Advice needed re Go Debt please

[kd1812]

Hi, I have found this forum while searching Go Debt on the internet. I am really worried, had a call this morning from someone from this company for my partner,they said they needed to serve some papers, he has now received a letter from this company saying they were going to file for bankruptcy and gave the address of the court they would use for a debt of nearly £6000. This debt refers to a car he bought nearly 7 years ago, which was written off over 6 years ago now, the insurance payout was paid directly to them. He has had sporadic letters over the years, but has always disputed the debt. I really don't know what to do, he can't be made bankrupt due to his job. We don't own our house, and certainly don't have £6000. Can they do this? Should he take legal advice? Any advice would be appreciated. Thank you

Edited April 19, 2010 by kd1812
wrong paste

[Hardupnotfedup]

I would try and get confirmation from the insurance company that the money was paid, the debt would now be statued barred if no payments or any admittance of the debt have been made in the last 6 years,(5 in Scotland).

Send the prove it letter http://www.consumeractiongroup.co.uk/resources/templates-library/86-debt-collectors/573-general-debt-letter-if-you-know-nothing-of-the-debt.

[Seminole]

Is this letter headed up "statutory demand"?

[kd1812]

Hi, no it is headed up Bankruptcy proceedings, it states that they need to make an appointment for him to be served a Statutory Demand. I spoke to them this morning before he had received the letter, he wasn't here so didn't take a lot of notice of the call, until I opened the letter. Problem is he is working abroad and won't be back for 3-4 weeks so don't know what to do. Can I send the letter on his behalf??

[Seminole]

There are several options here. As Hardup suggests one issue is whether any debt is statute barred. When did your husband last make a payment in respect of this alleged debt? If that was more than six years ago has he entered into any correspondence about the debt with anyone in the past six years?

 

Have you kept any of the paperwork in respect of the debt? In particular do you have details of who the original financing was with and the name and details about the insurance company and the claim. Don't post any personal details here but we need to know whether you have this information to establish what to do next.

[kd1812]

Hi, unlikely he would still have any paperwork as he thought it was all finished years ago. The last payment he would have made would have been either just before or after the car was written off in Jan 04. Not sure about contact, I know he had conversations with them years ago where he was disputing the debt, but can't say for definite. I am happy to send the letter on his behalf but not sure whether this would be accepted, does the letter need to be signed?

[Seminole]

Yes, I think, go ahead and send the letter. Print his name at the bottom of it. Don't do anything to indicate that it's not from him as they'll give you the run around. You should send it recorded delivery.

 

It would be a good idea to speak to him about previous contact with them and whether he has any paperwork.

 

In the short term, they may ring or write again. If they ring just don't speak to them and tell them that all correspondence should be in writing. If they actually deliver a stat demand, please post about it here straightaway as there are certain things you/ he will need to do.

[kd1812]

Thank you so much for the advice, will send the letter asking for proof of the debt today recorded delivery. Been reading through on here, looks like this is quite common practice. I should get to speak to him sometime this week so will ask him what contact he has had previously. I did tell the guy who called this morning that he was out of the country and suggested he called back when my partner was home, he just said he would have to send the papers anyhow, like I said, didn't really take any notice as he wasn't threatening or anything and assumed it was papers for work or something, was only when I opened the letter I realised. Will post on here if I receive anything else. Thanks again

[Hardupnotfedup]

Was the payment actually made by the insurance company?

 

Would the payment have covered the outstanding finance?

 

The interesting bit here is that if the insurance company DIDN'T make the payment and the debt is indeed Statued Barred, who gets the money from the insurance company?

 

I think pressure needs to be put on the insurance company to show that they made the payment.

[Hardupnotfedup]

Did you receive as a payment the difference between the cars value at the time of it being written off and the outstanding finance.

[kd1812]

The insurance company definitely paid the settlement to them as he recived a statement from the car finance company to confirm this, he probably doesn't have it now though. What they are asking for is the shortfall between the settlement and the cost of the car plus all the interest and insurances etc for the term of the loan. What my partner was disputing years ago was the interest and insurances etc, he was happy to pay any shortfall between the purchase price and the settlement plus any interest etc accrued while he had the car, he used his old car as a deposit and had paid approx £1400 in repayments up until the car was written off so didn't think there would be much, if any, shortfall. Hence why he disputed it years ago.

[kd1812]

He didn't receive any payment from the insurance company, it was paid directly to the car finance company.

[kd1812]

Hi, was going to send a letter to these people today, should I be sending the letter saying he doesn't acknowledge the debt, or ask for a copy of the original loan agreement. Many thanks

[kd1812]

Any idea whether I should be looking at Statute Barred or that the original agreement is unenforceable. Any advice appreciated, could really do with sending something soon. Thanks

[Hardupnotfedup]

Send the statute barred letter.

http://www.consumeractiongroup.co.uk/resources/templates-library/86-debt-collectors/599-letter-sent-when-debt-is-statute-barred

[kd1812]

Many thanks, much appreciated will send today.

[debt4get]

this was a crafty that ycc pulled when they sold cars to people...although the car was written off, what they are trying to recoup is the 'optional insurances' that were taken out for the lifetime of the car...what people have found is that when they returned the car before the end of term, including if the vehicle was written off..the optional insurances were still payable..however, the agreement they have is absolute rubbish...and isnt worth the paper it is written on as you cannot misstate the amount of credit you were lent...which is what they did...if they send stat demand..and from previous experience..they will try to initiate bankruptcy...then it must be fought outright ....keep us posted and i will let you know what to do when this arises

[kd1812]

Thank you, have sent the Statute Barred letter recorded delivery today on behalf of my partner. He truly believed with the deposit, what he had already repaid and the insurance settlement he would owe next to nothing or nothing at all. He has had letters from them but has ignored them, I think he spoke to them once or twice when they called and disputed the amount and asked for a breakdown, this was never forthcoming. I know he definitely hasn't made a payment for 6 years now as the car was written off Jan 04 and he can't remember if he paid in Feb 04 or not, but even if he did thats still over 6 years ago. I will keep you posted if anything else happens. Thanks again

[kd1812]

Just had someone on the phone trying to bluff (not very well) and said something was going to be delivered this week, told them I wasn't prepared to discuss and they had to put anything in writing, hope I did the right thing.

[debt4get]

you most certainly did the right thing...if they are gonna send something then go ahead and send....no need to ring to tell you that