enough.

If you are in England/Wales then the limitation period is 6 years and you should read:

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

If you are in Scotland then the limitation period is 5 years and you should read:

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

10past6

DBOXMAN wrote: »

but general concencous seems to be that no contact means no debt as bank will have either written debt off or sold it onto a third party for them to chase up?! And as it seems to have been so long he should have nothing to worry about.

I've recently been contacted about a debt from 1996, where a CCJ was obtained in 1997.

I had no knoweledge of this debt until 2 weeks ago.

I wrote back to the debt company informing them the debt was "Statue Barred".

They wrote back stating the debt was NOT statue barred as a CCJ was obtained in 1997, they even included a sort code and a/c number for me to make payments into.

I've repied stating I refuse to correspond with them, without them taking leave of the court.

fermi

10past6 wrote: »

I've repied stating I refuse to correspond with them, without them taking leave of the court.

Yep. After 6 years years they need permission of the court to enforce a CCJ. That is very unlikely to be granted.

DBOXMAN

thanks fermi

I just found details of that Law relating to debts on the HMRC website:

http://www.hmrc.gov.uk/manuals/IHTmanual/IHTM28384.htm