Debt collection letter - how to proceed?

abaxas

Hi,

Out of the blue I received a nice 'FORMAL DEMAND FOR PAYMENT' from 'Robinson, Way and Company Limited'. Supposedly, I have a debt due to 'Robinsonway (Ex HFC bank)' of £434.32.

The problem is that I had a loan with HFC bank (pcworld buy now pay later) in about 1999/2000 and it was payed off of full. So the questions is how to proceed with this? If I owe the money or have made a mistake then it's fine, but I cant believe they would leave it 8 years then remind me of a debt. Surely they would come looking earlier.


What should I ask them for? Infact should I ask them anything?

HELP! What is my first move.

Lizloz

Do you have any of the old paper work by any chance?

Or can you get a report of your credit history to see if there's anything on there that relates to this loan you had?


Sorry if I'm not much help - hope you get it sorted?

fermi

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.

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

If you feel the debt is "Statute Barred", then there is a letter to write at the end of each factsheet.

The only exception to this is if a judgement has been obtained regarding the debt, which will prevent the debt being Statute Barred. However, if it has been more than 6 years since any judgement, then the creditor must seek permission from the court before they enforce the debt.

abaxas

Thanks,

So even if I dont owe them any money I should send the above letter? Basically forcing their hand?

fermi

abaxas wrote: »

So even if I dont owe them any money I should send the above letter? Basically forcing their hand?

If a genuine debt is "statute barred" then it doesn't mean that the debt isn't still owed.

It really means that the creditor is not entitled to take any legal action to recover the debt, or enter any adverse information on your credit reference files.

The letter in the links describes the legal position and the stance of the Office of Fair Trading if a creditor continues to pursue a "statute barred" debt.

I/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 correspondence/payment/acknowledgement or 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 me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/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 statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".

If you think the debt is genuinely owed but is "statute barred" then you are perfectly free to pay it if you really want.