Barclays student Graduate loan - been paying cabot since 2007 - help

[Elloello1]

Hi. I'm trying to help a person out who suffers from chronic anxiety issues so any help or advice would be welcomed.

 

Issue.

She started university 1998.

Deferred 2 years due to health issues and eventually she quit without ever graduating in 2003.

During this time she had a student bank account.

 

I'm informed that even though she did not graduate or complete her course,

that her bank account provider send her a letter offering her a guaranteed GRADUATE loan.

She found this odd but just thought that it was a product offered to all student account holders after a certain period of time, 3+ years.

 

Long story short, she said yes to the loan in 2004.

 

She can't remember ever signing an agreement to get the loan

but the funds were put into her student bank account.

 

Main issues here were she hadn't ever graduated,

she wasn't ever asked for proof of graduation,

she doesn't think she ever signed a contract for the loan

and she was subsequently in no position to repay the loan.

 

She defaulted on the loan in 2005.

Eventually the loan was sold to a dca in 2007.

She has been paying off a nominal amount now for 11 years via an informal debt management plan and her debt is still 5 figures, just.

 

It goes without saying that she's in a mess,

she's had this cloud hanging over her for long enough now

and she just wants to know what to do.

 

She has children, health issues and absolutely no means of repaying the debt anytime soon.

 

I informed her to do a debt relief order but she doesn't want her credit file being further destroyed for 6 more years.

 

Any advice on what to do or how to approach dca would be great.

For example, is the debt unenforceable in any way at all?

She contacted both the original loan provider and the dca and both of them could not provide the original signed credit agreement or contract

 

 

which leads her to believe that she never signed any legally binding document.

 

 

They both said that whilst they can't provide her with the exact copy of the original document, they can supply her with an agreement copy of sorts?? Thanks.

[AndyOrch]

Hi Elloello1 and Welcome to CAG

 

I have moved your thread to the appropriate forum ( Student loans/SLC)...please continue to post here.

 

Regards

 

Andy

[dx100uk]

can you name the original creditor and the DCA please too?

 

if they cant find the signed agreement

for a 2005 loan

they are in trouble

 

has she actually sent the DCA a CCA request?

 

 

dx

[Elloello1]

Hi dx

The original creditor was Barclay's and the DCA is Cabot.

She called them upon my advice to ask for the supposed credit agreement and they told her that the account was being placed in dispute and that collections would be froze until further notice. Therefore the only CCA request has been done verbally. I have told her not to send anything via email or post.

 

Thanks.

[dx100uk]

sounds like she has been cash cowed for years.

 

 

send a CA request to cabot

don't sign anything

leave the £1PO blank and uncrossed.

 

 

you shouldn't ever talk to DCA's on the phone

theres no legal remit to do so ever

 

 

don't forget

a DCA is NOT A BAILIFF

and has

NO SUCH LEGAL POWERS.

 

 

dx

[Elloello1]

Thanks.

 

If she doesn't pay anymore then she is literally terrified that the dca will try and subject her to court and a CCJ. Is it possible for then to do so? I'm almost certain that they haven't got the original CA agreement and won't be able to get it as she has called barclays and they admitted that they no longer have it. Apparently the dca were going to barclays for it!

 

Thanks.

[dx100uk]

they cant not without a signed agreement

hence WHY YOU MUST SENT the CCA request.

 

get her to read post 5 please

 

DCA are NOTHING WHATSOEVER

to be scared about!!

 

you or her have EXACTLY the same legal powers as a DCA.

 

prob why shes been cashj cowed for so long

got scared on the phone!!

 

a dca will say ANYTHING to get people to cough up

on the phone that they'll deny if they ever have to put it in writing.

 

stay off that phone to them!

 

dx

[Elloello1]

Thanks.

 

She is going to send the request off tomorrow exactly as stated in your advice. I will post back when she receives a reply. In addition.....she informed me that Cabot actually showed on her credit report as having searched her report without her consent! Is that even possible / legal?

 

Thanks.

[WarrenBuffet]

DX gives sound advice Elloello,she/he saved me from the clutches of an evil DCA.

[Elloello1]

Hi dx

 

My friend took your advice.

 

She requested an original copy of credit agreement.

15 working days had passed and they still hadn't provided her with one.

 

she called them to ask where it was.

They said that they had written to original creditor but heard nothing back yet.

She said that it was not legally enforceable then.

 

They agreed and said that the account was on indefinite hold until they heard back from Barclays.

 

She said so how long will it take until you write to her telling her that the account was now closed and unenforceable.

They said that they couldn't give a time frame and that they would just have to wait for Barclays to contact them.

 

She said well surely it can't be an indefinite amount of time etc and they said that it could and will be.

 

She has thus instructed payplan to stop paying the £24 a month to them as they stated to her on the phone..

....well if you're disputing the debt, then why are you still paying it?

 

She stated that she had mental health issues many years ago,

was not aware that she had ever signed an agreement and would stop paying immediately.

She further stated that she only paid the debt under duress and threat as she didn't want a CCJ etc.

 

Can you provide some feedback about what she should do please and can the DCA can take as long as they want,

keeping the account open, and my friend under a cloud so to speak?

 

Is there any legal avenue she should go down now to put this to rest once and for all please?

 

Many thanks.

[dx100uk]

Cash cowed blind then

 

Please never ring them again

 

Personally I would be demanding all the payments back from day one

 

Yes there is no time limit as such on a CCA return

But even if they do reply doesn't mean its enforceable again