Debt advice

[Ramblomatic]

A few months back a debt collection company I've never heard of visited an old address (family still live there but I haven't for a number of years) looking for me re a debt. They wouldn't give any info, so family member sent them away.

Not long after, my partner (who has never lived at that address) received a txt message from them with my name on it, re the debt.

A couple of weeks later, I received a statement letter from another company called Link Financial, regarding a debt. The statement was number 12, however it's the first one I've received. They've sent one every month since.

I'm not disputing the debt, but I had genuinely forgotten about it and this was the first time (to my knowledge) that they'd tried to contact me about it.

I was advised by a friend that due to the length of time that has passed, the debt could be statute barred. The default date was July 2018, so I'm assuming they were trying to get me to pay before the six year window closed.

I've checked my credit report and since the six year mark passed, the debt no longer appears and my credit score is good.

Yesterday I came home to a letter from Link (not a statement this time) advising me to get back in touch with them to arrange payment.

I can pay the debt if it comes down to it, but it's just over £2k and given the odd circumstances of them not contacting me for so long, I'd rather not if I don't have to, so long as it's not damaging my credit score.

My question is: Should they just stop contacting me now, or do I have to contact them to confirm the debt is statute barred?

Any advice welcome 🙂

Pay the debt.
You owe someone money. You need to pay them. Why on earth would you not pay a debt now that you've been reminded of it. To do otherwise is just dishonest and immoral.

I have to agree with the poster above. You have admitted you have the means to pay your debt and it’s morally the right thing to do. It could come back to haunt you if you don’t.

If the law says that the debt is statute barred, then I don't (legally) owe the money, right?

I had no idea what statute-barring was until recently (never been in debt before) but my understanding is that it exists because it's unreasonable for a company to come after you out of the blue after so long, when they should have made efforts to get you to repay in a reasonable time.

Had I known about it before, I absolutely would have paid it to get it off my credit report.

I'd call them and confirm dates. If correct and the 6 years is up, tell them to stop contacting you.

I suppose this is my other question...if the debt is now statute barred, can it come back to haunt me? It was previously on my credit report, but now no longer appears.

If the law says that the debt is statute barred, then I don't (legally) owe the money, right?

But morally you do. And you have the money to pay the debt.

Does it not matter to you that someone else is worse off because you haven't paid them what you owe them?

Setting aside rhe moral outrage this seems to have engendering, it does seem as if you are correct
https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-if-you-have-to-pay-a-debt/#:~:text=After%20the%20time%20limit%20has,any%20payments%20towards%20the%20debt

It would seem your best bet is to respond saying you don't recognise the debt... the details are in the link.

Just for a bit of context on the moral side of it...

The debt stems from an old bank account (in my name) that was set up as a "bills" account for myself and a former partner when we lived together.

We had quite a complicated break up. In short, I left our shared rental property and he stayed and continued to use the account for bills. At some point they stopped paying in, and the account went into overdraft.

So while I admit that the debt is in my name, I do feel less morally responsible for it.

The StepChange Stat Barred info is clearer than CA's IMO. The debt still exists, but they can't chase you for it. There's a good template letter to send to the creditor on SC also

www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx

See my post above on the moral side.

If it was a small company, I would absolutely feel differently. But we're talking about a massive multi-national bank here. I don't think I'll be losing any sleep over them being £2k down in all honesty.

It just feels very odd that they've made no attempts to reach out until the barring period is up...I've been on the electoral register etc wherever I've lived since, still get their marketing emails etc.

And collection companies have to comply. I had a client receive a payment back from one of the main DC companies as the debt was statue barred when they made the payment.

OP, debts can become statute barred, but whoever you owed money to may have issued court proceedings within the 6 year timeframe, but have not yet served them. The creditor has 4 months in which to serve the claim form.

Something else I thought was quite sneaky, was that the letter Link Financial sent me yesterday (outside of the barring period) encourages you to write to them rather than call to resolve.

My understanding is that if you write and admit liability, the barring period is reset.

This also makes me feel less bad about not paying.

Do you know if/how I could check if this was the case? None of the letters they've sent have mentioned court action, they're all geared towards me getting back in touch with them to arrange a payment plan.

So instead of shutting the joint account down when you left your last relationship you just left him to it....and with it a responsibility to manage the account sensible.

And now debt has appeared you once again want to run away from your responsibility.

And reading between the lines you knew there was outstanding debt as you said its now disappeared off your credit file.

If I was your new partner there is no way I'd want to buy or rent with you.

You posted in Legal so ignore the morality police. Their opinions are irrelevant to the matter.

In your shoes, I'd ignore the letters and don't respond. They would need a court order to make you pay and as you say, the time limit has passed.

OP, you normally need to know which court may have the case. Try contacting the local court where the creditor is located. There are also searches that can be carried out if you have some basic information.

It is worth trying to find out if there is a claim against you because if you don’t respond the court may hand down a County Court Judgment, which may affect your credit score.

www.find-court-tribunal.service.gov.uk/search-by-name

Yeah, always good just to bury our head & hope it goes away.

If OP is now convinced there is a 6 year time bar then she wont mind contacting them to update their records safe in the knowledge she cant be touched.

I copied your post into chat gpt and this is what it said - apologies for the bad formatting!

In the UK, debts can become "statute-barred" under the Limitation Act 1980, meaning that after a certain period, a creditor can no longer legally enforce the debt through the courts. For most unsecured debts, like credit cards, personal loans, or overdrafts, this period is six years from the date of the last payment or acknowledgment of the debt.

Here’s how this applies to your situation:

1. Is the Debt Statute-Barred?

• Six-Year Rule: If you haven’t made any payments or acknowledged the debt in writing for six years, the debt may be statute-barred. From what you've described, if the last payment or acknowledgment was before July 2018, the debt likely became statute-barred in July 2024.
• Credit Report: The fact that the debt no longer appears on your credit report supports this, as debts typically drop off your credit file after six years.

2. What Should You Do?

• No Obligation to Pay: If the debt is indeed statute-barred, the creditor cannot take legal action to enforce the debt, meaning you’re not legally obligated to pay it. However, they can still contact you to request payment.
• Contact the Creditor: You are not required to contact them, but if you want to stop their communication, you might consider sending a letter stating that you believe the debt is statute-barred. This should stop them from further pursuing the debt.
• Request to Cease Contact: In your letter, you can also request that they cease all contact with you regarding the debt. While they are allowed to request payment on a statute-barred debt, they must stop if you ask them to, per the Financial Conduct Authority (FCA) guidelines.

3. How to Respond:

• Send a Statute-Barred Letter: If you decide to contact them, you could use a template letter stating that the debt is statute-barred, and you don’t intend to make any payments.
• Keep Records: Keep a copy of any correspondence for your records.

4. Risks of Acknowledging the Debt:

• Restarting the Clock: Be cautious not to acknowledge the debt in writing or make any payments, as this could restart the six-year limitation period.

5. Impact on Credit Score:

• No Impact if Statute-Barred: Since the debt is no longer on your credit report and appears to be statute-barred, it should not affect your credit score going forward.

Next Steps:

If you’re uncertain or the situation becomes more complicated, you might want to consult with a debt advice charity or a legal professional to ensure you handle it correctly.

By following the steps above, you should be able to resolve the situation without further issues.

@macbookmighty you are correct, but if the debt is statute barred on 18 July 2024. the creditor may have commenced court proceedings before the 18 July. However they then have up to 4 months to serve those proceedings. That period has not yet elapsed.

OP it is important you don’t contact the creditor in writing if you think the debt might be statute barred. This includes sending a text or an email, or talking to them on online chat.

Writing to them could make it look like you’re agreeing you owe the money. This might reset the time limit.

Once you know for certain that your debt is statute barred, you can write to the creditor to stop them contacting you about it. Include a statement saying, ‘I don’t admit any liability for your claim’. Don’t say that you’re not sure what you owe, or that you think the amount is wrong.

Quite an unkind response, but I'll reply anyway.

So instead of shutting the joint account down when you left your last relationship you just left him to it....and with it a responsibility to manage the account sensible.

It wasn't a joint account, it was an account in my name that all direct debits for the property were coming out of. Our separation was mutually agreed without malice, but was still incredibly difficult as we loved each other very much and the circumstances were very difficult.

At various stages of the relationship we had both supported each other financially, and given that my ex-partner was not in a good place at the time of the split, I was more than happy to make things easy for them in any way I could.

And now debt has appeared you once again want to run away from your responsibility.

Once again? When did I previously run away from it? I had no idea it existed, because I had not been contacted about it for more than half a decade, despite them having my contact details.

And reading between the lines you knew there was outstanding debt as you said its now disappeared off your credit file.

Aside from a credit card in my early 20s, I've never applied for credit before. I pay for phones etc outright. I've rented two properties since and this has never come up in credit checks. When I was made aware that a debt collection agency had visited my family home, I subscribed to Experian and Equifax to check my credit file because they hadn't left any details, and at that point I hadn't personally been contacted by them.

If I was your new partner there is no way I'd want to buy or rent with you.

Thank you; fortunately I own my current property outright so that isn't an issue.

Thank you :)

This letter should sort it OP. But please be aware the debt can still be sold on, so you make have to send it to a new debt collection company every once in a while. https://nationaldebtline.org/get-information/sample-letters/time-has-run-out-recover-debt-ew/