# What  is the oldest debt that can collected if any rules? Buchanan Clark & Wells.



## eeyore2502 (22 Jan 2009)

Does anyone know what the oldest debt allowed to be collected if there is rules?

My brother took out a loan 8.5 years ago and never finished it with GE Capital, theres something like 3k left on it.  He totally forgot about it, how I don't know!! but did.  Anyway he has since got other loans bought a house and got his ICB report as requested by his mortgage advisor and nothing showed as outstanding and he never got any letters of any sort either from GE or any dept collection agency.

The other day when he came home from work there was a letter from a dept collection agency looking for full payment otherwise he will be taken to court! can this happen just like that??  Is there not a time frame that companies write off bad debts??

Thanks


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## Smashbox (22 Jan 2009)

*Re: Debt Collection*

See here, same thing : http://www.askaboutmoney.com/showthread.php?t=102461

A debt is a debt, you can't just forget about it, no matter how much it was. Your brother owes it, and so he should repay it.

Why should companies write off bad debts?


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## eeyore2502 (22 Jan 2009)

*Re: Debt Collection*

Believe me I know but he is saying that there is a time frame and after that they can not collect that they are just trying to frighten the money out of him treatening court!


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## Smashbox (22 Jan 2009)

*Re: Debt Collection*

But he owes them money. He needs to pay it back.


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## eeyore2502 (22 Jan 2009)

*Re: Debt Collection*

I know that!!! but I am interested to know if what he is saying is right is there some written rule about this?


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## Smashbox (22 Jan 2009)

*Re: Debt Collection*

Did you read the other thread I linked to? If you did, you would have seen the link provided by MoneyHoney...


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## Chocks away (22 Jan 2009)

*Re: Debt Collection*

Statute of Limitations is six years for a personal loan - once there has been no communication. Have a chat with your solicitor - over a pint if possible.


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## eeyore2502 (22 Jan 2009)

*Re: Debt Collection*

Reading it now! thanks


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## bond-007 (23 Jan 2009)

*Re: Debt Collection*

Morally he may owe the money, legally they can do nothing as the statute of limitations does not allow the debt to be collection if they has been no communication for 6 years or more.


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## Bronte (23 Jan 2009)

*Re: Debt Collection*

OP he took out the loan 8.5 years ago but got the debt down to 3K so he must have been making some payments originally.  Has he had any contact or paid any money in the last 6 years?  Now that he has a house (an asset) I recommend he pay it before it costs a lot more.  As far as you saying he 'forgot' about it someone with the wherewithall to purchase a house is capable of managing their financial affairs surely.


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## eeyore2502 (23 Jan 2009)

*Re: Debt Collection*

He had been paying it but then split with his girlfriend and couldn't afford it so the car went to the finance company not sure on whos request his or theirs so thats why there is very little left compared to the original loan of 18k or more as it was a brand new car and this all happened within 1 year of the car being bought.  From what I know he has not been contacted since the car went to them, or so he is saying!

As for capable of buying a house capable of sorting his finanaces - yeah you would think so, I am his younger sister by 8 years and my life is a lot more organised then I think his ever will be!


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## Bronte (23 Jan 2009)

*Re: Debt Collection*

And you sound like you are more worried for him than he is.   But I understand   Personally I wouldn't rely on him for the information as it really is too vague.  I doubt there has been no correspondance in the last 6 years.  I guess you could pick up the phone and talk to someone in GE capital and you might find out the truth.


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## eeyore2502 (23 Jan 2009)

*Re: Debt Collection*

Yeah thats me, I worry about everything even if it has no affect on me!

He doesn't like talking about it but I do kind of believe that there has not been any letters in quite some time as I was with him when he opened the letter the other day and really seemed surprised and didn't know what it was about till he rang Buchanan Clark and wells to find out as the reference name is aktiv or something like that not GE Capital!  He has asked them to send him out the details.  

What should they send him out at this point?


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## eeyore2502 (23 Jan 2009)

*Re: Debt Collection*

Meant to say GE Capital won't speak to me I did try!


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## Smashbox (23 Jan 2009)

*Re: Debt Collection*

I very much doubt it than any institution would just not write to 'remind' a person to pay. Maybe he missed the letters, or simply tossed them. I honestly think he will have to repay the loan.


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## Luckycharm (26 Jan 2009)

*Re: Debt Collection*



eeyore2502 said:


> Meant to say GE Capital won't speak to me I did try!


 
It is against the Consumer data protection act for them to discuss debts with anyone else bar the debtor unless he has given them written permission. 
For example would you like it if I rang up you bank asking about your debts/acs- over the phone you could be anyone.

Any institution will generally work with someone who is genuine and wants to clear their debts- it is in both their interests. I have no sympathy for people who just default on debts and never return calls/correspondence with regard to clearing debts.


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## jhegarty (26 Jan 2009)

*Re: Debt Collection*

How long ago did he send the car back ?


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## eeyore2502 (26 Jan 2009)

*Re: Debt Collection*

He sent the car back in late 2000 or very early 2001.  He is totally dening that they made any contact with him, and he thought because no contact was made that they must have got enough for the car to pay off the debt.


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## bond-007 (26 Jan 2009)

*Re: Debt Collection*

He needs to  invoke the statute of limitations.


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## eeyore2502 (26 Jan 2009)

*Re: Debt Collection*

Sorry probably a stupid question but how does he do this, does he just ring them or put something in writing?


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## bond-007 (26 Jan 2009)

*Re: Debt Collection*

He waits until they issue court papers. Do not contact them in the mean time.


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## eeyore2502 (26 Jan 2009)

*Re: Debt Collection*

Will he have to go to court?


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## bond-007 (26 Jan 2009)

*Re: Debt Collection*

Possibily, if the bank do not back down.


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## eeyore2502 (26 Jan 2009)

*Re: Debt Collection*

Thanks for your help, will pass the info on to him tomorrow.


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## Bronte (27 Jan 2009)

*Re: Debt Collection*



eeyore2502 said:


> Thanks for your help, will pass the info on to him tomorrow.


 Don't forget that you may not in fact be helping him.  If he gets out of this, and it is a relatively small amount, he may continue to live in a world where he thinks debts can be ignored and not repaid.


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## eeyore2502 (27 Jan 2009)

*Re: Debt Collection*

Very good point never thought of it that way!  Hopefully he will grow up soon and act his age!!


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## exbroker (2 Feb 2009)

*Re: Debt Collection*

My understanding is that the Staute of Limitations can only be invoked six years from the end of the relationship, ie when the loan is cleared in full. There is still a contract and legal relationship in place here even if there is as little as 1 Euro outstanding.


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## bond-007 (3 Feb 2009)

*Re: Debt Collection*

Wrong. You are very wrong.

It is six years from the last contact/acknowledgement of the debt. 

If the loan is cleared why would they be suing him? Think about it.


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## exbroker (4 Feb 2009)

*Re: Debt Collection*

Hi Bond

Well I could think of many reasons why a bank would sue after the loan is cleared, there could be a subsequent discovery, such as fraudulent cheque lodged to loan account or false representation on original loan document. The statute could also work both ways, ie, a client may want to sue the bank for overcharging after they have cleared the loan. 

I do stand corrected on the statute of limitations, but isn't this an incredibly tempting opportunity for anyone in negative equity to the tune of 100k to disappear until 2015?


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