Old loan help

[Nazkyn]

Hi all

 

To cut a long story short, I took out a pretty big loan from Barclays bank around 4 years ago and I haven't paid any of it off. The bank themselves seem to have gave up contacting me around 3 and a half years ago and I started to receive a few letters from Lowell Financial (my mother returned some as I wasn't living here) and after that I didn't hear anything, until now. Thismorning I received a letter from Lowell Financial claiming that they have recently had mail that they sent to me returned and have now taken steps to confirm my residence using a credit reference agency and 'various checks'... I haven't returned any letters for years.

 

Next they say that they now intend to take further action against me in order to recover the outstanding balance and that this action could include either an agent visiting my address at a date to be advised or legal action... then at the bottom of the letter it says "Unless we hear from you with 48 hours from the date of this letter we will instruct our agents Red Debt Collection Services to take the appropriate action".

 

I have a feeling that Barclays may have wrote the debt off, but how can I check? Also, where can I get a free credit report online? And lastly, any advice on this matter?

 

Thanks in advance for any help.

[42man]

To answer your questions, Barclays probably have sold the debt on, as for the free reports then Equifax or Experian I think offer a free service (but google 'FREE CREDIT REPORT' and you will find one somewhere. As for advice, how do you get a 'pretty big loan' and not pay ANY of it off ? Are you in a position to pay back the loan ?

[Nazkyn]

Well I was young and stupid and got a loan for a family member that I thought I could trust who runs a pretty successful business... but like thats gonna stand up in court. And no, i'm a student living on borrowed cash. I would appreciate some advice on how to negotiate with Lowell's as I have heard a lot of bad stuff about them, the balance is already 300 quid higher than the original loan that I payed 300 quid of! (I checked on Experian ) and I don't want to be bullied into paying out what I can't afford or paying more than I need to out (and on a side-note - could I get the interest frozen?)

[Nazkyn]

Any advice is greatly appreciated.

[shieldblaster]

I think your first action might need to be a request for the original CA, because if they don't have one they are gonna find it difficult to enforce the debt. If Lowells have bought the debt then that should have been by Deed of Assignment so they should hold a record of the original CA but if they are merely agents acting on behalf of Barclays then its Barclays you need to send the CA request too. On receiving the CA request they have 12 working days to provide it otherwise the whole debt is in default and I think after 30 days it is a crminal offence to persue the debt in any way, including penalty payments, interest or recording a default and you can report them to Trading Standards amongst other things.

 

I would suggest you have a good read around the site as you are bound to find someone who is in a similar position as you and there are a lot of very helpful people here Please remember that this debt still exisits but the issue is whether it is enforceable in the eyes of the law. If it isn't that will give you an opportunity to negotiate a reduced payment or even a full and final offer. You could of course ignore it completely and not pay anything if it is found to unenforceable cos theres not a great deal they can do except ask you nicely to pay it but thats between you and your conscience On the other hand if they do have their paperwork in order and are able to prove that they lawfully enforce the debt then when that moment comes you need to enter into some dialogue with them

[Nazkyn]

Thanks a lot shieldblaster

 

I'm just wondering if sending them a CCA request is an acknowledgement of the loan?

[shieldblaster]

No, you simply state in your CCA request that in no way is this to be intepreted as an aknowledgement of any debt

[Nazkyn]

Ok, thanks a lot. Only I can't find a CCA and Deed of Assignment request template

 

Also, i'm happy to pay what I can afford, it is my debt afterall... but I would rather not as i'm not really in the position, so I am kinda hoping that it is unenforceable.

[shieldblaster]

Here is a template letter you can use, amend as required, send it recorded delivery to enusre you have a record of them receiving it and you also need to include a £1 fee

 

 

http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

[Nazkyn]

Thanks a lot! I guess i'll update this thread in around 12 days or when they send me my original CA, or not... whichever comes first

[Nazkyn]

Could I start a claim against Barclays and Lowell Financial (I haven't sent the CCA request yet) if I find they have charged me at any point? Also, if they can't produce a Credit Agreement, then the loan didn't really exist, right? Does that mean I could get my defaults removed?

[shieldblaster]

First thing at a time. The debt does exist, at some time you borrowed money from Barclays by your own admission and therefore are morally obliged to pay it back imo. The question here is whether the agreement is enforceable..if it is then they will after you for payment and you would need to organise a payment plan or they can seek a CCJ against you which is a court order to repay and you ignore those at your peril, also in some cases they can seek that you be made bankrupt also.

 

If however they can't come up with a legal CA then the debt is unenforceable, even a judge is unable to uphold it in a court of law, and that gives you a bit more bargaining power. You are then in a position to negotiate either a full or final payment possibly at a very reduced rate or a realistic payment plan that suits you. You can also of course not pay anything, and as I said that's for your consceince but I don't think this forum is about that, it's more about taking back the power and from the heavy handed and the parasites that exist in the credit world.

 

If they can't produce a valid CA you also have a good case for having the default removed as it has been placed unlawfully. If they can't produce a CA within 12 working days the debt is in default and a month after that any action taken on the debt is a crimial offence, including placing defaults. However imo you would need to take them to court under CCA sec 142 in order for a judge to rule the debt unenforceable and so the default unlawful and it's removal part of your action€as well as reclaiming any unlawful charges or interest, but that's some way down the line yet. This is just my opinion of course and i'm sure others can advise you also

[Nazkyn]

I feel that (after reading through this forum quite a bit), that the general view on this forum is that the banks and other financial organisations should not be giving these loans out in the first place to people that obviously can't afford to pay them back, which is my position. I certainly won't feel sorry for either Barclays or Lowell's if they never see the measly 4000 pound (now 4400) that I borrowed, and if they can't produce a credit agreement...

 

I'm pretty sure that Barclays put some unfair charges on my account when I used to bank with them and went informally overdrawn a few times. I'm pretty certain that Lowell have added their own charges to the original loan also.

 

I took a look at my financial report again today, Barclays haven't put the start date of the loan, or date they defaulted the account, i'm doubting they have the original credit agreement, and if that is infact the case... then there is no chance that Lowell's will. Also, how can a default be legible without a start date? I have 3 defaults and I didn't receive notice for any of them, or notice that the debt had been sold on to Lowell.

[vecko]

If you haven't paid anything for over 3 years why start paying now just because you've had a threat-o-matic letter.

 

They're only trying to scare you - keep ignoring them and they'll go away.

 

They're more concerned about with their more recent debtors who don't know about this website and worry too much. I owe over £60K (long story)

 

Do you have any assests?

[shieldblaster]

Imho to just ignore them is a dangerous practice, specially if they can provide you with an enforceable CA which I agree is fairly unlikely in the light of what you have said. Whether or not you choose to repay the debt is entirely up to you I have merely provided you with my experience and as I have said the default is probably unlawful if a binding CA cannot be produced but to get it removed is not easy and will probably involve you hauling them before a court under CCA S.142 to get the judge to rule the debt unenforceable where you can then ask for the default to be removed as part of your action. I do think the best way forward is to establish whether they do or dont have a valid CA and that will determine your next step.

 

Tihs is purely my opinion and you are more than welcome to progress as you see fit

[PriorityOne]

Naz.... unless the request goes off by rec. delivery, they will probably deny all knowledge of receiving it. As for the £1, enclose a Postal Order and not a chq., if possible and do not sign the request with your normal sig. either.... print one in block capitals at the bottom.

 

Good luck...

[Nazkyn]

If you haven't paid anything for over 3 years why start paying now just because you've had a threat-o-matic letter.

 

They're only trying to scare you - keep ignoring them and they'll go away.

 

They're more concerned about with their more recent debtors who don't know about this website and worry too much. I owe over £60K (long story)

 

Do you have any assests?

 

That's exactly what i'm wondering, but I do have to admit that the potential repercussions of ignoring them are slightly worrying to say the least. Perhaps i'm being stupid, but can I get a criminal record if they do actually take action? I have a perfect record and really wouldn't want to tarnish it.

 

And no assets at all.

 

Thanks for your suggestion

 

Imho to just ignore them is a dangerous practice, specially if they can provide you with an enforceable CA which I agree is fairly unlikely in the light of what you have said. Whether or not you choose to repay the debt is entirely up to you I have merely provided you with my experience and as I have said the default is probably unlawful if a binding CA cannot be produced but to get it removed is not easy and will probably involve you hauling them before a court under CCA S.142 to get the judge to rule the debt unenforceable where you can then ask for the default to be removed as part of your action. I do think the best way forward is to establish whether they do or dont have a valid CA and that will determine your next step.

 

Tihs is purely my opinion and you are more than welcome to progress as you see fit

 

I was wondering if I could send the CCA request, have them ignore it, issue me a court summons and then produce the original agreement in court?

 

Naz.... unless the request goes off by rec. delivery, they will probably deny all knowledge of receiving it. As for the £1, enclose a Postal Order and not a chq., if possible and do not sign the request with your normal sig. either.... print one in block capitals at the bottom.

 

Good luck...

 

So, by the same theory, is it possible for me to deny all correspondence with them so far?

 

And will do the rest

 

Thanks for the advice.

[shieldblaster]

Owing money is NOT a criminal offence

 

If they were to issue a court summons you could ask them to provide you with a copy of the CA under civil procedure rules etc and if they have got it why didn't they send it in the first place ? I would imagine any judge not being best pleased if they were to reveal it at the last minute

[Nazkyn]

Owing money might not be, but ignoring the fact?

[rory32]

If you haven't paid anything for over 3 years why start paying now just because you've had a threat-o-matic letter.

 

They're only trying to scare you - keep ignoring them and they'll go away.

 

CAG does not advocate debt avoidance. If you ignore them they may obtain a CCJ and then an attachment of earnings order. So once you start working they can effectively take part of your salary to pay the account.

I took out a pretty big loan from Barclays bank around 4 years ago

It is fairly likely that they have a copy of the credit agreement, but you should certainly ask for a copy of it.

[tiglet]

I think the best bet would be to contact them with a breakdown of income/expenditure and make a reasonable offer of payment based on this. if you believe unfair charges have been added, send a SAR to them and/or the original creditor to ascertain this.

 

If they use unfair tactics etc., then that is certainly the point when you should consider sending a CCA request - however, by your own admission, you did borrow the money and you were lent it in good faith. You haven't really given any justification as to why you feel you should not pay back this money, other than your situation with a family member - are you not able to discuss this with them to see if you can come down to some sort of payment agreement?

[shieldblaster]

CAG does not advocate debt avoidance.

 

Thanks Rory I was certain that was the case but it's better to come from a moderator