Pay this debt after 6 years?

[Treesandsheepeverywhere]

Hi, a bit in a panic. I had a debt which I stopped paying about 15 years ago.
At the time I'd lost my job and stopped hearing from the banck (Lloyds TSB).

Fast foward to 5 years ago, I got a letter from Cabot debt collectors saying they'd taken over the debt.

Wanting a clean slate, I paid it all off at a discounted rate.

Now, another five years from the Cabot settlement, I've received a letter from Capquest debt collectors asking for the interest debt to be paid back.

I would have thought clearing the Cabot debt was the end of it all and now wondering if I should pay or contact them to say it's been over 6 years and not pay.

I'm now worried what other debt they'll ask for further down the line and whether it's a scam to keep me paying.
What's stopping them asking for something else in future if I settle it.

Original debt was £3500.

I paid £1200 to clear it.

The new interest debt is £1500 and the letter says they'll settle for £400.

Please help in the best way foward. Thanks.

YABU- Pay.
YANBU- Don't pay.

Get onto CAB, think they’re trying it on

Get an appointment with citizens advice bureau (CAB).
They will advices you what to do.

Do you have the paperwork from when you paid off the debt? What did it say - ie was it settling all your liability? If you believed you paid it off you should write back in forceful terms saying this.

On limitation, it is 6 years from the last demand/acknowledgment. If you think you have paid it it might be better not to muddy the water by mentioning this at this stage.

I agree with going to CAB.

Whatever you do - don’t call them or enter into any correspondence with them. I assume you have evidence of clearing the debt? If so, feel free to ignore the letter.

Ignore! They won’t spend money on chasing such a small amount ….

When you paid off the debt it should have been a full and final settlement, do you have any confirmation of it?

You could try Step Change - they advise people on how to manage their debt and will no doubt have experience of debt collectors and their terrible tactics of selling debt on and adding bogus penalties, etc.

As a side note, there is no end of stories on Consumer Champions https://www.theguardian.com/money/series/consumer-champions+debt about administrative errors, debt collectors and people being hounded for debts they have already settled. You may well be at the mercy of a similar SNAFU. Good luck!

I worked in the debt industry for a period when I was doing my 1st degree. This was in the late 1980s and even then the debt industry was rotten and corrupt to the heart. There is something sleazy and Dickensian about companies who sell debts to one another. The two companies you mention are renouned for their lack of principle and dishonesty. They really are trying it on.

How long is it since you settled the debt with the first DCA? If it was going on 6 years I would string things out by not responding to the letter until it becomes 6 years - statute barred. These DCAs work on a cyclical arrangement. They send a series of increasingly threatening letters on spec. If they get no reply they may then sell the debt to another equally dishonest company and the cycle begins again. For such a small debt it is extremely unlikely that they will send anyone out to knock on your door. If you have the nerve you can make a game out of it and enjoy the increasing frustration of these bullies.

Remember it is not for you to have to prove that you do not owe the debt. It is for the debt collection agency (DCA) to prove that you DO.

If you write to them head every letter with something like "I do not acknowledge any debt to you or to any company whom you claim to represent,"

Dont pay anything until you have a formal written claim from the DCA. Ask for proof that they have the right to collect the debt. They may need to provide evidence from the DCA that you "settled with" that you are still obligated to pay. A DCA must follow the same rules as the original creditor. They cannot add interest unless it was in the original credit agreement.

As others upthread have state you can get advice from StepChange or the CAB. In this particular instance.

Thank you all. When i cleared it, I did it online and luckily still have the reference number.
Only thing is debt shows as paid but only says Credit Card, the amount paid and nothing else.
I was thinking of calling Cabot but also worried Capquest is branch of them and they'll share information.

I'll get on to CAB too.

As I've said up thread - NEVER call or write to them. Once they know you exist - they will pursue and harass you. They are relentless.

Thank you, CBA were shut when I finished work but managed to get the number for Scotland, which is where I am.

They can't pursue you for any debt if it has been more than 6 years since billed or you acknowledged you owed anything. When will the 6 years since you last acknowledged any debt be up?

Do you have the paperwork from the settlement offer and a letter - or any evidence - acknowledging you'd paid it

Do not acknowledge to them that you owe anything, do not even acknowledge you used to have a debt.

So the debt I paid was through Cabot which I now think are a seperate company. That debt had been dormant since 2009 and they contacted me in 2021.
I paid it and it's now closed. No paperwork but can view my account online, which shows: £1200 paid,
£0 owed.

This new one actually says its an overdraft debt for TSB but doesn't give an account number or any dates.

Thanks.

Thank you for this.

I won't contact them. I was so close to this morning as I panicked again.

Have you done a credit report recently to see if any debt is showing there?

What sort of debt was it?

Loans and lines of credit are treated a lot differently to say overdrafts.

Depending on what sort of debt it was will depend on what sort of advice we can give you.

This should be Statute barred after 6 years and even if it wasn’t they cannot collect if you had already paid a full and final settlement to the original creditor. They will have bought the debt for very little ( I worked for them many many years ago) Do your research thoroughly . Do not pay do not contact or respond to contact.

No, how do I do this, through my banking app?

The paid off one was a credit card.
The latest one being chased is an overdraft.

Spoke to the CAB in Scotland and they've confirmed what's you've all said.
I've got a template i can send to the company if I wish but there's nothing on my credit file.
So essentially trying it on.

I feel sorry for anyone vulnerable receiving such letters and feeling the need to pay.

Lady also said I shouldn't have paid the olfer debt, but that's done now.

Thank you fpr all your help.

I think (but check with an actual financial adviser) after 6 years the debt is too old to pursue. Its not reasonable to expect you to have paperwork from back them. If you pay ANYTHING it brings the debt back into play as current. Which is why I think theyre offering to settle too, in their letter.

I absolutely wouldnt pay a penny until I had financial or legal advice. Good luck

After the time limit has passed, the debt might be 'statute barred' – this means you don't have to pay it. Your debt could be statute barred if, during the time limit: you (or if it's a joint debt, anyone you owe the money with), haven't made any payments towards the debt.

As soon as you contact them in anyway, you are acknowledging the debt, and the 6 years starts again.

@WalmartWitney is correct. If you acknowledge the debt that re-starts the clock. But not if you head any letter "I do not acknowledge XXXX" as I stated upthread. Iy you intend to communicate always do so in writing - never by phone.