returning to UK after 12 years in Asia, liable for old debts?

[rjrs0510]

Hi, I'd appreciate any help / advice I can get.

 

I was reckless and pretty stupid as a student and got in some credit card debt and took out student loans - the last loan was in 1996.

 

I left the UK in 2001, intent on having a year of adventure in Asia...now, 12 years later I am thinking of returning. When my bank found out I had left the counter, in 2001, they closed my account. I have also not been on the electoral register in that time.

 

In the years that have passed, my parents received some letters from the student loans company and debt collectors, and being incredibly irresponsible, I just ignored everything.

 

Last year i signed up for experian credit checking and I have a score of 749 and it states that there are no outstanding balances, the profile says my score is low as I am not on the electoral register and have no completed contracts...basically I think it means there is no information about me.

 

When I go home, I will have to open an HSBC passport account, for people new to the UK...basically will debt collectors find me and come harrassing me at my parents' home? I also (now i think this was foolish) applied for a capital one secured credit card, as I thought that might be a way to build up some credit history... I later thought that maybe this will let DCAs know I am back...

 

So basically, will I start getting letters about past debts, will I eventually be able to open a current account, and will I be able to rebuild a credit history?

 

I am based in Northern Ireland (if that makes any difference)

 

Thanks for any help you can offer and patience in reading this!!

[dx100uk]

no they are statute barred gone dead.

 

dx

[rjrs0510]

Thanks! Even the student loan? Will it possible for me to open a regular bank account? I will still be receiving some income as I will be doing freelance work from home and i have savings to transfer over...

[dx100uk]

yes def all SB'd

 

you will have no issues

 

dx

[unclebulgaria67]

Depends on the student loan type and when this was taken out. From September 1998 onwards any new loans were on a different basis and if they catch up with you, they can deduct directly from wages without any court involvement.

 

When you set up any UK financial type arrangement, your new address will be updated on to your credit record and you may start to receive letters from debt collectors. Apart from the student loans, as mentioned above, they will be statute barred, so you can send a letter to tell them that and that you don't want them to contact you again.

 

You do realise that having been outside of the UK for more than 2 years that you will not qualify for any benefits for 6 months, so I hope that you have other means to support yourself.

[cerberusalert]

If any of your previous debts were with a bank I would advise that when you open a new a/c it is with a different bank. There is a thing called 'The Right To Offset' which means a bank can take money from one a/c if there is a debt owing on another within the same banking group. It is unlikely after 12 yrs but not impossible that they would do this though, but better safe than broke.

 

Was the Student Loan pre 1998?

[rjrs0510]

Thanks for the advice...The student loans were taken out from 1994-1996... do I still owe on them? I have savings and money that ive saved to get settled in, so i wont need to claim any benefits. Im worried about going into a bank and them laughing in my face if I try to open a current account! I would prefer to not pay back the student loan, maybe I am still being irresponsible. I will definitely open with another bank. I checked experian and my credit file says nothing with a score of 749... does this mean that any bank I enter will have no knowledge of previous bad behavior? Thanks for all the help I really appreciate it.

[cerberusalert]

Thanks for the advice...The student loans were taken out from 1994-1996... do I still owe on them?

No, they are the 'Old Style' student loans and become Statute Barred after six years.

Im worried about going into a bank and them laughing in my face if I try to open a current account!

No they won't.

 

When you open an a/c they will want to know your previous addresses from the last 5 or six years so you do not need to inform them or anyone else of your previous UK addresses. If you do you will find that your new address is linked to your old one & then debt collectors will start to pester you.

[rjrs0510]

I will be staying at my parents' for a while, This is the address that i was registered at before, no mail from debt collectors has been sent there for years. Should I use another address to open my bank account? I dont want my parents to freak at the letters!

[cerberusalert]

It doesn't really matter, your credit file will be clear as any defaults automatically drop off after six years anyway. It is unlikely that any debt collectors will be checking your file after so long but even if they did all your debts are Statute Barred and all they could do would be to ask you nicely to pay, which obviously you can refuse to do & they cannot do anything about it.

 

The only debt collector likely to get in touch would be concerning the Student Loan, but again the same applies... you can tell them to go & do one.

[citizenB]

For information

Many DCAs will argue that limitation accrues from the time when the "default notice" is issued. It does not.

 

Limitation clock starts ticking from when the payment is due and not paid not when they send a default notice.

 

We see often that CRA entries will date 5 or 6 months ahead of when the payment was missed.

 

People need to be sure that they aren’t being hoodwinked and that the DCA is extending limitation so they can sue when they are not allowed to.

[cerberusalert]

You must ensure that you do not open an a/c with a bank you have a debt with or any bank within that group otherwise they will use the right to offset.

[rjrs0510]

You guys have been a great help, i really appreciate it! I am looking forward to going home and applying to a uni, doing a PGCE and starting over. Luckily I wont have to ask for a student loan this time!!