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how long before debt is written off?
12 Answers
I have recieved a letter from a debt recovery agency asking for �thousands.
This company say they now manage my student loan, and want immediate and full settlement.
I graduated 10 years ago, and have heard nothing at all from the original student loan company, and had completely forgotten about the money [genuinely].
Now, out of the blue, this company are demanding the full amount.
As it was 14 years ago when I started as a student, I had no idea what loans I'd taken out.
When I called this company to ask them to send me the original loan agreements - ie, prove the amount they are asking for by showing me the forms with the amount, and my signature, they started spouting about it being impossible to show me these.
It seems common sense to me, to ask to see these originals - where do I stand if they haven't got them?
Can I claim they have no proof of any agreement? [which to my mind, they don't.]
Also, a friend has told me that if a debt goes for 7 years without any contact or payment, then it is written off.
Is this true, and does it apply in my case?
This company say they now manage my student loan, and want immediate and full settlement.
I graduated 10 years ago, and have heard nothing at all from the original student loan company, and had completely forgotten about the money [genuinely].
Now, out of the blue, this company are demanding the full amount.
As it was 14 years ago when I started as a student, I had no idea what loans I'd taken out.
When I called this company to ask them to send me the original loan agreements - ie, prove the amount they are asking for by showing me the forms with the amount, and my signature, they started spouting about it being impossible to show me these.
It seems common sense to me, to ask to see these originals - where do I stand if they haven't got them?
Can I claim they have no proof of any agreement? [which to my mind, they don't.]
Also, a friend has told me that if a debt goes for 7 years without any contact or payment, then it is written off.
Is this true, and does it apply in my case?
Answers
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Have you never had a student loan amount deducted from wages? Although remember that people do not start paying back student loans until their annual salary is �15,000 or more. Don't want to be personal and certainly dont want the answer but are you earning over that? Or have you just started earning over that?
If that has nothing to do with it then i'd ask for all of the detials they have. As far as i'm aware, under the data protection act, you are with in your right to look at this info.
If they remain snotty and persistant then go to citizens advice. If all else fails then get a solicitor!
Good luck
If that has nothing to do with it then i'd ask for all of the detials they have. As far as i'm aware, under the data protection act, you are with in your right to look at this info.
If they remain snotty and persistant then go to citizens advice. If all else fails then get a solicitor!
Good luck
Whilst most debts that aren't pursued are 'written off' after 6 years, student loans are different.
I am not sure of the laws pertaining, but as an example, if you are made bankrupt pretty much all your debt goes - however, student loans are not written off and are still payable.
For that reason, I am fairly certain that the loan still needs to be paid.
I am not sure of the laws pertaining, but as an example, if you are made bankrupt pretty much all your debt goes - however, student loans are not written off and are still payable.
For that reason, I am fairly certain that the loan still needs to be paid.
When I got my Student loans (16 years ago the 1st)..the agreement said after 25 years if you are still deferring due to low income then they are written off. The income limit on my agreement was a lot higher than nowadays I think.
The Student loan co changed hands i think so thats probably why they lowered the income limit and maybe the time limit aswell coz a lot of former students may never pay anything off.
The Student loan co changed hands i think so thats probably why they lowered the income limit and maybe the time limit aswell coz a lot of former students may never pay anything off.
If you don't pay and they decide to take you to Court they will have to provide the proofs you have asked for to the Court in order to prove that you owe the money. So there is no reason why they shouldn't be able to get them for you now. (& - as has already been said - you are entitled to them on payment of a small fee under Data Protectn)
If may have been different when your loan was taken out, but now I believe they have to give you an annual statement of the loan amount, & you apply to defer repayments if you are not earning enough.
Like Vic, I suspect the 6 year Statute of Limitations rule won't apply but, if it doesn't, there must have been some amendment to the Limitations Act to cover it. You could try arguing that they are statute barred and see what happens, but don't get your hopes up.
If may have been different when your loan was taken out, but now I believe they have to give you an annual statement of the loan amount, & you apply to defer repayments if you are not earning enough.
Like Vic, I suspect the 6 year Statute of Limitations rule won't apply but, if it doesn't, there must have been some amendment to the Limitations Act to cover it. You could try arguing that they are statute barred and see what happens, but don't get your hopes up.
This is what I think has happened.
Your debt has been sold. There are recovery companies who quite literally buy a debt for a �1. The company has written it off, got the reduction in profit and therefore the amount of tax they have to pay and basically wash their hands of it. So yes for account purposes, the debt is written off.
However, it can still legally be pursued by such organisations I have mentioned. Some can get quite heavy handed and its worth heading them off as soon as you can. They wont take you to court, although they may well register the debt and it may show on your credit history. Some times they do disappear but they will give it a fair crack before giving it up.
Personally, I would never be lucky enough to dodge a debt for a year let alone 10+!!!
Your debt has been sold. There are recovery companies who quite literally buy a debt for a �1. The company has written it off, got the reduction in profit and therefore the amount of tax they have to pay and basically wash their hands of it. So yes for account purposes, the debt is written off.
However, it can still legally be pursued by such organisations I have mentioned. Some can get quite heavy handed and its worth heading them off as soon as you can. They wont take you to court, although they may well register the debt and it may show on your credit history. Some times they do disappear but they will give it a fair crack before giving it up.
Personally, I would never be lucky enough to dodge a debt for a year let alone 10+!!!
If they cannot prove this debt with originals just start to play dumb with them. Saying you have no idea what they are talking about etc. Ignore them. Like somebody was saying its a company who go aroung advertising for old debt and make there money from scaring people into paying for the debt. They will start to offer you lesser amounts to pay and more than ikely get threatening. A similar thing happened to me a while ago. Some old rent from ages ago me and a friend hadn't paid on a house because the landlord (via the estate agent) refused to do work on the property caught up with me from a new company 4 years later. The didn't have the originals and they kept pestering me. Then I just played stupid and said I'm not sure what they are quite talking about. I quiet enjoyed wasting about 30minutes of the their time every other day. I moved house and told them I was moving, they started getting a little more edgy and I moved house and never heard anything again (I didn't give them my forwarding address obviously). The debt to this day hasn't appeared on my credit report either.
This is quite strange as I too have recently received notification from the Student Loans company saying that I owe them �6k from my time at Uni in the early 90's.
Looks like they have sold their old debts off.
I am currently seeking legal advice on mine so I will post again when I know what I'm talking about!!!!
Looks like they have sold their old debts off.
I am currently seeking legal advice on mine so I will post again when I know what I'm talking about!!!!
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