Debt letter for a 10 year old debt

barrysmith2480 · 18 May 2020 at 12:00PM

Hi all
In 2010 i had some personal issues in my life and went off the radar for around 3-4 years , i stopped paying all my debts and lost my flat etc. Today I have had a letter from a debt company asking for 3.7k for an old Barclaycard , the tone of the letter is very gentle with no mention of court or CCJ etc but just simply they have been appointed the collect agent for some reference number HFUKH1L nothing about court just asking me to setup a payment plan.

So this debt is over 10 years old , i have had no prior contact never contacted anyone or made a payment. I have really got my life back on track over the last 6 years and was planning on saving a deposit for another house over the next two years. I read lots of conflicting information on the internet but it doesnt seem that they can take you to court for a debt so old , is this true ? note there is nothing on my credit file at all and i even have another barclaycard now. I really dont know the best way to act , should i contact them or do nothing, are they chancers just trying to see what they can get with a very old debt.

All advice is appreciated.

sourcrates · 18 May 2020 at 12:08PM

Hi,

You have a very simple responce to send to them -

I would 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.”

Under sec 5, Limitation act (note the plural) 1980, a creditor has 6 years to chase any simple contract debt in the UK, after that time if no payment or written acknowledgement has been given, then the debt becomes statute barred, and they cannot use the courts to enforce any rights they may have.

Put the above in a letter, and send it back to them.

Job done.

barrysmith2480 · 18 May 2020 at 12:14PM

Brilliant , do they not know this ? if they do why are they contacting me is it to hope i panic and pay something

sourcrates · 18 May 2020 at 12:22PM

Of course they know this, there is nothing in the act that stops them asking you for payment, the act just barrs them from taking legal action.

Usually once you write and inform them the debt is statute barred, they will drop the matter quite quickly.

Suseka97 · 18 May 2020 at 3:40PM

DCAs purchase old debts in bulk and they know full well that they cannot enforce collection on statute barred debts.
People are becoming more savvy these days and by querying the legalities on forums such as this, are able to close the book on their shenanigans, but unfortunately not everyone will challenge this and end up paying for fear of legal action.
Seeing as they only pay pennies for these debts, it only takes a minority to pay up and it makes the purchase of them worthwhile - which is why it continues.

MSE Forum

Debt letter for a 10 year old debt

Replies

Cinema deals, tips and tricks

Where to buy travel size skincare products

Fixed energy exit fees up to 10 times higher than last year