statute barred? Debt company demanding payment in full! scared and need advice!

[Danielle36]

Hi, was wondering if anyone could give some advice on what to do.

 

Years ago I opened up a student account with bank of scotland and had an overdraft, i went over my overdraft limit by literally a few pence and got bank charges, which made me even more over my overdraft limit. To cut a long story short, it kept spiralling so i opened an account with a different bank and as i was young naive and stupid stuck my head in the sand with bank of scotland account and ignored it.

 

 

I have never got in touch with bank of scotland over the years about this debt and have made no payments, I can't be sure of exactly how long ago it was as I don't have any documents with dates on it but im sure it was over 5 years ago. So i've heard absolutley nothing from bank of scotland and a couple of weeks ago I got a letter from TBI financial saying they have bought over the debt from IND limited in august 2012, never heard from IND either.

 

The letter said i had to pay and they included a sheet that asked EVERYTHING...who i worked for, date i got paid every month, incomings, outgoings etc (do they have a legal right to know this information?) I went to citizens advice beaura and they said that it seems like my debt is statute barred (if it has been 5 years) and they think they are chancing it, so I ignored the letter and fast forward a couple of weeks this morning I got another letter from TBI saying I am in breach of the provision in the credit agreement and I have to pay £3085.50 by 22.10.13, there is no way i can conjur up that money in a couple of weeks!!!

 

They then said that if i dont pay the credit agreement will terminate on 22 October and they will issue county court proceedings for the recovery.

 

I'm really scared and don't know what to do next!!

 

Would be so greatful for any advice,

Thanks.

Edited October 5, 2013 by citizenB

[ims21]

If you are sure that there has been no payment made or written acknowledgement in a clear 5 year period then this is Statute Barred.

 

That being the case you can send this letter....

 

http://www.consumeractiongroup.co.uk/forum/content.php?424-Statute-Barred-Letter-SCOTLAND

[Conniff]

so i opened an account with a different bank and as i was young naive and stupid stuck my head in the sand with Bank of Scotland

 

Dunno about that, it's probably the most sensible thing you have ever done.

 

No, they are not entitled to a budget sheet.

[Danielle36]

also, do you know if a bedt collection agency has a legal right for you to tell them your incomeings/outgoings etc?

[Conniff]

They have no legal right to ask for anything.

 

Please don't be afraid of them. They like to make you believe that mounted police will come charging down your road and arrest you.

 

Send the letter above as advised, I would send it recorded if I was you.

[ims21]

also, do you know if a bedt collection agency has a legal right for you to tell them your incomeings/outgoings etc?

 

As conniff says, you are under no obligation to supply that information.

[silverfox1961]

Hi

What credit agreement. This was an overdraft.

 

Most DCAs threaten all sorts but don't follow through that often but never say never. Most DCA letters say 'May', 'Might', 'If'. very few say anything different.

 

They are not entitled to an I&E statement from you.

 

I am assuming that as you mention 5 years, you are in Scotland and as such if you haven't paid nor acknowledged this debt in writing then this debt is most definitely extinguished

[Danielle36]

yeah this credit agreement they mentioned confused me, saying i had failed to make payments as I know i haven't agreed to anything like that. I was 19/20 first time dealing with living away from home, managing finances etc and was stupid and clueless, I would never allow myself to get in a situation like that now.

 

The first part of the letter states

 

"you, the customer, are in breach of the provision in the credit agreement which specifies that you will make monthly payments on the dates prescribed in the credit agreement. You have failed to make payments as specified under the credit agreement and are required to take the following action to remedy the breach:-

 

Pay the total outstanding balance of £3085.50 before the 22.10.13

 

they then go on to say if i don't they will issue county court proceedings for the recovery of the whole balance? DOes this mean they will take me to court? and this credit agreement is confusing me.

 

Yeah conniff i agree, they do make you feel like with their scary letters.

[ims21]

I wonder if there is another account being chased here?

 

Have a quick check of your credit file to see what is on there (if anything).

[Danielle36]

I've signed up with experian, waiting on a pin being sent out in the post, then need to enter that on experian then I'll be able to see my full credit report. Only ever received 2 letters from TBI financial and both of them just refer to bank of scotland

[ims21]

You could try Noddle....its free

 

https://www.noddle.co.uk/

 

With Experian, make sure you cancel your free subscription before 30 days are up.

[Danielle36]

ah brilliant, thanks for that, going to sign up just now and see what i can find. Just to clarify a credit agreement....thats when i agree to make payments?

[ims21]

A credit agreement would be for something like a loan or a credit card and the like.

 

A credit agreement is not relevant to an overdraft.

[Danielle36]

ok so i've had a look at my credit report on noddle and it is showing defaults from September 20122 to October 2013 for IND limited (who TBI said they bought the debt from in August 2012), there is no mention of TBI on there. ALso one of the security questions when i was setting up my account said " you oppened up a current account in July 2008, who was it with" and this was with the bank i opened an account with after leaving bank of scotland, so this is over 5 years, just.

[ims21]

Ok so just send the SB letter as above.

[Danielle36]

I will do, thank yous for all your help! Just one last thing, is the debt still seen to be statute barred if they have written out to me? I have moved several times over the years and this is more than likely why I have not received these lettere that they say have been sent out by IND.

[ims21]

Yes it is.

 

It is you who would have needed to acknowledge the debt. Their letters coming out have no effect on the SB status.

[Danielle36]

Thanks again for all your help, greatly appreciated!!!

[ims21]

Let us know what happens

[Danielle36]

I will do, going to sort out the letter today and send it recorded delivery on monday, as soon as I hear back I'll let you know

[BRIGADIER2JCS]

Can you confirm that you are resident in Scotland?

[Danielle36]

Hi, yeah I live inscotland.

[BRIGADIER2JCS]

Hi, yeah I live inscotland.

 

 

 

So this debt is not just statute barred it is totally extinguished, the letter ims suggested is the way to go.

[Peterbard]

Just a word of caution, the statute bar commencement date on an overdraft would run from the time the creditor was entitled to recover the full amount owed under the agreement. This would be when the overdraft was called in. This may be some time after your last payment on the account, after this the start date can be reset by any acknowledgement or payment on the account.

[Danielle36]

Hi there, ok so I posted off the statute barred letter and I received a reply the other day, they sent me bank statements from January 2006 up to when the account must have been closed in September 2011. It clearly shows on the statements the last ever transaction on that account mas made for £2.72 on 8 July 2008. The had written a letter along with the statements they provided and said " As requested, please find enclosed a statement of your account detailing your transactions and you will note from the information provided that this accounst is not in fact statute barred as you have implied".

 

I was under the impression that they would have had to provide information on me acknowledging the debt within the last 5 years. Even thought it shows that the account was closed in september 2011 this wasnt by me asking for it to be closed as I have not been in contact with bank of scotland at all. What do I do next? Would really appreciate some advice!