Thread: SLC want to register a default on old loan

hello all

i need some help - very new to all this so all help greatly appreciated.

whilst at uni from 94-98 i took out student loans. i deferred them a couple of years then stuck my head in the sand and ignored all my debts etc

I believe since 2000 i have not spoken to or wrote to SLC regarding my loans. They send the occasional debt chasing letter and yearly statements to my parents address - again i just ignore them.

NOW i have received a letter stating their intention to register default on my account and that they will pass the info to credit agencies.

As i am trying to sort my life out with the view of getting a mortgage in the near future, i am very worried about how this will affect my plans.

From browsing through this site, I am of the understanding that my loan my be statute barred.

What should my actions be from herein? How can I sort this out? I dont have the money they want from me.

Help please?

The debt would not be statute barred, so you should send the letter, recorded delivery, to their offices in Glasgow.

Here's the letter:

1 High Street,
Newtown,
Kent
R21 4RH

June 28, 2006

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG


Dear Sir/Madam

Acc/Ref No 4563210025897412

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

We would point out that under 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.”

We 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 payment of this alleged debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

We 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.

We look forward to your reply.

Yours faithfully
Mr A N Other

I think sol meant them the debt will now be statute barred

thanks for your replies

so i send the letter off to SLC and fingers crossed for an agreeable reply?
do they have a time limit on when they have to respond?

thanks!

Oops! Yes, sorry I meant it would be statute barred.

another quick question:
by sending the letter (see above) will it be deemed as acknowledgement of the debt?
just worried in case it hasnt been 6 years since my last contact (covering all bases here!)
do i need to add anything to the letter along the lines of 'This is not an acknowledgement of liability!'???

help please?!

I've had one of these - exactly the same. I have never had any contact with SLC since 1999 when I left Uni. i started the loan in 1995 so it is an old style loan.

Can they actually register a default against this after all this time?

I've done nothing about it yet.......

dont know if relevent

but when you signed the student loan,

in the t&c, did you give permission to register account details with the credit agencies

if its not in the t&c, they are prob stuffed

just thinking off the top of my head on this one

I assume they would argue something similar to the arguments in this regrading the recording of default with the lack of an enforceable agreement.

http://www.addleshawgoddard.com/cdc/..._09_155936.pdf

But the ICO's own guidance says that:

From: Technical Guidance Note - Filing defaults with credit reference agencies

Time framework

Although there will be some flexibility in the definition of a Breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

• Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.
• Accounts should normally be filed as being in default where those payments due have not been received for six months.

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term.

Which means they shouldn't be seeking or threatening to register a default on a statute barred debt.

But SLC rarely think that these things apply to them.

If they threaten to register a recent default for me., then they are going to get a fight.

Originally Posted by postggj

in the t&c, did you give permission to register account details with the credit agencies

I didn't for pre 98 loans.

Thanks for that. Mine might be the same then?

Here's hoping

I know it sounds terrible not wanting to pay this loan but I have my reasons...... don't worry I won't bore you with them!

No-one is going to judge you. It is a question of whether they have the legal right to go through with their threats.

In my case I will pay mine. That is my choice. But I object to spurious legal and other threats being made in the meantime.

I've just been reading some of the other threads and can see what SLC are up to. We're not the only few people to have been targeted!

Hmmmm, not sure what to do now. Ignore it or tell them that it's statute barred and they do not have permission to share my info with the CRAs

From experience, if you ignore it, you will hear from a collection agency.

Had I known about this, I would have been prepared and had extreme amounts of fun with the DCA ( Voice recorders, getting them to say their lies etc ). Unfortunately I am only having a little fun with them now - hey, but that's better than none.

As for defaults, - who knows? Has it actually happened yet?

Didnt realise they couldnt pass on debts for pre 98 loans

very useful,

update:

got a letter sent through to me today from Capquest Debt Recovery. It states that my SLC account has been referred to them to manage my account in all matters relating to collection which may include personal doorstep visits and litigation.

does this mean that SLC dont want to deal with me now?

I sent the letter (see above) and have had no response.

what next?

since my last post, I have been ill so have not had a chance to deal with the situation.

however, I received another two letters - one each from SLC and capquest.
The SLC letter is a 'NOTICE OF SUMS OF ARREARS' saying this notice is given in compliance with the consumer credit act 1974 because my contractual loan repayments are in arrears. Basically i think they just want me to contact them/scare tactics etc.
The Capquest letter states that they are REGRETFUL (haha!) that i have chosen not to deal with this matter and it it now their intention to progress my account to pre-litigation (wtf?!) and then pass to their solicitors to commence legal action around 1st July. This would involve them seeking order of court etc etc.

The funny thing is, both letters state different amounts as to what I owe!

I still have not received a reply to the original letter i sent (see above posts)!

What actions should I take now?
Resend the letter?
Make a complaint to trading standards? (as suggested previously)
Ignore Capquest?

I have a feeling this is going to be one long drawn out batter/saga!
HELP!