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I wonder if you can offer some guidance. My partner had a welcome finance loan in 1997 which he defaulted on in 2003. This debt by now would be statute barred as he has had no contact with them. He was traced by Ruthbridge & Hillsden Security in 2006 saying that they were taking over the debt and were looking to recover the money (not sure why it took 3 years for this). They advised via email that he made a payment in August 2004 which he did not. They will not even tell him where this payment was made or how. On his credit file they have issued two defaults (there were originally two loans). It says on his credit file start date 31/03/2003 which is when he defaulted with Welcome Finance. Then says date last delinquest 07/06 and date updated 06/11/2006. How can he go about removing these two defaults as they should not have been put on his credit file and is this legal.

Unless they can produce 100% genuine, documented and proven evidence - which can be traced directly to your partner - of the debt having been actioned upon, paid or acknowledged by your partner within the last 6 years they are of course not able to enforce the agreement anymore, or collect upon it as per the Limitation act. Your partner should check with the 3 main credit bureaus and file disputes as soon as possible, and at the same time submit a SAR regarding the debt and alleged payment in 2004 to Hillesden - legally forcing them to provide you with evidence to back up what they are claiming. This won't refresh the debt, or count as acknowledgment of it since it has already lapsed. Debt collection agencies like Hillsden rely more on people's gullibility and fear of supposed legal action than any actual evidence. They will rarely if ever take their targets to court. Getting them to put their money where their mouth is invariably makes them back off. Indeed anyone daring enough can usually turn the tables on them and force them into court for misrepresentation, harassment and false enforcement claims.

If your 100% sure the debt is past the Limitation Act then just ignore them, if your in the slightest doubt otherwise then start gathering the information ASAP.