Default Notice - Issued >6 years after last payment

[bean23]

Re: Default Notice - Issued >6 years after last payment

Hi there, i just wondered whether anyone knew of the outcome of this as I'm now in a very similar position.

[mubeenahmed82]

Re: Default Notice - Issued >6 years after last payment

Hi. I sent the amended stat barred letter off at the end of Dec but have heard nothing back, and my credit file is unchanged. Anyone have any ideas about how I could follow up with Lloyds? Thanks!

[Nibbler]

Re: Default Notice - Issued >6 years after last payment

Did you make it clear that you dispute the accuracy of the default record? i.e. the date and length of processing etc?

Whether the debt is statute barred or not is one thing, but it is the default that you want corrected in the end.

[mubeenahmed82]

Re: Default Notice - Issued >6 years after last payment

Here is the letter I sent, based on a template:

Dear Sir /Madam,

I write following your recent contact with myself regarding a debt that you claim I owed.

I would point out that under the Section 5 of The Limitation Act 1980 whereby ‘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 refer you to the Office of Fair Trading, (OFT) Debt Collection Guidelines (updated October 2011) whereby it states under ‘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 Debt collection Guidance also states that it is unfair or improper business practice for the debt collection business to misrepresent its legal position when seeking to recover statute barred debt.

It continues to state that it is false representation of authority and/or legal position for business to contact debtors misrepresent their authority and/or the correct legal position with regards to debts or the debt recovery process.

The guidance also gives an example of unfair or improper practice as ‘falsely implying or stating that action can, or will, be taken, when legally it cannot be taken’.

Under Annex B6 it states;

‘A relevant claim will normally take the form of the creditor raising an action for payment in court. Simply sending a default notice or a letter demanding payment will not constitute a relevant claim’.

The OFT ‘Debt Collection Guidance’ further states that by continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred may be an unfair or improper practice.

It is clear from the evidence you recently sent me that there was a period of 6 years where no payment of this debt was made, and I did not acknowledge the debt in the 6 year period.

Consequently this debt is and remains statute barred under the Limitation Act 1980.

This clearly states:

"a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment"

I note that your entry on my credit files has been amended to "satisfied" on 31.08.2012, and whilst my ex-gracia payment of £1200 should not have been taken as an acceptance of the alleged debt which was (and remains) statue barred, your entry on my credit files thus remains incorrect. Furthermore, I would like to remind you that while such entry remains on my file you may be financially liable for any damage or distress caused by it (S13 of Data Protection Act 1998) and to this end I invite you to remove it completely.

As you have failed to provide evidence under Section 5 of the Limitation Act or the OFT updated Debt Collection Guidance then I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

If you subsequently cannot prove I owe this debt and if you continue to act in this irresponsible and unprofessional way then I will have no other alternative than to report you to Trading Standards and the Office of Fair Trading. I will also lodge a complaint with the Financial Ombudsman Service and your trade association, if appropriate, the Credit Services Association.

If I receive any communication from another debt collection agency then it will be evident that you have sold this debt on with the knowledge that it is statute barred. Should this occur then I will report you to the government bodies and trade association detailed above.

I now await written confirmation that this matter is now closed, and that you are to remove the false default notice you have placed on my credit files. You are not to contact me by telephone, instead by letter only.

I look forward to your reply by return.

[mubeenahmed82]

Re: Default Notice - Issued >6 years after last payment

Does anyone have any advice about whether the above was sufficient? If not, please can you suggest any improvements? Should I send a follow up as had no response since end of Dec?

Any advice would be greatly appreciated

[alham]

Re: Default Notice - Issued >6 years after last payment

I think above letter is great. My advice, mubeenahmed, would be to send them a reminder giving one week to respond, otherwise you may be taking further steps to ensure that your credit files are correct.

[Joanna C]

Re: Default Notice - Issued >6 years after last payment

Any update? I would suggest making a formal complaint to the ICO