Unpaid student loan from 1994

[pastcatchingup]

Hi, hope someone here can give me some advice!

 

After looking through the threads on this forum I feel that I do have a corner to fight this issue. I went to university in 1994 and took out a student loan for £1,150 then promptly dropped out of the course, went back home and onto the dole, forgetting all about the loan. I have had limited if any letters from the Student Loan Company since this time.

 

I received a phone call the other day from the SLC stating that I owed them around £1,600 and whether I could pay it all off there and then. Seeing though I have just got a mortgage plus other debts I told them no and they asked how much I wanted to pay, giving them a ball park figure of around £20 a month. I stated to them that if I had been given the option to repay the loan I would have done, understanding that it's paid over 5 years.

 

I received a form which I detailed all my incomings and outgoings and have posted back today, working out my disposable income at around £140 per month and offering to pay £40.

 

However seeing though the loan is so old (14 years ago) would the loan be statue barred? I feel a bit confused about this...

 

I also feel that the SLC have been harrassing me since, I phoned them back to ask some questions since the 1st phone call but know that they are phoning me every day but not saying anything because when I dial 1471 it's their phone number.

 

I have not made any payment up to this point.

 

Hope someone can help me, many thanks!

[majik]

Hi i would say that as they have your address wait for a letter, If they found again imform that that you will only deal in writting with them and that you will report them for harressment should they continually phone you. then once you have the letter from them we can help you out a little more etc.

[krysus]

Simply write to them stating that you do not acknowledge the alledged debt. Providing you have not acknowledged the debt (verbally, writing, or made a payment) in six years, then yes, it's statute barred.

[maroondevo52]

Hi, Pastcatchingup.

 

Like Krysus say's, this 'alleged' debt will be Statute Barred.

Send them letter 'M' in the library.

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Regards.

 

Scott.

[Sol]

Hi the debt won't be statute barred as it is public money, not commercial.

[krysus]

Hi the debt won't be statute barred as it is public money, not commercial.

 

Makes no difference, it would've still be executed under CCA 74.

[Sol]

Sorry, my mistake

[pastcatchingup]

Hi, thanks for your help!

 

Have filled in the statute barred letter and am just about to post it!

 

I think my worry is that I sent off the form with regards my financial incomings and outgoings and stated on the end of the form that I could offer to pay £40 a month. Is this acknowledging the debt? Also when they phoned me up and asked me how much I could pay was this acknowledging the debt as well?

 

Still, suppose by sending the letter will buy me a little bit of time and I haven't heard from SLC for well over a week except for them sending me 3 statements (that only go back to 1998 and not the start of the loan) and my original form:o

[krysus]

Hi, thanks for your help!

 

Have filled in the statute barred letter and am just about to post it!

 

I think my worry is that I sent off the form with regards my financial incomings and outgoings and stated on the end of the form that I could offer to pay £40 a month. Is this acknowledging the debt? Also when they phoned me up and asked me how much I could pay was this acknowledging the debt as well?

 

Still, suppose by sending the letter will buy me a little bit of time and I haven't heard from SLC for well over a week except for them sending me 3 statements (that only go back to 1998 and not the start of the loan) and my original form:o

 

Unfortunately, i believe this correspondence will count as acknowledging the debt

[maroondevo52]

Hi, Pastcatchingup.

 

Don't send them the form. Just send the Statute Barred letter and see what they come back with.

 

Regards.

 

Scott.

[pastcatchingup]

Just received a phone call from the SLC asking me to pay the loan in full, informed them that I had sent a letter off on Monday and sent "something off 2 weeks ago". When the lady stated "what do you mean by something?" I asked them if they had received any correspondence from myself (referring to the income form) and she said "no". I informed them that the loan was "statue barred" and she informed me that the SLC had sent me numerous letters over the last 6 years. I did inform her that I had lived in my previous address for nearly 3 years and not heard anything from them even though they quoted said address in their initial phonecall. I was on the electoral register during this time.

 

If the SLC have tried to contact me during the last 6 years is the loan statue barred?

 

I've informed the SLC that I will only contact them via post and they have taken my number off their records.

 

Will wait to see what happens next!

[maroondevo52]

They can send you as many letters as they like, as long as you have not acknowledged the debt in writing or made any payments, it's Statute Barred.

 

 

Regards.

 

Scott.

[pastcatchingup]

Received a reply from SLC yesterday, in a nutshell they've stated that

 

"Creditors are still able to pursue an unsecured debt if:

 

You have established any contact with the creditor (this can be a phone call or letter to request a balance or change you details), except to deny that the debt exists.

 

As per your telephone call on the 18th June where you have already made an offer you are not covered by this."

 

Nothing mentioned about paying this back!

 

Within the statements sent I'm not sure if I earn enough and was wondering if I could defer?

 

Also I've heard that if you offer to pay off an certain amount that they have to accept that offer, is that true?

[Sol]

I think your next option would be to send a Subject Access Request so that you can see all correspondence between yourself and SLC.

 

In answer to your question, that is not true.

[emmaf01]

Do a SAR and start with big bold letters-

 

I DO NOT ACKNOWLEDGE THIS DEBT

 

THIS ACCOUNT IS IN DISPUTE.

 

End the letter saying you will only deal with this in writing and any phonecalls will be logged and recorded to be reported as harassment.

 

Send recorded delivery.

 

I've dealt with the SLC and won, getting all fees charges refunded. I took them to court. You can win, they just act like a bunch of idiots.

[pressure2]

Hi, I have a similar issue, went to Uni between 95/98, original pre 98 loan was deferred for one year then I heard nothing further, until last week that is.

 

They say a CCJ was issued (which has now expired) and that I still owe them £6,300 including court fees. I don't recall how much I originally took on as SL, they tell me it's £5,999, but I don't recall - been a long time. They will not accept deferment saying that that option has gone since legal route was taken. I have not received any correspondence of any sort since '98-'99.

 

Can anyone please offer any advise. I'm also a couple of yrs off 50, I thought if I could maybe defer for a couple of yrs, (as i still don't earn the 85% of Nat. Av.) & it would expire. Seems I will expire first!

 

Any advice greatly appreciated. Would have been interesting to know how this person got on?

[emmaf01]

Pressure2, have you started your own thread so people can advise on your specific case? And a SAR and CCA (for pre1998 loans) are usually the first place to start.

 

Remember to start by saying the account is in dispute and you do not acknowledge the debt (in really big bold letters so they don't accidently miss them). That's the only way to find out what has been going on with the account (and £5,999 seems like an odd amount for them to pluck out of the air).

[Mike Brown]

Hi I wonder if someone can advise me on a similar matter. I left university in the early 1996 with a student loan of around £3000. Very shortly after I went to live overseas and was earning at the time £300 a month and sent at letter to the student loans company saying that I would have trouble repaying anything for the time being. I had nothing back and within two months moved to a new place. As a result I am unaware of any return correspondence.

 

I returned to the UK in 2002 and have had no contact whatsoever from SLC. However, I have recently received a letter from a debt collectors saying that I must pay the sum plus interest in full on behalf of SLC.

 

I am in a difficult situation now because I have a young child, work full time on a salary of under £20,000 a year and am unable to even save anything let alone settle a debt because my salary doesnt even cover the cost of living for my family. Also I have no essets whatsoever, no car, and nothing valued over £100 even in my flat.

 

Firstly, should I still be responsible for the debt. And if that is the case how can it be recovered by debt collectors if I have nothing to give.

 

Please help.

 

Mike

[maroondevo52]

Hello and Welcome, Mike.

 

Have a look at this..........

 

Law relating to debts: statute-barred debts

 

If a lender allows time to pass without receiving any payment an action for recovery may become barred.

 

Under the Limitations Act 1980 the time limits are

 

* in simple contracts (credit cards, loans, etc.), 6 years

* in contracts under seal (mortgages), 12 years.

 

If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.

 

Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt and you receive evidence that the payment has been made.

 

The above instructions do not apply to debts in Scotland. Under Scottish law, if a lender allows time to pass without receiving any payment an action for recovery may become barred under the Prescription and Limitation (Scotland) Act 1973. (For details of this Act see Gloag and Henderson 10th edition at Chapter 15.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

 

To sum up, basically once a debt becomes statute barred it is up to the debtor whether or not they wish to pay the debt. A debt can not become unstatute barred.

 

 

If you think the 'alleged' debt is Statute Barred, send the DCA letter 'M' from the library.

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Send it recorded and don't sign the letter.

 

Regards.

 

Scott.

[Mike Brown]

Scott, Many thanks for the info. It's put my mind at rest somewhat. Is anyone aware whether or not it matters that they may not have received my original correspondance giving a new address and stating my low earnings. Like i said, I know I sent it, but if it's got lost in the post as can happen more easily with overseas mail, can that change things anyway?CheersMike

[rambojones]

I took student loans in 1991 to 94. I have always deferred the loans each year as have never earned above threshold to repay them. I was told at time of taking loans that they would be written off when I reached 50 (I was 39 when I took them out and was worried about repaying them). When I reached 50 they said it was 60 because I was over 40 when last loan taken in 1994/5. I am furious as I would never have taken the loans in first place. I will be 56 next month and next month will get a pay rise taking me over the threshold and have made arrangements starting 18th of August to begin repayments. However, i wonder how I fit in with the Statute bar as it has been 17 years since first taking a loand and 12/13 years since I took the last student loan in 1994/95??. I did begin repayments a few years ago maybe 3/4 years ago but only 2/3 payments which I got back from them as I was able to defer it again (lost a job). I have formally complained to them about being misled initially about the age 50 rule and am going through that process, I have also complained to Financial Ombudsman today as well as the SLA come under them now. Can anyone help me at all?? Do I have a leg to stand on?? I am so bitter as I have almost no pension to speak of and only 9 years till I am 65, to save for one. I am also disputing the monthly payments as I worked out using the FSA website calculator that based on my repayments, the SLA interest rate would have to be 6.34% and not the 4.8% they say it is; am waiting for a response about this. Help please someone?????

Sorry for long post but I am fit to be tied as they say.

[emmaf01]

I don't think deferring each year would allow the debts to be statute barred- its like acknowledging the debt and promising to make a payment in the future, every year.

 

Do you have any charges on the accounts which you could claim back?