I graduated in 2002 with alot of debt both on credit card and with overdrafts. I set up an account with Barclays sometime in 1998- naive because I had an account with Lloyds already and began to draw up an overdraft without paying it off.
Obviously when you are a student you move alot. I had alot of emotional upheavel in 2000 so by that time any debt management on my part had gone out the window. I heard nothing from Barclays for years.
Today on 26th January 2007 I get a final demand letter from Debt Managers Ltd asking for £479.12- threatening court action, court costs if I fail to payand that I contact within 48 hours- (even though they sent the letter on 22nd January!)
Now last year I had a similar letter from another company Mackenzie Hall asking for £437.00 to pay off an old Barclaycard debt from way back in 1998/9. I remembered I had not paid this so I paid to avoid getting into my trouble.
Had I been too quick off the mark though?
What should I do next? I am not sure if I have paid the Barclays overdraft and have no records or evidience to suggest anything because but they have not contacted me for so long. Whats the score with overdrafts? Are they a credit agreement that fits under the criteria of the Consumer Credit Act? I looked on this sites archives and found a template letter to send to Debt Managers Ltd - is this an appropriate first step?:
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 xxxxxxxxxxxxxxxx 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
Student debt to Barclays Bank 
