HOW LONG DOES IT TAKE IN SCOTLAND BEFORE DEBT IS WIPED?

Question

I have "debt" to a company in Scotland (I'm from there) which is actually their fault.

It was an administration error on their part and it was an overpayment that they made to me 3 and a half years ago.

I wrote to the company, telling them that it was, in fact their fault (after having sought advice from the citizens advice bureau, they told me that this was in fact true), and I had no correspondence whatsoever for 3 years.

Just recently, I received a letter from a debt collection agency, on their behalf, telling me that I must pay the outstanding balance.

Firstly, are they allowed to pass it straight on to a debt collection agency, without sending any correspondence to myself? 

Secondly, how long does it take before debt like this is wiped? They are now threatening me with court action as I refuse to pay them!

Thanks for your help.

Margaret S · Accepted Answer

You say it was an 'overpayment' they made to you. Without more info my impression is that It isnt really a matter of 'fault'. If you were 'overpaid' something then you have to pay it back. Admin errors do happen. E.G if you had been overpaid by an employer they are entitled to recover the money. 

Why shouldn't they? You are obviously aware that you were 'overpaid' and say you have even written to them saying so. Why do you think an overpayment should not be returned.

If you had paid too much on your Council Tax bill you'd expect the surplus back wouldn't you?

As for selling on to debt collection companies etc yes anyone can sell on a debt if they want to.

As fr debt being 'wiped' this is a bit of a fallacy. Debts are not 'wiped' the original creditor may well stop trying to get payment but as you have seen they will 'sell' the debt onto someone else who will try to get the money from you. The debt agency in turn can sell the debt on etc. This can happen many times so even 20 years from now you could have someone knock at the door looking for payment.

Maximus300 · Answer

I live in Glasgow so this should be OK for you, however, I am NOT a debt advisor by any means so here goes.

My friend was in a similar position with regards to debt.  They should have sent some sort of correspondence to you because this will now be on your credit report which will now make it more difficult to obtain any sort of lending in the future.  If you were to declare bankruptcy, this stays on your credit file for 5 years.  If this happens, you can't even get a mobile phone contract cause they do these searches.

If its their fault, how can they expect you to pay.  What is it exactly that you have an outstanding balance for?

Anonymous · Answer

All you have to pay is the amount of the overpayment nothing more, Be sure you get a credit Clarence report in writing, then check with other credit reporting agency's to be sure it's cleared right down the slate. They should have been aware of this overpayment when their books were balanced at the end of the month. You should have been notified at that time and giving the chance to pay back their error in in a timely manor when paid in full your debit will be removed, but be certain to get the clearance in writing

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HOW LONG DOES IT TAKE IN SCOTLAND BEFORE DEBT IS WIPED?

3 Answers