old debts

[debT]

I have just recieved a letter from my old bank telling me my debt of �500+ has been passed to a debt collection agency. I have heard nothing previously and this is from 10 years ago. Do I still have to pay it back?

[Buenchico]

The following assumes that you live in England or Wales (and that you're not disputing the debt):

If you've not had any contact with the bank for over 6 years (including, for example, you asking them for a statement of the balance), you've not made any payments to them within that period, and the bank has never obtained a CCJ against you (in respect of the debt), its likely that the provisions of the Limitations Act 1980 will apply.

If so, the bank (or the debt collection agency) can no longer pursue the debt through the courts. However, you still owe the money and you can still be chased for it. In particular, the bank (or debt collection agency) can register the debt with credit reference agencies, effectively barring you from obtaining any form of credit until you repay the money.

Chris

[factor-fiction]

Chris, Does it make a difference if the debtor has moved address and failed to notify the bank- if the bank ahd tried to pursue the debt but the letters were going to the wrong address.

[Buenchico]

Factor30:
We might need Barmaid's advice on that one. A contract with a bank is likely to include a clause stating that any notice from the bank shall be deemed to have been delivered if it was addressed to the last address provided by the customer. A court ruling might be required to determine whether that clause should take precedence over the general terms of the Limitations Act.

debT:
'Sample Letter H', here, might be useful to you:
http://www.insolvencyhelpline.co.uk/debt_facts heets/liability_for_debts_and_the_limitation_a ct.php

Chris

[debT]

Thankyou everyone I feel a bit better now! Will be writing a letter.