Bankruptcy Threat - confused please help !

[iiimindlessiii]

Dear All -

 

I am new to this forum so please bear with me - I have tried to look up the answers on this site, but I am still worried over a bankruptcy threat I received this morning.

 

In 2001 I took out a loan from HSBC for £5,000, about 3 months later I was made redundant -and I informed HSBC of this fact. They then closed my account down. Because of being made redundant I had to move house. I have since moved house about 4 times but have been in the same place now for nearly 5 years. Until 2006 I did not have another bank account but any wages etc were paid into my partners account until I opened an account with RBS. In all this time I have not heard from HSBC. This mornng I received a letter from Capquest Debt Recovery saying they had bought the debt from HSBC and I owed them £5,693.73. They say that unless I pay of the whole amount within 14 days then they will apply for Statutory Demand, which in turn could lead to Bankruptcy.

 

Now I don't feel good about this - I owe HSBC the money, but i have only just really managed to get my life back on track through various upheavals over the last 5-6 years starting with that redundancy (we didn't receive any redundacny pay or even our last owed salary), but I can;t afford to pay this off on one lump sum or even a large amount per month. Someone has told me that as the debt is over six years, and I haven't acknowledged it in that time, then this debt collection agency are just threatening without any real legal basis - is this true ?

 

If so, I am prepared to contact them with a payment plan which will be far less then I am sure they want (ie, £20 per month or so for the time being), but I don't want to call them unless I have some "back up" to their letter. sorry for the long post, but I am really worried about this. Any advice would be gratefully received.

 

Thanks

[cerberusalert]

If you haven't acknowledged the debt in writing or made any payment for a period of six years (five years in Scotland) it would be 'Statute Barred' & they won't be able to take any enforcement action.

 

If it is less than that you can CCA whoever is chasing you for payment. First send them a CCA request to see if they are entitled to collect this debt & if it's enforcable. If they fail to provide it within 12+2 days or the CCA is unenforcable you can legally withold any payment until they do. Send it recorded delivery enclosing a £1 postal order. When you get a reply, scan it & remove any identifying details and post it back here where we can have a look at it. We'll advise you from there;

 

Dear Sir/Madam

 

Re:- Account No: XXXXXXXX/Your Reference Number: XXXXXXX

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

You should also note that I will only discuss this matter in writing and should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you or any of your associates.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance. (Optional addition)

 

I look forward to hearing from you.

 

Yours faithfully **Edit to suit**

 

(Print do not sign signature)

[cerberusalert]

If it is Statute Barred, you can send them 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

[underdog13]

Don't pay them anything or offer anything!!!

 

If the last payment was in 2001 and you haven't made any further payments or acknowledgements, the debt became statute barred in 2007:D

 

Capquest are a bunch of scurrilous chancers, who often try this on. This is an abuse of process and they should be reported for it.

 

You'll get all the help you need on here to give them a bloody nose. And a nice payment in lieu of wasted costs too, I should think:D

[underdog13]

Whoops, cross posting - sorry Cerberusalert:)

[iiimindlessiii]

Thank you for this - as far as I can remember the last time I had any contact with HSBC was in 2002 - so that would be well over 6 years. Would it be wise to send them a letter asking for a CCA anyway before entering into any formal agreement over payment ?

 

I don;t undertand why they would send out this threat through as they must know that the debt is over 6 years. I feel a little better now, but I am still panicking about this - their letter is very formal and official looking ! Not sure whether to phone them or not.

 

M

[cerberusalert]

No...send them the Statute Barred letter. It is up to them to prove that any alleged debt is enforceable. DO NOT enter into any agreement with them, if it's statute barred you do not have to pay ANYTHING.

 

DO NOT PHONE THEM

[sosumi]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/146530-have-you-received-threatening.html

[iiimindlessiii]

Thank you so much for this - I am breathing a bit easier now than I was. I will send them the Statutory Barred letter and send a copy to the OFT, although I feel a bit embarrassed - after all it was my fault it got to this stage by ignoring the fact I owed this money.

[underdog13]

Thank you so much for this - I am breathing a bit easier now than I was. I will send them the Statutory Barred letter and send a copy to the OFT, although I feel a bit embarrassed - after all it was my fault it got to this stage by ignoring the fact I owed this money.

 

Don't feel embarrassed - it wasn't your fault you were made redundant. None of us can predict the curve balls life throws us.

[cerberusalert]

You don't have to feel embarassed at all, over £600 of it was charges, HSBC will have received tax relief on the debt + whatever they sold it to Capquest for so the only loser is the DCA.....and they don't count in the scheme of things as they would have only paid a few hundred for the debt anyway.

[harrassed senior]

Hi and welcome, please do not feel embarrassed on here - we have all been where you are and sometimes much worse with multiple alleged debts.

 

You should not feel that you 'must' pay the balance, if any.

 

Capquest, send out some of the most 'evil' letters and threats, and their sole aim is to make you feel as bad as possible. That is how they make their dubious living. They have absolutely NO powers to carry out any of their multitude of threats, and if they manage to get 1 out of 100 to pay up, then they will be smirking all over their faces, and renew their tawdry efforts to frighten even more people.

 

It is not debt evasion, but asserting our rights to fair treatment when things can and do go wrong with our finances.

 

Please think again about making yourself 'go short' just to line these **** bags' pockets. Your original creditor has long since forgotten and written off your debt, sold it on, and claimed tax relief on their losses. You owe none of the DCA's or anyone else for that matter, a penny.

[cerberusalert]

(we didn't receive any redundacny pay or even our last owed salary)

 

Did you claim and receive the government statutory redundancy pay? If not you can get further information & advice at Redundancy pay : Directgov - Employment

[fiftypence]

There is a school of thought that says you could ignore them and see if they follow up with a stat demand. If you are up for the fight and the debt is statute barred then you will be able to get any such stat demand set aside and possibly get some money from them for wasting your time

[Dangermouse]

I would double and treble check that they have not heard from you within the last 6 years. It is sometimes easy to fotget that you wrote to them....sometimes they will try and trick you by saying that you made a £20 payment in cash.

 

Don'r acknowledge or get into any correspondence with them unless you are absolutely sure that it is statute barred.

 

Good luck

 

Dangermouse

[palomino]

Dear All -

 

This mornng I received a letter from Capquest Debt Recovery saying they had bought the debt from HSBC and I owed them £5,693.73. They say that unless I pay of the whole amount within 14 days then they will apply for Statutory Demand, which in turn could lead to Bankruptcy.

 

You should, indeed must, report this to the OFT. They take a very dim view of DCAs resorting to Statutory Demands as a first step in debt collection. Please do so straight away.