Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By Nemesis365
#6618 Hi,
Firstly here are the details of the debt.

Just over 7 years ago My house was repossesed. (House was in England, debt with an english mainstream bank).

At the same time I had a loan from Lloyds bowmaker for double glazing.
I left the house, posted the keys to the bank and have not heard a single word from them since then.

I have moved house a few times since then, not to avoid them, but through necessity of work (although I guess this made me difficult to trace and I had no interest in keeping them up to date).

I now live in Scotland.

I have not made a payment on the debt during the last 7 years and have not written to the creditor admitting that I owe the debt during the last 7 years.
Also as far as I know, the creditor has not obtained a judgment against me in regards to this debt.

Last week, I was contacted by a debt collection company regarding the Lloyd Bowmaker debt (not the mortgage).

My questions are:

Is this debt now statute barred ?

Will this rule still stand as I now live in scotland (but the debt was originally in england, to an english company whilst I was an resident in england) ?

I can't remember if the loan was secured or not, would that matter ?

Thanks for your help in this matter.
User avatar
By JaneClack
#6619 If an unsecured debt has not had a judgment made against it and there has been no contact then the debt will be regarded as statute barred - but you would need to check that no judgment had been registered. With mortgages the statute of limitations says they have six years in which to collect the interest and twelve years for the capital. Any payment received from the sale of the house would obviously first be put towards the interest and charges - they are very canny! However, the Council of Mortgage Lenders have an unofficial agreement that they will not chase any shortfalls after the six years so one would report the lender back to them if this was the case. However, it is extremely unlikely that there was any money left over from the auction to pay Lloyds Bowmaker even if it were secured - and the debt is now unsecured anyway - so unless they have a judgment it is statute barred. However when writing to them do not admit the debt in any way - read the leaflet from National Debtline on this situation at ... et_25.php3
I think the same situation exists in Scotland.