student loans

[koko2008]

i wonder if i can have some advice. I took out a student loan in 1997 and i was only there for one year, after leaving uni i buried my head in the sand about my debts and changed address 3 or 4 times in the next few years. About a year and a half ago i recieved a message from the student loans company asking me to call an extension number and speak to this person,she wasnt there but i spoke to a man and confirmed my name and that i had lived at the address they asked about( where i was living when the loan was taken out) and that was it i never heard anymore until about6 months ago when i recieved a letter from court saying i had to provide my income details and outgoings to them.

 

In 2007 i was made bankrupt due to a business i was a director of and so when i filled this form in i explained that i was waiting on the payment arrangements of my bankruptcy to be finalised and so i didnt know what money i would have available, again i heard nothing so i called the court and the lady said that she had sent my case back because of the bankruptcy, i explained that i didnt think this mattered with student loans and she said she didnt know so again i heard nothing more from the court or the SLC.

 

today i recieved a call from jb debt recovery saying i owe £2000 and i have seven days i asked for all furthre communication in writing and to prove that it was i who took out the loan, any advice on a way forward would be very helpful thankyou

[IdaInFife]

Hi Koko and welcome to cag:

 

a piece of info

 

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.

 

Since you took this out prior to sep 1998 and have made no payments then this is statue barred. if this is correct you can send them this:

 

Dear Sir/Madam

Acc/Ref No xxxxxxxxxxxxx

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

 

 

What country are you in?

 

If in scotland then it's 5 years and 6 years in England or Wales

 

one more thing: you said you rec'd and form from the court for income and exp. was this directly for this? if so then was a ccj granted for this? you may need to check at the court. as if so the above letter would not apply,

 

 

Ida x

Edited August 22, 2008 by IdaInFife
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[koko2008]

hi idainfife

 

thaks for your advice in answer to your question i am in england, and as far as i know no judgement was made against me and i never heard from the court or the SLC again but i will check with them this week.

 

when you say written acknowledgement of the debt i take it that even though i confirmed i lived at the address this is not an admissionof the debt is this true?

[emmaf01]

If you admitted it on the phone- I thought that you only admitted to living at the address anyway?

[babyboo23]

Hi

I have a student loan but am currently earning just below the threashold for repayment. However,every year I get a bonus and some backdated pay in my wage slip. The month when this happens the student loan company take deductions from me even though its just backdate pay that i was owed and my yearly salary is still below £15k. How can this be allowed because technically I am still not able to afford repayments. When i phoned them about it they said I would have to wait until April and send them my P60 in order to claim it back but this is about 6months away from when they deduct it.My payslip shows how much I am earning a year so why isnt this enough for them to go on?

any suggestions or info would be a help. Cheers!

[42man]

Ring JB debt recovery and tell them you were made bankrupt in 2007 and give them the name of your trustee....