writing off a debt

[carols7687]

is there a legal time limit when a bank can no longer chase you for a debt?

[Oneeyedvic]

It is 6 years - so long as you have always kept them informed of where you live (ie you have not moved and not told them your new address)

[kempie]

Provided the Courts have not issued an Order (or equivalent) in relation to the debt, the 6 years (since last communication in regard of an acknowledged debt) in which to seek legal remedy in England, Wales and Northern Ireland applies to unsecured debt. Secured debt such as a mortgage has a limit of 12 years.

In Scotland the limits for the two different types of debt are 5 and 20 years respectively.

[Ethel]

It doesn't mean they can't ask you for the money - but they can't take you to court or harass you.

But pay them.

[MAD BUTCHER]

As a matter of interest, is this Barclays. They have handed over ancient debts to Red Debt Collection who certainly have no chance of a penny out of me. Barclays did this before some years ago. It was widely publicised then that they could no longer take legal action, and although not illegal, the strong threats were certainly unethical.

[carols7687]

This is a loan i apparently took out with Lloyds TSB in 1999. It has been passed to a company called 1st Credit. I couldnt recall the loan & asked them when i took this loan out. they said they didnt have this information & that i should contact Lloyds TSB. this i did & after being passed to countless different deptments, nobody had any record of this, even after giving them the ref no that 1st Credit had given me. Once again i rang 1st Credit & have since been told their solicitors were going to take me to court, could force me in to bankcrupcy, force a sale of my property or put this as a charge on it. It has been 9 years but legally they say they can do this & the amount they say i owe is �1,200 & if it goes to court & charges are added it could result in me owing nearer �5,000. Can they do this?

[Oneeyedvic]

To win a court case they must show that there is a debt.

They probably purchased the debt for around �25.00 from Llloyds. They realise that the majority of people will not pay, however there are a minority of people who will get scared and pay - that is how they make their money.

WRITE to them (recorded delivery) and explain that you have contacted Lloyds with their reference number and Lloyds cannot find any record. Ask them to provide proof that you owe this debt.

[themas]

If you have no knowledge of the debt don't let them bully you into paying. As has been said, unless they (or Lloyds) got a CCJ they cannot take Court action to enforce the debt if more than 6 years has passed since you last made a payment or acknowledged in some other way that you owed the money.

To succeed in a Court action now they would have to prove to the Court that you owe the money and that the action is not statute barred. Do as vic says. Try to ensure you do not have any more phone calls with them, put everything in writing by recorded delivery and keep a copy. If you do have any phone calls make sure you get the name of the person you are speaking to & keep a note of this, of the date & time of the call & a summary of what was said.

If they continue to harass you without providing the proof that you owe the money & that it is not statute barred you can complain to the Financial Ombudsman Service.