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10 Yr Old Debt Not On Credit Report... Knock on effect!!! HELP!
mikeeee
Posts: 11 Forumite
Does a debt still stand if it's 10 yrs old? 12 months ago I requested a copy of my credit report and steadily went through each debt and cleared in turn. There was no mention of the following debt:
£3,928 - Time Computers
I live in my partners house (which he owns), and the relationship has ended and I'm being forced out. Now I was fortunate that as I'd satisfied all debts listed on my credit report, I was entitled to a mortgage on a part ownership scheme. Which is in place with the plans to exchange/complete sometime in Sept.
This morning out of the blue I get a letter from LCG asking to contact. Which I did immediately to find out that this is a student debt from 1997 for a computer I purchased from Time Computers (with extended 5 year warranty etc). Now from what I remember 10 years ago, Time Computers went into receivership when Tiny Computers bought them out, of which later on Tiny went bust too.
Now as the first time buyer market is really tuff to get onto I can cope financially and have banked for all bills etc, but now this risen debt seems like it could scupper everything. I don't even have the computer anymore (which I know is irrelevant) I could just cry
I have no objection paying off my debts; but the company have offered the following options:
Obviously the £50 installment option would be the best option not ideal... but I do no know where I can get £521 from? that's about the amount I have left after I've paid my debits and standing orders currently.
When I mentioned that I was in the process of obtaining a mortgage, the account manager near enough implied that non-payment or agreement to their terms could compromise my mortgage. Can anyone shed any helpful advice on where I stand with this...?
Thanks, Michael
£3,928 - Time Computers
I live in my partners house (which he owns), and the relationship has ended and I'm being forced out. Now I was fortunate that as I'd satisfied all debts listed on my credit report, I was entitled to a mortgage on a part ownership scheme. Which is in place with the plans to exchange/complete sometime in Sept.
This morning out of the blue I get a letter from LCG asking to contact. Which I did immediately to find out that this is a student debt from 1997 for a computer I purchased from Time Computers (with extended 5 year warranty etc). Now from what I remember 10 years ago, Time Computers went into receivership when Tiny Computers bought them out, of which later on Tiny went bust too.
Now as the first time buyer market is really tuff to get onto I can cope financially and have banked for all bills etc, but now this risen debt seems like it could scupper everything. I don't even have the computer anymore (which I know is irrelevant) I could just cry
I have no objection paying off my debts; but the company have offered the following options:
Debt owed: £3,928
A one off payment of £2,000
or
A part lump sum of £521.92 & a monthly payment of £50.
Obviously the £50 installment option would be the best option not ideal... but I do no know where I can get £521 from? that's about the amount I have left after I've paid my debits and standing orders currently.
When I mentioned that I was in the process of obtaining a mortgage, the account manager near enough implied that non-payment or agreement to their terms could compromise my mortgage. Can anyone shed any helpful advice on where I stand with this...?
Thanks, Michael
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Comments
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Need a little more info honey...are you on benefits? Have the already taken you to court?0
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someone else who knows what they are talking about will reply soon im sure, but as far as i know if you havent paid towards or acknowledged a debt for 6 years then it becomes irrelavent and you dont have to pay it!
good luck, i dont think they can make you pay it! 0 -
someone else who knows what they are talking about will reply soon im sure, but as far as i know if you havent paid towards or acknowledged a debt for 6 years then it becomes irrelavent and you dont have to pay it! good luck, i dont think they can make you pay it!
yes i agree with above... the debt becomes status barred after 6 years of non payment/non communication on both parts... someone will be along soon with letter templates etc etc0 -
Yes, the debt is statute-barred and so you don't have to pay it, PROVIDED that you have not "acknowledged" it, nor made any payment, in the last six years.
I am just worried by the mention of different payment options and the discussion with the account manager: if you have made any kind of written offer of payment then you have re-opened the debt.
It was also not a good move to tell the account manager that you are applying for a mortgage. They could threaten to take you to court over the debt: if they were to do so they could still obtain a CCJ, which would of course make it difficult to get a mortgage. (In practice, I hope that any credit searches etc would have been completed before they could do this.)0 -
Mikeee,
If you have had no contact with anyone regarding this debt over 6 years or more then it become stature barred and cannot be enforced. A DCA can pursue for the money but cannot take you to court for it and therefore should not effect your cerdit rating etc.
I'm sure someone will come along shortly to advise you further and in more detail. From my understanding you must not have had any dealings regarding this debt for a least 6 years for it become statued barred.
Do not make any arrangements with the DCA before seeking further advice.
Cheers and good luck.
FatJock0 -
have a look at post number 8 on here: http://forums.moneysavingexpert.com/showthread.html?p=5661142&highlight=statute+barred#post56611420
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Mikee
Send off the letter to which gizfizz has provided the link, recorded delivery.
Check when it is received by this mob and if they send you anything other than written confirmation that they accept that it is statute barred, talk to the Trading Standard.
Please note that the latest ruse being used is to fail to mention that the debt is statute barred and to claim that there is a moral obligation to fulfil the debt. What they fail to point out is there is no legal obligation.
Come back if you get one of those. I think Weller put up a letter for someone who received a "moral obligation" letter.If you've have not made a mistake, you've made nothing0 -
I second everything said above:
If you have had NO WRITTEN CONTACT with the creditor, or made ANY payments to them, for a period of six years, then the 'debt' is covered by the Statute of Limitations Act - it is 'statute barred' and can not be collected.
Wtite (DON'T PHONE) to the Debt Collection Agency and TELL them that this 'debt' is statute barred and that you have no obligation to pay it.
It should NOT affect your mortgage application and will not appear on your credit file, due to its age.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
Rain_is_Insane wrote: »Need a little more info honey...are you on benefits? Have the already taken you to court?
Hello There, I'm not on benefits. In full time employment, there was a CCJ for the debt in 1998, but I'd left manchester by then. 10 years on I had honesty forgotton about it, and especially since it wasn't on my credit report I didn't address it.
This is the first time I have heard of the debt since 1998.0 -
Hi milkee - the CCJ does complicate things, but if you contact the court and tell them that you were unaware of the CCJ, until now, and had never received a summons, there IS a procedure where you can apply to have that CCJ set aside.
The court should be able to advise.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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