Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By bradford_guy
#6746 At 18 years and 3 weeks old I walked into my local bank (who will remain namless) and applied for a loan. Initially this was £1000 and to furnish my first flat which i shared with my then girlfriend. I had been in temporary employment for 3 months and was on minimum wage.

In addition to the loan i was 'pursuaded' into a 500 limit Visa card and 100 overdraft facility. Over the next year or 2 events conspired against me, i suffered the break up of my relationship and periodic unemployment, which due to my status as an unskilled temporary (agency) worker was not covered by the insurance on my loans.

The banks soloution? Repeated 'emergency' credit measures such as extending my overdraft to cover ongoing loan/c.card payments. Eventually i ended up owing over £4000 in total, which i defaulted on and was subsequently taken to court.

Although im not proud of it i chose to move house and ignore the debts.

Now i know that all credit referance file information falls off the file after 6 years, and presuming no CCJ were issued to me (although with no address to send the summons to i fail to see how this could have happened) in the mean time, this means my file will be clear sometime in 2006.

My question is; what does the law say, if anything, on what the debt collection agencies who, as far as i know, hold my debt are entitled to do to pursue these old debts?

Will there come a point at which they may no longer (legally) chase me or, as i suspect, once my file is clear and i begin making applications for credit, will they pounce on my once again available contact details and simpy summons me to the county court again- giving me another set of CCJ's?

I'd like to get this cleared up, but my priority over the last 3 years has been to get a university degree and get out of the vicous circle of unreliable employment and financial insecurity, not paying what i owe a company who were so happy to let a young and unexperienced borrower get into such serious trouble so quickly. What is my best course of action to get these debts settled, if indeed they will simply return to haunt me over and over...

any help would be greatly appreciated
User avatar
By JaneClack
#6747 Hi there!

If they have not gone for county court action the debt becomes statute barred six years from the last time you communicated with the creditor - admitting the debt or making a payment however small. As you obviously know this doesn't mean the debt has gone it is just that there is no legal recourse for the creditor or anyone they have passed the debt onto to recover the debt. However, it is important to check that they have not got a judgment and you can find that out from the registry of county court judgments. You can also check on your credit files but before the six year period is up that might alert the creditor to your new address as you do have to provide your current one to them. They do not tell the creditor your new address but if the creditor asks them for information they will provide it.

Hope that helps.