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Original poster

Credit agency has employed a solictor and I had a letter today - can they do this and why this time of year?

88 replies

HousewifeNumber1 · 11/12/2020 18:18

Some years ago I took out a credit card, spent £1k and got into trouble with it.
Back in 2007. I've since pretty much - since 2012 been a SAHM with the odd bit of freelance work. My husband is the main earner, but I am retraining and building up a business.
I've got just about enough money to pay my tax on time.
Then today I got a letter from a solictor saying they wanted me to pay the £1k - it has been on my radar to pay it but I lost 5 months work this year and I'm a start up. Why are they demanding it be paid off now? I've ignored their letters by the way. I can pay it off but it will mean I will be late paying my tax.
What do I do? I wish they'd waited till February then I could have paid it.

OP posts:
freezedriedromance · 11/12/2020 22:27

If you haven't made a payment since 2007 or haven't received a CCJ for it at some point then the debt is statue barred. They can ask and hassle you for the money but cannot pursue legal channels. Its legally unenforceable. They have 6 years to do that and are well out of time.

Original poster
HousewifeNumber1 · 12/12/2020 07:04

I haven't made a payment in over 10 years. 2009 I think and I've not spoken to them for at least five years.
We've just had our post and I've got a letter from the court!
The letter I opened heartbeat was month old!
I did put my head in the sand but I did it tend to pay it off.
My husband has offered to pay it for me but I don't want him to.
The reason I didn't pay i off was because the first recession in 2008 hit my work and I had a baby (I was pregnant when I lost my job)
It's been w struggle for me ever since but last year I started retraining and set up a business.
As I said I always intended to pay it off.

OP posts:
Whiskyinajar · 12/12/2020 11:01

@HousewifeNumber1

I haven't made a payment in over 10 years. 2009 I think and I've not spoken to them for at least five years. We've just had our post and I've got a letter from the court! The letter I opened heartbeat was month old! I did put my head in the sand but I did it tend to pay it off. My husband has offered to pay it for me but I don't want him to. The reason I didn't pay i off was because the first recession in 2008 hit my work and I had a baby (I was pregnant when I lost my job) It's been w struggle for me ever since but last year I started retraining and set up a business. As I said I always intended to pay it off.
Right it's definitely statute barred, they are trying to it on.

You don't need to pay this.

Look up step change for sample letters .

They cannot take you to court no matter what they suggest.

Whiskyinajar · 12/12/2020 11:03

Here's a link to a sample letter

They are relying on you not knowing the law.

www.nationaldebtline.org/sample-letters/time-has-run-out-recover-debt-ew/

flowery · 12/12/2020 11:15

”Right it's definitely statute barred, they are trying to it on.

How are they trying it on? This is money they are owed- it’s not “trying it on” asking the OP to pay it back!

”You don't need to pay this.”

Why not? Just because someone can’t literally force you to do something doesn’t mean you don’t need to do it, surely? Just because you can get away with it?

Am I being hopelessly naive? Do people really do this? Especially when they don’t have to because it’s a perfectly affordable amount?

OP you say that - as a family- you can afford to pay this back? You just don’t want to, because that would involve your husband fronting the money. Your husband with whom you presumably share finances to some degree, as you are not working?

If you keep separate finances just pay your husband back in a couple of months, then you won’t have the letters and stress.

Lougle · 12/12/2020 11:17

Being statute barred doesn't make the debt go away and it doesn't stop them chasing you for it. It just means that it can't be enforced in court via a CCJ.

Yohoheaveho · 12/12/2020 11:25

As others have said you should ignore the letter because the debt is statute barred
Do not respond at all, do not make any acknowledgement
although I would keep the letters for my records just in case you need to refer to them or see what the pattern of contacting you is

Yohoheaveho · 12/12/2020 11:28

@Lougle

Being statute barred doesn't make the debt go away and it doesn't stop them chasing you for it. It just means that it can't be enforced in court via a CCJ.
In theory yes they can continue to chase you for the debt but because they have no legal grounds to enforce the debt they will give up when you don't respond

So being statute barred DOES (in effect) make the debt go away since it means the debt can no longer be enforced.
clearly some people on this thread feel irritated at the idea of others running up debts and not paying them, whilst that is understandable it is a separate issue and the fact remains that this debt is no longer enforceable, you should ignore any and all communications from them.

flowery · 12/12/2020 12:00

”this debt is no longer enforceable, you should ignore any and all communications from them.”

Why does the fact it is not enforceable mean she should ignore it? There’s a difference between “can” and “should”. Why do you think she should?

Apart from the moral aspect, how do people think credit card companies fund this type of debt avoidance? Not out of the goodness of their heart! Out of the interest they charge everyone else.

Perhaps some of the people on this thread are the same people who think when someone discovers they haven’t paid for all their shopping, they shouldn’t go back and pay for it?

HopeAndDriftWood · 12/12/2020 12:05

We've just had our post and I've got a letter from the court!

Have they got a CCJ, or are they now taking you to court for one?

That is vitally important. If they got a CCJ before the debt was statute barred, it can’t become statute barred.

You need to be clear on when you made the last payment; or acknowledgement, of the debt. If you’re in England and you talked to them five years ago, they’ll have started the CCJ process now because it’s about to go statute barred. If you’re in Scotland, it’ll already be statute barred as long as it’s definitely been over five years since you communicated with them.

If you’ve got a CCJ claim pack, you’ll need to respond to defend it - so you’ll want to be sure that the dates you give are correct.

Hellotheresweet · 12/12/2020 12:55

Solicitors are involved specifically before the 6 year statute barring
They will totally know what needs to be done. Hence the timing.

JingleJohnsJulie · 12/12/2020 13:11

If it's gone to Court a CCJ will be on your Credit File for 6 years plus there'll be costs added to the debt. I'm not sure what your reluctance is in paying this off, especially as you say your DH has offered to pay it.

JingleJohnsJulie · 12/12/2020 13:12

Why do you think you can borrow money without paying it back?

If everyone thought like they Cookies there'd be a lot of people out of jobs.

HollowTalk · 12/12/2020 13:16

If you are self employed then HMRC are letting you set up a payment plan with them - you will have been told that in their many emails.

Original poster
HousewifeNumber1 · 12/12/2020 18:06

So I must have communicated with them in some way just under six years ago?
I was on a repayment plan but I think that ended in 2013 when step change told me I couldn't afford to pay anything they told me to stop.
So to lodge something with the county court they have to have proved to the county court that I was active in some way with this debt less than six years ago?
I'm minded to just pay it and speak to HMRC.

OP posts:
Original poster
HousewifeNumber1 · 12/12/2020 18:08

It's not gone to court - I've got 14 days to reply.
Thing is that letter arrived today -12 December and is dated 8 December!!!

OP posts:
DianaT1969 · 12/12/2020 18:47

What does the letter say? People on here will help you if you can be more specific. Have you checked you credit Fe for any CCJs?

BananaPop2020 · 12/12/2020 18:50

I am really not clear what the issue is here?

Youngatheart00 · 12/12/2020 18:51

Are you paying your tax in instalments?

Any chance of you taking on some additional work for a few months and using that to pay the bill off and give you complete peace of mind (and a clear conscience)

JingleJohnsJulie · 12/12/2020 18:52

So to lodge something with the county court they have to have proved to the county court that I was active in some way with this debt less than six years ago?

In theory yes but in reality the onus will be on you to prove otherwise.

flowery · 12/12/2020 19:01

”I'm minded to just pay it and speak to HMRC.”

Your husband can cover it but you’re going to be late paying your tax bill instead?

JingleJohnsJulie · 12/12/2020 19:14

Your husband can cover it but you’re going to be late paying your tax bill instead?

It does all seem a bit bonkers doesn't it. OP has said her DH will pay as you say and a PP has pointed out that she can pay her tax bill in instalments.

Why the OP wants to risk a CCJ going on her Credit File and the added costs when she can pay is a bit beyond me.

Whiskyinajar · 12/12/2020 19:24

A CCJ won't go on her file if she has not acknowledged the debt in the last five years.

They cannot legally recover it that, way, the law is very clear on this.

RavingAnnie · 12/12/2020 19:26

@HousewifeNumber1

I haven't got into any more debt but I did have other debts which I've repaid. This one was the last one from my low earning years. I wanted to pay it all off in one lump sum and would have done if I hadn't lost my main job in April. I think I'm going to see if I can pay in three instalments as that way my tax and this will be paid by the end of Feb.
Nooo Do not contact them! If it's more than 6 years old it is likely statute barred. Have a read of the link below.

If you acknowledge the debt in writing or make a payment it can start the clock again. They send these letters to frighten you and lure you into a acknowledging the debt.

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

flowery · 12/12/2020 19:33

”Nooo Do not contact them!”

Why do you think she shouldn’t contact them?

”If you acknowledge the debt in writing or make a payment it can start the clock again. They send these letters to frighten you and lure you into a acknowledging the debt.”

You know she does actually owe them the money, right? They’re not trying to “frighten” her into acknowledging someone else’s debt.