Santander is Overdraft Debt Statute barred

[woolsty]

After dispute over the bank charges i closed my account with Abbey in 2007/8 . The last transaction being on 31/12/2007.

 

I left with an unpaid overdraft of £1550 , which i disputed during the bank charge reclaims.

I was contacted by Equidebt in 2010 asking for payment, i countered by not acknowledging the debt and stated that the overdraft was simply bank charges unlawfully imposed by the bank and that i would defend any further actions along that basis.

Equidebt never proceeded any further.

I have moved house since 2010 and today have had a letter from Santander thanking me for updating them with my new details i.e. coa. I have not acknowledged the letter.

The account as been inactive since 31/12/2007 albeit they continued to send statements for a short while.

Is this overdraft debt now statute barred ?

Would it take effect from the date of my last transaction or the official date the account was closed which was sometime in the January.

[havinastella]

Hi and welcome to CAG.

 

There are 'several' different opinions to this question

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?411313-Cause-of-action-statute-barred&highlight=statue+barred

 

Just keep ignoring it as long as possible

[fkofilee]

Woolsty... Equidebt are now defunct, went into administration this Past year,.

Id keep an eye out for Cabot, they may have picked this up...

[NotPPIsavy]

I had a current account which is now closed, and it had accrued O/D charges to just over £100. They still keep sending me the statements and I ignore them. It also started 2007 so I am hoping in few years time it will go. I am not paying in principle because its all charges.

[Consumer dude]

I had a current account which is now closed, and it had accrued O/D charges to just over £100. They still keep sending me the statements and I ignore them. It also started 2007 so I am hoping in few years time it will go. I am not paying in principle because its all charges.

 

I don't blame yer..

[Peterbard]

After dispute over the bank charges i closed my account with Abbey in 2007/8 . The last transaction being on 31/12/2007.

 

I left with an unpaid overdraft of £1550 , which i disputed during the bank charge reclaims.

I was contacted by Equidebt in 2010 asking for payment, i countered by not acknowledging the debt and stated that the overdraft was simply bank charges unlawfully imposed by the bank and that i would defend any further actions along that basis.

Equidebt never proceeded any further.

I have moved house since 2010 and today have had a letter from Santander thanking me for updating them with my new details i.e. coa. I have not acknowledged the letter.

The account as been inactive since 31/12/2007 albeit they continued to send statements for a short while.

Is this overdraft debt now statute barred ?

Would it take effect from the date of my last transaction or the official date the account was closed which was sometime in the January.

 

On an overdraft the cause of action would be when the first call in the loan, this is when the SB clock starts, unless there was a contract associated with the arrangement in which case it would depend on the terms of that agreement.

[caro]

On an overdraft the cause of action would be when the first call in the loan, this is when the SB clock starts, unless there was a contract associated with the arrangement in which case it would depend on the terms of that agreement.

 

Would the fact the account was closed make any difference? Might that make the amount become due for payment, ie become the cause of action starting the clock ticking.

[Peterbard]

Would the fact the account was closed make any difference? Might that make the amount become due for payment, ie become the cause of action starting the clock ticking.

 

The overdraft arrangement can be recalled whilst the main current account remains open of course, in that regard the overdraft is a separate entity.

 

However it would be difficult for the Bank to maintain an overdraft on an account that no longer existed, and in practice when the main account was closed any overdrawn funds would be recalled in any case.

 

If i were the OP I wold be searching all correspondence from the bank to see when the overdraft was first called in, in full.

Edited January 15, 2014 by Dodgeball

[caro]

The overdraft arrangement can be recalled whilst the main current account remains open of course, in that regard the overdraft is a separate entity.

 

However it would be difficult for the Bank to maintain an overdraft on an account that no longer existed, and in practice when the main account was closed any overdrawn funds would be recalled in any case.

 

If i were the OP I wold be searching all correspondence form the bank to see when the overdraft was first called in, in full.

 

Thanks DB. I think a sar might be a good idea if the info can't be found.

[woolsty]

Would the fact the account was closed make any difference? Might that make the amount become due for payment, ie become the cause of action starting the clock ticking.

 

They withdrew my overdraft facility in January 2008 , they sent a letter stating the same the previous month. Hence why i closed the account down. This was done i believe because i had commenced proceedings for bank charges.

[Peterbard]

They withdrew my overdraft facility in January 2008 , they sent a letter stating the same the previous month. Hence why i closed the account down. This was done i believe because i had commenced proceedings for bank charges.

 

This letter would indicate the start of the SB period (COA)

[woolsty]

This letter would indicate the start of the SB period (COA)

 

I am unable to locate the letter, however from my statement 3/11/07 to 3/12/07 it states i have an overdraft of X amount , in the charges section i am charged an advanced overdraft interest of a few pounds.

My next statement and subsequent statements make no reference of having an overdraft. In the charges section i am charged £25 for an unauthorised Overdraft dated 2/1/07 and again the next statement.

 

I am going to assume that the overdraft was withdrawn on the 2/1/07.