Hi could someone advise me what to do please. My husband received a letter yesterday stating a reference number (no name of who the debt is with) and an amount of £2800. The letter stated that they knew my husband lived at our address because they had checked a database and that he should contact them to discuss payment terms on the above debt. The closing paragraph stated that he wasn't the named person or didn't know the debt referred to to contact them so they could amend their records. We're very puzzled, it could be an old debt (we've lived at this address for 3.5 years and a previous address for almost 3 years) and not had any communication from this company (Thames Credit Ltd) at either address until now. I don't know what's the best way to deal with this letter and would appreciate some help.

Many thanks.

Jemma --- Do not reply to this creditor just yet, if the old debt has more than a six year period since you acknowledged or paid anything, then you could possibly get it legally struck off as statute barred...under the "limitations act 1980".

What they are trying to do is underneath, they are sneakily trying to get you to contact them acknowledging this debt, if you do then the old debt becomes legally recoverable again, with the six year time cycle starting to tick again from scratch.

Could you answer if possible what the debt was for and what date it was taken, also which lender and to your knowledge has a CCJ already been obtained for the debt. ?........ I can then help you to legally squash this sneaky old demand for ever.

Hi

Thanks for your reply. The only debt that we think this might be for is a credit card that my husband had. I think the lender was Lloyds and I don't know if a CCJ has been obtained. If it was a credit card from Lloyds it would have been taken out around 8 years ago at a different address to the one we live at now. We've been at this address for 3yrs and 5mths and was at our previous address for 2yrs 5mths and we haven't received any communication from these people or any norification of a CCJ during this time.

Any advice you can give me would be really helpful. I look forward to hearing from you.

Hi --- The type of debt you are being chased for is one that falls under the, "limitations act 1980" in which a period of none contact by the creditor, and yourself not acknowledging the debt for a period of Six years means that the debt is, "statute barred" from the courts enforcing any action against you, to legally end this demand ....read on......

You should now write to them recorded delivery and cross referenced with your old address (suggested worded letter below) disputing the debt by stating the debt is now considered statute barred in line with the above act, if you get further contacts then see your local CAB who can take action against them for harassment.

A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.

Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or debt collector misleads the debtor into believing the debt is still legally recoverable.

It is also considered an unfair practice if the creditor or debt collector press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to Section 40(1) of the Administration of Justice Act 1970. If you are contacted or harassed any further after sending the letter below, then visit your local CAB who can take the appropriate action with the OFT to suspend / revoke their credit licence or fine, convict or all / any of the actions.

................. ................. ..................

Your Name:
Your Address:
Date

WITHOUT PREJUDICE

To: Creditor name & address.

Dear Sir/Madam

Account No: XXXX XXXX

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

Hi

Many thanks for your help and for the template. I will certainly proceed on this basis with this company. Are all debts treat as individual debts, I'll clarify a bit. We received a letter from a different company last month that threatened us with a statutory demand - we really didn't know where to turn at that time and contacted them to agree payment terms. Because we did agree to that debt will this affect how this one is dealt with.

I really wish I'd found this website first, my husband thought the 6 year rule was correct but I was told by someone else that if a debt company writes to you (even if they write to an address that you no longer live at) the six years starts again from the date that they write to you - this company who supposedly advise on debt said that just because we moved address the debt company are still in contact with us and that means that we can't use the 6yr rule. Seems like I might have been given some bad advice which is now costing us a lot of money.....

Hi --- Each debt is treat seperately and on it's merits, it is possible to start the 6 year cycle again by acknowleding, admitting or agreeing to pay anything, as seems to be the case with the firm issuing the statutory demand because you made contact and agreed to start paying, you lost your chance to make a statute barred claim on that one....I'm afraid. !

But this other debt is a seperate issue and this is the first you have heard in over Six years, even though they claim to have sent correspondence to your old address, that is not your problem, they have still failed to contact you for over six years, neither have you acknowledged or contacted them about this matter....therefore send the letter to Thames credit as above, signed by your Husband if it's his name on the letter.

Let us know what happens, the very worst they can do is dispute it...but they would have to show proof to the contrary, if they are to try and claim you made a payment or came to an agreement......the ball is well and truly in their court....figuratively speaking. : -- )

Hi

Thanks again for reassuring me on this. I will send the letter you gave me tomorrow and let you know what you happens.

Thanks for all your help.

Kind regards

Jemma

Hi

I took your advice and sent a recorded deivery to the company concerned. I've now received a reply from them asking us to contact their customer relations team in order to investigate and resolve the issues raised. The letter also says that the purpose of the conversation is to 'ascertain certain important facts in relation to the matter, which will assist them in complying with our request and/or resolving the matter'.

I'm a bit reluctant to phone them, could you suggest any other way of dealing with this matter.

Many thanks.

Jemma

Don't phone them. Their objective is to get more information out of you, so they can make a decision as to whether the debt is worth their pursuing it. In particular they want you to acknowledge the debt, so they can get the clock restarted on the six year rule.

Have a google around and find one of the templates that are kicking around for CCA letters. Basically, what you need to do is make sure the information has to flow from them to you, not the other way. So you need to demand that they prove to you that there is an enforceable debt. That's what CCA letters are for. If you want to find out what else they know you can use a subject access request under the data protection act.

I'm normally quite a serious character about debt, but the modern breed of debt collection companies get my goat. They're not providing a service; they take on debts either on a commision only basis, or they buy up old debts for a tiny amount and pursue them in a speculative way that encourages their staff to blag it at every opportunity. In some cases they'll have bought each debt for less than the price of a lottery scratchcard - as far as I'm concenred they're chancers who yo should have as little to do woith as posisble.

Jemma --- Good advice from ex-banker.

Don't contact them they are not entitled to further contact plus they are not interested in making things easier for you, all they need is what they have got in your letter above and the written facts that you have sent, legally disputing the debt..

If they do contact you further take all your correspondence to your local Citizens advice and ask them to make a complaint of harassment against the company, they will also independently witness the contacts that will clarify your position if needed in the future..

For anyone that receives a speculative letter from a debt collection agency (they will send out loads of letter to the same name they have searched for on the registers) I would suggest you send them the following:

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 I/we have no knowledge of any such debt being owed to (insert company name).

I am/we are familiar with the Office of Fair Trading Debt Collection Guidance which states that it unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I/we would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

I/we would ask that no further contact be made concerning the above account unless you can provide evidence as to my/our liability for the debt in question.

I/we await your written confirmation that this matter is now closed. Otherwise I will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

I/we look forward to your reply.

Yours faithfully



(Your Name) Do not sign

Hi all

Many thanks for your replies and your advice. I really didn't want to phone these people if I could help it, they're usually so intimidating.

I'll send another letter and see how I get on.

Once again, thanks to you all.

Hi

Sorry to bother you again on this . I sent the letter you provided and received a response asking us to contact them, which I haven't done. The same company also started chasing us for another debt as well. I sent the statutory barred letter on this one as well but have now received a response stating that they do not consider the debt to be statutory barred because the default was registered on 26th Feb 2003 and the 6 year time limit has not expired. They have stated that they have requested a copy of the original statements from Lloyds TSB - any advice would be appreciated.

Thanks

OK, so the debt may not be statute barred. although it's down to them to prove that. aongst other things, they sent your husband a copy of the default notice at the time. Ask them for a copy of the original credit agreement - conmankiller or someone else will have a copy of the text. Statements are not evidence of a credit agreement - you can ask for a copy of the original credit agreement. Refuse to acknowledge the debt until you get that signe dcopy of the original agreement.

Sorry I'm confused on this now. Because they registered a default, which we never received by the way, does that mean that the statute barred bit does not apply. I thought it was 6 years from the date of the last communicaton or payment, the date that they said they registered the default they were writing to an old address - we moved out approx 4 months prior to that date so didn't receive anything at all.