Debt Collection

[Murdun]

I seperated from my husband in Oct 04. All debt was cleared when our house was sold in March 05, with the exception of one. My lawyers sent a cheque for payment, and it was also on my minute of agreement, which was returned as the 'account details were not valid'. my lawyers asked me to try and trace who the debt could be paid to . I called several companies linked to the debt and was told that I did not have a debt as it had been previously cleared and there was nothing against the account number. This went on for a couple of weeks with e-mails going back and forth. My lawyer then advised that I did a credit check which I did and it came back clear. The money held for this debt was then returned to me and my husband. Now I have just received a letter asking for payment of the original debt by a company who has taken over debt collection. Where do I stand as I was told in 05 that there was no debt to pay. I have my minute of agreement, the payment receipt and letter of return and the credit report, I dont have the e-mails.

[emlett]

perhaps you should write to them and ask them to prove the debt is owed. The reason that the credit check was clear was probably because no legal action had taken place for recovery at that time. The minute of agreement would only have covered the debts known to you both at that time.

if they can prove the debt is owed and they are still in time to sue you (think its 6 years from debt) then these agencies are usually pretty bullish and it may be an idea to agree to pay half on the basis that they agree in writing to pursue your ex for the other half.

[themas]

If this was an ordinary commercial debt (loan, overdraft, credit card etc.) then the credit check should have revealed it. However, there are 3 credit reference agencies and not all debts are logged with all 3, so you could have missed it.

If any payment has been made, or the debt acknowledged, within the last 6 years then it is not statute barred and you (& your ex if it was a joint debt) could be taken to Court and get an adverse credit record. It is also not barred if the creditor has obtained a County Court Judgement before the 6 year gap was up.

If it was a joint debt you are both liable for the whole of it, so the creditor would not have to accept any offer to pay half on the basis that they chase your ex for the rest.

It could be that the original problem arose because the account number you had was wrong and could not be tied up with the creditor's records.

If possible do not get involved in phone calls with the debt collector. Put everything in writing, send by recorded delivery & keep a copy. You could write asking them for proof of the debt on the basis that you were previously told there was not one, & also point out it is statute barred if you consider that to be the case.