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Irish Central Credit Register, Statute barred debt

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  • Irish Central Credit Register, Statute barred debt

    I live in Ireland and am wondering if someone can help. My husband received a letter from MBNA in late 2011 advising that they terminated the agreement and registered a default with the Credit Register. Also they wrote that the debt was still owed and they reserved the right to assign it to a collection agency or to sell it. After receiving that letter we stopped any communication with them or any other parties who bought the debt. This debt fell off my husband's record and he was able to apply for a car loan.
    Two years ago we received a Debt Claim Notice from Cabot registered with the local District Court, We didn't use a solicitor, because it is a Statute barred debt. We filed the Appearance and Defence form. Since then we haven't heard back from Cabot. It's going to be two years in April. I was doing my research and I understand that if the Claimant doesn't apply for the Court hearing 10 days after receiving the Appearance and Defence from the Respondent, the latter can apply with the Court Clerk for a hearing date and notify the Claimant accordingly.

    Also during these last two years my husband applied for a car loan and was denied. We checked his Credit report straight away. It shows that Cabot is reporting this Credit card debt as an active credit agreement. They also put in the column for past due payments as 100. We left it as it was. A year ago we got the credit report again. It had the same information. They just added for one of the months that the past due payments were 86, then 87 and so on until they reached 100 past due payments again. The sum owed however kept staying the same. They didn't indicate anything about the Court proceedings pending.

    I read the Credit Reporting Act 2013 and also explanations to it from the Central Bank of ireland website, It clearly states that the qualifying credit agreements and credit applications to be reported. I don't have any agreement with Cabot. MBNA terminated it, registered a default and sold them the debt. So my understanding is that it shouldn't stay on the credit record after 6 years passed, because there's no agreement, However, in the explanation booklet there is this explanation, and I don't understand if it applies to our case.

    I quote:
    " CIP ( Credit Information Provider) writes off the debt under a credit agreement internally, but continues to hold the CIS (Credit Information Subject) liable for the debt.
    If a CIP has written off an exposure, but is continuing to hold the CIS liable for the
    debt under the credit agreement even if the CIP is not in active pursuit thereof,
    the CIP must continue to report this credit agreement as an active contract on the
    The CIP must only report Write-Off under the Credit Status data field where the
    account is to be closed, i.e. where the CIP is no longer holding the CIS liable for
    the debt under the credit agreement"

    Also the Minister for Finance of Ireland explained last October about reporting defaulted loans. I quote:

    " However the Central Bank has advised that while it may be possible that a lender is statute barred from pursuing a borrower for repayment of a loan, the passage of time does not erase the actual debt and the loan may still be reported to the Central Credit Register.

    Also lenders may sell or assign the rights under a credit agreement from time to time and in such circumstances the obligations under the Act to report information to the Central Credit Register rests with the new owner of the loan."

    My question is this. The letter of default from MBNA says that they terminated the agreement, but hold my husband liable for the debt. If the agreement is terminated does it mean that there's no credit agreement in place, just a debt. Does it mean that Cabot bought the debt without the credit agreement in place. Does it mean that in order to report this debt on my husband's file, Cabot must have a credit agreement in place? My husband didn't enter into any agreement with Cabot about this debt. So my understanding is that Cabot is in violation of the Credit Reporting Act 2013.

    Before writing to the Central Credit Register, I would appreciate any insight into this.

    Thank you.

  • #2

    As you appear to be in the ROI, I think you need to seek advice from an expert in ROI law. We tend to be in the UK here on this site.