ooo a Debt question...

Rob200sx

Rob200sx

Rob200sx

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Assume you have a loan with a bank, due to financial difficulties you stopped paying them in 2000 and arranged for them to review your situation after 3 months.

The bank never contacts you, subsequently after 6 years of no contact, no letters or phone calls requesting any money you receive a letter from a debt collection company who inform you that the bank you took the loan out with have sold the debt on to them and they now want the money.

Can they do this without contacting you for 6 years?
 
Rob200sx said:
Assume you have a loan with a bank, due to financial difficulties you stopped paying them in 2000 and arranged for them to review your situation after 3 months.

The bank never contacts you, subsequently after 6 years of no contact, no letters or phone calls requesting any money you receive a letter from a debt collection company who inform you that the bank you took the loan out with have sold the debt on to them and they now want the money.

Can they do this without contacting you for 6 years?
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Have you moved house at all?
 
Of course they can. You still owe them money.

They may well already have taken out a CCJ against you - bye bye credit rating....
 
Visage said:
Of course they can. You still owe them money.

They may well already have taken out a CCJ against you - bye bye credit rating....
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Actually after 6 years, there should be very little they can do. I would say don't respond immediately to the letter, they could just be getting you to confirm the debt, in which case the 6 years resets. I would contact your local CAB.
 
I am not 100% sure but I think the debt is valid for 7 years, but the best advice for you is to contact the CAB.
 
I think the only thing you might be up against here is that they have "sold" the debt rather than writing it off but I agree with the other poster contact your CAB.

HEADRAT
 
Moredhel said:
Actually after 6 years, there should be very little they can do. I would say don't respond immediately to the letter, they could just be getting you to confirm the debt, in which case the 6 years resets. I would contact your local CAB.
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True, but if the OP has had a CCJ made agaisnt him then it may be in his interests to pay off the debt, even though he's not required to, in order to have the CCJ repealed, which is pretty much imposssible to do without the consent of the lender....
 
No CCJ has been made because the debt was originally set to 'Arrangement to Pay'

I've checked this against the credit report.

Will check with CAB.

Cheers for the input.
 
Visage said:
True, but if the OP has had a CCJ made agaisnt him then it may be in his interests to pay off the debt, even though he's not required to, in order to have the CCJ repealed, which is pretty much imposssible to do without the consent of the lender....
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CCJ's are pretty easy to repeal if the correct legal proceedings have not been followed. If the OP has one against him without his knowledge then he has not had the oppertunity for legal representation so it's a simple matter for that CCJ to be reversed (you need various forms filling in at the court where the judgement was made - you'll have to look all this up as I can't remember all the form numbers).

At that point where the CCJ has been reversed, the original lender can and will start up proceedings again, so you need to jump in with a voluntary agreement to forestall another legal proceeding.

This 6-7 year thing about debts being forgotten, is that a legal thing, as if it is I might just ignore my mortgage for the next few years and refuse to read anything from the building soc. :D
 
aztechnology said:
CCJ's are pretty easy to repeal if the correct legal proceedings have not been followed. If the OP has one against him without his knowledge then he has not had the oppertunity for legal representation so it's a simple matter for that CCJ to be reversed (you need various forms filling in at the court where the judgement was made - you'll have to look all this up as I can't remember all the form numbers).

At that point where the CCJ has been reversed, the original lender can and will start up proceedings again, so you need to jump in with a voluntary agreement to forestall another legal proceeding.

This 6-7 year thing about debts being forgotten, is that a legal thing, as if it is I might just ignore my mortgage for the next few years and refuse to read anything from the building soc. :D
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I had a CCJ taken out of me a few years back - i'd moved house and not told the student loans people - the directd ebit lapsed, and as it was only about 40 quid a month i hadnt noticed. Obviously various demands/court summonses went to my old address, so i was blissfully unaware, until i suddenly started getting credit applications turned down.

In the end the SLC refused to allow the ccj to be cancelled, despite beleiving my story. I had to pay off the loan in full, at which point they dropped their objection and all was well.....
 
aztechnology said:
CCJ's are pretty easy to repeal if the correct legal proceedings have not been followed. If the OP has one against him without his knowledge then he has not had the oppertunity for legal representation so it's a simple matter for that CCJ to be reversed (you need various forms filling in at the court where the judgement was made - you'll have to look all this up as I can't remember all the form numbers).

At that point where the CCJ has been reversed, the original lender can and will start up proceedings again, so you need to jump in with a voluntary agreement to forestall another legal proceeding.

This 6-7 year thing about debts being forgotten, is that a legal thing, as if it is I might just ignore my mortgage for the next few years and refuse to read anything from the building soc. :D
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It does depend on THEM not taking any action within 6 years as well. IE if both parties ignore the debt for 6 years there's not much the creditor can do about it afterwards.
 
Ok I've spoken to the CAB, there is something called 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”.

So I would expect the loan company would need to prove they attempted to recover the money in the last 6 years.

The company that bought the debt are offering to write off 60% of it. If I go in with guns blazing and they end up proving that attempts to recover the money in the last 6 years were made (the last letter I have from them was from early 2000) then I could be stuffed and they refuse to write off the 60%. Now I can raise the other 40% no problem but it's still a considerable amount of money.


hmmmm
 
Rob200sx said:
Ok I've spoken to the CAB, there is something called 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”.

So I would expect the loan company would need to prove they attempted to recover the money in the last 6 years.

The company that bought the debt are offering to write off 60% of it. If I go in with guns blazing and they end up proving that attempts to recover the money in the last 6 years were made (the last letter I have from them was from early 2000) then I could be stuffed and they refuse to write off the 60%. Now I can raise the other 40% no problem but it's still a considerable amount of money.


hmmmm
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if ou can raise the money, better get if out f the way and off your head.

its a financial burden yes, but the unceretainty is sometimes worse.

this is off course if you think you havelittle or no chance of winning.

what did the CAB say, odes the collection company have a leg to stand on asking you afger all this time?
 
What about raising the 40%, and paying off thie debt company. But also speaking to the original lender and asking them to prove it anyway. There might be a chance of getting some money back retrospectively?
 
Because defaults drop off your credit file after 6 years, its pretty common for the creditors to have a fair bit of activity right at the end because if you acknowledge the debt it can be reset for another 6 years.

The short story is (leaving aside any morals that you should pay back the money) you would probably be better off ignoring it.
 
Visage said:
True, but if the OP has had a CCJ made agaisnt him then it may be in his interests to pay off the debt, even though he's not required to, in order to have the CCJ repealed, which is pretty much imposssible to do without the consent of the lender....
Click to expand...

The only way CCJ's can be removed is if the debt is paid off within the first month of the judgement being made. Even with the consent of the lender, the best that can happen after that is the CCJ is marked as satisfied (but this still has a very bad affect on your credit rating). After 6 years, CCJ's drop off your credit file automatically.
 
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