Old debt that's been sold on - what happens?

[mystical1]

Hi everyone.

 

I've never been on a forum before, so please be patient with me

 

Several years ago I was in a lot of debt, and the majority have now either been paid off or have just given up. I've heard nothing for years, however yesterday I had a letter from J2 Solutions saying they needed to contact me. I called them, and they put me through to Link Financial, who I have a debt with.

 

The original loan was taken out in July 2002 (according to an old credit report I've found as I haven't got any information on this debt now). My old credit file states that I defaulted in April 2004, however I've been advised that this was when it was posted, and could not actually be the date of default.

 

I told Link Financial that I believed the debt was over 6 years old and they could not pursue this under the limitation act. She said they bought the debt on 14th December 2004, and hadn't had it for 6 years therefore it could still be valid. I asked when my last payment was, and she said they didn't know as they only have information from when they bought the debt.

 

Am I right in thinking that if they can't prove my last payment and have no history, that they can't pursue this? They are apparently sending me all info on this debt since they bought it and will be in touch in 2-3 weeks. I have seen a letter on here which states I won't be paying unless they can prove my last payment and was going to send this to back up my phone call - is this the right thing to do?

 

They've said all sorts of charges have been added and it's a debt I really don't need now!

 

Any help appreciated, thanks.

[cerberusalert]

The Statute Barred clock starts ticking from the date the last payment was due, which means if you had a debt such as a credit card and the last payment you made was say Jan 02 & the next payment was due Feb 02 but you failed to pay, the clock would start from the Feb.

 

It doesn't matter how long the debt collector has owned the debt & the fact that it's not on your credit file would show that the debt is statute barred because a default only remains on your file for six years too.

 

Send the DCA this;

 

Dear Sir/Madam

 

Acc/Ref No

 

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

 

I wish to 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 should 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 me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me 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 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.

 

Yours faithfully

 

Print Name do not sign

[mystical1]

Hi there.

 

Thank you ever so much for your response. Can I just clarify something though? It is possible that I have paid in the last 6 years, but I can't be sure. My old credit file said I defaulted in April 2004, which obviously isn't 6 years ago, however, the whole thing has now been removed from my credit file.

 

If the DCA cannot prove that I have paid in the last 6 years, can I still state it's statue barred and hopefully get them off my case?

 

Thanks again.

[cerberusalert]

To be certain that a default isn't still on your credit file you would have to check with the three main CRAs as they don't all contain the same information.

 

If the DCA cannot prove that I have paid in the last 6 years, can I still state it's statue barred and hopefully get them off my case?

 

You could claim it was Statute Barred, it would be up to them to prove otherwise, but in the absence of a CCA any debt would be unenforceable anyway.

[mystical1]

Thanks for that.

Can I just ask what a CCA is in this instance?

 

Basically they said that they will write to me with "information" within the next 2/3 weeks but when I spoke to Link they said that they did not know the payment history and couldn't tell me whether it was over 6 years or not!! They just said that they will send me their "actions" including alleged home visits/phonecalls etc.

 

Also, i'm a little concerned about the whole acknowledging the debt thing. Does this have to be in writing or can they twist a telephone conersation into me "acknowledging" the debt?

 

Thanks for your help on this, much appreciated.

[cerberusalert]

Sorry, credit agreement.

 

You would have to have acknowledged it either in writing or by making payment.

[mystical1]

Thanks, you've been really helpful.

 

I am going to follow it up with a letter stating the above sending it Recorded Delivery and see what they say.

 

Thanks again

[mystical1]

Hi everyone. Following on from my original post, I've got another question I'm afraid!

 

It's regarding my credit file. The credit in question was taken out in 2002, and according to my old credit file, I defaulted in 2004, although I think it was sooner than that. The debt was on my report until November last year, when it disappeared. I've checked again today, and also with another credit reference agency, and there's no sign of it, although I can see that the DCA have searched my Equifax records. My question is - if it turns out that I have paid in the last 6 years, can the DCA put this debt back onto my file?

 

The whole CRA thing completely baffles me, as I don't know how it's disappeared - surely it must be over 6 years to be taken off? Can anyone shed any light on this for me?

 

I wrote off to the DCA and waiting a response. I'm worrying myself silly about it whilst waiting for their reply, and I think I'm just looking for some reassurance that I may not be liable for this anymore.

 

Thanks again, you lot do a great job

Edited April 14, 2009 by mystical1

[cerberusalert]

The default which disappeared may have been on your credit file for six years, if it had it would drop off automatically after that time.

 

You are not liable for anything until they prove it.

 

A DCA cannot register a default, they can only update an existing one.

[mystical1]

Hi there cerberusalert.

 

Thanks again for you reply. I've today had a voicemail left to call Link Financial. They have not responded to my letter, but have started to call. My partner called them as I didn't want to speak to them, and he's pointed out that we are still waiting for my credit agreement before we'll discuss anything with them further. There was all sorts of talk about the debt being acknowledged and stuff, but it ended that they have already sent some stuff out, and my letter will be passed to their 'disputes team'.

 

I'm still fretting like crazy about all this. Begining to wish I just ignored the first letter. I don't know when I defaulted exactly, and I don't get why it's gone off my credit file when my old file states it was defaulted in 2004, which is less than 6 years ago. Partner called the National Debtline who were a waste of time, they said the 6 years start from when the debt was sold on! Surely this can't be right?!

 

Who registers the default and who takes it off your file?! I'm scared that Link will come up with the info and the credit agreement and I'm stuffed.

 

Partner told Link that we want the agreement etc or not to get in touch again (he was really good!). He asked when the last payment was and how much I owed and they couldn't say, said they didn't have the info to hand - does anyone know anything about these people? Why do they keep saying they don't know what I owe?!

 

Please help, I'm loosing sleep.