Link Financial Outsourcing - Student Loans debt pre-1998

[fermanagh]

Hello All,

 

Link Financial Outsourcing sent me a letter a few weeks ago telling me that I owe them around £8k from a student loan I took out in the following years - 1994, 1995, 1996, 1997

 

I did a little research on this forum and found that pre-1998 student loans are not enforcible and are statute barred debt after a period of 6 years. I have never repaid this debt, not even once and can't remember even writing to them to defer it either. I suppose I have been lucky in that I have lived abroad for quite a few of those years so I guess they have been unable to trace me until now when I have come back to settle in the UK.

 

I sent link financial outsourcing the following letter and they have since tried to call me 2 times.

 

*********************************************************

 

Link Financial Outsourcing

PO Box 141,

Caerphilly,

CF83 9BX

 

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 would 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 would 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 CPUTR2008

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.

I look forward to your reply.

Yours faithfully

**********************************************************************

I am now wondering whether or not to send the following harrassment letter?

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/578-letter-to-dca-persistant-after-statute-barred

 

Could someone please advise?

 

Many thanks!

 

PS: This forum is excellent - I'll be surely donating some money to you guys!

[cerberusalert]

Link are in breach of OFT guidelines, see page 9 http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf make a complaint to the Trading Standards via Consumer Direct Consumer Direct - Contact us

[fermanagh]

Hello Cerberus,

 

Thanks for your response.

 

It says the following on that page:

 

"if a creditor has been in regular contact with a debtor before the debt is statute barred, then we do not consider it unfair to continue to attempt to recover the debt."

 

So basically, if the Student Loans have been attempting to get back the money I owe them via letters etc, then do they not have a right to get the money back? They constantly sent letters to my parent's house years back but saying as it's well past 6 years now and I have never paid them a penny I don't see how they can ask for the money to be repaid? See the below:

Statute Barred

 

A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.

Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or debt collector misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or debt collector press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to Section 40(1) of the Administration of Justice Act 1970

Also, I read somewhere that the Student Loans passed all outstanding debts on to Thesis or Link Financial Outsourcing in 2008.

I'm just wondering where I stand here from a legal point of view?

Thanks!

[cerberusalert]

To be in regular contact is a two way action, they may well have sent letters to someone's last known address but it doesn't mean they've received them and responded. You would need to have made a written response, deferral or payment.

[Katybintjas]

**********

Edited June 19, 2010 by Katybintjas

[cerberusalert]

thus I can not make a claim on this statute barred

If no written contact, deferral or payment was made within a six year period (five in Scotland) it will be Statute Barred. Send them this for now; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/573-general-debt-letter-if-you-know-nothing-of-the-debt

[42man]

Just to make it perfectly clear, if you have not made any payment or have not written to THEM for at least 6 years (5 If you live in Scotland) acknowledging the debt or acknowledged it in a recorded telephone conversation then it WILL be statute barred. (OR if there is a gap of at least 6 years in the life of the debt where no payment/acknowledgement has been made) Send the statute barred letter by recorded delivery....once you state that you have no intention of making a payment towards a debt that is barred by the statute of limitations act 1980 then they have to stop contacting you...the OFT make it quite clear

 

Section 2.14 (b) of the OFT's guidelines on Statute Barred Debt..

 

 

•

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.

 

This has been confirmed by the OFT's action against another debt collection agency last year - please read this - OFT imposes requirements on Mackenzie Hall to improve handling of disputed debts - The Office of Fair Trading

[phil_nottingham]

To Fermanagh

I am in almost an identical situation to you.

I took out student loans in 1994, 95, 96 & 97

I then lived abroad and travelled a lot. I have since come back here and although about 8 years ago I gave the SLC an overseas address I never updated it.

Now last week I got a call about the loan, I would not confirm any details over the 'phone and then today I receive a threatening letter, entitle

"Notice of Debt Collection Services". from Link Financial Outsourcing.

It is threatening to say the least. WHat is bothering me is, that my current financial situation means I am living back at my parents and second they are threatening on this letter about sending an agent to the property.

Obviously the debt has nothing to do with my parents but now I am terrified that someone will turn up.

I am currently not even earning enough to pay the loans back.

I do not know what I should do here.

As far as I can tell I have had no contact with them since 2002-2003 and I do not know if they can say that is my fault and thus I can not make a claim on this statute barred thing.

Also, can they claim all the money back - I do not have any assets as such and would assume they can not send bailiffs to my parents property when it is not their debt.

THis is completely stressing me out and I do not know what to do.

Any advice at all??

PLEASE

 

DONT STRESS

 

I had a student loan pre 97 and havent paid a penny back

 

Also NO ONE will turn, its just to get you worried in to contacting them (and they are succeeding by worrying you)

 

No baliffs will call (only once gone to court etc)

 

More experiance people will give more indepth advice...

[Katybintjas]

OK..

Thank you to all replies here.

Is it recommended I write or call them back in the first instance?

Should I write about this statute barred status? I am concerned about opening a whole can of worms here.

I am completely stressed out and can not believe after all this time I get this sort of letter.

Thanks again for the feedback.

Edited June 19, 2010 by Katybintjas

[phil_nottingham]

Kathy

 

The biggest piece of advise is NEVER CALL THEM, everything in writing!

[cerberusalert]

Is it recommended I write or call them back in the first instance?

No send them this http://www.consumerforums.com/resources/templates-library/86-debt-collectors/577-statute-barred-letter-scotland once they receive it according to OFT guidelines all collection activities must cease until such time that they can prove it's not Statute Barred. If they continue complain to Trading Standards via Consumer Direct.

[Katybintjas]

Hello again.

I have contacted the Citizens Advice who have informed me that Statute Barred means nothing in regards to a Student Loan - apparently it is a loan that is exempt from this.

Edited June 19, 2010 by Katybintjas

[42man]

If that is what they told you then they are incorrect...

 

Student loan agreements are simple contracts

and this gives the Student Loans Company

(SLC) six years from the date you last paid or

acknowledged the debt to go to court to

enforce the agreement. There are two sorts of

student loans and different rules apply

depending upon when you took out the loan.

Old style student loans

Old style or ‘mortgage’ student loans are

consumer credit agreements. Payments cannot

automatically be deducted from your wages.

The SLC has to go to court before they can

enforce the debt against you. This means that

the Limitation Act can apply if you have not

paid or acknowledged the debt for over six

years.

WARNING

Asking for the loan to be deferred could

count as acknowledging the debt and start time

running again.

New style student loans

From September 1998 new style or ‘income

contingent’ student loans include rules to say

that repayments will be automatically deducted

directly from your wages or through your tax

return if you are self-employed. This means

that the SLC are still allowed to take money

from your wages for a loan over six years old

as they do not have to go to court to do so.

[cerberusalert]

It's not the first time CAB have been wrong and no doubt it won't be the last. Obviously whoever you spoke to does not know the difference between the old style student loan and the new style.

 

As for someone visiting your address, see; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/590-letter-used-when-a-dca-threatens-a-doorstep-visit-.html

 

Send Link the letter in post #11.

[42man]

And Link have overstepped the mark previously with the Office Of Fair Trading - OFT warns debt sector about tracing tactics - The Office of Fair Trading

[Katybintjas]

Thank you.

I have written them.

Edited June 19, 2010 by Katybintjas

[42man]

You need to send a different variant as this is Scottish Law - Cerberus alert mentioned this thread above in post 11 - here is the link again - http://www.consumerforums.com/resources/templates-library/86-debt-collectors/577-statute-barred-letter-scotland

[phil_nottingham]

CAB seem to be giving out incorrect information a lot these days

[42man]

The CAB do a fantastic job, but in some areas are underresourced and sometimes do lack some knowledge. I know this from personal experience too.

[phil_nottingham]

The CAB do a fantastic job, but in some areas are underresourced and sometimes do lack some knowledge. I know this from personal experience too.

 

Yep i think you have put it better then me

[Katybintjas]

***********

Edited June 19, 2010 by Katybintjas

[Katybintjas]

**************

Edited June 19, 2010 by Katybintjas

[42man]

If you have sent the statute barred letter, and they are continuing to call then write down the dates and times of their calls and send an email to the OFT

[phil_nottingham]

I would send the no contact by phone letter.

[Katybintjas]

Hello

I have written the Statue barred letter. Do I even include my address on it as would be normal in a letter as that is surely acknowledging it or do I leave it blank and just the reference number?

I plan to send it today. Another call was received this morning - although no one answered it, there was just a cut off message on the answer 'phone.

****

Dear Sir/Madam

Loan Account Number: XXXXX

 

You have contacted me regarding the above account number which you claim is owed by myself.

I would point out that under The Prescription and Limitation (Scotland) Act 1973, Part 1 Section 6 “If, after an appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:

a) Without any relevant claim having been made in relation to the obligation, and

b) Without the subsistence of the obligation having been relevantly acknowledged, then as from the expiration of that period the obligation shall be extinguished”.

I would also point 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 acknowledgement of this alleged debt was made over five years ago. Unless you can provide evidence of payment or written contact from myself in the relevant period under Part 1 Section 6 of The Prescription and Limitation (Scotland) Act 1973, I would respectfully suggest that you are no longer able to take any action against myself to recover the alleged amount claimed.

I await your written confirmation. Contact MUST be in writing, I have no access to any telephone number you hold.

Yours faithfully

****