Mib & Rta

[kregrs]

In Oct 01 I had a RTA, nothing too serious, but at the time I was a total tw*t and was driving uninsured. Long story short the other party had her claim for damage and injury settled by Motor Insurers Bureau. In 2005 I had a letter from a company, can't remember who, asking me to contact them, which I did, to be told I was required to pay them £21k to settle the bill. This was the 1st I'd heard from anyone regarding the bill, as they claimed they had been trying to trace me from the time of payout upto when I had phoned them after receiving letter. I made no arrangements with them to pay, and have heard nothing since. I have since moved house, and also changed my name by deed poll in 2002.

What I'm trying to find out is what do I do? If they were to be able to trace me, would the fact that I have changed my name have any bearing on the debt? Would the time since the accident/payout have any effect?

What I did manage to find out during the brief call with them was that they would be pursuing me for the debt, and with it being a large amount, the possibilty of my being made bankrupt.

Before anyone lecture me on driving uninsured, I learnt my lesson, I had the points, I had the 6mth ban and the huge fine. I was young and knew it all.

[Pagan98]

If they were to be able to trace me, would the fact that I have changed my name have any bearing on the debt? Would the time since the accident/payout have any effect?

My first thought was that the debt was time barred as it arose in 2001. However, on second reading I see that they contacted you in 2005 and I believe the clock started again at that point. The change of name has no impact except that it might make it harder to trace you.

What I did manage to find out during the brief call with them was that they would be pursuing me for the debt, and with it being a large amount, the possibilty of my being made bankrupt.

Their first step is to try to harrass you into paying.

If this doesn't work they will have to seek a County Court Judgement (CCJ) against you. However, it is possible they have already sought a CCJ, serving the writ at your previous address. (You could find out by checking your Credit Report, although it is possible that this could tip them off to your new address if you have not entered into any credit agreements in the intervening years.)

Once they have a CCJ they must then enforce payment. This can be be via a number of measures from a warrant of execution (sending around the bailiffs), an attachment of earnings order through to a petition for bankcruptcy. Remember that they are only likely to pursue you if they think you have income or assets to go after. In particular there is no point making you bankrupt unless you own property/possessions that they could realise to pay the debt. I'm not sure if they have to enforce the CCJ within 6 years - hopefully someone else can advise.

If they are not actively pursuing the debt and your credit record is not causing a problem you could just ignore it, but bear in mind that you may find it difficult to get a mortgage or credit later on. If they do contact you again, ask for a written statement of the alleged debt with a breakdown showing how it has arisen and seek advice from your local Citizens Advice Bureau. It is likely a lot of the alleged debt is fees imposed by the collection agency, which I believe could be disputed and it may be possible to negotiate a full and final settlement for a reduced payment.

Depending on the response you get here, you could also seek advice on the Motley Fool's Dealing with Debt board (www. fool.co. uk) where there are some very knowledgable, helpful people.