Old Debt Back to Haunt Me

justinemullins

Can anyone please offer me some advice...

I've been receiving letters from a DCA - I have not responded to any of them! They're regarding a bank loan that I took out in 1998 and didn't finish repaying.

Barclays defaulted me on the amount, I started to repay it, then stopped again and they never chased me for it. The default was removed from credit file as it had served the 6 years I think it was removed in 2006.

I've started getting these letters last year, some offering to cut the amount owed etc, I have just ignored them but now have received a final demand saying that they will CCJ me.

I really don't want another CCJ as they have just all come off my credit file and I am now with a clean slate which is brill - first time in 10years!!!

Please please help me someone as I'm really worried - I think the DCA have just bought the debt from barclays and as long as I don't get in touch or acknowledge the debt they cannot CCJ me as I don't have an agreement with them - is this true.....

Any advice gratefully received asap as I'm losing sleep!!!

Thanks a lot,

I'mcomingbackasaman

If they think the amount owed is worth pursuing they may serve papers on you one day. They know where you live so how can you avoid this debt. Why not contact them and see what they are asking, and offer to pay an acceptable amount (in line with your income) rather than have the threat of a CCJ and its consequences.

10past6

justinemullins wrote: »

Any advice gratefully received asap as I'm losing sleep!!!Thanks a lot,

Send this this letter, by RECORDED DELIVERY:

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 providing any evidence, 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

I'mcomingbackasaman

If you know Barclays definitely wrote the debt off, what makes you think this agency are chasing it now? Are there any other payments you've defaulted with only NPower sent a dca on to me cos' I missed a months payment (can't wait to transfer to another supplier!)

GeorgeUK

As 10past6 says in that letter - it appears the debt is statute barred and is legally unenforcable (they can't take you to court to collect). The debt does still exist, but if you tell them you do not intend to pay it, they should no longer pursue you for the debt - although it usually gets sold on to another company who will write to you making offers and threats etc.

Don't worry too much about it - they are chancing their arm hoping you are on of the thousands that will just pay or take out a loan so they can get money. There is no way they can take this to court so you don't need to worry about a CCJ.

A debt becomes statute barred after 6 years (5 in Scotland) if there have been no payments made towards the debt in that time and no WRITTEN acknowledgement of the debt has been made by you. For property related debt, this is 12 years - and debt to council/government usually doesn't have a time limit.

10past6

I'mcomingbackasaman wrote: »

If you know Barclays definitely wrote the debt off

A debt is NEVER, EVER WRITTEN OF until it's paid.

fermi

If the debt is "Statute Barred" then they should not be able to get a CCJ on it.

But you would still need to send them the letter to tell them this, and if they were daft enough to go for a CCJ then you would still need to defend it on the basis that it is "Statute Barred".

People can and have had "default" judgements awarded on "Statute Barred" debts in the past when they had just 'presumed' the court would automatically refuse it.

But after you send the letter, that will often be the end of it.

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 similar to 10past6's to write at the end of each factsheet.

If you are unsure of anything, then give National Debtline a call free on 0808 808 4000 to talk your situation through with a professional advisor.

justinemullins

Hi there, no definitley not defaulted on anything as I am so careful now. The DCA have told me it's the barclays loan they are chasing anyway. am going to send the statute letter and take it from there. Thanks a lot, Justine