Can student loans still register a default if the debt is statute Barred?

[WhiskeyGee]

Hi this is my first forum so any help/advice is appreciated.

 

I have unpaid student loans from pre 1998 and went through years of poor credit after dropping out of Uni which i presumed was related to these. the SLC has recently tried contacting me again (standard letters and phone calls twice a day for two weeks) but I have not spoken to them or aknowledged the debt for over 10 years. From reading other posts it appears I may have a case for Statute barred in which case is it worth contacting them to state this or shall I wait for them to demand money first?

 

Also I've read recently that they may report me to the CRA's as having defaulted on the loans which means bad credit for at least 6 years - can they still do this even if the loans are Statute Barred?

 

I've Just started getting my credit back I dont want to lose it all again.

 

many thanks,

[kurvaface]

This issue is going to be interesting - for sure. I get the impression that people in this situation do not believe they have given consent for their data to be shared in this way.

[dx100uk]

it is well statute barred

 

there is nothing they can do to you

 

its a phishing letter.

 

dx

[kurvaface]

Quite right... 6 years no payment + no contact = statute barred. If you look at my thread you'll see that they'll still try it on though. Putting a default on your credit file seems to be the latest way to try to apply pressure to get payment. Has this actually happened to anyone in this situation yet?

[WhiskeyGee]

Have just recieved the letter and it makes no mention of defaults or credit reporting agencies. It reads very much like a phishing letter asking me to contact them but makes no mention of what will happen if I dont. Is it worth sending the staute barred letter or will that just let them know they have the right contact details for me and so make them more determined?

[kurvaface]

What does the letter say?

[dx100uk]

no ignore them

 

dx

[WhiskeyGee]

Letter states the following:

 

IMPORTANT - YOU SHOULD READ THIS CAREFULLY

 

Notice of Sums of Arrears

 

Dear Sir

 

Your Loan Agreement(s) with us ref#

The opening balance under your Loan Agreement(s) as at 01/05/09 £xxxxxx.

 

1. This notice is given in compliance with the Consumer Credit Act 1974 because you are behind with your payments under your Loan Agreement(s). IF YOU CURRENTLY HAVE AN AGREED ARRANGEMENT IN PLACE, YOU DO NOT NEED TO TAKE ANY ACTION, If you do not have such an arrangement in place, we would encourage you to contact us on 0870XXXXXXX to discuss the state of your account.

 

2. By condition 4.1 of each of the above Agreement(s) you undertook to repay the loan(s) (with interest) by monthly instalments; staeting the month of April following the date you ceased to attendyour course, and on the dates notified to you.

 

3. tou have breached that condition in each of those Agreemens by failing to pay maintain monthly installmentsor in whole commencing on.

 

4. Total Due under all the Adreement(s) taken togeather : £xxxxxxx

 

5. (a) Payments recieved to date:0 last recieved :0

© interest amounts 0 last applied 0

(d) Court fees:0

 

6. to remedy the breach in respect of each Agreement you must pay us the amount of the arrears due under that Agreement on or before 16 days from the date of this letter. IF YOU HAVE ALREADY MADE AN ARRANGEMENT TO DO SO, THEN NO FURTHER ACTION IS REQUIRED.

 

7. Default sums and interest

 

You maty have to pay default sums and interest in relation to the missed or partly made payments refered to in this notice. Please contact us if you would like further details. This notice does not take account of any payments recieved after the date of the notice in addition to any default sums and interest included in this notice.

 

8. Notices

 

For so long as you continue to be behind with your payments by any amount, you will be sent notices about this at least every six months. We are not required tosend you any notices more frequently than this even if you get further behind with your payments in between notices.

 

to contact us Tel 0870xxxxxx

 

etc etc.

 

 

Phew I haven't typed that much since I was at Uni !

 

Thanks in advance for any help and advice on this.

[kurvaface]

In my inexperienced opinion:

 

1) Sleep well tonight

2) There too many 'Ifs' and 'Mays' in this letter for it to be anything other than a cheap phishing exercise

3) Keep it for your records or use it if you run out of toilet paper.

4) Don't reply to it.

[craigers]

I hate to say it, but seeing as its the government who finance the loans, I don't think it can be statute barred.

[kurvaface]

Hi Craig.

 

Its a pre-98 loan: no acknowledgement for 6 years + no payment = Statute Barred. The issue is about SLC putting defaults on credit files.

 

The "Government money" line is the cheap shot that DCAs and the Student loan company use, over the phone, but they'll never put it in writing.

 

Hmmmm...... I wonder why?????

[craigers]

I stand corrected! Very interesting.

 

"Student Loans are an unusual case, as they changed in September 1998. Any Student Loan taken out before this date was a consumer credit agreement, which means the Limitation Act 1980 applies. But any Student Loan taken since then is an ‘income contingent’ loan – so repayments can be deducted from your wages without any court involvement, regardless of how old the debt is."

[animation1]

Ok i've recived same letter recently, i own money from student loan i took out. I've done the statute barred letter and now to be honest the sacre tactics of filing bad credit against me is working... i'm tempted to pay it off just to be rid of it. Its the only dept i have and i have left it as i find SLC a bunch of t055ers to be frank.

 

So i'm going to pay it off.....at any point will they 'give up' on this?

 

Also i was told by a mortgage advisor that the main thing they look down apon is the CCJ's other defaults they pretty much dont take into account.:-|

[avatari]

I have been defaulted on a SB SLC account, am currently seeking advice.

 

Please look over http://www.consumeractiongroup.co.uk/forum/students/239734-slc-student-loan-default.html

 

Thanks