ooo a Debt question...

[Rob200sx]

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]

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.

 

[Rob200sx]

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