do i have to pay this debt?

Question

had letter from bank for a debt over 10 yrs ago. i got overdrawn when their machine cocked up and they gave me money i didnt have. i thought it was all sorted 10 maybe 12 yr ago . i did not have an overdraft as i didnt want to get in debt but without my knowledge they put one on and i ended up 127 pound overdrawn. i took out the money coz the machines were down and i had to use another banks machine.it did not give me a balance , back then some didnt if u didnt bank with them. anyway , all this time later they want money wot do i do. obviously if i have to pay i will , but can i decline, offer lower payments or what?

i have just rung them and they said its from sept 1998, they have been dealing with it since feb this yr. i told them im going to see citizens advice and she hung up phone... wot now ? did i do the right thing?

Answer 1

Debts, as far as I'm aware have a limit of time. that aside you have enough cause not to pay the debt anyway. Speak to your local Citizen's Advice Bureau in the first instance and they will advise you. It sounds like the bank's usual bully-boy tactics.

Answer 2

Keep the 500 as your emergency fund, pay off the debt as fast as you can with all other money. Once that is finished start building your 3-6 months take home pay emergency fund. Once the debt is paid off you will have more cash to build the savings very quickly. Dave Ramsey sometimes recommends a 500 dollar emergency fund for students and people just starting out. Don't be concerned with interest rates between your savings and credit cards. This will only keep you in debt longer. Attack one problem at a time. Fucus all of your attention on one goal at a time. You will have more success this way. If your try to gradually pay off the debt while saving. You are likely to get discouraged and quit the plan all together or and emergency will happen and you will stop the plan. Good Luck

Answer 3

Crikey! They've left it a while. Why? I would go into the branch and ask them what they're talking about and from what date - when they say 10 years ago, I think they'll feel pretty stupid.

Speak with your local Citizens Advice Bureau - I am pretty sure this debt should have been cancelled years ago.

I have been told that it's a 6 year term to reclaim debts - which is why you can only claim excess bank fees for the last 6 years of your account.

Answer 4

loans that arn`t secured on property like overdrafts,credit cards and mail order are often known as "low priority debts"you usually have to deal with these yourself by comoing to some kind of an arrangement to pay all or some of it depending on your ability to pay.as long as you keep up the arrangement they cannot take the case to court.If they do all the court can do is say yes we acknowledge you owe the money gut as it is a civil case they have no powers.all they can do is let the creditor try to recover the debt,>Remeber that being in debt is not a criminal offence.Unless it is for counciltax arrears/custom and excise/court orders ie CSA.You would get a CCJ but ho hum most people have got one by now anyway,its just to say that someone has notified the court that you owe money instead of telling thier mum.You CAN do this though...dont agree you owe the money claimed for...you didnt sign a credit agreement or the creditor has made a mistake..If you dont pay the debt they will pursue it for a bit then sell the debt on...so say if you owed £1000 and you didnt pay they would cut thier costs sell it on for about 30% of its value, the buyer of this would only have to recover £300 to get his money back plus costs although they will tell you you still owe £1000.if they dont get the money they sell it on untill nobody wants it and it gets written off.and thats where you have got to...They now are probably at the last point at which they will try to recover the debt before it is written off completely,It may stay on your credit marking with somebody like Experian but you can at a small fee get it written out of your profile.Now for the good news.......The LImitations Act 1980...maximum time allowed for recovery of debts...12 years for a mortgage,6 years for most other debts or acknoledgement of a debt in writing.ie if they havn`t contacted you in the last 6 years in any form they can go and kiss your **** it`s thier problem ,you gave them ample time and they didnt bother,you therefore owe them diddlesquat.They mat try "harrasment to pay" but remember you have Basic Human Rights on this they have now been written into law and you MUST excercise them.
Check up with citizens advice.but if they persist in the debt see a solicitor for the 30mins freeby
hope this helps.

Answer 5

The debt is cancelled after 7 years ONLY if you can show that you have not been chased for that period.

If the bank has been sending you reminders throughout the period and can prove it, then you owe the debt.

If this is the first thing you have heard in over 7 years, then the debt has to be cancelled.

Speak to your local citizen's advice.

Answer 6

Ho go get advise from the c.a.b it sounds like there mistake anyway and such along time ago well im not sure but if you have to pay offer them a small amount if they refuse then they wont get anything. Banks are rip off merchants i know i worked for one once what a legal rip off they are.

Answer 7

Check this out at the Citizen advice bureau but I think any debt beit bank or not is considered null and void after six years. But like I said check it out.

Good luck.

Answer 8

the best is to write to your bank manager and explain your situation. in some cases when the bank acknowledges that it was a mistake even if it was partially the customer and partially the bank, they can show a one off good gesture and not ask you paying or reduce your debt. but you have to play really cool and pretend that you have not been aware of how they were intending to help you by giving you an overdraft etc etc...and apologise and even mention that you would consider switching the banks if they are not informing their customers about giving overdrafts ...

Answer 9

You don't have to pay this. If the last point of contact was more than 6 years ago then you don't have to pay it. They are relying on you not knowing this. In their defence, there's no harm in trying is there and a lot of people would pay it because they don't know about this but if you know your rights you'll be ok.

Answer 10

you will have to pay it like you said basically what you need to do is work out how much you can afford to pay them each week/month write all your income and outgoings down and send this to your creditor they are normally good at accepting offers providing you are resonable some people accept as low as £1 a month