Is this now enforcable.

[Landy]

A friend of mine in 1996 had difficulties with her overdraft, so they converted it to an unsecured personal loan without her agreement.

In 1997 she became ill and unable to work so made an arrangement to pay £2 pm from her disability and incapacity.

It has been passed to several DCA’s over time the current being ‘Aktiv Kapital (UK) Ltd. Each of which were unsuccessful to increase the amount she pays because of her circumstances.

In Dec 2008 they offered a settlement for £100 to clear the debt. She said that she was happy with the current arrangement. But in Feb 2009 they asked for payment in full or court action, they refused and to accept her payments.

This April they asked if she paid £1 pm this would stop the court action to which she has agreed to and this is the current arrangements.

Question is; is the debt enforceable in light that it is now in excess of 10 years and with each letter they continue to add interest and charges which over time has increased the original debt by £2000.

[clemma]

If you mean statute barring, then no. As payments have been made, then this account is as active now as it was 10 years ago.

 

However, AK have no right to put excess charges/penalties on to this. As this is now a personal loan (rather than an overdraft), then I would send a CCA request to Aktiv Kapital to see if they are actually entitled to collect on this. The letter you need is template N on this thread - http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

As you stated, this was done without her knowledge, therefore it is highly unlikely they will have a signed agreement.....

[Landy]

But that’s what I was thinking.

 

As the overdraft was converted without consent then there is no credit agreement in writing.

 

She has confirmed that this is the case that she has not signed or been presented with anything in writing from any creditors or DCA’s.

[clemma]

So you have already requested a copy of the CCA using template N from the letters library? If so, then have you placed this acount in dispute?