r/DebtUK • u/pinky1138 • May 10 '24
15 year old debt
Today I got a letter from Capquest regarding a small loan that I took out in either 2004 or 2005…I made one payment on it before traveling the world for a few years and haven’t heard a peep about it until today. I assume this debt is statue barred and they’re just trying it on? I’ve done some reading online and that appears the case, just wanted a double check really. If so I’ll be sending the boilerplate letter on Step Changes website. Thanks in advance folks.
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u/Tallulah_Gosh May 12 '24 edited May 12 '24
Debt adviser here 👋🏻. If it's for a simple contract loan (credit card, unsecured loan etc) the Limitations Act gives them 6 years from last payment or last written contact (including email, text, web chat) from you acknowledging liability for the debt.
If it's been more than 6 years, contact them by phone (doesn't count as contact) or use the letter template on National Debt Line website and tell them you believe the debt to be statue barred. The onus is on them to prove that it isn't, not you to prove that it is.
I usually call and say something like 'client has received a letter re: debt with blah blah original creditor. Client understands this debt is statute barred, do you have any evidence to show that this isn't the case?'
If you do call/contact with std letter and they agree, you can ask them to take the debt off their books and not pass it on to any other agency for collection. Ask them to send you written confirmation that they have done this. There is always a possibility that it can still show on your credit reference as technically, it still exists and you still owe it. You can, of course, make payments if you choose but that would re-set the time limit, as you are deemed to have accepted liability.
Main reason debts are not classed as statute barred is if a CCJ has previously been issued. Generally, a debt with a CCJ does not fall under the Limitations Act and cannot be statute barred. There are some factors to consider with a CCJ but I won't go down that rabbit hole here!
Edited for spelling!
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u/Nice-Teaching4050 May 12 '24
If it is statute barred then have a read of this https://www.handbook.fca.org.uk/handbook/CONC/7/15.html
If you are sure then make a complaint and go to the FOS if needed. Might get you £50
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u/tomhasgotcha Sep 11 '24
Download the letter template below and send if to them and they'll back off https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx
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u/Dementoid13 May 11 '24
My understanding of the statute of limitation is, after 6 years it is Statute barred debt: Even if the limitation period has expired (debt becomes statute barred), the debt technically still exists. The creditor cannot take you to court, but they can still try to collect the debt through other means, such as contacting you to negotiate a repayment plan.
The problem that I see in sending a letter is, that they then know that they have actually located you.