McKenzie Hall - Retrieving Payments on a Statute Barred Debt

[Squirreldinho]

Hi,

I was hoping someone might be able to help me out with some issues I'm having with McKenzie Hall, who by all accounts have a pretty low reputation, if these forums are anything to go by!

About 10 years ago, when I was a student, I was pretty bad with my finances, and ended up with quite a few debts, namely credit/store cards that were passed to debt collection agency once x amount of payments were missed. I thought these had all been paid off over the ensuing years, and my credit rating appeared to be back to 'excellent', as I have no problem getting approved for credit cards (and not the ones that are specifically for people with bad credit), phone contracts, etc.

However, a company called McKenzie Hall (who I had never heard of at the time) contacted me at the beginning of December, trying to collect on a debt that was accrued on a credit card taken out in 2001 (and defaulted on by 2003), and expecting repayment either immediately, or I could pay either the full amount or a settlement figure over 4 months. I was instructed to pay the full amount rather than the settlement, as apparently this would be less damaging to my credit rating. So I agreed to pay £130 per month for 4 months, as the amount outstanding was approximately £520. So far, I have paid £390, with one payment left to go.

However, I have since found out that apparently there is no obligation to repay a debt that is over 6 years old (something to do with being statute barred), and I'm 99% certain no-one has tried to contact me over the past 6 years, unless they've been sending correspondence to my (very) old addresses. However, I find it highly unlikely that they've been done that since 2003, and yet have waited almost 10 years to issue me with an 'ultimatum'. It sounds like McKenzie Hall just buy up old, statute-barred debts and then try to claim them, hoping no-one will question them, so it looks like that's what's happened to me!

I suspect that, as I have acknowledged the debt and started repaying it, there is no way I can retrieve that £390, but I thought it might be possible, so was wondering if anyone could provide me with any information, or even possibly some wording for a letter to them, as I'm not actually overly bothered about the money, but it's more the principle. Hopefully someone with a legal background can steer me in the right direction.

Obviously I wish I'd checked out their forum before agreeing to pay anything, but as other users have said, they somewhat bully you into paying whatever they want!

Also, apologies if there's already a similar thread for this, if so could you please post the link and I'll check it out.

Thanks in advance.

[ODC]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

You are unlikely to get the £390 back as even though the debt was statute barred it still actually exists though is unenforceable through the courts.

Make no further payments to this shower of parasites.

This is a very good example of why you should NEVER speak with a DCA. The debt was statute barred and even though you have made payments on it its still statute barred and Muck Hall can do diddly squat about it.

[Squirreldinho]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I suspected the £390 was lost, but it's good to know that I shouldn't have to pay the remaining instalment of £130 at the beginning of March. Can't believe I didn't look into this first, as I could've saved myself almost £400.

What should I do to stop said payment though, do I need to write to them and inform them that I expect them to cancel the payment, do I tell my bank to block any attempts by McKenzie Hall to take said money, or what? If I need to write to them (McKenzie Hall), do you have any tips regarding wording of such a letter, or are you able to redirect me to somewhere else on the forum where I might be able to find out?

Also, how will I tell for certain if the debt is definitely statute barred? I'm pretty sure it must be, but I don't want to cancel/block this last payment, and find that I actually am obligated to pay it, and then have it affect my credit rating as a result!

Thanks for all your help.

[ODC]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

How do you make the payments. If by direct debit then cancel it immediately. If by card contact your bank and cancel the card


Do not ring Muck Hall under any circumstances. Let them waste their time chasing you. As you now know they have NO powers whatsoever and their threats are empty. They will lie and cheat in an effort to make you pay the remaining blood money

[Squirreldinho]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I paid the first instalment on the card, and then they have taken the following instalments on the first of each month, but I believe they're still taking them via the card rather than Direct Debit.

I'd rather not have to cancel the actual card, can I not just advice my bank to block that particular payment? Or alternatively, write to McKenzie Hall and instruct them that I'm refusing to pay the last instalment?

As mentioned, I want to be certain that I'm not going to affect my credit rating by refusing to pay this last instalment, as I'm not 100% sure if it's statute barred, but I'm pretty certain it is.

[Celestine]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I'm not sure I'd trust Mucky Hall on this one. I'm concerned they may default him out of spite. Personally, I'd draft a very firm letter to Mucky Hall, stating the situation and warning them to back off, count themselves lucky to have extorted 400 quid out of you and if they dare touch your credit file, you'll sue.

[ODC]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

Muck Hall will ignore you if you write to them. If the last payment was made in 2003 then the debt was Statute Barred in 2009. They cannot use it to threaten your credit record. If they used this to destroy your credit rating then you could sue them. Get in touch with your bank and advise them you were pressurised into making these payments. If you had written proof of their lies or recordings of their lying threat calls then you may have a chance of claiming the money back otherwise you have to put it down to experience

[Kafka]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

It is their responsibility to prove that its a debt that can be collected, not yours to prove that it can't be.

Instruct the bank immediately to block any claims from MH. Just write a simple note to MH saying that the account is statute barred and you will have no further dealings with them. Any attempt to collect further payment or to keep contacting you will be recorded and may be used to pursue them for damages for harassment. That's all you need.

[CleverClogs]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

Contact the bank and revoke the continuous payment consent. (link)

Also tell the bank that the previous payments and the consent to make them had been given as the result of deception by the payee and try to get them charged back.

Also see the blog by Paul Lewis on continuous payment authorities - link

[gravytrain]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I paid the first instalment on the card, and then they have taken the following instalments on the first of each month, but I believe they're still taking them via the card rather than Direct Debit.

I'd rather not have to cancel the actual card, can I not just advice my bank to block that particular payment? Or alternatively, write to McKenzie Hall and instruct them that I'm refusing to pay the last instalment?

As mentioned, I want to be certain that I'm not going to affect my credit rating by refusing to pay this last instalment, as I'm not 100% sure if it's statute barred, but I'm pretty certain it is.

You can cancel a continuing authority( repeat debit payment) by instructing your bank under the Payment Services Regulations 2009, some banks have to be reminded of this regulation sitll, although it has been in force since November 2009. http://paullewismoney.blogspot.co.uk/2012/04/the-continuous-payments-racket.html

If they still pay after you have instructed them not to you can sue for the return of your money.

You need to write to the DCA as stated, say that the account is statute barred and has been since before you made voluntary payments on the account, you now however have decided not to make any further payments.

State that they must cease all collection activities on this account in accordance with OFT guidelines.

If they have not mentioned your CRA file then i would not bring it up, but keep an eye on it just in case
.

If they do mention placing a default on it remind them that the default occurred in 200x and if they enter it in 2013 you would report them to the ICO.

[gravytrain]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

Sorry cloggy crossed post

[ODC]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

Although I don't disagree with those of you who say write to Muck Hall I personally wouldn't. I wooul be happy letting their threat monkeys start their telephone harassment and mass mailings. The time they spend doing this means less time harassing someone else. Each phone call and letter they churn out costs them money. Yes it's only pennies but it's good fun watching them getting more and more desperate. You could turn the tables on them if they phone up and tell more lies as they surely will. Record their lies and threats and make a formal complaint and who knows you may get something substantive which would enable you to get some or all of your money back.

[gravytrain]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

Thing is that the guidlines state that the debtor must desist once they are advised that the debt is statue barred and the debtor does not intend to make further payments, until this time they are not prevented from pursuing the debt.

Guidelines;

"In essence, providing you work within legislation and guidance, collection of statute barred accounts is a
legitimate activity. However, if your debtor has stated that they will not be paying a debt because it is statute
barred, these accounts should be closed and your records updated appropriately. This will reduce the
number of accounts that could be placed back out for collection or sale, which in turn could lead to complaint
and create further issues for the industry in this area.

[ODC]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I am well aware of the OFT guidelines on the collection of debt and indeed have often quoted them to my DCA buddies. All I was suggesting was that the OP have some sport at the expense of the Kilmarnock Cowboys

[gravytrain]

Re: McKenzie Hall - Retrieving Payments on a Statute Barred Debt

I am well aware of the OFT guidelines on the collection of debt and indeed have often quoted them to my DCA buddies. All I was suggesting was that the OP have some sport at the expense of the Kilmarnock Cowboys

Perhaps the OP wasn't aware ?