Legality of selling on debts

Camulus · 22nd February 2012, 21:30

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"?

steve811 · 22nd February 2012, 21:50

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.

blacknwhite · 22nd February 2012, 21:53

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.

SapperGB · 22nd February 2012, 22:00

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.

blacknwhite · 22nd February 2012, 22:07

Quote:

Originally Posted by SapperGB

If the debt is related to a mortgage then the time period becomes 12 years.

It doesn't matter what the debt is against, mortgage, store card, whateva, it is on your record for 6yrs after the SB 6yrs period. So 12yrs total.

shadowfax · 22nd February 2012, 22:11

Quote:

Originally Posted by steve811

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.

Its a pity its not wrong - would have pretty much erased the sub prime market and not got uk plc in the **** we are in now!

SapperGB · 22nd February 2012, 22:18

Quote:

Originally Posted by blacknwhite

It doesn't matter what the debt is against, mortgage, store card, whateva, it is on your record for 6yrs after the SB 6yrs period. So 12yrs total.

Im sorry, this is incorrect the time that a debt by way of mortgage can be recovered is twelve years, and cannot be Statute barred before then.
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

Canonite · 22nd February 2012, 22:35

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.

blacknwhite · 22nd February 2012, 22:36

Quote:

Originally Posted by SapperGB

Im sorry, this is incorrect the time that a debt by way of mortgage can be recovered is twelve years, and cannot be Statute barred before then.
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

Sorry Sapper, I picked you up wrong. I thought you were saying ONLY mortgages.

Dragrad · 22nd February 2012, 22:54

Thread moved to appropriate forum. Re-direct left in old.

22nd February 2012, 21:30	#1
Camulus Avid contributor MG ZT+ 2.5 190 Join Date: May 2011 Location: Huntingdon Posts: 106 Thanks: 0 Thanked 0 Times in 0 Posts	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"? __________________ [SIGPIC][/SIGPIC] A good right hook settles any argument!

22nd February 2012, 21:53	#3
blacknwhite Posted a thing or two Black Rover 75 Connie CDT and Twilight Chromactive ZT Turbo Join Date: Jun 2011 Location: Newcastle upon Tyne Posts: 1,602 Thanks: 15 Thanked 16 Times in 7 Posts	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, 22:54	#10
Dragrad This is my second home *None DROWNED** Join Date: Aug 2007 Location: Cardigan Posts: 33,339 Thanks: 1,257 Thanked 1,664 Times in 1,081 Posts	Thread moved to appropriate forum. Re-direct left in old. __________________ Andrew Ich Dien Problem solving is... lateral thinking SEARCH FIRST ...ASK LATER...

22nd February 2012, 21:50	#2
steve811 Banned Rover 75 Tourer CDT Connoisseur SE Join Date: Dec 2010 Location: Newport Posts: 1,906 Thanks: 107 Thanked 299 Times in 206 Posts	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.

22nd February 2012, 22:00	#4
SapperGB Posted a thing or two 2005 190 ZT-T SE Join Date: Dec 2010 Location: Dagenham Posts: 1,242 Thanks: 2 Thanked 10 Times in 9 Posts	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, 22:35	#8
Canonite This is my second home BMW 330d Tourer, MG ZT 180 SE XPG, VW Polo 6R 1.2 TDI Bluemotion Join Date: Jul 2011 Location: York Posts: 6,022 Thanks: 363 Thanked 574 Times in 319 Posts	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.