Does this mean I don't have to pay?

[Pissedoffmumgrrrrrrr]

Sorry posting here for traffic

got this email from a debt collection agency, they've said this:

Please see attached your statements and payment history in regard to the above noted account. We have contacted the original creditor and they have confirmed that a copy of your agreement is not available. While this does not mean that the balance outstanding is not due and payable, we do accept that we are unable to take any enforcement action to collect the debt.

not sure if I'm being daft or what but does this mean I have to pay it or not? It's a bit confusing?

In the nicest possible way, what on earth are you doing giving such harmful advice if you have no knowledge of the subject matter? Using phrases like "your best bet" implies you have some idea of what you're talking about.

OP should absolutely not make a payment towards the debt, as this is considered acknowledging the debt.

Right. OP, the debt is too old to enforce (because of the Limitation Act). Moreover, the debt collection agency know this and are engaged in an unlawful abuse of process hoping to bully you into making a payment to which they no longer have any entitlement. Ignore it and eventually they will go away. If they do not, send them a letter asking them to stop unlawfully harassing you. For all the moralisers out there OP's historic non payment is totally irrelevant in the eyes of the law.

Because debt collection agencies are just legal scammers.

And if the OP’s debt is £2k, you can bet your life the agency won’t have paid more than £1k for it. Newsflash for those worrying about the poor catalogue company - they’ve seen every penny they’re going to see, even if the OP pays up in full.

Result

It looks pretty clear that they cannot force OP to pay this debt as they cannot prove it. Re the concerns about credit rating given that they cannot prove the debt can they report it to the credit reference agencies in the first place?

I agree. What the hell is wrong with people??!!!

Where are the morals of these debt companies piling on charge after charge and exorbitant interest rates on what is often quite a small debt?

You have no idea about the circumstances of this debt so stop virtue signalling by banging on about morals.

They haven't written off the debt (the debt balance still exists, they're not setting it to £0), but at the moment they won't be pursuing you for it. It's unlikely that they'll find anything that would change that stance, but don't assume it will never come back to haunt you.

When did you last pay anything towards the debt? That will give you a clarity on how likely it is that this will disappear.

They’ll have paid much, much less than 50% for it. Think more like 10-20%. So a £2K debt they might have purchased for as little as £200.

No one needs to feel morally outraged by OP not paying this debt. It isn’t Victorian times, we don’t have debtor’s prison. The company asking now isn’t even the original lender. The debt is done. OP can ignore it with a clean conscience.

Is it right to run up debts you can’t afford to service? Of course not. But at some point, reality has to kick in. And the reality is:

A) The OP doesn’t have the money to pay. Any instalment plan will just cost more long term.

B) An agency is handling the debt, meaning they’ve either bought it for a fraction of it’s worth, or are chasing it for a percentage of what they can achieve. Either way, the original company isn’t getting its two grand back.

OP can get herself into more debt to make profit for a debt collection agency, or she can make the most of a lucky break. I know which I’d choose.

I would probably use this information to negotiate a settlement figure to get this removed from your file. They can’t prove the terms of the credit agreement and therefore the interest etc is negotiable at this stage.

ask them what the impact for your credit file is. Then ask what they would accept for any amount on your file to be removed. Counter offer at 50% of whatever they offer.

No!

This is good advice in some scenarios (partial settlement).

But definitely NOT in this one.

And it’s never ‘removed from your file’ if you settle it partially or in full once it’s defaulted.

I've had debt myself, similar amount. I am not a well off person. However, I hold my hands up, I allowed my ex to run up the debt in a card issued in my name and I pay it, leaving myself short of money often. Before it was moved to StepChange and the interest frozen, I probably have already paid two or three times the amount in interest. But again, I'll pay it, because the debt was overall my responsibility. It doesn't matter what the morals were of the people making my life a misery ffs.

If I owned a business lending money at high interest rates to people I didn't know, I expect I would feel stupid that I hadn't kept the paperwork.

This isn't you lending a tenner to your mate that she hasn't paid back. This is organised capital using its wealth to generate more wealth with very little in the way of invention, purpose or public good.

Well then you’re a fool.

OP - when did you last make a payment against this debt? If more than six years it is statue barred and they cannot recover through the courts. Before that they would have to prove the debt, hence the reference to the signed contract that they cannot provide.

I was also financially stupid when I was young and used to get letters asking if I want to talk to them but I just ignored...my credit rating on Experian is now 998 and excellent on all other sites.

They might say they will send someone round but just smile and close the door - they have as much power as the postman. If you get a CCJ that is different and don't ignore that.

Well don't then. They've confirmed it's not enforceable. Do NOT write to them as you may accidentally "acknowledge" the debt. Just ignore.

No, I'm honest.

Basically in order to collect a debt they have to have your original credit agreement.

If you can't/don't want to pay take a look at some reliable sources to find out the impact on your credit rating.

The two aren’t mutually exclusive.