Closed Abbey Account handed to debt collection

[ang588red]

HELP! A friend had an Abbey account which was closed in 2002 after losts of charges were added to her account. She subsequently moved addresses and didn't here anything until December of last year.

 

Westcot collection services contacted her at her new address threatening court action and asking her to contact them. What can she do under these circumstances.

Desperatly seeking advice:?

[dutchcourage]

Right, first off don't panic!!!

 

Is this is a straight forward tale of old bank account, gone overdrawn, bank charges then walk away hoping it would all go away? (I've been there and done that myself) This is what i did.... First thing to do is get your friend to write to westcott asking for a cca (Your friends credit aggrement, if they haven't got it they can't enforse the debt) go here for the template letter. http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html Also tell them in the letter to stop calling your friend, it's called harrasment!!! If they supply the cca then write back offering payment, use the same link for this letter. ONLY OFFER WHAT YOUR FRIEND CAN AFFORD Don't let wescott push for unrealistic payments.

 

Hope this is some help, good luck!

Edited March 17, 2009 by dutchcourage
typo

[ohoh4312]

Sorry, but you cannot use a CCA request for a bank account as it is not a Consumer Credit Agreement.

 

If there has been no activity since 2002 - ie no payments made or any contact regarding the debt, then it is likely to soon become statute barred.

 

First of all, your friend must not, under any circumstances, speak to wc (lol, no pun intended!) on the phone at all.

 

Secondly, I am going to ask the site team to move your thread over to the debt forums, where there are a lot of extremely well-informed users well versed in dealing with these sort of situations, and hopefully they will come up with an action plan for your friend.

 

Hope that helps, and best regards.

[42man]

Hi Ang588....i'll move this thread to the debt collection forum where you should get some more help/advice...

[cerberusalert]

If a period of six years has passed without any written acknowledgement or money paid it will be Statute Barred, so send this letter;

 

Dear Sir/Madam

 

Acc/Ref No

 

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

 

Print Name do not sign

[deathbycrayons]

If there has been no acknowledgement on the account, such as payment, for 6 years or more, then there is nothing they can do to enforce the debt as it is statute barred. No court would look twice at their case - there's nothing they can do. This account should never have been passed onto a DCA.

[ang588red]

Thankyou very much for your help I'm sure that will allow her to be less frustrated and confused. Thanks again