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can i use statute barred on a 1998 student loan


hackers0ns
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Hi,

 

My partner took a student loan out in 1998, which means it's one of the new style loans. He has never heard anything from them since. Due to a hereditary illnes he has been in and out of work a lot in the years since and has never managed to get above the threshold for payments. Now he is working again and is to get a pay rise, his boss has told him he will have to start repaying his loan.

 

As he has not heard anything from them in nearly 10 years, does he still have to make payments or can he claim it as statute barred?

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I think you should check this one. According to the National Debtline, the situation changed with new style loans in September 1998. Their factsheet it seems to suggest that these new style loans are a bugger:

 

"the Student Loans Company are still allowed to take money from your wages for a loan over six years old and they do not have to go to court to do so".

 

You could ask the National Debtline on 0800 808 4000. They are absolutely fantastic.

 

Good luck.

 

H-C

Any help and advice is offered in good faith, based solely on my own knowledge and on experience gathered from this site. I am not qualified to offer legal or financial advice, which you should seek from an expert before making any important decisions. My opinions are therefore offered without liability.

 

If I've been helpful, please click my scales. :-)

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Hey, hackers

 

Let us know how you get on.

Any help and advice is offered in good faith, based solely on my own knowledge and on experience gathered from this site. I am not qualified to offer legal or financial advice, which you should seek from an expert before making any important decisions. My opinions are therefore offered without liability.

 

If I've been helpful, please click my scales. :-)

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  • 3 months later...

Hi hackers0ns - how did you get on?

 

I'm in a similar position (well, it's coming up to 6 years since I last had a payment from the student loan company). I have not acknowledged the loan since then and I have moved several times. The SLC finally wrote to my parents before xmas (2007) to get my new address.

I have been in full-time employment for some time and the last I heard from the SLC was about 5 years ago saying that they couldn't match my national insurance number to any tax record - I've no idea why. I didn't respond.

Has anyone had a new style student loan statute debarred?

Presumably the SLC wouldn't be able to start deducting from my wages as they can't match my records.

Any help gratefully recieved. :)

Thanks.

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Thank you tiglet, I hadn't heard of that.

 

I see from Law relating to debts: statute-barred debts that

 

Under the Limitations Act 1980 the time limits are

  • in simple contracts, 6 years
  • in contracts under seal, 12 years.

Does anyone know whether the new style loans are definitely 'contracts under seal'. If they aren't, has anyone successfully had their new style student loan successfully statute debarred?

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Hi, I just wanted to update this in case anyone is interested. I wrote to the national debtline who gave the following advice:

 

A student loan is a debt under statute, this means that the Limitations Act (LA)1980 does apply. The limitations period on this debt is 6 years and not 12 years. However, as this is a new style student loan, HMRC can deduct repayments directly from your PAYE even if the debt is statute barred, which only allows you to defend the matter if it is taken through the courts.

 

It will be up to you whether you want to contact SLC or wait for them to contact you. If they did find you, they could start to recover the debt through your PAYE. If they were unable to find you, there is a possibility that they may treat this as a bad debt and sell it onto a debt collection agency (DCA). If this was to happen, the DCA would then try to recover the debt from you. If 6 years have passed with no written acknowledgment and no part payment you can then use the statute barred argument. If the DCA were to start court action, this can be used as a defence, however we would recommend that you get legal advice and take into account the additional costs that may be involved if your defence is unsuccessful.

 

Can anyone comment on this course of action?:

Wait until I am contacted by SLC.

Reply with the statute barred letter that has been posted on these forums.

 

Presumably if the debt is statute debarred then the SLC will not be able to sell the debt on to a debt collection agency, nor claim any fees for doing so? Or am I being incredibly naive?

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Hi too.ticky

 

Well, up to you - but I'd wait. If and when they do contact you you can send the stat barred letter and, if they start hitting you with payments from your account, SAR them to ask about any unfair charges they might be adding.

 

They can still sell this to a DCA. In this case the DCA will probably add charges. However, if this is a stat barred debt, the DCA has no leg to stand on as long as you do not acknowledge the debt in writing. They are just phishing in the wind. Again, there is a process for contesting this.

 

You might find it best to start your own thread with regard to this so that we can see how you are getting on without it getting confused with other folk's problems.

 

Best,

 

HC

Any help and advice is offered in good faith, based solely on my own knowledge and on experience gathered from this site. I am not qualified to offer legal or financial advice, which you should seek from an expert before making any important decisions. My opinions are therefore offered without liability.

 

If I've been helpful, please click my scales. :-)

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  • 2 months later...
  • 5 months later...
  • 1 month later...

hello, i am in the same situation i have a new style loan and have been working over the limit for 3 years and have never had any money out of my wages and no letters however the other day my parents recived a letter to there saying i owe £15,500.......

 

Any advice please?

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  • 2 years later...

My wife graduated from Uni in 1999, took out her last loan in 1997 I think. She has NEVER made a payment. Due to health issues, her work has been sporadic.

 

We have recieved numerous letters at different addresses asking for payment, which we have never made (asking for far too much money) and have never returned any letters to them, or spoken over the telephone.

 

Is this now eligible to be statue barred?

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  • 3 months later...

Thank you to all of those who have posted on these forums. Your time and good advice is really appreciated.

 

I am being written to by Credit Solutions, a DCA, about my student loans from 1994, 1995, and 1996. I last contacted SLC in 2000, possibly 2001, so I assume it is statute barred. I guess they must know this and are just trying it on.

 

As they don't have a leg to stand on my chosen approach is simply to return the letters marked 'Return to sender'. I really don't want to engage in any correspondence with these people but am worried this might not be the best approach to take. I have to admit the bullying tone of their letters has rattled me a little, but I guess that is the effect they are aiming for. I guess their letters will go through the usual cycle: threats of visits, phone calls, threats of legal action etc.

 

I figure if they had a real claim on me it would show up on my credit report but there is nothing there at all.

 

Thank you for taking the time to read this post and I look forward to any advice that you guys might have.

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Hi there, if you beleive the debt to be statute barred please send this letter via recorded delivery:

 

 

 

(Your home address)

__________________

__________________

 

Date:______________

 

To:

 

Without prejudice

 

Dear Sir/Madam

 

Account No:

 

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

 

I/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”.

 

I/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 correspondence/payment or acknowledgement of this 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 me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/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”.

 

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

 

I/we look forward to your reply.

 

Yours faithfully

 

(Your signature)

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Thank you very much for your reply sequenci.

 

I would prefer to ignore them as I really don't want to engage with these bullies at all but I guess that is the right thing to do.

 

Thanks for your time and help!

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Thank you very much for your reply sequenci.

 

I would prefer to ignore them as I really don't want to engage with these bullies at all but I guess that is the right thing to do.

 

Thanks for your time and help!

 

It's your prerogative of course, BUT, sending the limitations letter shifts the burden of proof to them to try and demonstrate that they have the legal right to keep chasing for payment. This should hopefully get them to go away once and for all.

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  • 7 months later...

sequenci

 

Are you sure 98 student loans can become statute barrred? dex100 says in another thread that 98 style student loans can never become statute barred. I keep getting confliciting info.

 

I have a student loan from 98 (1st year of the new style). I have never had anything deducted from paye etc.

 

Last year, I just started receiving correspondance from Capquest, chasing for repayment. Afterwards, I sent a letter directly to Student Loans company for a SB. I sent it recorded delivery and have proof that they received it. However, I have not received anything back from Student Loans and Capquest are still chasing me. Have the Student Loans screwed up by still pursuing me after receiving the letter, or have they just binned the SB letter because it is not enforceable?

 

I have read that 98 style loans can be SB after 6 years, can be SB after 12 years, can never be SB....

 

Please can you enlighten me with the facts.

 

Many thanks in advance

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