Debt recovery advice
Discussion
Evening Chums, after a bit of advice of anyone`s feeling helpful 
Very long story short my girlfriend it transpires, has previously managed to get herself in a bit of a pickle and I`m just finding out about it now.
In 2002 when she was 18 she fell in with the wrong crowd and was persuaded by a couple of the older ones that she should help them out and take out loans in her name for them which they said she`d never have to re-pay (yes stupid and naive, but hey ho).
Basically the loans were paid into her accounts and then withdrawn and given to these others (now long gone), she went off to uni and never paid any of the payments and ignored all correspondence.
In 2007 (the year before we met) when she returned from uni, the debt recovery agencies tracked her to her Mum and Dads address and demanded answers! (quite rightly). She was very panicked and filled out all their forms and agreed to minimal payments to the agencies (4 in total, 1 now paid off, 1 nearly there and 2 hefty ones remaining).
We are now 6 years down the line and I`m just finding out about it all now. As mentioned 1 is paid off completely, and one is nearly there, which funnily enough is how it has all come out now as they have just rung her and offered a 45% discount to settle early (but will only show on her credit score, for what it`s worth, as partially satisfied).
Coupled to all of this, we have just had a beautiful baby who is 2 months old today and money is now really tight as she is only receiving statutory maternity pay.
So, a couple of questions:
1) Should we accept the early settlement on the smaller loan, pay off now and save £480 total but only receive partial settlement on her credit record? Or just keep rolling for 11 months as is and receive full settlement on her record?
2) Should I approach the other 2 larger debts to attempt settlement at a reduced rate or leave as is? 6 years ago she owed £17k to one and £19k to the other, both initially £15k loans, but loaded up with PPi etc (although doubt this counts if payments were never made?). She tells me all interest and charges were halted at the time she entered the minimal re-payment agreement (both £75 per month), so in theory she should have cleared £11k ish off in the last 6 years.
NB: she has destroyed all paperwork as comes from a strict Italian Catholic family (all very lovely, but this wouldn`t go down at all well!) so I have very little to work with here! Also googling this it appears to throw up lots of info about debts being dead 6 years after initial default, which sounds daft but wanted some clarification (not that I think she/we should be able to just walk away from it) and was curious as to whether this is what has now prompted the smaller debt to approach for a discounted settlement?
In anticipation of standard PH responses, yes she knows she has been stupid and yes she is paying for it emotionally hugely at the moment, and no I am not looking for a get out jail free card! She is not looking to go down the miss-selling route, or chasing those initially involved!
Many many thanks in advance for any help
Dave
Very long story short my girlfriend it transpires, has previously managed to get herself in a bit of a pickle and I`m just finding out about it now.
In 2002 when she was 18 she fell in with the wrong crowd and was persuaded by a couple of the older ones that she should help them out and take out loans in her name for them which they said she`d never have to re-pay (yes stupid and naive, but hey ho).
Basically the loans were paid into her accounts and then withdrawn and given to these others (now long gone), she went off to uni and never paid any of the payments and ignored all correspondence.
In 2007 (the year before we met) when she returned from uni, the debt recovery agencies tracked her to her Mum and Dads address and demanded answers! (quite rightly). She was very panicked and filled out all their forms and agreed to minimal payments to the agencies (4 in total, 1 now paid off, 1 nearly there and 2 hefty ones remaining).
We are now 6 years down the line and I`m just finding out about it all now. As mentioned 1 is paid off completely, and one is nearly there, which funnily enough is how it has all come out now as they have just rung her and offered a 45% discount to settle early (but will only show on her credit score, for what it`s worth, as partially satisfied).
Coupled to all of this, we have just had a beautiful baby who is 2 months old today and money is now really tight as she is only receiving statutory maternity pay.
So, a couple of questions:
1) Should we accept the early settlement on the smaller loan, pay off now and save £480 total but only receive partial settlement on her credit record? Or just keep rolling for 11 months as is and receive full settlement on her record?
2) Should I approach the other 2 larger debts to attempt settlement at a reduced rate or leave as is? 6 years ago she owed £17k to one and £19k to the other, both initially £15k loans, but loaded up with PPi etc (although doubt this counts if payments were never made?). She tells me all interest and charges were halted at the time she entered the minimal re-payment agreement (both £75 per month), so in theory she should have cleared £11k ish off in the last 6 years.
NB: she has destroyed all paperwork as comes from a strict Italian Catholic family (all very lovely, but this wouldn`t go down at all well!) so I have very little to work with here! Also googling this it appears to throw up lots of info about debts being dead 6 years after initial default, which sounds daft but wanted some clarification (not that I think she/we should be able to just walk away from it) and was curious as to whether this is what has now prompted the smaller debt to approach for a discounted settlement?
In anticipation of standard PH responses, yes she knows she has been stupid and yes she is paying for it emotionally hugely at the moment, and no I am not looking for a get out jail free card! She is not looking to go down the miss-selling route, or chasing those initially involved!
Many many thanks in advance for any help
Dave
The 6 year statutory limitation is reset every time she makes a payment towards the debt I'm afraid.
If the debts started in 2002 and they were immediately defaulted on, they they should no longer be showing on her credit records. They have a simily 6 year provision which requires it to be removed 6 years after default. If they are still there, and the creditors refuse to remove them, make a complaint to the Information Commissioner under the Data Protection Act.
If the debts started in 2002 and they were immediately defaulted on, they they should no longer be showing on her credit records. They have a simily 6 year provision which requires it to be removed 6 years after default. If they are still there, and the creditors refuse to remove them, make a complaint to the Information Commissioner under the Data Protection Act.
13 DJP said:
but loaded up with PPi
Well seeing as we are in a storm of 'Have you been missold PPI?' malarkey, why have you scotched any idea to make a claim, and if successful, use it to pay off some of the capital?As for the discounted offer, personally I'd take the 45% discount and the credit score hit (which I expect is in tatters anyway).
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