Outstanding Debt

[manutd2465]

I took out a lone 10 years ago, and struggled to repay, I stopped the repayments about 8 years ago, and have heard nothing from the bank since. I recently got a letter from a company who had taken on the debt from the bank. Am I still liable for the money owed after such a long period of time?

[Ethel]

If you have made no payments for more than 6 years and the lender has made no contact with you within the last 6 years the debt is statute barred.

This means it cannot be chased in the courts.

If you are absolutely certain there has been no contact for more than six years, you can tell the company you will not be paying. Make it absolutely clear you have no intention of paying.

Tell them also that if they continue to chase the debt it will amount to harassment contrary to s.40(1) of the Administration of Justice Act 1970.

Good luck!

[themas]

Ethel is right, but the debt still exists - it is just that they cannot enforce it by Court action. They can still muck up your credit rating for at least 6 years by putting it on your CRA records. It may be best to make a very small full & final offer (also making it clear to them that the debt is statute barred) to get rid of it entirely.

Also, if the creditor obtained a CCJ before the 6 years was up it is not statute barred.