Last payment date

[Shadow2981]

Hi, just a quick question - I have a default that was applied in 2009. It has just passed the 3 year mark.

However, following a [verbal - over the phone] complaint - a refund of interest was applied to the account in October 2011.

This was the bank though, who adjusted the outstanding balance - will the qualify as a payment received (i.e. the debt will not be statute barred in 3 years, but actually in October 2017)?

Also, the bank in question are reporting monthly to my credit file (whereas they didnt before) - so on every credit file (even though it only shows ONE default date) every month since 2009, there is now a D (and they do continue to add them every month).

Before, it used to just show one "D" (or one "8" on experian) - followed by a "U" or "--" for every month following the default and shows "last updated" as the beginning of every month.

Is this some kind of banker's trick to show that the default was there, so in 4 years, even though the default itself will have dropped off, the account will still show the last 6 years of "D"'s, illustrating that it was in default?

This was for a credit card if that helps...

[Susie]

Re: Last payment date

Be interesting to see what the experts say on this one, to me the refund would not constitute a payment but the fact that you contacted them even verbally with the complaint may well be construed as acknowledging the debt and restarting the statute barred clock.

[Shadow2981]

Re: Last payment date

I could be mistaken, but i believe that verbal contact is not considered adequate as acknowledgement of a debt, it must be written. I have read this in numerous places, but i know that doesnt necessarily make it gospel. If it does I may have to consider the unenforceable route. I know they have the agreement already, but the copy they sent me (signed by me so is original) is unreadable! Their copy may be crystal clear, as they did fax it to me, but i dont think it is considered enforceable.

Dont wanna take that route, or anything that involves me writing to them in any way if i dont have to, i just want to be sure it will disappear in 3 years. They really screwed me over with this account, and i want it gone for good...

[Riz]

Re: Last payment date

Regards the Ds, they are just updates to the status rather than new defaults. So once the original default is 6 years old ALL details of the account, including status history is removed from the CRA report. This is NOT going to result in anything staying on your report longer,

[Riz]

Re: Last payment date

Limitation Act 1980.

Section 29(5)

(5) Subject to subsection (6) below, where any right of action has accrued to recover—

(a) any debt or other liquidated pecuniary claim; or
(b) any claim to the personal estate of a deceased person or to any share or interest in any such estate;

and the person liable or accountable for the claim acknowledges the claim or makes any payment in respect of it the right shall be treated as having accrued on and not before the date of the acknowledgment or payment.

So payment or acknowledgement by anyone but you or your legal representative does not count.

In terms of the acknowledgement.

Section 31(1)

(1) To be effective for the purposes of section 29 of this Act, an acknowledgment must be in writing and signed by the person making it.

Phone calls do not count. Even if recorded.

[swanfan]

Re: Last payment date

This is one of my cards on my cr, re default date as rizzle says this will drop off 6 years from that date.

CR.JPG

[Never-In-Doubt]

Re: Last payment date

This was the bank though, who adjusted the outstanding balance - will the qualify as a payment received (i.e. the debt will not be statute barred in 3 years, but actually in October 2017)?

No the payment does not constitute a 'payment' per se, it is a refund of charges already applied and re-applied to the account as a retrospective value as at commencement, ie it does not count towards any limitation as it's applied at the date the card/account was opened but obviously shows a refund on X date (cos they can't lie to the system) - so you're quite safe.

The SB date will be 6yrs from your last payment into the account.

[Never-In-Doubt]

Re: Last payment date

For the benefit of others reading this, i'll elaborate.

The key is the actual wording of the Act itself - read this (thanks Rizzle)...

Section 29(5)

(5) Subject to subsection (6) below, where any right of action has accrued to recover—

(a) any debt or other liquidated pecuniary claim; or
(b) any claim to the personal estate of a deceased person or to any share or interest in any such estate;

and the person liable or accountable for the claim acknowledges the claim or makes any payment in respect of it the right shall be treated as having accrued on and not before the date of the acknowledgment or payment.

So as you can see, if a bank offsets a refund of premiums into your account YOU are not making the payment so it does not affect SB.

Other scenarios to help...

Would the bank utilising right of set off (RoSO) affect SB?
No - as above. The bank can utilise other funds from other sources within their group to repay a debt, known as RoSO but the key is in the Act - did you pay it or did the bank pay it on your behalf? You never thus this situation would not affect SB which would remain 6yrs from the date YOU last actively paid into the account or acknowledged it in writing (note the writing part - not verbal).

They used my SAR/CCA fee to pay into the debt
This is wrong and a simple threat to the ombudsman (you would go to the FOS) would normally make them put things right - they cannot use the funds for anything other than the request made under s.7 DPA1998 (SAR) or s.77/s.78/s.79 CCA1974 (CCA Request). Remember it's forbidden within the cca1974/dpa1998 for them to offset funds for a lawful request for info by either SAR or CCA - thus it's easy to sort and similarly, it would not affect SB.

[Shadow2981]

Re: Last payment date

Ah.. This makes things interesting! The last few payments were ones which they forcefully took out of an account i had with the same back. I put a stop to this eventually when my dad was abke to clear the huge overdraft they kept my trapped in (clear it, charges put me straight back into it). We cleared it and closed the bank account. That was 2008. The credit card people told me that there was a payment made in 2009, and i know i didnt make that payment, but they said it is nowhere near SB last year because of that...

Im pretty sure that was charges refunds also.

They told me they have no way of knowing where payments came from, just that there is a credit. As i said, i probably havent paid into it since 2007 actively...

[Never-In-Doubt]

Re: Last payment date

Ah.. This makes things interesting! The last few payments were ones which they forcefully took out of an account i had with the same back. I put a stop to this eventually when my dad was abke to clear the huge overdraft they kept my trapped in (clear it, charges put me straight back into it). We cleared it and closed the bank account. That was 2008. The credit card people told me that there was a payment made in 2009, and i know i didnt make that payment, but they said it is nowhere near SB last year because of that...

Im pretty sure that was charges refunds also.

They told me they have no way of knowing where payments came from, just that there is a credit. As i said, i probably havent paid into it since 2007 actively...

don't worry, they won't pusue it much now anyway to be honest..... if they do let us know, i'll sort you a letter that'll kick em into touch.

The actual SB date is the month of the first missed payment plus 6yrs so if you last paid jan 01 it'd be SB'd in Feb 07. The other payments were not paid by you, a SAR will verify this (muppets)

[Shadow2981]

Re: Last payment date

Ok, there is a really really long story behind it, but basically it surfaced in august because of a search by a dca appearing on my file.. I had forgotten completely about this debt coz i had 2 cards with them, one which i thiught was an upgrade, and because of massive arguments constantly with them i got mixed up, moved house, updated my address, but they failed to.update it for one of the cards.

They have denied this being their fault as i did ring up and pass.security by providing the old address when i phoned in, and they said i should have updated it then (i dont remember any of these but im sure i was probably too furious to worry about that, as i only ever contacted when they really pee'd me off).

Anyway, after this dca search i queried it by ringing up dca, and genuinely believing it was an identity fraud by someone who had obtained old information about me (as id been gone from that address for a few years by now), and having read nightmare stories about this dca, i denied knowing the address and they sent the account back to creditor for investigation.. After many arguments, and getting hospitalised and jeopordising my new career because of the stress caused me (the default was there, but didnt show up to ME on any reports, so i had a 980/1000 score but couldnt get credit anywhere)... They determined it was my account, sent me every statement, faxed all cca's i had with them, but didnt send me the default notice (which was sent to my old address apparently anyway, and coveniently would have arrived a week or so after mail redirection ended). They apologised for not updating the system and for making me ill (i was perfectly healthy prior, then developed a heart issue, which i am still recovering from) and sent me £300 compensation, which i didnt cash, and an offer to reduce the debt for 50% (£2400).

Originally, they agreed if paid in one go, they would remove.default, but.then when i asked if they would agree to make the other 50% compensation so it can be markes as fully paid, rather than partuL, they withdrew the offer of removing default and said no to that query.

Recently i received a letter advising that i owe money and asking me to pay it, thats the first contact i had about it since they sent the final response in september/october 2011, but.i think they are going to start pursuing it...

[Never-In-Doubt]

Re: Last payment date

Please provide the following info:

To help me, to help you, please provide the following information for each account:

• Type of account (credit card/loan)
  
  
• Date commenced (ideally before Apr 2007)
  
  
• Approx balance
  
  
• Date last paid (approximate date you last made a FULL payment)
  
  
• Are you on arrangement or not paying
  
  
• Status (default/in arrears/up-to-date)
  
  
• Account owner (who is writing to you, a DCA or the lender)

[Shadow2981]

Re: Last payment date

Credit card (LTSB)
Ccommenced.2005 i believe
Current balance is. 4800'ish
Defat notice sent november 08, and applied may2009 is.what there records.state
Early.summer 2007 i paid in around.1000 2 meet that layment, then immediately withdree 1300 to buy a motocross bike.i dont.remember payments made.by me after this,.they were all forcefully taken.oozy
Not paying
Default -.default value 5700 but outstanding balance.is 4800 odd coz of the refund.
Account.owner lloydstsb, having taken it back.from.wescott.to investigate.

Hope this helps

[Shadow2981]

Re: Last payment date

Sorry bout typos, im doing.this all on my phone!

[CleverClogs (RIP)]

Re: Last payment date

They told me they have no way of knowing where payments came from, just that there is a credit.

If that were true - which I seriously doubt - there would seem to be no way they could prove it is not already SB.