Advice on debt with DCA.

[DailyBread]

Hi Guys

I'm new here but have been reading a lot of posts on the forum for a while and was hoping that you could help me out and offer some guidance on some outstanding debt that I would like to put straight.

I had a credit card i took out back in 2004/5. I stopped making payments on the account for a number of reasons and never got round to calling them back to look to settle the outstanding balance. I thought sticking my head in the sand for a few years would make it go away. We all know that this does not work.

Anyway, the account has bounced around from one DCA to the next and has landed up with DLC where it has been for over a year. The limit on the card was around £4000 and the account currently stands over £5000.

I've gone as far back in my bank statements as far as I can go, which is November 2007 and I can see that no payment has been made since to the debt. I recall writing to obtain copies of statements for the account to query charges which can't of been any later than 2/2/2009, but I think it may have been around May/June 2008. In the letter I can't recall whether I acknowledged the debt. I never received the requested info, so did not go back to them. I have since changed computers and the document was not backed up.

In 2012 I received a letter from Zinc collection agency (before it was passed to DLC), who offered me a 50% settlement if I contacted them immediately. To date I have not contacted them.

In October 2013 DLC wrote to me offering that I could pay £5 per month or pay one quarter of the value of the account and they would write of the rest. Again, my head was in in the sand. DLC have also confirmed that my debt has been transferred to the debt surveillance programme.

I also had a current account with the creditor and a overdraft of £500. I moved accounts as they were taking money from my account to pay for the credit card without telling me they were debiting the money when I missed payments, which left me without funds at very awkward times on a few occasions. The charges on top of the overdraft totalled £1500 when passed to a DCA. However, I have not heard anything about this for some time.

I've checked my Experian credit report and cannot see any other these accounts. The only accounts I can see at present are my utility bills. Not even my mobile phone contract or bank account show up, even though all my previous linked addresses are noted. Is this normal? And should I be looking to verify this information with another agency, or use something like Noodle? By doing so will this notify DCA's that I have checked my account?

Technically speaking the debt may be statute barred if I did not acknowledge owing the money in the letter I sent to whoever was dealing at the time. However, I have no way of checking the exact date and content of the letter.

I'd really like to try and resolve the matter even if it means paying, as I don't want this hanging over my head for the foreseeable future. I know I've been stupid, but I would really like to sort this out so I can stop worrying about it.

Any help or assistance would be great.

Cheers

DailyBred

[Guest]

Re: Advice on debt with DCA.

Firstly I would not enter into any repayment arrangement, no matter how attractive they make it sound, as this may restart the limitation period(if it has not already expired).

Letters sent by you querying charges generally are not seen as acknowledgement of a debt under section 29 of the SOL.

I would send the the statute barred letter , (there is a template on here I think).

Once they are aware that the debt is SB they should discontinue pestering you.

I am sure someone will come along in a minute and give you the link to the template, if not I will find one for you.

[FlamingParrot]

Re: Advice on debt with DCA.

I've gone as far back in my bank statements as far as I can go, which is November 2007 and I can see that no payment has been made since to the debt. I recall writing to obtain copies of statements for the account to query charges which can't of been any later than 2/2/2009, but I think it may have been around May/June 2008. In the letter I can't recall whether I acknowledged the debt. I never received the requested info, so did not go back to them. I have since changed computers and the document was not backed up.

In 2012 I received a letter from Zinc collection agency (before it was passed to DLC), who offered me a 50% settlement if I contacted them immediately. To date I have not contacted them.

In October 2013 DLC wrote to me offering that I could pay £5 per month or pay one quarter of the value of the account and they would write of the rest. Again, my head was in in the sand. DLC have also confirmed that my debt has been transferred to the debt surveillance programme.

Technically speaking the debt may be statute barred if I did not acknowledge owing the money in the letter I sent to whoever was dealing at the time. However, I have no way of checking the exact date and content of the letter.

I'd really like to try and resolve the matter even if it means paying, as I don't want this hanging over my head for the foreseeable future. I know I've been stupid, but I would really like to sort this out so I can stop worrying about it.

From what you say above, this is definitely statute barred. If you haven't got copies of the letters, neither will the current DCA, as you say it's been bounced around a bit. If it's statute barred, the debt cannot be collected through the legal system, meaning there's absolutely no reason why you should pay it. :nono:

If you are not being hassled, I'd let the sleepy ones lie, however, if you hear from a DCA, you should hit them with the SBd letter. The onus would be on them to prove it's not. :thumb:

[FlamingParrot]

Re: Advice on debt with DCA.

If you are not being hassled, I'd let the sleepy ones lie, however, if you hear from a DCA, you should hit them with the SBd letter. The onus would be on them to prove it's not. :thumb:

Below is the letter (the OP's profile says they are in England so I've posted accordingly):

Dear Sirs

Re: Statute Barred Account - XXXXXXXX

You have contacted me regarding the account with the above reference number, which you claim is owed by myself. I 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 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 acknowledgement to 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 in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any action against me 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".

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

I look forward to your reply.

Yours faithfully,

[FlamingParrot]

Re: Advice on debt with DCA.

I also had a current account with the creditor and a overdraft of £500. I moved accounts as they were taking money from my account to pay for the credit card without telling me they were debiting the money when I missed payments, which left me without funds at very awkward times on a few occasions. The charges on top of the overdraft totalled £1500 when passed to a DCA. However, I have not heard anything about this for some time.

How long ago was this? With overdrafts, the cause of action usually comes a few months after you stopped paying into the current account, when the bank formally recalled the O/D.

I've checked my Experian credit report and cannot see any other these accounts. The only accounts I can see at present are my utility bills. Not even my mobile phone contract or bank account show up, even though all my previous linked addresses are noted. Is this normal? And should I be looking to verify this information with another agency, or use something like Noodle? By doing so will this notify DCA's that I have checked my account?

It is perfectly normal, defaults drop off 6 years after they were recorded, they shouldn't be there if they were recorded over 6 years ago.

[DailyBread]

Re: Advice on debt with DCA.

Thanks for both your replies.

What is the likelihood of the DCA either being passed a copy of my letter by the previous DCA or the debt being passed round and ending up with the same DCA that I wrote to initially?

I've moved since receiving the letter in October 2013, and I had not heard from them before I moved in end of November. Is it therefore best to write to them requesting a SAR to confirm if they have the letter on file and follow up with a SB letter if they do not produce?

The account was transferred around the same time I was having issues with the credit card removing money from my account without telling me, so this would have been early to mid 2007 at a guess. Both the credit card debt and the current account were being delt with by the same DCA prior to it being passed to Zinc, and then onto DLC. Unfortunately I binned all of the letters, so I'm not sure who this was.

Regarding my Experian report, should all active credit account show on this, as my contract phone and bank account are not listed, even though I am linked by them as data sources. The accounts are up to date, so would this make a difference?

Thanks again

DailyBred

[DailyBread]

Re: Advice on debt with DCA.

Hiya,

Any further advice with my queries from yesterday FlamingParrot?

Thanks

Chris

[FlamingParrot]

Re: Advice on debt with DCA.

What is the likelihood of the DCA either being passed a copy of my letter by the previous DCA or the debt being passed round and ending up with the same DCA that I wrote to initially?

Not very likely I'm afraid, DCAs do not excel at communication.

As for the debt being passed to the same DCA, not impossible but there are quite a lot of them around so not very likely.

I've moved since receiving the letter in October 2013, and I had not heard from them before I moved in end of November. Is it therefore best to write to them requesting a SAR to confirm if they have the letter on file and follow up with a SB letter if they do not produce?

A SAR won't necessarily produce every item of correspondence, for example, banks usually say they do not keep copies of default notices, so there may not be a copy each and every letter. A SAR will cost you £10 + postage and they have 40 days to respond. Have they got your current address? This is to ensure they don't issue court papers at the old address and end up with default judgment against you. :scared:

The account was transferred around the same time I was having issues with the credit card removing money from my account without telling me, so this would have been early to mid 2007 at a guess. Both the credit card debt and the current account were being delt with by the same DCA prior to it being passed to Zinc, and then onto DLC. Unfortunately I binned all of the letters, so I'm not sure who this was.

In that case, it should be SBd by now. :thumb:

Regarding my Experian report, should all active credit account show on this, as my contract phone and bank account are not listed, even though I am linked by them as data sources. The accounts are up to date, so would this make a difference?

Not everyone reports to each and every CRA, lack of records is not something to worry about.

[CleverClogs]

Re: Advice on debt with DCA.

What is the likelihood of the DCA either being passed a copy of my letter by the previous DCA or the debt being passed round and ending up with the same DCA that I wrote to initially?

Probably the same or perhaps less than that of Iain Paisley converting to Roman Catholicism.

[CleverClogs]

Re: Advice on debt with DCA.

In October 2013 DLC wrote to me offering that I could pay £5 per month or pay one quarter of the value of the account and they would write off the rest.

One might suppose it was already time barred by then - why else should they apparently offer to lose £3750?

DLC have also confirmed that my debt has been transferred to the debt surveillance programme.

WTF is that supposed to mean?

Are they threatening to set the CIA or MI5 on you? :spy:

[DailyBread]

Re: Advice on debt with DCA.

Thanks Cleverclogs & FlamingParrot.

The DCA does not have my new address, so whats the best course of action? Let sleeping dogs lie or send them an SB letter?

If they tried to take it to court now would their motion be rejected given the age of the debt and it being statue barred?

Thanks again guys

DailyBread

[FlamingParrot]

Re: Advice on debt with DCA.

The DCA does not have my new address, so whats the best course of action? Let sleeping dogs lie or send them an SB letter?

If they tried to take it to court now would their motion be rejected given the age of the debt and it being statue barred?

That's not how it works, the court has no way of knowing if a debt is SBd or not, and often neither does the claimant. It is possible to issue proceedings on a SBd debt, if they did, you would used SBd in your defence. SBd is an absolute defence and it would be up to the claimants to prove otherwise. :thumb:

Having said that, prevention is always better than cure, so why not just send them the SBd letter.