Debt over 6 years old?

kayleysdad

Can any one please help me - I have finally decided to get my finances in order and have been dealing with a number of debt collection agencies - I have been paying them but another one has come out of the woodwork - I was set up with a company that was paying my debts off monthly but due to circumstances i defaulted on paying the monthly amount. I am now in a position to pay off my debts - until the new one came out of the blue -

Do i need to pay off this new debt even though it is dated as being from dec 2001 on my experian credit history report. I am also unsure as to whether the company i was dealing with payed anything off towards the debt. If the company did am i liable to pay anything - the debt is for around £1600
If i am liable would i be able to negotiate a settlement that is less than the £1600

Please help as i am on course to be debt free for 2009

10past6

Hi

Welcome to the forum

If you are sure this debt is over 6 years old, send them this letter, amending it with your details:

Your Address
Date

Companies Address

Dear Sir/Madam

Ref: XXXX

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

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

I would also 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 alleged 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 statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

I refuse to communicate with your company any further, without you taking leave of the court.

I remind you once again of the OFT guidelines: 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”.

Should you continue to harass me for this debt, without taking leave of the court, I will raise a complaint with the relevant authorities.

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

I trust I have made my position absolutely clear regarding this issue.

We look forward to your reply.

Yours faithfully

10past6

Who has contacted you re this debt?

kayleysdad

Hust to update the situation - It looks like i have paid half of the original debt. last payment november 2006.
I have recieved a letter for the balance outstanding from a company called '1st credit'. Any suggestions for a settlement figure would be great.
Thanks

fermi

kayleysdad wrote: »

I have recieved a letter for the balance outstanding from a company called '1st credit'. Any suggestions for a settlement figure would be great.
Thanks

1st Credit can be a pain for some people.

If you are certain that the debt is not Statute Barred then a settlement might be an option.

Working out a settlement figure is always difficult, but start negotiating at a low value.

See: Factsheet | Full & Final Settlement offers

If this is a debt for a loan or credit card or other debt that should have a Consumer Credit Agreement, then you may want to get an up to date summary of the account and a copy of that agreement. That would also prove that 1st Credit have the documentation required for them to have a right to collect those sorts of debts.

Link: Getting a copy of your credit agreement and account details

That doesn't cover overdrafts, most mobile phone bills, domestic bills etc.

(If you decide to do that, then use a postal order for the £1, send recorded delivery, and don't sign the letter with your normal signature. Some creditors who haven't kept the proper documentation have been known in the past to "mock up" an agreement using the signature from a letter of cheque. Sadly, I'm not joking.)