Dubious and unusual situation!

[ErikaPNP]

Unusual situation here...... a lady came to me for help with an alleged debt. As it's statute barred I have simply advised her to send the statute barred template and contact OFT. I've also advised her to join CAG; she currently has no internet access so I asked if she'd be ok for me to post this thread in the meantime. Her experience got me thinking how this would pan out if it hadn't been statute barred.....

 

She applied for a loan 9 years ago for household improvements. She was accepted and signed for the loan. The day that she did this, her parents offered to lend her the money with no interest. She rang the loan company, and explained she no longer needed the loan. They put a hold on the funds being released to her but advised they needed her to cancel th loan in writing. She did so, and received a letter back acknowledging her letter and stating that the loan had been cancelled. She thought no more about it until approximately 1 year ago when she started to get letters from a DCA demanding repayment.

 

Correspondance went back and forth for a time, with this lady explaining that although she had applied for the loan and was accepted she had cancelled it and never received the funds. She explained that she had at the time receievd a letter from the company to confirm the loan was cancelled. However she made the error of admitting that she no longer had this correspondence. She asked for proof that she had received the money.

 

She received a copy of the CCA - and again insisted that although she accepted the loan she later cancelled it and did not receive the funds. The DCA told her on the phone (yes she made the mistake of ringing them too!) that all they needed to do was produce the CCA in court and she'd have to "pay up then, including court costs".

 

As it's statute barred, CCA or not they can't enforce this but I am pondering if it wasn't statute barred, how she could fight that - they have the CCA yes but she claims to have never received the funds as the loan was cancelled.

 

Any thoughts on this? I didn't think loans got cancelled - I had thought once the CCA was signed that would be it.

[PeteT]

It's the creditor that has to prove the debt exists. I'd ask them to prove that the money was received, and they'll have a hard time doing so as they didn't release any funds.

[bigandyuk1]

I agree, they might have a CCA but what about statements and repayments?

Edited July 14, 2009 by bigandyuk1
I must learn to speell

[PGH7447]

assuming this would have been paid into a bank account then you would contact the bank for that period

[cerberusalert]

It makes you wonder whether it's laying dormant in an a/c somewhere.

[PGH7447]

It makes you wonder whether it's laying dormant in an a/c somewhere.

 

earning interest:)

[izzitme101]

demand a complete audit trail of the money from the oc would be the way to go i think.

[ErikaPNP]

Thanks folks. She's not happy to let it lie at the statute barring. She called me again today. She wants to take them to court for harassment (now she knows they hold so little power!)

 

I have advised her she should seek proper legal advise if her wish is to take that route. I bloody well hope she nails them. To be honest I was slightly doubting her story to begin with - I was frank about this to her - it's not my place to judge but it's something I have never come across before - it just seemed strange that this all creeped up on her at the "right time". Like banks only keeping records for seven years - the records for that period will likely be destroyed, ect. She also wouldn't name the OC or the DCA either. I'm a strong advocate that where a DCA has failed, get them nailed but I needed her to be completely honest or I might have given her the wrong advice. She did appear genuine it's just very strange!! (What's not strange about a DCA though, eh!)

 

She's hell bent on making them pay for harassing her and is determined to go further than a report to the OFT!!

 

I hope they do an audit trail that far back, or find something that a solicitor can and will use in a claim against them.

[cerberusalert]

Even tho' this was an a/c from 9 years ago they should still have all the data which would include the transfer of any monies. They are required under the Data Protection Act & the Money Laundering Act to keep this information for a period of five years after the a/c is closed so a sar should throw up the info.

[ErikaPNP]

I'd love to know how it pans out, I hope she gets back in touch. If she does I will ask again if I can post the result.

[Michael Browne]

It may be worth checking her credit record to make sure they haven't registered a default

[Bazooka Boo]

Subbing:wink:

 

Actually, no, I'm gonna throw my two penna worth in aswell:D

 

I understand the situation, but having thought about it a little, something is definitely fishy here, and quite possibly fraudulent

 

So a DCA is chasing her and saying that she owes money on a Loan that was never taken, so that would imply that the Bank sold a ficticious debt onto a DCA, thereby, the Bank would have received money from the sale of the debt aswell as money from their insurance!

 

I would think that needs alot further investigation by the FOS aswell as the OFT, plus a complaint to the bank in question and having them conduct an internal fraud investigation, it is definitley suspect8)

Edited July 26, 2009 by Bazooka Boo

[Blondmusic]

I would suggest a Subject Access Request to the loan company. That should throw up the cancellation letters etc.

[frettful38]

I would suggest a Subject Access Request to the loan company. That should throw up the cancellation letters etc.

 

 

Excellent piece of advise, not even Columbo could have said it better

[lickthewallfatboy]

I would agree with blondmusic

 

that should throw up everything on the data subject and let you know what has happened

[ErikaPNP]

Ooooh this is GRIPPING stuff!! I sooo hope she comes back and lets me know the outcome

[natalie]

It says in the small print that you have 14 days cooling off period with all loans, so having the CCA isnt going to prove anything.

 

Good luck to her.