7 year old pay day loan debt now with AJJB law - threatening legal / court action

[Replenished]

I hope somebody can help. I had a payday loan with Piggbank many years ago. I was in a bad situation at the time and wasn't able to repay. After some time of no payment it seemed to go quiet and I had no letters from Piggybank in years. I think I've maybe had one or two letters in 7 years. They have sent a lot of emails that I've recently discovered but this was on an old email address I don't even use.

Anyway, a few weeks ago I received a 'Letter before claim' from AJJB Law - in accordance with the pre-action protocol for debt claims. They go on to state 'legal proceedings may be commenced against you in the county court without further notice'.

The debt defaulted in March 2013 so I was wondering if this might be statute barred. But then I can see I did make a couple of payments on the loan up until the end of Dec 2014, making 6 years from then very soon. Maybe that's why they are suddenly chasing this as we come to the 6 year mark. I think I may have had one or two email communications with Piggy bank a few years ago as well. So i'm assuming I can't go down the statute barred route?

I've spoken to piggybank a number of times over the last couple of days and they won't have anything to do with it now. Looking at the emails they sent me lots of settlement offers, some of 80% off the debt. I asked if I can make the settlement payment but they say I have to speak to AJJB law.

I called AJJB law and they say I either pay settlement of 20% reduction, or I go into a payment plan. If not they may take it to court. Obviously i'm there saying i've had 80% reduction settlement offers from Piggybank previously but wasn't aware, can we not get nearer to that, but they decline. I understand they want to get as much as they can but I found them very rude and patronising on the phone. I'm sure they could reduce it further but just don't want to.

What are my options? 7 years since the default and now they decide to chase! I've just managed to get my credit up to an average level after years of it being awful so don't want this going to a CCJ if I can help it.

[Replenished]

Can anyone help? I only have a few days to sort something out before this likely goes to a CCJ.

[ostell]

It should have been statute barred but you could have restarted the clock by contacting them.

So respond in writing telling that the alleged debt is statute barred and any proceedings are bound to fail. Keep communicating with them as long as possible so that they delay raising a claim and it hopefully goes over the 6 years. No more phone calls

[Replenished]

It should have been statute barred but you could have restarted the clock by contacting them.

So respond in writing telling that the alleged debt is statute barred and any proceedings are bound to fail. Keep communicating with them as long as possible so that they delay raising a claim and it hopefully goes over the 6 years. No more phone calls

The reason I rang them was because I was informed phone calls do not restart the statute barred clock. Only acknowledging the debt in writing does. Is that incorrect?

The last payment I made was 27th Dec 2014, so this is within 6 years, just, and they have sent the 'Letter before claim' before the 6 years which starts the legal process, they claim.

I'm confused, you say contacting them restarts the clock but then you say keep contacting them and hopefully it gets over the 6 years?

[ostell]

No, contact them to refute the debt, not make offers. The letter before claim does not start the legal process, it is just a letter and they may or may not issue a claim. so keep up the conversation in the hope that the slip over the time. They will have to start any action on the 24th otherwise it is a lot of holidays.

[MIKE770]

as he states should be statute barred so contacting them now would not start the clock, once statute barred cannot be changed, but never ring in future all in writing for benefit of doubt on any further cases?

[Replenished]

as he states should be statute barred so contacting them now would not start the clock, once statute barred cannot be changed, but never ring in future all in writing for benefit of doubt on any further cases?

But is it statute barred? As stated in my original post, the last payment I made was the end of Dec 2014, that is within 6 years so surely this isn't yet statute barred?
Every person I speak to seems to have a different idea on statute barred.

So I should respond in writing you guys think? Any wording I can use to make sure that doesn't trigger statute barred clock (if its not already up)? What am I responding to say, that I believe the debt to be statute barred?

[Replenished]

Just to clarify, any contact I've made to them recently regarding offers has been on the phone. Which from what I understand cannot restart the statute barred clock.

I have 10 more days before the 30 days expires on the 'letter before claim'. Is the best course of action to tick one of the options on this letter such has 'I dont whether I own the debt' or 'I dispute the debt' and send it back?

Or simply to ignore the letter and respond saying I believe this to be statute barred, despite me knowing its not statute barred until at least the end of Dec. Sorry, i'm confused.

[MIKE770]

Celestine

[MIKE770]

Celestine

[Replenished]

I'm thinking maybe I could ring them next week and state I need some time to try and sort the money. Maybe from family over Christmas or something like that. Not sure the debt collector would agree to this but it could possibly give me a bit more time and take me past the 6 years since the last payment I made.

Interested to hear what Celestine thinks.

[Celestine]

Hello

Please don't call them any more.
All calls to these organisations are recorded I'm afraid, telephoning them to propose a settlement would potentially reset the time limitation clock if they wanted to be determined and produce a transcript of your calls.
The only contact appropriate at such a delicate stage is to challenge the debt, seek CCA requests, etc.
If you get any emails/letters from them in the meantime, please share the wording here.
I'm wondering whether it may be an idea to raise issues around responsible lending and enforceability to make them think twice about issuing a claim? pt2537 what do you think?

[pt2537]

I agree with Cel here. You are entitled to ask for any documents that you need to verify their claims, this right is set out in the pre action protocol for debt claims.

Firstly do you have all the document you need? If so, then its a case of replying to the letter of claim, if not then you should ask for what you need such as agreement statement of account default notice etc, they should put proceedings on hold while they reply.

Id also suggest making the usual statutory requests such as s78 req with the fee of £1.00

[Replenished]

Thanks for the help guys. But I really have no idea what I need to do. When you say do I have the documents I need? What documents? I mean I know I had the original loan out and have the original agreement in my emails somewhere. I don't think I have a copy of the default notice.

It's rather confusing as I was always informed responding in writing in anyway way could restart the statute barred clock. As I say I don't have long until the 30 days is up on the 'Letter before claim' so should I respond maybe ticking option C 'I dont know whether I owe the debt' or D 'I dispute the debt'? Is that the best course of action?

Seek CCA requests?

Is there an example / template letter I can send back?

Probably shot myself in the foot here but the last conversation I had with them in anger last week ended with me saying "I just won't pay it then" as they wouldn't offer a settlement anywhere near that which had been sent to me by the creditor previously.

Thanks again Celestine pt2537

[Celestine]

LegalBeagles

That's a link to our CCA guide and template.