Old student overdraft gone quiet

[junk0r]

Hi,

I had a student overdraft with Barclays, but due to circumstances out of my control, was away from a year and a half and unable to pay any of it back. This absence began in 2003. I called them in late 2004 about the debt, and agreed a £100/month repayment of a balance around £3150, signed by both of us.

Anyway, come January 2005, they sent me another "agreement of repayment"; I'd made one payment by then. This new agreement had an outstanding balance of £3230 or so! I called them, and they said it was interest applied for the 03/04 tax year. I pointed out that they'd already agreed a repayment sum, which they refused to admin. I've since ignored the debt, and it doesn't even appear on my Experian credit report.

Am I doing the right thing in completely ignoring this?

Leon

[slick132]

Hi Leon,

Are you still a student or are you now earning.

Just because it's quiet now doesn't mean it will remain that way and you DO acknowledge MOST of the debt.

Are you now in a position to repay this at a reasonable monthly rate.

Have you seen any recent state's for this a/c and are you still with Barclays.

Slick

[junk0r]

Hi,

This year, I'm a student again; I took a few years out here and there, worked for a while, and have come back to do a masters.

There's probably a few hundred pounds of charges in there, but it's been almost 6 years since they were levied.

I'm not in any position to repay this - my student loan covers rent, and a tiny amount of food; no bills!

The second repayment agreement was the last document received regarding the account (Jan 2005) and I am not with Barclays at all.

[slick132]

I have to say and I'm sure you acknowledge that you have a moral duty to pay what you owe (except, of course any unlawful bank charges).

That said, sometimes it is wise to let sleeping dogs lie (as you cannot afford to service the loan now).

Be aware of course that sleeping dogs wake up and may bite.

So, if you'll excuse the analogy, Barclays may at any time crawl out of the woodwork and start chasing you for the whole of the debt.

Slick

[junk0r]

Thanks - that's kind of what I thought, too. Is there a time limit in which they have to "wake up" and hassle me? As it stands, it doesn't seem worth trying to make noise over the charges at all - much too risky; would you agree?

[slick132]

I think they have 6 yrs from when they last contacted you about the debt, beyond which it is time barred.

And, of course, why would you seek to recalim a few hundred pounds of charges when this will prompt them to pursue the whole debt.