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22nd February 2012, 21:30 | #1 |
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Legality of selling on debts
I was talking with a mate down the pub earlier and he's being chased by 'debt collectors' over a Barclaycard debt from some 4 or 5 years ago. He says that over this time the companies have changed so obviousley the original creditor has sold the debt on and so have subsequent people. Now he doesn't think they have a legal right to chase him for a debt that wasn't with them - personally I think they do - he also seems to think if he's not made any contact with them for 5 years then he is legally allowed to ignore them - I think he's wrong on that as well - does anyone know what is actually correct as opposed to "pub solicitors"?
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22nd February 2012, 21:50 | #2 |
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Yes, he is wrong. A debt can be sold on (re-allocated) to another. You cannot legally be bound to a debt if the court can be shown evidence that no attempt has been made to persue the debt for a good length of time (six years is the average) as has been shown in recent court cases. His best bet is to negotiate with them or drvie them down to a fixed price one off settlement.
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22nd February 2012, 21:53 | #3 |
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It's 6yrs from last contact and/or payment.
Link below tells you all you need to know. It is VERY VERY important you read these websites first to confirm you fit in with the criteria. Basically if the debt is over 6yrs since last payment or communication then you're pretty much free and clear. If under 6yrs then you MUST contact them. http://www.paranormal-marketing.com/...tation-act-uk/ Also if you google "Ruthbridge", (who are the biggest chancers in this sort of thing, they buy up old debt which is Statutary Barred and hound people for debt that is not recoverable), you will find other sites that tell you what to do (but don't click on the actual Ruthbridge site itself). You will see that the advice is NEVER EVER speak to them on the phone, but to write to them, stating across the top of the letter "Without Prejudice" and ask them to prove the debt. They need to provide you with a copy of the initial signed agreement. Most cannot and will back off. Last edited by blacknwhite; 22nd February 2012 at 21:58.. |
22nd February 2012, 22:00 | #4 |
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A debt is a debt, regardless of what your friend thinks this will not just go away.
The selling of the Debt WILL be mentioned in the T&C's that your friend signed - so how can it be illegal? He signed to state he accepts these terms. What he is thinking about with the 5 year thing is rubbish what he is thinking of is the debt becoming 'Statute Barred' this comes inot force SIX years after NO contact. (under the limitations act 1980). This simply means that the company owed cannot get a court order to have payment forced (by repossession/CCJ etc). but the debt will remain and be on his credit record. If the debt is related so a mortgage then the time period becomes 12 years. HOWEVER - just because your friend has chosen to ignore the creditors attempts does not constitute no contact, a court will rarely uphold the debt as statute barred if the creditor can prove that reasonable attempts to contact the debtor have been made, which they can quite easily do. A court will issue an order under these circumstances even if the debt is 30 years old. |
22nd February 2012, 22:07 | #5 |
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22nd February 2012, 22:11 | #6 | |
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22nd February 2012, 22:18 | #7 | |
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What CAN be Statute barred after 6 years is the interest, the capital owed is 12 years as stated in section 20 of the act. http://www.legislation.gov.uk/ukpga/1980/58 |
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22nd February 2012, 22:35 | #8 |
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A debt wont go away, it'll just be sold on again.
People are easy to find these days. His best option is to contact the creditor and negotiate a full and final settlement with them in writing. Basically a 5yr old debt of £500 will have been sold to a DCA for a much lower price say £350. Your friend may well discover they will offer settlement for that cost price, so he'd end up repaying much less than he borrowed anyway. Ignoring it is foolish and very very damaging. |
22nd February 2012, 22:36 | #9 | |
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22nd February 2012, 22:54 | #10 |
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Thread moved to appropriate forum. Re-direct left in old.
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