Urgent!! I need help regarding outstanding balance?
I've just received a letter regarding outstanding balance.
The letter was sent by debt recovery company, obviously I don't know them. What I still remember is the outstanding balance was ages ago, I think is more than 8 years, I can't remember did I pay off, but all memories I have, I did pay off and obvioulsy, I don't have any receipts because it was long long time ago. And also, the orginal company is no longer running. I don't know what should I do as I have no evidences to prove that I paid off the balance, may be actually I didn't. But it's happened over 8 year, does it still standing?
Answers:
If the contract you made is over 6 years the person wishing to reover the debt will be statute barred by the Limitation Act 1980.
However, it does not end there. If the company did take legal action against you within the 6 year period from when the debt arose the claimant did persue their claim within the requisite time period and so therefore it still exists!
If a claimant does not persue a debt and allows it to basically remain "idle" or if there is inordinate delay then a judge can throw it out. After a period of 8 years I cannot see the action continuing.
Check you bank statement if you dont have them contact your bank and ask them to check for you. They will have every bank statement since you joined them
More than six years old...forget it. There is not a thing they can do.
If you did want to take it any further, ask THEM to PROVE that you owe the money. I bet they can't.
What is the name of the company involved? ARC, Scotcall and the like are notorious for this. They purchase outstanding debts and then pass them between themselves hoping you will respond to one of them.
I would ignore it.
Write back saying you have no record or recollection of the debt. They'll go away.
Yes, these companies buy the old debt and try to collect. If you have no receipts you're pretty much screwed. Offer them 20 cents on the dollar to go away.
I think over 7 yrs the debt is written off, you could always say that the person who the letter is addressed to no longer lives here. if they are trying their luck they wont pursue the matter. Ask your bank for photo copies of your statements from that time, they do keep them. if you can proof you've paid the debt off in full, then there's nothing they can do.
If you are in the UK the debt is still outstanding and you still have to pay it, there is no statute of limitations on debs here. If you dispute the debt you must reply in writing and make sure you keep copies of all your correspondence for future reference.
Do not pay any money while it is still under dispute because the first penny you pay is like an admission that the debt is yours and you will have to pay it all.
Telephone the Trading Standards now! If the company is no longer running then there is noone to pass on your outstanding debt to the debt recovery company, even if you do have one. It sounds like someone has got hold of the company's old trade records and that is how they have your details.
Ignore this demand unless you get a county court summons.
A debt over 6 years old cannot normally be recovered.
contact them and find the problem.then seek advice just as a precaution.
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