!!spent Money From Bounced Cheque!!

oliviasarah

Hello,

In Feb 2002, a freind of mine sold an item, put the cheque in the bank, called bank to see if cheque had cleared, bank said 'yes', so the money was withdrawn from the account and spent. One week later, cheque arrives back - with letter from bank, saying ''GIVE US OUR MONEY BACK, THE CHEQUE BOUNCED!''.

The person contacted the bank to dispute etc, etc, but got nowhere, and therefore, closed the account and didnt acknowledge the debt or contact, or respond to the bank.

The person has very recently recieved a letter from 1st Credit, demanding the money back, and threatening legal proceedings bla bla bla, all the usual rubbish.

From the last contact with the bank, 6 years 4 months have elapsed, and as the bank allowed the account holder to withdraw funds from an uncleared cheque, there was no 'credit agreement'.

My advice has beed, firstly the bank cant enforce a debt without a credit agreement, and even if there was one, over six years old, deems it 'STATUTE BARRED', is this correct? If so what, action should now be taken, and will this debt still be on the persons credit file?

Some feedback here, would be greatly appreciated.

Warm Regards

GeorgeUK

If they have not made a payment towards the debt or acknowledged it in writing, then the debt is statute barred. Debts stay on your credit history for 6 years. Unless a CCJ was taken out, then this debt is statute barred. There would be no credit agreement in this case though as they were dealing with a transaction, not offering credit.

I suggest sending the letter in this thread
http://forums.moneysavingexpert.com/showpost.html?p=11571227&postcount=4

oliviasarah

Many thanks for your reply. The person doesnt know if there was a CCJ, he cant ever remember one, but doesnt know for sure, can this be found out, as if the letter you referred to is sent, and it turns out that it isnt statute barred, due to a CCJ, will this open up the wound again?

oliviasarah

Many thanks for your reply. The person doesnt know if there was a CCJ, he cant ever remember one, but doesnt know for sure, can this be found out, as if the letter you referred to is sent, and it turns out that it isnt statute barred, due to a CCJ, will this open up the wound again?

Should this debt have naturally fell off the credit file, as its over the 6 years old - he was recently declined credit, and the credit card company new about this adverse credit, so this would suggest it is still there.

GeorgeUK

If there is a CCJ, it will be listed on the registry trust website
https://www.registry-trust.org.uk

If there is a CCJ, these do not become statute barred, but after 6 years if the creditor has not sought payment during that time they would need to reapply to the court to enforce the debt. A CCJ will show on your credit file for 6 years, but will still exist.

If they have not received a summons, they may be able to get the CCJ removed.