Thread: Student loans trying to recover debt already paid

Hi, and welcome to CAG. Apologies for the time taken for you to get a response - we get there in the end though

If you have not acknowledged the debt in writing or made any payments since 2002 then this is statute barred anyway (regardless of whether you owe the money or not - then can't do anything ). Send the muppets who are chasing it this letter - there is no need to pay anyone anything. You will get all the advice you need here for free.

Dear Sir/Madam

Acc/Ref No xxxxxxxxxxxxxxxx

You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under The Prescription and Limitation (Scotland) Act 1973 Part 1 Section 6 "If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:

(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged,
then as from the expiration of that period the obligation shall be extinguished:"

I would also point out that the OFT say under their debt collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last acknowledgement of this alleged debt was made over five years ago. Unless you can provide evidence of payment or written contact from myself in the relevant period under Part 1 Section 6 of The Prescription and Limitation (Scotland) Act 1973 , I would respectfully suggest that you are no longer able to take any court action against myself to recover the alleged amount claimed.

Should you continue to pursue this account without providing this evidence I shall seek an interdict and damages accordingly. A formal complaint will also be made to Trading Standards along with a report to the OFT questioning your fitness to hold a consumer credit license.

I await your written confirmation that this matter is now closed and that no further contact will be made concerning the above account after that last letter.

I look forward to your reply.

Yours faithfully

Originally Posted by p2post

Hi Clemma,

Thanks for the quick and comprehensive response.

Could you please expand a little more on what defines 'last acknowledgement of this alleged debt', on my part. Student loans and their legal representatives have evidently been working away in the background pursuing this debt and historically I have tried to respond to final demands either in writing or by phoning. Needless to say, I have done this to continually protest their claim that I have not paid this initial amount before the year of installments. I have therefore, never acknowledged this debt by admitting I owe it but I have liaised with them.

Liaising with them is fine - you have never put, in writing, that you owe this money and by the sound of it you have been vigorously defending their claims! Therefore, you have not acknowledged this alleged debt at all - so nothing to worry about

Originally Posted by p2post

What confuses me a little is that if I qualify for this limitation 1. Should they not know this and 2. Why do they continue to pursue this blindly and with so much vigour? Like so many others on this site I feel as if I am banging my head against a wall with them and their tunnel vision.

Once again thanks for the free advice. Refreshing to know that altruism is not dead!

In answer to your questions

1 - Yes they will know this
2 - When a debt becomes statute barred is does not mean the debt no longer exists. What it does mean though, is that they can take NO action to recover any money from you. They rely on peoples lack of knowledge, bullying tactics and intimidation to get the money. Once you have sent the statute barred letter they HAVE to stop with their pursuance.

Also, I notice you mentioned a letter you received saying they would be visiting to "attach" your household goods. Who was this letter from - and does it, by any chance, have the words MAY or COULD spread throughout it? Anyway, if they are talking bailiffs - I thought these did not exist in Scotland?

Send the Statute Barred letter asap - if they write back with more demands, then post back on here. It'll be time to get a bit cheeky with them and give them "what for".