Is It Statute Barred???

[MummyMorgan]

In 2007 we ran into some financial difficulty and defaulted on payments for a car. The car was returned to the dealer but resulted in a debt. Think we had a letter about it shortly after the car went back but nothing after.

We moved house in 2013 and had never had or even acknowledged the debt.

Today we received a letter at our new address about the debt.

So, my question is should this be statute barred and what should I do about it. We have only recently started to claw our way back up on our credit score.

Thanks in advance

[nemesis45]

Re: Is It Statute Barred???

In 2007 we ran into some financial difficulty and defaulted on payments for a car. The car was returned to the dealer but resulted in a debt. Think we had a letter about it shortly after the car went back but nothing after.

We moved house in 2013 and had never had or even acknowledged the debt.

Today we received a letter at our new address about the debt.

So, my question is should this be statute barred and what should I do about it. We have only recently started to claw our way back up on our credit score.

Thanks in advance

Good morning,

Please supply some history of the alleged debt.

1. Who is writing to you now?

2. Is there a threat of " legal action ?

3. Who is the original creditor ( assuming the debt has bee sold on)

4. How much are they saying is owed?

5. When exactly did payments cease?

6. Do you know the default date/ termination date?

7. Is this a hire purchase agreement.

nem

[MummyMorgan]

Re: Is It Statute Barred???

1) Link Financial Outsourcing

2) No direct threat

3) Not 100% sure was taken out with a local car dealer. Recall something like GE but no 100% sure.

4) 10,153.68

5) Unsure but no later than Dec 2007

6) Not sure

7) Was for the purchase of a car which was repossessed

This is the first and ONLY letter we have received since the car went back

[nemesis45]

Re: Is It Statute Barred???

1) Link Financial Outsourcing

2) No direct threat

3) Not 100% sure was taken out with a local car dealer. Recall something like GE but no 100% sure.

4) 10,153.68

5) Unsure but no later than Dec 2007

6) Not sure

7) Was for the purchase of a car which was repossessed

This is the first and ONLY letter we have received since the car went back

Ok I suspect that is Links own statement from when they acquired the debt as the start /end amounts are the same.

Have you checked your credit files for this debt? If not you can check Noddle Free Online, if it show it will have some of the data need to help decide if this is a statute barred debt.

nem

[MummyMorgan]

Re: Is It Statute Barred???

Just checked Noddle and there is no mention anywhere about this debt

[R0b]

Re: Is It Statute Barred???

A few more questions if you could answer would be helpful:

1. What was the start date of the agreement?

2. Is the balance shown on the image there the total amount of the credit when the agreement began or do you know if this takes into account the proceeds of sale from the car?

3. How many payments did you make before handing the car back? (FYI you could have limited your liability to 50% of the total amount by voluntarily terminating the agreement rather than repossession)

4. You believe that GE might be the original creditor but has Link Financial stated on any of their letters or documentation who the original creditor is?

5. Have Link Financial provided any notice of assignment giving them the right to pursue the debt or a copy of the hire purchase agreement (or do you have a copy still?)

Subject to what others might recommend, it might be best to perhaps put from Link Financial all relevant that the vehicle was repossessed in or around December 2007, at which point the agreement was terminated at the same time. Any claim is therefore statute barred, and if they believe otherwise then you require the following information which supports their right to pursue the claim.

1. Copy of the HP Contract & name of the original creditor
2. Notice(s) of assignment
3. When they believe the agreement was terminated
4. How they have calculated the amount that is owed

It may also be worth sending a CCA request to Link Financial (CLICK THIS LINK HERE) in the meantime. On the basis that you think payments cease around December 2007 and the car was returned, then it would appear that the debt is statute barred but it is also possible that the amount being claimed is incorrect which means that could be other grounds for a defence if they don't even know how much you paid and what exactly is outstanding.

[MummyMorgan]

Re: Is It Statute Barred???

1) Unsure exactly but was some time mid 2007

2) Think the car was around £18,000 new we had it about 5 months.

3) Think we made 4 payments

4) No the picture I posted is the only communication we have had from anyone other than that first letter years ago. They do not state anywhere who the original was.

5) No and probably not as we have moved house since then.

I am SOOOOO grateful for your help I could hug you. I was in bits when I got this letter

PS We are only assuming it was for the car as there was no other big value item we purchased but as mentioned before it doesn't actually say who it is from

[R0b]

Re: Is It Statute Barred???

To add a bit of force behind your letter you could also reference CONC 7.15.4 under the FCA Handbook which says the following:

Notwithstanding that a debt may be recoverable, a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period.

.

If the debt is statute barred 2013 and they have recently purchased the debt they cannot bring any action against you.

By sending the CCA using the templates in the link provided it means they claim is unenforceable after the 12 working days once it has been sent either (either recorded delivery or go into the post office and get a proof of postage receipt). I think previous suggestions have said to use a £1 postal order marked as "statutory fee only" is that correct @nemesis45?

So in effect you need to do two letter (can be in the same envelope), one which is the CCA request and the other is the letter as above.

[nemesis45]

Re: Is It Statute Barred???

To add a bit of force behind your letter you could also reference CONC 7.15.4 under the FCA Handbook which says the following:

.

If the debt is statute barred 2013 and they have recently purchased the debt they cannot bring any action against you.

By sending the CCA using the templates in the link provided it means they claim is unenforceable after the 12 working days once it has been sent either (either recorded delivery or go into the post office and get a proof of postage receipt). I think previous suggestions have said to use a £1 postal order marked as "statutory fee only" is that correct @nemesis45?

So in effect you need to do two letter (can be in the same envelope), one which is the CCA request and the other is the letter as above.

Spot on [MENTION=71570]R0b[/MENTION]

nem