Hi,I have read all about statute barred and I'm almost 100% positive it is over 6 years since my husband made any payments off a credit card he had with his then bank.(can't find payment book which was sent, so I can check date of last payment made)) We had been going through difficult times when he was made redundant back in 1998 and we sought help from our local welfare rights.A letter was sent to the creditor explaining our circumstances, asking for any interest to be froze and an agreement was made to pay £4.33 each month. After a short period of time paying this monthly amount we never once received any statements,I stopped making payments to see if we would receive any reminders of which we never did.We never paid again and from March this year they have started getting in touch.first it was a phone call of which my husband queried why after all these years he has had no correspondence from them in the form of statements or letters.Their answer was due to it being small monthly payments it had slipped the net. Since that phone call we received a letter from the bank with the total amount £1,796.15 outstanding asking to contact them, failure to do so will result in the account being referred to a debt collection agency who will issue a default notice under section 87 (1) of the consumer credit act 1974.That letter is dated 10th march 2008 and since , a statement arrived summary of account on 11th march 2008 same amount.Then a letter from debt collection agency dated Ist April 2008 default notice as threatened previously.Another statement from bank dated 9th April with same amount owing. In between these letters and statements there is at least 4 phone calls per day from the credit card company as early as 8.30 am and as late as 10pm which are really annoying.As soon as they say who they are then we just hang up, as previously they have been told not to phone again or I would report them to trading standards for harrassment.The latest letter to arrive dated 22nd april 2008 is again from the debt collection agency giving us an exclusive offer of saving 50% bold print PAY £898.08 AND CLEAR YOUR ACCOUNT IN ONE EASY STEP.Gives phone number etc.Then more phone calls from credit card company (this morning 9.am) How can my husband receive calls excessively from the credit card company and receive correspondence from both the credit card company and a debt collection agency, Is this allowed?Really need help and advice as what best to do in this situation, I cant find our proof of when we made last payment and they aren't providing proof of any payments made on either of the statements they have sent.What advice can anyone give as I really need pushing in right direction as to how to deal with this. Thanks Helen.

Hi Helen --- You need to shift the burden of proof onto the debt collection agency here by writing to them sent recorded delivery stating that under the limitations act 1980 you now consider the old debt, "statute barred" as a payment has not been made for Six years....just in the same manner had you known for sure it was over Six years since the last payment was made.

If anything has in fact been paid, they would have to write back showing proof of when and how much this payment was for, thereby disputing your rights to claim the old debt has now "timed out".

The fact they have already offered to halve the amount points to my belief that they already know this old debt could become unenforceable, if you do go ahead & claim your statute barred rights.....so claim them & see anyway. !!!

Hi, Thanks for the advice, I will get onto that straight away,and let you know the response I get as soon as I get any replies. Is there anything I can do in the meantime to put a stop to all these annoying phone calls throughout the day.I have even left them on hold listening to music or even my granddaughter gurgling away.lol. Its also the times of day that they call like 1st thing in morning, afternoon, tea time and last thing at night.Regards, Helen

Hi --- Yes, unplug the phone. !!

Seriously though, until you legally have this debt terminated they are within their rights to try contacting you, but they are not within their rights to harrass or contact you at unreasonable times or an unreasonable frequent amount of times.

Once this debt has met the requirements of the limitations act, if they continue this course of harrassment it becomes an offence under, "the administration of justices act" which makes it a criminal offence punishable by various means including fines or loss of credit licences of the offending organisations, you might remind them of this immediately to see if the annoying contacts do substantially reduce in between you writing the needed letter.

Suggested sample letter.

Your Name:
Your Address:
Date

To:

WITHOUT PREJUDICE

Dear Sir/Madam

Account No:

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

I/we would point out that under the Limitation Act 1980 Section 5 "an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued".

I/we would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last correspondence/payment/acknowledgement or payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I/we look forward to your reply.

Yours faithfully

(Your signature)

REMEMBER
KEEP A COPY OF ALL LETTERS YOU SEND TO YOUR CREDITORS