rover Posted February 26, 2013 Report Share Posted February 26, 2013 That's the question. A person I know quite well, let's call them person A, bought a motorcycle on credit. The credit was from a company who dealt with motor finance. I am not too sure of the exact figures, but I think the credit was for about £4000 over maybe five years. A deposit for the bike was also paid, about £1500. This is all back in 2002 or thereabouts. Not long later, maybe a year or so, Person A wanted to pay it all off, and asked for a settlement figure. A figure was given, and paid. I think it was a smallish figure. A letter was received of the 'Thanks for paying all the money back' variety. All was happy and pleasant, Person A skipped off and hummed a happy tune, got a mortgage, married, and continued to live a full and wholesome life. Then one day, maybe a couple of months ago, Person A got a letter saying mountains of cash was owed, that apparently a court had decided that it was indeed owed, and would Person A like to pay it? This all happened (sorry, apparently happened) without informing Person A. It would appear that all those years ago, the credit company made a boo boo, and not only forgot to take any payments at all, but because they thought they had been taking them, gave an erroneous settlement figure. Although I think I know the answer, what do you think? Is the money legally owed or are they trying it on? Quote Link to comment Share on other sites More sharing options...
leeds chimp Posted February 26, 2013 Report Share Posted February 26, 2013 IIRC would be trying it on Quote Link to comment Share on other sites More sharing options...
Bluebarrels Posted February 26, 2013 Report Share Posted February 26, 2013 I bet hes lost the letter saying "thanks for paying all the money back" BB Quote Link to comment Share on other sites More sharing options...
flynny Posted February 26, 2013 Report Share Posted February 26, 2013 (edited) Dont know the answer to that one mate as I always save up and pay cash, But if I were to take out a loan etc and after a year or so , I got a letter saying pay x amount( that was no where near enough to settle the bill) , I would be on the blower asking questions ie I would know it is a f!!! up somewhere along the lines. Sounds to me like your mate knew the score and tried it on, unfortunately it has come back to bite him on his *****. Note to your mate!!!!!!!!!, you knew how much you owed and should have paid your dues, SIMPLES, NICE TRY BUT NO CIGAR ATB Flynny Edited February 26, 2013 by flynny Quote Link to comment Share on other sites More sharing options...
Greymaster Posted February 26, 2013 Report Share Posted February 26, 2013 Then one day, maybe a couple of months ago, Person A got a letter saying mountains of cash was owed, that apparently a court had decided that it was indeed owed, and would Person A like to pay it? This all happened (sorry, apparently happened) without informing Person A. If a Court has determined that the money is owed the bingo, it is legally owed. Perhaps there was a problem with changed of address etc, but if the Company took steps to find the person, then will be difficult to over turn. However, they did eventually find him. The satisfaction letter will be crucial to the outcome. Quote Link to comment Share on other sites More sharing options...
kennym Posted February 26, 2013 Report Share Posted February 26, 2013 If he never made any payments because they made a mistake he would of known he was not paying (no money was comin out of his bank) So by not telling the finance company maybe HE was trying it on at the time My feelings are, if you borrow money you should pay it back end of ...... However if it was their mistake he should only pay the original sum not the years & years of interest Quote Link to comment Share on other sites More sharing options...
GingerCat Posted February 26, 2013 Report Share Posted February 26, 2013 Best he speaks to a solicitor about this one, sounds like a trip to court Quote Link to comment Share on other sites More sharing options...
Teal Posted February 26, 2013 Report Share Posted February 26, 2013 He should go to Citizens Advice Bureau with all the paperwork he has and see what they make of it. Having only heard part of the story it's impossible to offer a dependable opinion on it. Quote Link to comment Share on other sites More sharing options...
paul2012 Posted February 26, 2013 Report Share Posted February 26, 2013 firstly you need to establish who has sent the letter, Is it the finance company or an outside company? Secondly as far as i know a company cannot take you to court to enforce payment unless they apply for a CCJ which they need to legally send you mate paperwork to complete and return except in certain circumstances i.e where you have a parking ticket in which case it goes to the traffic enforcement center who issue a baliff warrant, So in my opinion i would say that they are trying their luck now they have realised their own mistake, But most importantly do not admit to owing any money whats so ever otherwise they will have grounds to attempt a claim, Quote Link to comment Share on other sites More sharing options...
JonathanL Posted February 26, 2013 Report Share Posted February 26, 2013 Not enough info to comment, to be honest. Dates are important and details of the court determination. Generally speaking a simple debt can't be enforced through the courts after six years has elapsedbut that isn't the same as saying that it isn't owed. He needs to speak to someone in a professional capacity. J. Quote Link to comment Share on other sites More sharing options...
Richard V Posted February 26, 2013 Report Share Posted February 26, 2013 The debt will be statue barred http://www.debtwatchdog.com/statute-barred-debt-england-and-wales-Article-215.html Quote Link to comment Share on other sites More sharing options...
Diceman Posted February 26, 2013 Report Share Posted February 26, 2013 A lot of companies sell packages of hard to chase 'bad debts' to recovery companies who then send out very aggressive letters and make nasty phone calls to try & bully some cash out of the 'debtor' They are often quite old cases and frequently they don't have a leg to stand on as the error is with the company not you. Mrs D was contacted a couple of years ago about a debt that she had written proof was not owed, but as soon as you get into a dialogue with these people they will never let you alone. First thing to do is tell them the debt is under dispute and that they must send all the paperwork proving the debt is owed. . Lots on google about this, get to know your rights because these people can make your life a misery (8-10 phone calls a day at times and a pack of lies about CCDs and bailiffs on their way!) seem to recall the moneysavingexpert site was quite useful and they have helped get a number of these companies shut down. Quote Link to comment Share on other sites More sharing options...
chady Posted February 26, 2013 Report Share Posted February 26, 2013 Never call them and if they call tell them to put in writing and hang up.. If you do call them and they ask for your no tell them you will call them or give them a pay as you go phone no. So you can bin it But if you owe it the best way is pay it and enjoy your life without hiding Quote Link to comment Share on other sites More sharing options...
Elby Posted February 26, 2013 Report Share Posted February 26, 2013 Statute of limitations I think will apply. If they didn't contact him within 5 years they have blown it Quote Link to comment Share on other sites More sharing options...
Eskoky Posted February 26, 2013 Report Share Posted February 26, 2013 I AM NOT A LAWYER by I think Elby is right - 5 years is the limit. Also when the company sent him a letter to tell him what was owed this is an estoppel - they gave a figure of full and final settlement - this was acted on and paid - therefore they can't claim anything prior to this. If a court ruled the money is due this sounds as though the company got a ruling by default - i.e. your mate didn't respond. It is very unlikely that your mate would not have received info from the court - did he ignore it? Best thing is to see a solicitor - I am don't know where he stands now that a court has ruled. Quote Link to comment Share on other sites More sharing options...
welsh1 Posted February 26, 2013 Report Share Posted February 26, 2013 If this is a County Court order your mate needs to contact the court and apply for a set aside, on the grounds that he never received the original Court papers so could not defend against it. Then stop listening to so called advice on here and see a solicitor and take their advice. Quote Link to comment Share on other sites More sharing options...
UGM Posted February 27, 2013 Report Share Posted February 27, 2013 It doesn't matter how old the debt is, but if there has been no contact between Person A and the finance company or any debt collectors working for them and no payments made or agreed to be made in 6 years or more the debt becomes statute barred. I had a few hundred pound debt with HBOS from my late teens(£30 debt and about £250 fees)and no contact for over 12 years then got a phone message left and checked the number and found it was a company that buys old debt in bulk for peanuts from these companies when I googled the Internet. So I went and checked online searching for debt older than 6 years will give you explanations. A few days later they phoned and caught me off guard. I said that debts too old and doesn't have to be paid. I said I can't recall the term exactly. The person said well you need to tell me the exact term. So I went off searched it and rang back. Told them the debt was statute barred and they said that I wouldn't hear anymore and I haven't. Although they are well aware the debt is statute barred they are hoping you don't know. And once you start discussing or admit the debt is yours then you need to pay it. These companies buy the debts for very little. Possibly paying £100 for £1000 of debt. But for every £1000 they spend on £10,000 of debt they might get £2,000 to £3,000 back. The only debt that cannot be statute barred is to HMRC. For me my address did not change. For person A though you mention courts so that could be a CCJ but if it was then its likely to have been on his credit file. Person A needs to find out if the letters or phonecalls are coming from the finance company or from a debt collection company. Until then tell them do not admit liability to pay or enter into discussions until they know who exactly is pursuing them for the debt owed and if there actually is a court order or not. The thing that would get me is that all the credit reference agencies will have every detail of past addresses, every bank account, census form, financial connection and credit agreement that Person A has ever had all on file. So it is very simple for any finance company or debt collection agency to find you. It would be different if Person A had gone off the radar and not had any bank account, voted, had a mortgage etc etc. This would lead me to suspect its likely to be a debt collection agency that has bought the debt cheap from the original finance company. Quote Link to comment Share on other sites More sharing options...
Vince Green Posted February 27, 2013 Report Share Posted February 27, 2013 I knew a taxi driver who was approached to make phone calls at 4am from telephone boxes by a debt collection firm. He made a few but said it was horrible and packed up but they are nasty people, bordering on criminality. Quote Link to comment Share on other sites More sharing options...
chady Posted February 27, 2013 Report Share Posted February 27, 2013 I thought they had limits on what time they could come round and call ect? Like 6am till x ?? And how can some one take you to court and get a judgement without you knowing? I got took to court and every month there was a letter from the court? Quote Link to comment Share on other sites More sharing options...
Elby Posted February 27, 2013 Report Share Posted February 27, 2013 If this is a County Court order your mate needs to contact the court and apply for a set aside, on the grounds that he never received the original Court papers so could not defend against it. Then stop listening to so called advice on here and see a solicitor and take their advice. Make ya mind upFirst paprgraph says "contact the court" Then "stop listening to so called advice on here and see a solicitor and take their advice" Why pay a solicitor for a debt that probably no longer exists? Do contact the court and find out if there is actually a judgement Quote Link to comment Share on other sites More sharing options...
welsh1 Posted February 27, 2013 Report Share Posted February 27, 2013 Make ya mind up First paprgraph says "contact the court" Then "stop listening to so called advice on here and see a solicitor and take their advice" Why pay a solicitor for a debt that probably no longer exists? Do contact the court and find out if there is actually a judgement My advice is based on 17 years of being in the business of collecting debts as a bailiff and HCEO ,and i see far to many people giving advice they have read on the internet or a friend has told them, usually half truths and urban myths,you will see that i started off with the words,"if this is a county court order"because if it is the op's friend needs breathing space,therefore he needs to set the judgement aside. The rest of the advice was for this friend to be given advice as where to go from there, something a solicitor will be able to tell him quickly and precisely. Your statement about why pay a solicitor for a debt that probably does not exist is correct,but we do not know the precise details,so i have supplied information for one scenario There is advice and good advice,it is up to the op's mate to decide which he wants to follow.. Quote Link to comment Share on other sites More sharing options...
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