Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Rebeccamo
#316993 Hi, I recieved the above today by sheriff officers today by them posting through my letter box. ( they had made 2 unsuccessful attempts of trying to catch me in and deposited card to notify they had been there) I phoned them yesterday to see what it was about and gave reference number that was on card. The girl said it was for a client of theirs (a law firm) who wanted to deliver a legal document regarding Debt with a credit card company. I was so taken aback but stayed firm and told them that's a settled account. She said all they wanted was to confirm my address for their client. I confirmed address.

The above stated letter mentions in it that a decree was issued against me in 2007 at sherrif court and that it was extracted in 2009. That now, sherrif officers are charging me to pay total sum AND charges and daily interests!! It states, if I don't pay within 14 days, I'm liable for further action including arrestments of earnings and the auction of belongings to me! Also, liable to be sequestrated (declared bankrupt)!!!!!

I have checked my credit report (last week) and there is nothing on it regarding the credit card company in question! which proves its Statute Barred.

Any advice regarding this is welcome!
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By TalbotWoods
#317033 OK a couple of questions so we can offer the correct advice.

You say this is for a debt that is settled, so can you tell us when you took the debt out, was it settled in full by way of payment, or was it settled by way of a defaulted debt where you had not made payment.

If you had not made payment, when was the last time you made a payment or acknowledge the debt existed in writing.

Were you aware that decrees (extractions) had been taken out against you back in either 2007 or 2009?

By Rebeccamo
#317043 Thanks for prompt reply.

Can't remember exactly when I got it, think it was 2004/2005.
I had my own business and I got duped and lost all my finances therefore spoke with company in 2006 after defaulting and told them so and I confirmed I had payment protection that covers it. I had had a new baby (2 Nd child) and poorly after to look after (after passing of my mother in 2004 he didn't keep well)
I didn't get anything else in writing from them and I moved shortly thereafter. I was so embroiled in difficult times that I ignored financial responsibilities, only because I didn't have any means to pay debt. therefore ignored letters. Therefore last payment was 2006 and last acknowledgement would be the same as nothing was ever acknowledged in writing at the end. If that makes sense!

I didn't know ANYTHING about the decrees in 2007 & 2009. Totally surprised when it stated so in the cfp!!
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By TalbotWoods
#317063 Thanks for answering the questions.

First point is that the debt is not and cannot become statute barred, as you took the debt in 2004, stopped paying in 2006 and they obtained a decree in 2007, well within the 5 years required by the Prescription and Limitation (Scotland) Act 1973. Further they have extracted in 2009 to any action they take now is again with the Prescription and Limitation Act, so no defence there I am afraid.

It looks as if the Payment Protection didn't pay out, plus in most cases payment protection will only pay for a finite period of time, so you will need to speak to the original creditor to find out why the Payment Protection didn't cover it.

You have also said that you moved, did you inform the creditor of the new address, and possible Payment Protection people, as they may have been trying to contact you. If they couldn't contact you then they may have started to moot the decree, and when they finally confirmed you had moved away with no contact they extracted the decree fully.

Also if you ignored the letters, which a lot of people do when their life is in a chaotic state, then the creditor/Payment Protection may have been trying to sort this them.

As to actions to move forward.

1. You need to contact the original creditors and find out why they went for the decree, when you though it was covered by the Payment Protection (and remember a lot of PPI was sold to people who were not able to claim it).

2. If the PPI should have paid and you had notified the creditor of the new address, and it was set for your previous address, then you are in a string position to get the decree set aside.

3. If the PPI refused to pay, or you failed to notify the creditor of the change of address, or ignored the decree paperwork in 2007, then you will need to talk to the Sherrifs Office to discuss repaying this.

If the latter is the case, especially if there are other debts to consider, it may well be worth talking to a Debt Advice specialist in Scotland who can help and deal with these on your behalf. If this is the case then call and talk to one of the organisations listed below, who operate and deal with Scottish debt problems:

Money Advice Scotland ... d/Homepage
0300 200 2600

0800 280 2816

StepChange (formally CCCS)
0800 138 1111

If the former (point 2) applies please come back for further advice

By Rebeccamo
#317073 Thanks for your reply.

I hadn't gave them my new address. As stupid as it seems now, I felt that because I hadn't heard from them for several months after we had confirmed I had PPI, I thought it was settled. I will call the creditors to confirm what happened with the PPI. If they say it didn't cover it then can I apply for PPI compensation at a later date?

I didn't know anything about the decrees at all. Checked my credit report latnight and it doesn't appear there either. How can this be?

As it seems I have to contact sherrif officers to arrange paying this back, is there anyway I can fight to only pay the original amount as I wouldnt be able to afford the amount that has accrued to date, it's more than double with added charges and expenses?

I don't know who the best organisation would be to call to ask for help and to deal with this on my behalf. Could you advise the best one for my situation pls?
I am on working tax credits and child tax credits and not a home owner, I rent.
By Rebeccamo
#317133 Hi Tim,

Following your advice, I spoke with credit card company and they confirmed I did have PPI. Put me through to PPI and I told them how I had contacted them back in 2005 to let them know that my business failed and expecting a baby which meant I no longer could pay the debt and asked them about my PPI which they confirmed and said they would get back to me. I explained I didn't hear anything back, only for them to be chasing their monthly repayments which I pushed out what I could afford then £20 which was even amazing as I was going through hardship! Because I didn't hear anything back from them re PPI I thought it was settled in some way.
So the PPI guy today said it seems an error on our part was made that we didn't follow your request through after you stated the problem you were facing at the time. He had me on hold to speak with another colleague and came back to say I could now put in for 2 claims: a Standard claim ( unemployment and solvency of business) and Life Event claim ( for having a baby). He further explained that if unemployed for 6months and under then min payment would be covered but if 7 months and over then balance on card would be cleared! Which I was. So put me through to the claims dept and they emailed me the forms! So that will be filled out and sent soon!

Here comes the cracker! I phoned the solicitors who is acting on behalf of credit card company to inform her of this process that has to be done now, she didn't sound happy at all and said she has NEVER heard of PPI that clears whole balance even after a set period of time and that she wants the name of the person I spoke with at company that she is representing so that she can verify it. I stupidly on this occasion didn't take a name ( I was kicking myself as I ALWAYS take a name, think I'm more stressed out than I realised!!) so I said not to worry I'll get back in touch with PPI and get a name and an ext number for her to call back to verify, so I did!
When I called the solicitors back to give her the name and ext number and reiterated this 7 months rule, she went quiet and said right well I need to check this out. She wouldn't say if she would get back to me or not, so I pushed it by saying well I'll wait to hear from you and I'll be waiting for my PPI benefits letter/booklet which confirms in writing the 7months rule. The PPI guy also said he would send a letter to confirm that I'm claiming and the process and stage it's at now etc.

I'm going to wait and see what the solicitors come back with now??
Many many thanks